IRS pays high price for HR system

The Treasury Department's failure to adequately manage implementation of IRS' new human resources system pushed the price much higher than at other federal agencies, according to a new report from the Treasury Inspector General for tax administration.

Poor planning, inconsistent and incomplete business case analyses, and lack of adequate oversight by Treasury caused problems with HR Connect, designed by Treasury to replace its disparate and expensive HR systems, the report said.

Treasury spent $173 million to install the HR Connect system. By comparison, the Coast Guard spent $24 million, and the Agriculture Department spent $15 million, the report said.

So far, 11 Treasury bureaus have cut over to the integrated system.