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FGMSD-79-10 1 (1978-12-28)

handle is hein.gao/gaobaaykg0001 and id is 1 raw text is: 




                 UNITED STATES GENERAL ACCOUNTING OFFICE
                         WASHINGTON, D.C. 20548


DIVISION Of InNANCIAL AND   /
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    B-115369                                DECEMBER 2,1978

    The Honorable Jay Solomon
    The Administrator of
      General Services

    Dear Mr. Solomon:

        This letter report discusses our review of the automatic
    data processing equipment (ADPE) interim upgrade acquisition
    process, which is set forth in Federal Property Management
    Regulation (FPMR) 101-35.2 (formerly Federal Management
    Circular 74-5) and administered by the Automated Data and
    Telecommunications Service (ADTS). The purposes of the review
    were to evaluate the interim upgrade policy, GSA's adminis-
    tration of the interim upgrade process, and the effect the
    interim upgrade policy has had on competition in ADP procure-
    ments. Our work shows that the written definition of the
    policy differs from GSA practices in assigning this designa-
    tion and that agreements to procure on a competitive basis
    within specified time frames have not been enforced. Accord-
    ingly, we are recommending that-you make changes in the policy
    and procedures for handling interim upgrade acquisitions.

    PRESENT PUBLISHED CRITERIA FOR INTERIM UPGRADES

        The interim upgrade process prescribed in FPMR 101-35.2
    permits an agency to acquire ADPE under circumstances of
    limited competition--but only on a temporary basis pending a
    fully competitive reprocurement. The process calls for an
    agency to document its ADPE requirements and submit a request
    to GSA for procurement action or delegation of procurement
    authority (DPA). The FPMR, in essence, requires that for a
    procurement to qualify as an interim upgrade it must meet the
    following criteria:

         --fulfill an unforeseen, urgent, data processing
           requirement,

         --be on a temporary basis pending a fully competitive
           reprocurement (normally within 2 years), and

         --be an addition and/or augmentation of installed com-
         ponents or subsystems. 1/


    1/See encl. I for excerpts from the FPMR.

                                                FGMS 79-10
                          0     2)              (9131 &91331)

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