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IMTEC-84-15 1 (1984-07-09)

handle is hein.gao/gaobaberx0001 and id is 1 raw text is: b y V 91i L ,, , . BY THE COMPTROLLER GENERAL RELE&SLD Report To The Chairman, Committee On Government Operations, House Of Representatives OF THE UJNITED STATES Social Security Administration's Data Communications Contracts With Paradyne Corporation Demonstrate The Need For Improved Management Controls In 1981, the Social Security Administration entered into a $115 million contract - the largest in the agency's history - with the Paradyne Corporation to install over 1,800 data communi- cations terminals in 1,350 Social Security offices nationwide A second contract with Paradyne, designed to enhance the data transmission capabilities of the Paradyne terminals, was signed in September 1982 and terminated in April 1983 Due to numerous inadequacies in the agency's management of these contracts, a 1982 internal structural realignment which weakened internal controls over the acquisition of data communications equipment, and inadequate oversight by both the Department of Health and Human Services and the General Services Administration, SSA acquired a data communications system which did not begin consistently meeting contractual performance requirements until nearly two years after the first terminals were installed These weaknesses in SSA's systems acquisition process ('ortinue to exist and present a threat to the integrity of major tIpcorlrfg systems procurements An SSA official has informed us that the agency plans to improve the data communications proCurernent process *.1~.124854 '1' 1 1ii'1 ' II GAO/IMTEC-84-15 1( ,0) JULY 9, 1984

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