GOVERNMENT

IRS Affirms Contract Award To AT&T;: The Internal Revenue Service has reaffirmed its decision last year to award a $1.4-billion contract to American Telephone & Telegraph Co. to update the tax agency’s computer systems. The IRS decided in July to give the contract to AT&T;, but International Business Machines and Lockheed Missiles & Space Co. protested. A panel of IRS and independent experts re-evaluated IRS needs after the General Services Board of Contract Appeals ruled that the tax agency had not adequately justified awarding the contract to AT&T;, the highest bidder.