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Computer Systems: Navy Needs to Assess Less Costly Ways to Implement Its Stock Point System

IMTEC-89-2 Published: Dec 14, 1988. Publicly Released: Dec 14, 1988.
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Highlights

Pursuant to a congressional request, GAO examined the Navy's Stock Point ADP Replacement Project (SPAR), focusing on whether the Navy had: (1) studied less costly alternatives to its SPAR implementation plan; and (2) identified for elimination other Navy supply systems that might duplicate SPAR.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To ensure that the Navy pursues the most cost-effective approach for implementing SPAR and provides all requisite information to MAISRC, the Secretary of Defense should direct the Secretary of the Navy to study implementation alternatives for SPAR as a whole (all 38 planned sites). This study should include an analysis of the estimated hardware, telecommunications, and operating costs associated with various host/satellite configurations and examine the feasibility of fewer host systems than the 38 in its current plan. The results of this analysis should be provided to MAISRC as a prerequisite to its approval to acquire and implement the entire SPAR system.
Closed – Implemented
The Navy completed a review of seven implementation alternatives for SPAR in February 1990. As a result, it selected a less costly implementation alternative involving fewer host sites and will achieve savings estimated between $93 million and $107 million.
Department of Defense The Secretary of Defense should plan for MAISRC to annually review any refinements the Navy has made to its analysis of host/satellite configurations prior to each site's scheduled implementation date.
Closed – Implemented
DOD MAISRC plans to review SPAR implementation plans to ensure that the Navy is pursuing the most cost-effective system approach.

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Topics

Computer systemsCost effectiveness analysisDefense contingency planningInventory control systemsMilitary cost controlMilitary inventoriesNaval procurementNaval suppliesSystems designIT acquisitions