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GGD-82-16 1 (1982-01-29)

handle is hein.gao/gaobabcvl0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE j WASHINGTON, D.C. 20548 GI N RAL @OV3MNM4NT DIVISION 1JANUARY 29,1982 B- 206171 The Honorable Donald T. Regan The Secretary of the Treasury Dear Mr. Secretary: 117347 Subject: Major System Acquisition Management in the Department of the Treasury (GGD-82-16) We have reviewed the Department of the Treasury's progress in implementing Office of Management and Budget (OMB) Circular A-109 to manage major system acquisitions. Treasury has not yet used Circular A-109 and has been slow in implementing it. The review was conducted at Treasury headquarters; the U.S. Customs Service; and the Internal Revenue Service (IRS) in Washington, D.C. It covered actions taken by Treasury to imple- ment A-109 and to manage acquisition programs. It included a re- view of relevant directives; planning and budget documents; and discussions with officials involved in planning, procurement, budgeting, and management. OMB CIRCULAR A-109 In 1976, OMB issued Circular A-109 to provide an organized approach to managing major system acquisitions. The circular was based on recommendations made by the Commission on Government Procurement to help solve a number of problems which have histor- ically plagued major system acquisitions. It supplies a frame- work of flexible management policies that can be applied to all systems, ranging from defense weapons to automatic data process- ing (ADP) and from public buildings to space vehicles. Under the guidelines of A-109 each agency must: define the need in terms of its mission; reconcile needs and goals with agency capabilities; evaluate industry's competitive efforts to develop alternative designs; and choose the best alternative on the basis of demonstrated performance and price commitments. Emphasis is on mission-oriented planning, high level visibility, strong program management, and reliance on private industry for alternative system designs. (019003) 7-

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