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ADP Procurement: Navy Improperly Restricted Competition for Its Civilian Pay System

IMTEC-89-61 Published: Jun 21, 1989. Publicly Released: Jun 23, 1989.
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Highlights

Pursuant to a congressional request, GAO reviewed allegations that the Navy improperly restricted competition for two contracts for computer equipment and software for the Navy Standard Civilian Pay System (NAVSCIPS).

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Navy To ensure that the Navy selects an appropriate system configuration and achieves full and open competition in accordance with federal procurement law and regulations, the Secretary of the Navy should direct the Assistant Secretary for Financial Management to cease any further orders for hardware and software under the current contract with Federal Computer Corporation.
Closed – Implemented
The Navy will use its current contract to procure peripheral equipment only.
Department of the Navy To ensure that the Navy selects an appropriate system configuration and achieves full and open competition in accordance with federal procurement law and regulations, the Secretary of the Navy should direct the Assistant Secretary for Financial Management to determine the most cost-effective number of sites needed to process NAVSCIPS by conducting an analysis of the costs and benefits of the full range of site alternatives.
Closed – Implemented
The Navy has determined that a single data processing site is the most cost-effective for processing NAVSCIPS.
Department of the Navy To ensure that the Navy selects an appropriate system configuration and achieves full and open competition in accordance with federal procurement law and regulations, the Secretary of the Navy should direct the Assistant Secretary for Financial Management to promote full and open competition by recompeting the NAVSCIPS requirements using functional specifications.
Closed – Implemented
The Navy will use its existing contract to procure peripheral equipment for NAVSCIPS, but not for mainframes. The Navy will use existing mainframes in Washington, D.C. to process NAVSCIPS.
Department of the Navy To ensure that the Navy selects an appropriate system configuration and achieves full and open competition in accordance with federal procurement law and regulations, the Secretary of the Navy should direct the Assistant Secretary for Financial Management to determine, given the results of the competition, whether to continue the current contract, limit orders to the $5.6-million minimum, or terminate it for the convenience of the government and award a new contract to fulfill the NAVSCIPS requirements.
Closed – Not Implemented
The Navy has agreed to limit procurement from the existing contract to $7.8 million in peripheral equipment, but will not procure any mainframes from the contract.

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IT acquisitionsBrand name specificationsComputer equipment contractsSoftwareImproper award of contractIrregular procurementNaval procurementPayroll systemsMilitary forcesSystems design