Computer Procurement:

Navy Decision to Terminate Its Standard Automated Financial System

IMTEC-89-37: Published: Mar 30, 1989. Publicly Released: May 1, 1989.

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In response to a congressional request, GAO reviewed the Navy's decision to terminate its Standard Automated Financial System (STAFS).

GAO found that the Navy evaluated four alternatives to identify the most economical means of satisfying its financial management information needs, including: (1) continuing with STAFS after correcting deficiencies, testing the system, and successfully operating STAFS at one additional site for 1 year; (2) modifying STAFS to permit data exchange with existing systems and allowing sites to implement STAFS, if desired, after corrections; (3) terminating STAFS and upgrading sites' existing systems to correct known deficiencies; and (4) terminating STAFS and developing a new industrial fund accounting system. GAO also found that: (1) although the analysis showed that all four alternatives could satisfy the Navy's accounting requirements, cost, risk, and time became important issues; (2) terminating STAFS and upgrading sites' existing systems would cost $192.7 million less than the next least costly alternative, was the least risky, and would be completed 3 years ahead of the next most timely alternative; and (3) the Navy's decision was consistent with GAO recommendations and did not violate congressional legislation or direction.

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