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B-163074 1 (1971-07-02)

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              by the Office of Congressional ReatiA            2

                    COMPTROLLER GENERAL OF TH ---D TATS
        REL EASE              WASHINGTON. D.C. 20548       ell)


     B-163074

                                                           IiiiiiI111111 El I1111i
     Dear Senator Cook:                                    L      2LM09052

          This is in response to your request that we examine into
     Mr. Robert S. Triplett's statements about wasteful practices at the
     National Civil Defense Computer Facility, Olney, Maryland.

          Mr. Triplett stated in his letter to you and in discussions
     with us that little or no use was being made of comPuter system soft-
     ware costing about $600o,000, disk files installed about 3 years  6
     costing about $550,000, a high-speed printer costing about $100,000,
     and an extensive data communication system costing about $500,000.
     He also said that the Olney facility had not claimed about $4,000
     due under the computer maintenance contract.

          We found that some of Mr. Triplett's charges had considerable
     merit in that extensive disk capability had been acquired substan-
     tially in advance of Olney's ability to use it, about $500.000 had
     been invested in computer system software which had not yet been put
     into use, and a high-speed printer costing about $100,000 had had
     very little use.

     CONTRACT WITH INFORMATICS, INC.

           In March 1967 a contract was awarded to Informatics, Inc., for
      design and specificatohff of a new disk-resident programming support
      system designated DH-36.' This system was intended to provide
      greater utilization of computers than was possible with the existing
      SCOPE system furnished by the equipment manufacturer. Olney offi-
      cials explained that the original SCOPE system, which utilizes tape,
      provided no disk-processing capability. The essential requirements
      of the contract were analysis, design, detailed specifications of the
      system, and coding of a new compiler and certain other programs in
      the system. Plans called for coding the programs in-house on the
      basis of the contract specifications. The officials informed us that
      they took this approach because funds for all the work were not avail-
      able at the time. Final contract costs were $491,41o.

           The initial target date for contract completion was June 1968.
      When additional tasks were added in May 1968, the target date was
      extended to January 1969. By subsequent no-cost modifications, the
      target date was extended to March 4 and then to June 3, 1969.

           Shortly after the award of the contract, Olney learned that 10
      authorized employee spaces could not be filled. At about the same





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