Review of General Services Administration's Acquisition of ADP Resources

AFMD-81-21: Published: Dec 17, 1980. Publicly Released: Jan 27, 1981.

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GAO reviewed the plans of the General Services Administration (GSA) to acquire automatic data processing (ADP) resources and further extend the interim sole-source procurement of the Computer Sciences Corporation (CSC) INFONET contracts for teleprocessing services. It also reported on its findings on the long-range GSA plan to acquire ADP resources to support its internal data processing requirements and its concerns with GSA plans to remove certain ADP applications from CSC.

GAO has concluded that GSA has not conducted its acquisition of ADP resources in accordance with Office of Management and Budget (OMB) Circular A-109 under which a competitive demonstration of alternative system design concepts submitted by vendors should be performed. Vendors are submitting proposals to support current applications without knowing what the redesigned system will look like. GSA will not meet its current milestones for acquiring its long-range ADP resources. Congress has been concerned about the continued reliance by GAO on sole-source, noncompetitive extensions of CSC contracts. GSA suspended CSC from future contracting and subcontracting with them as a result of an FBI investigation. It will not award a contract to the firm for any new business pending the completion of legal proceedings. It seems likely that the acquisition of ADP resources will not be completed to transfer the financial system from CSC by the date of contract expiration. In this developing emergency situation, GSA should consider other alternatives to support its financial system such as the use of other Federal facilities to process GSA financial system applications. GSA should take immediate action to transfer a scaled-down version to one of these facilities. Also, commercial time-sharing could be used as a method for GSA to terminate its dependent support with CSC.

Recommendations for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Administrator, GSA, should without delay (1) act jointly with OPM officials to expand the Federal Data Processing Center at Macon, Georgia, and begin redesign and implementation of the financial system for processing on the equipment at Macon; and (2) initiate action to complete conversion of the Public Building Service system to Macon before March 31, 1983.

    Agency Affected: General Services Administration

  2. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Administrator, GSA, should immediately plan to scale down the financial system and ascertain if processing capability is available elsewhere in the Government to handle this system. If scaling down is feasible, GSA should arrange transfer of the reduced financial system to another Federal computer to assure continuity of critical processing, cancel the plan for the second upgrade of the IBM-compatible equipment at the National Capitol Region, and cease the redesign of the financial system for processing on this equipment.

    Agency Affected: General Services Administration

  3. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Administrator, GSA, should immediately act to terminate the current long range plan to acquire ADP resources to support GSA internal systems and remain at the Macon facility until the long range procurement can be properly conducted in accordance with OMB Circular A-109 and other Federal regulations.

    Agency Affected: General Services Administration

 

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