ADP Acquisition:

Air Force Logistics System Modernization Projects

IMTEC-89-42: Published: Apr 21, 1989. Publicly Released: May 18, 1989.

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In response to a congressional request, GAO provided cost and schedule information on three Air Force computer systems, including the: (1) Requirements Data Bank System (RDB); (2) Contract Data Management System (CDMS); and (3) Depot Maintenance Management Information System (DMMIS).

GAO found that the: (1) Air Force's initial estimates for RDB increased from $140 million to about $248 million; (2) Air Force indicated that RDB cost increases included about $26 million in modifications and maintenance costs that it did not account for in its initial estimate; and (3) Air Force plans to revise its RDB life-cycle cost estimate of about $375.6 million for fiscal years 1990 through 1991, to reflect current estimates. GAO also found that the: (1) Air Force's initial estimate for CDMS increased from $34 million to $74 million because of related project development costs; (2) Air Force attributed the cost increases to consolidation of related project initiatives and additional requirements; and (3) Air Force plans to revise the CDMS life-cycle cost estimate of $87.4 million to include system operation and maintenance costs. GAO found that: (1) DMMIS acquisition costs increased from $85 million to about $242 million; (2) the Air Force cited inadequate system requirements and understated initial cost estimates as reasons for the increase; and (3) the Air Force plans to revise the DMMIS life-cycle costs estimate of $273.3 million. GAO also found that, in order to control costs, the Air Force was required to review and approve the individual project and prepare and present semi-annual in-process reviews to an Air Force program review council.

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