Retirement System:

Concerns About OPM's FERS Automated Processing System Procurement

IMTEC-90-45: Published: Apr 4, 1990. Publicly Released: Apr 9, 1990.

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Pursuant to a congressional request, GAO reviewed the Office of Personnel Management's (OPM) planned $54-million procurement for an automated system and computer hardware, focusing on whether: (1) the request for proposals was unnecessarily restrictive; and (2) OPM received outside assistance in developing its requirements.

GAO found that OPM: (1) did not unduly restrict the technical specifications; (2) did not act improperly in obtaining assistance from two outside sources in developing the solicitation; (3) required vendors to meet six experience requirements on a strict basis, which may have restricted competition; and (4) did not adequately evaluate the effect of those requirements on potential competition.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: OPM reviewed vendor concerns and determined that the procurement should be revised.

    Recommendation: The Director, OPM, should not award the Federal Employees Retirement System (FERS) Automated Processing System contract until OPM has reviewed the validity of vendor concerns regarding the impact of these requirements on competition.

    Agency Affected: Office of Personnel Management

  2. Status: Closed - Implemented

    Comments: OPM has decided to revise the procurement and use a weighted point system.

    Recommendation: The Director, OPM, should not award the FERS Automated Processing System contract until OPM has determined whether the OPM method of evaluating them on a go/no go basis is needed or whether a less restrictive method, such as using a weighted point system to consider vendor experience, could adequately meet OPM needs.

    Agency Affected: Office of Personnel Management

  3. Status: Closed - Implemented

    Comments: OPM reissued the Federal Employees Retirement System procurement, using revised evaluation criteria, in May 1991. The final award is expected in late fiscal year 1992.

    Recommendation: If OPM determines that the go/no go experience requirements unnecessarily restricted competition, the Director, OPM, should ensure that the request for proposals is revised and that the procurement is reinitiated.

    Agency Affected: Office of Personnel Management

 

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