Review of Selected Computer System Procurements
FGMSD-80-34: Published: Feb 15, 1980. Publicly Released: Feb 25, 1980.
Additional Materials:
- Full Report:
Contact:
GAO was asked to study how conversion costs affect the procurement of new computer systems. Of particular concern was whether including conversion costs in computer procurements would result in selecting the system that would cost the Government the least over the life of the system. Conversion costs, a significant factor in computer replacement procurements, may run into millions of dollars when noncompatible equipment is acquired. Therefore, an agency can avoid these costs by staying within the incumbent vendor's product line or acquiring compatible equipment. In this study, six computer procurements were reviewed in which a different make of computer was acquired. The primary objectives were to ascertain whether conversion costs were considered when selecting the successful offerors and whether the seleted proposal cost the least over the life of the system.
Conversion costs varied significantly in the procurements studied. Each installation had underestimated the cost and time it would take to convert its application software to the replacement computer system. Currently, no official written procurement policy or regulation deals adequately with the treatment of conversion costs in evaluating proposals. While regulations establish policies for the management acquisition, and utilization of automatic data processing (ADP) equipment and recognize conversion as a cost factor, they only provide unclear general guidance subject to misinterpretation. According to a draft guideline on how to handle agency procurement requests involving augmenting or replacing an agency's ADP equipment, most conversion costs should be included when evaluating vendor proposals to determine the lowest overall cost. Two other major problems to be considered in conversion are: estimating costs with reasonable accuracy and managing the conversion process. The development of techniques for better estimation of conversion costs is among the objectives of the Federal Conversion Support Center. Actions to be taken to ease conversion include: advance planning; developing, adopting, and enforcing standard documentation and programming techniques; identifying problem application areas for redesign; setting up and maintaining comprehensive source program and test data libraries; and developing and maintaining an inventory describing the characteristics of existing application software.
Mar 4, 2021
-
Data Center Optimization:
Agencies Report Progress and Billions Saved, but OMB Needs to Improve Its Utilization GuidanceGAO-21-212: Published: Mar 4, 2021. Publicly Released: Mar 4, 2021.
Dec 23, 2020
-
Information Technology:
DOD Software Development Approaches and Cybersecurity Practices May Impact Cost and ScheduleGAO-21-182: Published: Dec 23, 2020. Publicly Released: Dec 23, 2020.
Dec 15, 2020
-
Information Technology:
Federal Agencies Need to Take Urgent Action to Manage Supply Chain RisksGAO-21-171: Published: Dec 15, 2020. Publicly Released: Dec 15, 2020.
Oct 13, 2020
-
USAJOBS Website:
OPM Has Taken Actions to Assess and Enhance the User ExperienceGAO-21-31: Published: Oct 13, 2020. Publicly Released: Oct 13, 2020.
Oct 7, 2020
-
Information Technology:
IRS Needs to Address Operational Challenges and Opportunities to Improve ManagementGAO-21-178T: Published: Oct 7, 2020. Publicly Released: Oct 7, 2020.
Sep 30, 2020
-
Information Technology:
Selected Federal Agencies Need to Take Additional Actions to Reduce Contract DuplicationGAO-20-567: Published: Sep 30, 2020. Publicly Released: Sep 30, 2020.
Sep 29, 2020
-
Science & Tech Spotlight:
Agile Software DevelopmentGAO-20-713SP: Published: Sep 29, 2020. Publicly Released: Sep 29, 2020.
Sep 28, 2020
-
Agile Assessment Guide:
Best Practices for Agile Adoption and ImplementationGAO-20-590G: Published: Sep 28, 2020. Publicly Released: Sep 28, 2020.
Sep 14, 2020
-
Internet of Things:
Information on Use by Federal AgenciesGAO-20-577: Published: Aug 13, 2020. Publicly Released: Sep 14, 2020.
Sep 9, 2020
-
Medicaid Information Technology:
Effective CMS Oversight and States' Sharing of Claims Processing and Information Retrieval Systems Can Reduce CostsGAO-20-179: Published: Sep 9, 2020. Publicly Released: Sep 9, 2020.
Looking for more? Browse all our products here