IRS Awards Multimillion-Dollar Fraud-Prevention Contract to Equifax ⇥ politico.com

Steven Overly and Nancy Scola, Politico:

The IRS will pay Equifax $7.25 million to verify taxpayer identities and help prevent fraud under a no-bid contract issued last week, even as lawmakers lash the embattled company about a massive security breach that exposed personal information of as many as 145.5 million Americans.

A contract award for Equifax’s data services was posted to the Federal Business Opportunities database Sept. 30 — the final day of the fiscal year. The credit agency will “verify taxpayer identity” and “assist in ongoing identity verification and validations” at the IRS, according to the award.

The notice describes the contract as a “sole source order,” meaning Equifax is the only company deemed capable of providing the service. It says the order was issued to prevent a lapse in identity checks while officials resolve a dispute over a separate contract.

This is the single greatest example of incompetence I’ve seen today, and that includes the American president flinging paper towels at suffering people in Puerto Rico and confusing the Coast Guard and Air Force at a press conference.