Arthur D. Little Awarded $88 Million eLearning Contract from Internal Revenue Service

October 20, 2000

CAMBRIDGE, Mass., October 18, 2000 The Internal Revenue Service (IRS) has awarded Arthur D. Little a five-year $88 million contract to provide a broad range of distance learning services designed to help the agency retool its workforce and improve performance.

The award, made possible under the IRS Learning and Workforce Development program, is the largest eLearning contract ever awarded by a civilian government agency, and positions Arthur D. Little as a leader in eLearning, a rapidly emerging new marketplace.

“The eLearning marketplace is emerging and will grow rapidly,” said Cushing Anderson, program manager for International Data Corporation’s Education and Training Industry Research Services. “This partnership between Arthur D. Little and the IRS can serve as a model for other large eLearning initiatives, positioning ADL for similar eLearning opportunities in the public sector.”

Under the IRS agreement, Arthur D. Little and its university partners will deliver undergraduate and graduate level college credit courses to IRS employees nationwide by employing “blended learning” that includes online, classroom, and interactive video. ADL will help customize courses to target improvement in both individual skill levels and organizational performance in 11 program areas, including customer service, taxation, communications, and information technology. The opportunity to earn credits, certificates, and degrees should also enhance employee recruitment and retention efforts, which are essential to the success of IRS modernization.

“The need to attract, train, and retain talented employees is critical to efforts by the Internal Revenue Service to update its technology, improve key business processes, and reorganize around a customer-based business model,” said Ronald Sanders, Chief Human Resources Officer of the IRS.

Steve Nichols, vice president and director of Arthur D. Little’s Public Sector Management Consulting practice, added: “By tightly linking competencies and coursework to individual and organizational performance, and making the opportunity broadly available to employees through distance learning, the IRS has taken a truly innovative approach to addressing the crucial workforce dimension of its modernization effort.”

In addition to delivering distance learning, Arthur D. Little will work closely with its university partners to conduct research and benchmarking studies to continually improve the effectiveness of online course design and delivery for the IRS.

Arthur D. Little university partners include: Arthur D. Little School of Management, University of California at Berkeley, Carnegie Mellon University, Cornell University, Ferris State University, Florida A&M University, Florida Community College, Florida State University, Georgetown University Law Center, George Washington University, Howard University, Indiana University, University of Minnesota, University of North Dakota, University of Texas at Austin, and Villanova University School of Law.

Arthur D. Little expects to deliver its first customized courses beginning in January, 2001.

About Arthur D. Little

Arthur D. Little (www.arthurdlittle.com) is one of the world’s premier consulting firms, with offices and laboratories in more than 30 countries around the world. Founded in 1886, the company has continually set the standard for excellence in management consulting, technology & innovation, and environment & risk management. Working closely with its clients, Arthur D. Little uses innovation to help leading organizations achieve rapid growth and breakthrough results. The company offers an unparalleled breadth of expertise in creating strategy, developing innovative technologies, managing organizations to create lasting value, and helping companies implement e-business strategies to transform themselves in the new economy.

Contact Info

Twig Mowatt

Arthur D. Little

(1) 617.498.7366

mowatt.twig@adlittle.com

Amy Seigenthaler

Rasky/Baerlein Group

(for Arthur D. Little)

(1) 617.443.9933 x327

aseigenthaler@rasky.com