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PSAD-79-111 1 (1979-10-05)

handle is hein.gao/gaobaaztn0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 208 PROCURCM04, ANO UIIRMS ACOUISITION DIVISION OCTOBER 5, 1979 B-163074 The Honorable The Secretary of the.Navy Attention: Compt'roller of the Navy (NCB-4) Dear Mr. Secretary: &a 0 Subject: LPotential Savings by Streamlining Grumman's Computer Operations Supporting Navy Contracts (PSAD-79-111) _6- C- ooo0 -Te Nav has an opportunity to save about $335,000 annually by reducing excess capacity in the data processing and computer operations used to support primarily Navy con- tracts at Grumman Aerospace Corporation. While the Navy buys such things as aircraft from Grumman Aerospace, that corpora- tion buys data processing services--needed to support manu- facturing and testing operations--from Grumman Data Systems Corporation. Both corporations are subsidiaries of the Grumman Corporation. We believe your adoption of the rec- ommendations on page 8 will reduce the cost for data processing services which the Navy pays through the overhead accounts of Grumman Aerospace Corporation. ELIMINATING EXCESS STORAGE CAPACITY Grumman Data operates several computers at the Bethpage, Long Island, New York, center. In April 1978 the center had a capacity of about 42 billion characters of disk storage cost- ing about $1.4 million yearly. We believe that as much as 60 percent of this capacity is unneeded. Eliminating the costs associated with excess storage capacity could reduce Grumman Data's yearly equipment expenditures by $217,000. (950395) A 61-~

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