The Department of the Treasury announced a major series of BPAs (Blanket Purchase Agreements) advancing IRS IT modernization. Coverage from Treasury, Accounting Today, and OrangeSlices AI.
Major partners and scope
| Partner | Contract value | Scope |
|---|---|---|
| Salesforce | Extended BPA | Taxpayer-facing services, online accounts, contact-centers |
| Palantir | BPA | Unified API layer, data integrity, developer platforms |
| Iron Mountain | $714M | Tax/Information Returns Digitalization-as-a-Service |
| 22nd Century Technologies | $664M | Tax/Information Returns Digitalization |
| GovCIO | $467M | Tax/Information Returns Digitalization |
| VASTEC | BPA | Modernization support |
Lingering issue: legacy systems still aren't gone
Per Federal News Network, IRS has yet to actually decommission legacy systems. The new BPAs add modern capabilities without removing older mainframes. Tech-debt headwinds remain.
What to do
- If you provide IT services adjacent to digitalization (data quality, OCR, classification): pursue subcontract relationships with the three digitalization primes
- If you serve Salesforce or Palantir ecosystems: implementation and integration subcontract work follows
- Watch the next Treasury/IRS strategic-plan release (expected early 2026) for FY26-FY30 priorities