Air Force Teleprocessing Services Procurement for the COPPER IMPACT System Should Be Reopened

AFMD-82-112: Published: Sep 30, 1982. Publicly Released: Oct 6, 1982.

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GAO reviewed the Air Force's COPPER IMPACT contract which was awarded to Boeing Computer Services Company in 1982. This report is part of a congressionally requested review of teleprocessing services contracts awarded by Federal agencies.

GAO found that teleprocessing services provided by this contract could cost the Government far more than estimated because of the contract's unbalanced pricing structure which allows the cost to increase disproportionately, or the discount to decrease, as the level of use increases. GAO believes that the problem created by unbalanced pricing was compounded by the fact that the Air Force did not use a representative system workload for the benchmarking test and that actual use may exceed expected use. GAO also believes that this contract violates procurement regulation and that contract costs will escalate far beyond Air Force estimates. GAO concluded that the Air Force can obtain more accurate system-life costs and can save the Government money by adjusting its workload estimates and reopening this procurement.

Recommendations for Executive Action

  1. Status: Closed - Not Implemented

    Comments: The agency stated that it would not be in the best interests of the Government to terminate the Boeing contract.

    Recommendation: The Secretary of the Air Force should terminate the COPPER IMPACT contract for the convenience of the Government.

    Agency Affected: Department of Defense

  2. Status: Closed - Not Implemented

    Comments: The agency stated that it would not be in the best interests of the Government to terminate the Boeing contract.

    Recommendation: The Secretary of the Air Force should terminate the COPPER IMPACT contract for the convenience of the Government.

    Agency Affected: Department of Defense: Department of the Air Force

  3. Status: Closed - Not Implemented

    Comments: The agency stated that its workload estimates and benchmarks adequately reflect the Government's known requirements. It has renegotiated the price for database processing with the current contractor.

    Recommendation: The Secretary of the Air Force should require benchmark and workload estimate revisions, to incorporate potential database management system use, and reopen the procurement to receive a new, best and final proposal from each of the original, technically qualified vendors.

    Agency Affected: Department of Defense

  4. Status: Closed - Not Implemented

    Comments: The agency stated that its workload estimates and benchmarks adequately reflect the Government's known requirements. It has renegotiated the price for database processing with the current contractor.

    Recommendation: The Secretary of the Air Force should require benchmark and workload estimate revisions, to incorporate potential database management system use, and reopen the procurement to receive a new, best and final proposal from each of the original, technically qualified vendors.

    Agency Affected: Department of Defense: Department of the Air Force

 

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