The IRS spent $47.8 million for hardware maintenance contracts in fiscal 2012 but in some cases maintenance payments were made for services neither needed nor received, the Treasury Inspector General for Tax Administration has said.
After reviewing seven maintenance contracts it found oversight weaknesses. For example, in one contract the IG found 10 out of 64 assets (switches, located in the Development, Integration and Test Environment) that were retired six months beforethe January 2013 end of the contract period. The agency continued to pay the same $6,692 monthly maintenance fee despite the reduction in covered assets.
Across multiple contracts the savings can add up. The IRS agreed with recommendations and plans to emphasize with managers the need to follow IRS policies regarding the administration and oversight of hardware maintenance contracts.