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DOCUMENT BESUME -
02815 - [A2073168] Us4.-ri-t
Veterans@ Adm:.fnistration Justification of Costs and Benefits of
Proposed Computer System (Target). HRD-77-98; B-114859. Jujy 20,
1977. 51 pp. + 4 appendices (24 pp.).
Report to Rep. John E. Moss; Rep. Charles Rose; by Elmer B.
5taats, Comptroller General.
Issue Area: Facilities and Material Management (700).
Contact: Human Resources Div.
Budget Function: Miscellaneous: Automatic Data Processing
(1001); Miscellaneous: Financial Management and Information
Systems (1002).
Organization Concerned: Veterans Administration.
Congressional Relevance: Rep. John E. Moss; Rep. Charles Rose.
The Veterans' Administration's (VA's) proposed computer
system, the Target System, is intended to modernize benefit
claims processing and to improve service to veterans. The VA
estimates that the system will cost over $100 million to develop
and over $12 million each year to operate.
Findings/Conclusions: The VA has proceeded with the development
of the Target System without economic analyses of the proposed
system or of alternative ways of meeting its benefit claims
processing needs. The VA had not established measurable goals or
standards for improved service to veterans, and, therefore, it
had no basis for comparing alternative approaches or for
determining whether systems less complex and expensive than
Target could do the job. Although major cost savings are
possible, Target's costs could exceed monetary benefits as
compared with the current benefit claims processing system,
Recommendations: The Administrator of Veterans Affairs should
establish, in measurable terms, goals and standards for
improving benefit claims services to vetcrans. The Congress
should not permit the VA to award a contract for the Target
System until it has set up the measurable goals and standards so
that the most cost-effective way of processing benefit claims
can be determined. If Congress determines that the VA has
satisfactorily resolved these issues, the VA should not be
allowed to award a contract until it has resolved the
uncertainties about progress of development and the cost and
implementation schedule of the system. The VA needs a definitive
and compleioe implementation plaD to accomplish this. (Author/SC)](ViewImageLocal?handle=hein.gao/gaobaacmd0001&div=1&collection=&method=preview&ext=.png&size=3)