Data Processing Costs Can Be Reduced at Army and Air Force Exchange Service
AFMD-83-17
Published: Dec 21, 1982. Publicly Released: Dec 21, 1982.
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Highlights
As part of a continuing effort to assess the effectiveness of data processing management in agencies that rely heavily on computer resources to accomplish their missions, GAO suggested ways to improve data processing management at the Army and Air Force Exchange Service and to avoid excessive computer support costs.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Exchange Service and its Board of Directors to comply with DOD policies governing competitive acquisition and proper definition of computer requirements. |
Closed – Not Implemented
The agency plans no action because it does not concur in this recommendation. DOD stated that the Exchange Service was in full compliance with the policies governing competitive acquistion.
|
| Department of Defense | The Secretary of Defense should direct the Exchange Service Board of Directors to review and approve, as necessary, all major ADP procurements to ensure that DOD procurement policies are followed. |
Closed – Not Implemented
The agency plans no action because it does not concur in this recommendation. DOD stated that the Exchange Service is currently in compliance with the governing policies on competitive procurements.
|
| Department of Defense | The Secretary of Defense should direct the Exchange Service and its Board of Directors to comply with DOD policies governing the management of data processing resources. |
Closed – Not Implemented
The agency plans no action because it does not concur in this recommendation. DOD believes that the Exchange Service is already in compliance with defense policies.
|
| Department of Defense | The Secretary of Defense should direct the Exchange Service Board of Directors to approve and monitor all software development projects or major modifications that are essential to the Exchange Service mission or involve significant costs. |
Closed – Not Implemented
The agency plans no action because it does not concur in this recommendation. DOD stated that all new or expanded missions and services requiring new software development are approved and tracked by the Board of Directors.
|
| Department of Defense | The Secretary of Defense should direct the Commander of the Exchange Service to assume an active role in project management to ensure that projects either proceed according to cost and time estimates and meet objectives or are resubmitted to the Master Planning Board for revalidation. |
Closed – Implemented
Procedures have been implemented that require resubmission of projects that exceed the original estimate by the lesser of: (1) 20 percent of the original estimate, or (2) $75,000.
|
| Department of Defense | The Secretary of Defense should direct the Commander of the Exchange Service to establish a system for accounting and charging the costs of system development and operations to major users. |
Closed – Not Implemented
The agency plans no action because it does not concur in this recommendation. DOD stated that operation divisions are not separate entities and have no control over systems it must use and that a chargeback to the user for system development appears inappropriate.
|
| Department of Defense | The Secretary of Defense should direct the Commander of the Exchange Service to revise Exchange Service planning guidelines to comply with Federal Information Processing Standards and accepted practices in private industry. |
Closed – Implemented
DOD cited improved procedures relating to control over system development, a project milestone reporting system, and improved accuracy and substantiation for project costing and benefits.
|
| Department of Defense | The Secretary of Defense should direct the Exchange Service and its Board of Directors to defer pending procurement efforts for the point-of-sale project and validate the point-of-sale concept by thoroughly documenting the costs and benefits of the Exchange Service's present point-of-sale system. If such a study supports proceeding further with the point-of-sale project, the Exchange Service should first consider using existing equipment and excess computer capacity for the life of that equipment before developing more sophisticated and costly follow-on systems. |
Closed – Implemented
Based on an Exchange Service study, expansion of the in-store system was approved and an option exercised to expand the system to 20 states before June 1983.
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CompetitionComputer equipment contractsComputer resourcesCost overrunsDefense procurementIT acquisitionsMilitary cost controlProcurement policyProcurement practicesProgram managementSole source procurementComputer resources management