Navy Did Not Adhere to Procurement Regulations in Acquiring a Computer for Its Ships Parts Control Center

IMTEC-84-16: Published: Jul 16, 1984. Publicly Released: Aug 14, 1984.

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Carl R. Palmer
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In response to a congressional request, GAO evaluated the Navy's acquisition and use of a computer installed at the Ships Parts Control Center. In 1979, the Corps of Engineers leased this computer under the foreign military sales program to support the Saudi Arabian Naval Expansion Program. Later the Navy acquired the computer for a project.

GAO found that the Corps of Engineers followed established laws, rules, and regulations in leasing the computer for the Saudi Arabian Naval Expansion Program. However, the Navy did not follow applicable laws, rules, and regulations in acquiring the computer, prompting the unnecessary expenditure of about $831,000 for a sole-source lease of the computer and the acquisition of a computer that exceeded project needs. Furthermore, the Navy used the computer for its own project needs while the computer was being leased with Saudi foreign military sales funds. Finally, the Navy knew that it had not followed proper procedures in acquiring the computer.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: The Navy advised the Saudis on September 26, 1984, and is reimbursing them $39,000 for the computer's use.

    Recommendation: The Secretary of the Navy should ensure that Saudi Arabia is advised of the Navy's use of the computer while it was being leased with Saudi funds.

    Agency Affected: Department of Defense: Department of the Navy


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