ADP Acquisition:

Defense Logistics Agency Has Not Justified Need for Additional Computer

IMTEC-91-33: Published: May 23, 1991. Publicly Released: Jun 27, 1991.

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Pursuant to a congressional request, GAO reviewed the Defense Logistics Agency's (DLA) efforts to procure a large mainframe computer, costing about $7.8 million, for its Columbus, Ohio, information processing center.

GAO found that DLA overestimated its required computer capacity by about 50 percent, since: (1) it improperly assumed that the Columbus processing center computers would process Department of Defense (DOD) contract payment transactions that the Air Force will continue to process; (2) it used inappropriate historical data to estimate the contract payment transactions; (3) it assumed that all high peak-hour user demand from its 23 field locations around the country occurred at the same time for both payroll and contract payment transactions regardless of geographic time zones; and (4) available capacity was sufficient to handle current and projected work loads.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: Due to the GAO report and changes in Defense-wide consolidations, DLA performed a new capacity study, and OTA reviewed it at the request of the Senate Defense Subcommittee on Appropriations. DLA received DPA from GSA for the procurement in January 1992 and, pending resolution of a GSBCA protest, plans to award a contract in August 1992.

    Recommendation: The Secretary of Defense should instruct the Director, DLA, to cease procurement actions for additional computer capacity for the Columbus, Ohio, information processing center, until DLA validates its anticipated work loads.

    Agency Affected: Department of Defense

  2. Status: Closed - Implemented

    Comments: DOD has completed the validation and submitted APR to GSA for a Delegation of Procurement Authority to procure. DPA was awarded and, pending resolution of a GSBCA protest, DLA will award a contract in August 1992.

    Recommendation: The Secretary of Defense should instruct the Director, DLA, to cease procurement actions for additional computer capacity for the Columbus, Ohio, information processing center, until DLA assesses its current and future work loads against all available capacity when justifying future procurements.

    Agency Affected: Department of Defense

 

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