Northrop Grumman wins IRS contract worth $118 million

Northrop Grumman Corp. is keeping the third iteration of a tax form processing contract with the Internal Revenue Service, a deal that could be worth $118 million.

Northrop Grumman Corp., Los Angeles, is keeping the third iteration of a tax form processing contract with the Internal Revenue Service, the company announced Feb. 18.

Northrop Grumman's Information Technology sector will provide IT maintenance support for the Service Center Recognition Image Processing System III, or SCRIPS III, contract. The new contract is for nine months and includes nine one-year options, with a total value of $118 million.

Northrop Grumman also will provide annual program changes based on legislative requirement changes to the tax code, make technology enhancements and refreshment and implement new applications as requested by the IRS to improve its business mission in the submissions processing area.

Northrop Grumman teammates include NCR Corp., Dayton, Ohio, and Network Computing Systems, Fairfax, Va.

Northrop Grumman IT was awarded SCRIPS I in 1993 and SCRIPS II in 2001. The company has processed more than 850 million forms to date. SCRIPS is a data capture, management and storage system that processes two types of forms for the IRS, the Information Returns Processing form and Federal Tax Deposit coupons.

"With this contract, Northrop Grumman IT remains at the leading edge of tax submissions processing and document management solutions," said Jim Perriello, president, Government Solutions, Northrop Grumman IT.