ADP Acquisition:

Navy Has Not Justified an Additional PERSPAY Computer

IMTEC-87-29: Published: Aug 21, 1987. Publicly Released: Aug 21, 1987.

Additional Materials:

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GAO reviewed the Department of the Navy's decision to purchase an additional mainframe computer for its Personnel and Pay Systems Consolidated Computer Center Project (PERSPAY).

GAO found that the: (1) estimated total cost for the additional computer is over $6 million; (2) Navy did not consider other, more cost-effective alternatives; (3) Navy did not comply with federal regulations mandating a comprehensive requirements analysis prior to any acquisition; and (4) Navy based its future needs and work loads on past experience without proper validations and assessment.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: The Navy indicated in its comments that this recommendation had been implemented.

    Recommendation: The Secretary of the Navy should direct the Commanding Officer of the Navy Finance Center not to exercise the option to procure an additional computer until a comprehensive requirements analysis is completed including identification, quantification, and validation of present and future work loads.

    Agency Affected: Department of Defense: Department of the Navy

  2. Status: Closed - Implemented

    Comments: The Navy PERSPAY sponsor informed GAO that these actions were completed in the spring of 1988 and the Navy has exercised its option to purchase this year rather than fiscal year 1987.

    Recommendation: The Secretary of the Navy should direct the Commanding Officer of the Navy Finance Center to attempt to satisfy the data center's computer capacity requirements, until the PERSPAY 11 procurement, by exploring less costly alternatives. Specifically, the center should explore those alternatives required by federal regulations, and other options, such as shifting test work loads to free computers during peak hours.

    Agency Affected: Department of Defense: Department of the Navy

 

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