Review of Justification by the Veterans Administration for Establishing Four Regional Computer Centers for Its Planned Target System

HRD-76-145: Published: Jul 13, 1976. Publicly Released: Jul 13, 1976.

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GAO was requested to review the Veterans Administration's (VA) justification for establishing four regional computer centers for its planned Target System. Target System is a communications-based system which would modernize the VA benefit claims processing. The review included an examination of a position paper prepared by VA in January 1976 and other documents describing its reasons for establishing the four centers, an examination of documents supporting procurement for the system, and discussions with VA personnel.

The request for proposals (RFP) called for automatic data processing systems for the Target System computer centers, terminal systems for VA regional offices, and related software and services. The RFP prescribed the four regional centers configuration was to be located in Philadelphia, San Francisco, Atlanta, and Chicago, and a central system located in Chicago. However, when the RFP was issued, VA did not have a sufficient basis for concluding that four regional computer centers was the most cost effective configuration. In March 1976, VA proposed to the HUD-Independent Agencies Subcommittee of the House Committee on Appropriations that three regional computer centers be established for the Target System. An amended RFP was issued in June 1976.

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