Allegations of Contract Buy-In and Substantial Cost Increases in the Navy's Standard Automated Financial System
IMTEC-85-2
Published: Oct 30, 1984. Publicly Released: Oct 30, 1984.
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Highlights
In response to a congressional request, GAO reviewed allegations made regarding the Navy's Standard Automated Financial System that: (1) the contractor "bought in" on the contract; (2) the Navy had decided to proceed with the project even though costs have substantially increased; and (3) project costs may increase to $200 million.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Navy | The Secretary of the Navy should direct the Assistant Secretary for Financial Management to firmly set the Navy's system requirements and ensure that the contractor provides fully documented design specifications at the end of the design phase as required by the contract. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of the Navy | The Secretary of the Navy should direct the Assistant Secretary for Financial Management to prepare an updated economic analysis to compare current benefits, or those of a reduced system, with current project cost estimates, including all costs in accordance with NAVCOMPT Manual, paragraph 074723-3d, and an updated cost-to-complete estimate from the contractor. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of the Navy | The Secretary of the Navy should direct the Assistant Secretary for Financial Management to develop a contingency plan to identify alternative courses of action for management to contain costs and ensure cost-effective results. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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Topics
Computer equipment contractsContract costsCost analysisDefense cost controlFederal agency accounting systemsFinancial management systemsInformation systemsNaval procurementPlanningIT acquisitions