Review of Selected Computer System Procurements

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.