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A data broker snarled in a high-profile breach earlier this year ...

A data broker snarled in a high-profile breach earlier this year has won a 5-year Internal Revenue Service (IRS) contract. ChoicePoint said Mon. the $20 million deal gives the IRS access to its custom data solutions. The award is…

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for batch processing, which involves automated delivery and processing of data files, cutting the need for human intervention and enabling clients to generate relevant data on large populations in a timely fashion, ChoicePoint said. More than 25 federal agencies use ChoicePoint batch solutions to support their daily activities. The company in Feb. revealed the possible disclosure of data on more than 100,000 individuals in a breach, after which thieves defrauded numerous victims. Senate Judiciary Committee Ranking Democrat Leahy (Vt.) called the deal “especially galling right now to be rewarding firms that have been so careless with the public’s confidential information.” ChoicePoint’s recent breach was scrutinized in recent Judiciary Committee hearings Leahy requested. “The dust has not yet settled and the investigations are incomplete on ChoicePoint’s lax security practices,” he said. “We should at least take a pause before rewarding such missteps with even more government contracts.” The senator added that Congress needs to study these contracts and the adequacy of their provisions to protect security and privacy and their penalties for failures. Leahy said the contract highlights the need for the legislation he and Chmn. Specter (R-Pa.) have drafted. The bill would place privacy and security front and center in evaluating whether data brokers can be trusted with govt. contracts that involve sensitive information.