Treasury ADP Procurement:

Contracting and Market Share Information

IMTEC-91-8FS: Published: Nov 13, 1990. Publicly Released: Dec 17, 1990.

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Pursuant to a congressional request, GAO reviewed the Department of the Treasury's compatible computer procurements, focusing on procurements that required compatibility with a particular computer manufacturer's equipment.

GAO found that: (1) during the 3.5 fiscal years ending in March 1989, 88 percent of 323 Treasury procurements for mainframes and mainframe peripherals required some type of compatibility; (2) 68 percent of the compatibility requirements involved one manufacturer, which supplied equipment for 62 percent of those requirements; (3) Treasury required compatibility with a second manufacturer's equipment in 73 procurements and with a third manufacturer's for 7 procurements; (4) Treasury obligated 72 percent of its $270.9 million in obligations to the first manufacturer; (5) for the 275 compatible procurements, with total obligations of $105.4 million, Treasury obligated 65 percent to the first manufacturer, 33 percent to the second, and 1 percent to the third; (6) of $69.4 million obligated for procurements compatible with the first manufacturer's equipment, $31.3 million involved that manufacturer; (7) purchases from General Services Administration schedules were the most frequently used procurement method, and modifications to existing contracts made up the largest share of dollars obligated for compatible procurements; and (8) 3 of the 275 procurements, totaling $3.4 million, were designated for small disadvantaged firms.

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