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ADP Systems: Concerns About DOD's Composite Health Care System Development Contracts

IMTEC-87-25 Published: Jun 08, 1987. Publicly Released: Jun 08, 1987.
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Highlights

GAO reviewed the Department of Defense's (DOD) award of initial systems development contracts for the acquisition and implementation of the Composite Health Care System (CHCS).

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To help ensure that the CHCS acquisition schedule does not outweigh compliance with the Federal Acquisition Regulation in the future, the Secretary of Defense should take affirmative steps to ensure that meaningful discussions are adequately conducted and documented for the balance of the procurement.
Closed – Not Implemented
Although DOD did not finalize the draft procedures it developed, it implemented the procedures correctly during its recent evaluation of competing contractors' proposals and performance. With the completion of its recent evaluation, DOD selected a single contractor to further test and deploy CHCS. Thus, CHCS competition is over and this recommendation is no longer applicable.
Department of Defense The Secretary of Defense should, with assistance from the Defense Contract Audit Agency, determine the value of cost-sharing arrangements to ascertain whether the government received reasonable value for relinquishing its technical data and computer software rights, and, if necessary, renegotiate these arrangements.
Closed – Not Implemented
DOD initiated corrective action by requesting a Defense Contract Audit Agency evaluation to determine the value of the cost-sharing arrangements. Corrective action, if any, will be taken as part of contract termination procedures because the vendors whose cost-sharing arrangements were of concern to GAO were unsuccessful in their bid to continue further testing and deployment of CHCS.

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Topics

Electronic data processingBid evaluationContract administrationCost sharing (finance)Defense procurementHealth care planningInformation systemsMedical information systemsProcurement practicesTechnical proposal evaluation