ADP Acquisitions: Patent Automation Encountering Major Planning and Procurement Problems
IMTEC-86-19
Published: Jul 17, 1986. Publicly Released: Jul 17, 1986.
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Highlights
Pursuant to a congressional request, GAO reviewed selected aspects of the Department of Commerce's Patent and Trademark Office (PTO) Automated Patent System.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Commerce | The Secretary of Commerce should reassess the direction and scope of the automated patent system to ensure that the best alternative for meeting program objectives is being pursued, automation benefits will exceed costs, and the planned system can be effectively and efficiently installed in PTO facilities to achieve maximum benefits. Furthermore, the Secretary should not allocate additional funds to the automated patent system contract until the reassessment is completed and he has determined the best approach to follow and appropriately reported the reassessment results and planned actions to Congress. |
Closed – Implemented
Commerce formed an Evaluation Review Board to reassess the system.
|
| Department of Commerce | In reassessing this program, the Secretary of Commerce should follow applicable federal guidance, including the Federal Information Resources Management Regulation and, at a minimum, should: (1) establish management controls and quantifiable measures to gauge program effectiveness; (2) identify and develop alternatives for meeting PTO program objectives with a comparative analysis that can be used to select the most cost-effective alternative; (3) thoroughly support and document all appropriate costs and benefits associated with each alternative, as indicated by Federal Information Processing Standards Publication 64; and (4) ensure that an appropriate space management analysis is adequately and expeditiously implemented. |
Closed – Implemented
Commerce formed a panel of NBS and industry computer experts to review the Automated Patent System. The panel issued a report criticizing the system design and management effort. An updated action plan, including a new timetable and preliminary budget for APS, has been submitted to the Office of Management and Budget (OMB).
|
| Department of Commerce | To help ensure that the reassessment is appropriately conducted, the Secretary of Commerce should assign responsibility for the reassessment to the Assistant Secretary for Administration, the designated senior department official for information resources management. Furthermore, this official should use the National Bureau of Standards (NBS) and obtain other independent reviews as necessary to ensure that: (1) the reassessment is properly conducted and that the system includes only components with acceptable risk of cost-effective implementation; and (2) other critical issues, such as a thorough test of all critical components, are appropriately addressed. |
Closed – Implemented
Commerce formed a panel of NBS and industry computer experts to review the Automated Patent System. The Assistant Secretary for Administration was assigned the responsibility for conducting the reassessment. The panel issued a report criticizing the system design and management effort. It recommended changes that could save an estimated $70 million on the project.
|
| Department of Commerce | Following the reassessment, the Secretary of Commerce should determine the most appropriate acquisition strategy to mitigate the government's risk. As part of this determination, the Secretary must ensure that contractual arrangements reduce the risk currently imposed on the government, particularly for implementation and maintenance activities. In addition, all future acquisitions should involve competitive procurements with fixed-price contracts to the maximum extent possible. |
Closed – Implemented
Commerce renegotiated the contract terms prior to the reassessment, rather than after. Commerce and the contractor agreed to general contract modifications with regard to length, type, and scope of the contract. Commerce will issue a new request for proposals for operation and maintenance of the system under a fixed-price contract once the current system development contract expires.
|
| Department of Commerce | Because of Congress' initial mandate for an automation plan and the magnitude of the planned expenditures, the Secretary should report on the results of the reassessment and on planned actions to the House Committee on Government Operations, the Senate Committee on Governmental Affairs, and the House and Senate Committees on the Judiciary and Appropriations before he acts on the reassessment. |
Closed – Implemented
With the release of the industry review panel report, briefings were held with OMB, Appropriation Committees' staff, Judiciary Committees, and the House Government Operations Committee on study results and planned actions.
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Topics
IT acquisitionsContract performanceCost controlCost plus fixed fee contractsFederal procurement policyFunds managementManagement information systemsProgram managementSystems designData automation