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AFMD-82-51 1 (1982-03-24)

handle is hein.gao/gaobabdcj0001 and id is 1 raw text is: _ .COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON D.C 20 B-206386 O March 24, 1982 The Honorable Jack Brooks . Chairman, Committee on So Government Operations - House of Representatives IA ELEASED Dear Mr. Chairman: Subject: Teleprocessing Services Contracts for the Support of Army and Navy Recruitment Should be Recompeted (AFMD-82-51) In your January 7, 1982, letter (encl. 1), you asked us to investigate the conditions that led to the award of teleprocessing services contracts for the Army REQUEST-RETAIN and Navy PRIDE sys- tems, including identifying the responsible officials. You also asked us to determine whether these contracts should be immediately recompeted. On February 4, 1982, we briefed your office on the results of our review and gave you the names of the responsible officials. Both the Army and the Navy have acquired teleprocessing serv- ices from Boeing Computer Services Company to support their re- cruiting efforts. Both are experiencing high cost overruns. The Army's initial cost projection for the Boeing proposal was about $8.5 million for the 60-month life of the contract; it now projects a cost of about $120 million. The Navy's initial cost projection for the Boeing proposal was about $524,000 for the 42-month life of the contract; it now projects a cost of about $13 million. Both the Army and the Navy used benchmarks l/ to evaluate proposals. Neither benchmark adequately represented the actual workload sub- sequently placed on the system and as a result was a poor indica- tor of system life costs. Computer resources used by both the Army and the Navy greatly exceeded the amount anticipated. Because Boeing submitted an I/A benchmark, as used here, is a set of computer programs and as- sociated data tailored to represent a particular workload and used to evaluate system performance and cost. In many teleproc- essing services acquisitions, the benchmark is the primary eval- uation tool and is used to project system life costs of each competing vendor. (913686) 118043

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