Navy Contracting:

Improving Management of Procurements for Computer-Aided Equipment

NSIAD-87-60: Published: Dec 30, 1986. Publicly Released: Dec 30, 1986.

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In response to an allegation concerning possible procurement violations, GAO reviewed the Navy's procurement of computer-aided design and computer-aided manufacturing (CAD/CAM) equipment and related services under seven contracts.

GAO noted that the largest contract was for the Computer Aided Engineering Documentation System (CAEDOS). GAO found that: (1) the Navy failed to obtain required approvals for some of the contracts; (2) the cost of the initial contract award and modifications exceeded approval limits; (3) it could not determine the total value of the CAEDOS contract because the Navy did not follow procurement regulations or maintain adequate records; (4) the Navy controls were not adequate to ensure that payments made under the contract were proper; (5) the Navy did not consistently charge the appropriate accounting classification data; (6) the Navy has taken action to improve its contracting procedures; and (7) unless the Navy corrects the problems, they could recur in future CAD/CAM acquisitions.

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