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Highlights

Pursuant to a congressional request, GAO reviewed the Navy's second Computer-Aided Design/Computer-Aided Manufacturing (CAD/CAM II) acquisition, focusing on whether the: (1) Navy complied with applicable acquisition regulations; (2) Navy considered the needs of all CAD/CAM users; (3) Navy established adequate contract administration controls; (4) correct Navy organizations conducted the acquisition; (5) Navy fully disclosed the acquisition in its budget requests and followed normal budget processes; and (6) Office of the Secretary of Defense provided adequate oversight.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Navy 1. The Secretary of the Navy should direct the Assistant Secretary of the Navy for Financial Management to ensure that the request for proposals for CAD/CAM II is not released until the program office has complied with applicable provisions of defense acquisition regulations; specifically, the program office should conduct an evaluation of alternative system solutions based on validated user requirements before making a system choice.
Closed - Implemented
The Navy reduced the acquisition to one of the strictly commercially available, off-the-shelf technology, and as a consequence, the acquisition now falls under Defense guidance governing requirements contracts. The Navy has complied with this guidance.
Department of the Navy 2. The Secretary of the Navy should direct the Assistant Secretary of the Navy for Financial Management to ensure that future program office and program manager changes to CAD/CAM II are minimized and program management issues are quickly resolved.
Closed - Implemented
The Navy CAD/CAM program office has been moved to NAVDAC. No further moves are contemplated. A senior management Steering Group has been established to resolve management issues.
Department of the Navy 3. The Secretary of the Navy should direct the Assistant Secretary of the Navy for Financial Management to ensure that funding for all Navy CAD/CAM is completely and accurately disclosed in special budget information papers to Congress.
Closed - Implemented
The Naval Data Automation Command Comptroller will prepare comprehensive and complete funding data on all CAD/CAM acquisitions prior to the FY 1990 budget submission to the Office of the Secretary of Defense and Congress.

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