Federal Manager's Daily Report

The Internal Revenue Service has plans to cut 274 jobs in

its three area distribution centers as well as 218 IT

positions from its “MITS” modernization and IT services

operations, following competitive sourcing studies.


Two distribution centers will be closed, one in Richmond,

Va. accounting for 139 positions and another in Rancho

Cardova, Calif., where 49 positions will be terminated.

The Bloomington, Ill., center will stay open and lose 86

positions.


The number of campus-operations MITS employees in its 10

service centers will be cut from 278 to 60 and each site

will be reduced to five employees from the 19-36 campus

operations employees currently at the service centers.


The National Treasury Employees Union said IRS carried

out the competitive sourcing studies, “to fulfill the

administration’s unstated quota of forcing federal agencies

to compete certain percentages of jobs against the private

sector,” and said the losses could have been minimized

through reorganization and streamlining to achieve its

workforce goals.


IRS has released a strategic plan for 2005 — 2009 stating

its intention to tighten operations and modernize business

processes, and said it would devote more people to front

line positions, leverage new technology, implement an

improved personnel system and consolidate back-office

case processing activities.


IRS also said it would streamline the examination process

to improve workload selection and casework quality and

reduce cycle time, said NTEU.


It said it is urging IRS to use buyouts, priority placement

and a hiring freeze to safeguard current jobs, and to look

into attrition and retraining to achieve workforce goals.