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Federal Government's Use of International Data Corporation's Subscription Services

PLRD-82-118 Published: Aug 30, 1982. Publicly Released: Sep 07, 1982.
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Highlights

In response to a congressional request, GAO reviewed the federal government's procurement of automated data processing (ADP) information subscriptions from the International Data Corporation (IDC). The review addressed a constituent's complaint that the government is paying too much for the IDC subscriptions and receiving few benefits.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Office of Management and Budget The Director, Office of Management and Budget (OMB), should direct DOD and all civil agencies to centrally control contracts for ADP information services so that only necessary subscription services are purchased.
Closed – Not Implemented
In its response, OMB supported the need for more rigorous management of agency information resources, but did not agree that central agency control over this type of contract was necessarily appropriate. Each agency should decide what degree of delegation is appropriate to its situation, according to OMB.
Office of Management and Budget The Director, OMB, should direct the Department of Defense (DOD) and all civil agencies to determine overall agency needs for ADP information so that the most cost-effective subscriptions will be purchased.
Closed – Not Implemented
In its response, OMB stated that while the Paperwork Reduction Act of 1980 required the designation of senior agency officials for information resources management, it also acknowledged that agencies needed to have flexibility in deciding how best to manage information resources. Establishing uniform requirements for agencies to control such services is not cost effective according to OMB.
Office of Management and Budget The Director, OMB, should direct DOD and all civil agencies to prepare cost-benefit analyses before purchasing subscription services.
Closed – Not Implemented
In its response, OMB stated that agency information management officials would be reminded of the need for controls over subscription services to prevent waste and duplication in such procurements. The officials would also be urged to adopt whatever procedures are appropriate in their situations. These matters were set forth in a memorandum for senior agency officials December 1982.

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Topics

Contract costsCost effectiveness analysisDatabasesDefense procurementFederal procurementInformation resources managementInternal controlsNegotiated procurementResearch reportsInternet service providers