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AFMD-83-36 1 (1983-03-08)

handle is hein.gao/gaobabmvr0001 and id is 1 raw text is: O 4UNITED STATES GENERAL ACCOUNTING OFFICE 1 WASHINGTON, D.C. 20548 ACCOUNTING ANO FINANCIAL MANAGKEMEN DIVISION B-210716 MARCH 8, 1983 The Honorable David A. Stockman i I lhihINJ Director, Office of Management and Budget 120681 Dear Mr. Stockman: Subject: Small Computers in the Federal Government: Management is Needed to Realize Potential and Prevent Problems (GAO/AFMD-83-36) We have issued several reports to the Congress on problems we observed while monitoring Federal agencies' performance in automa- tic data processing (ADP), particularly in the management of software--a high-cost area. On the basis of that work and current efforts, we have identified a rapidly evolving problem which re- lates to the acquisition and use of small computers by Federal agencies. (By the term small computer, we refer to minicomputers and the smaller microcomputers.) The agencies' lack of planning and management has created a high potential for waste, duplication of effort, and general inefficient use of these resources. Because of the explosive increase in the acquisition of small computers by the Federal Government and the projections that this trend will continue, we are providing this information, which is based on our preliminary work, to you now to allow appropriate ac- tion to be taken as quickly as possible. TRENDS IN THE USE OF SMALL COMPUTERS The acquisition of small computers in the Government is in- creasing faster than that of any other type of computer. Research firms estimate the number of small computers in Federal agencies could reach a million units within the next few years. The general market for small computers is expected to grow 25 percent each year. The value of units installed was estimated at more than S5 billion in 1980 and may reach $50 billion by 1990. Our work has shown that although Federal agencies are acquiring small computers in large numbers, they are doing little to deal with problems af- fecting the computers' economical and efficient use. (913689) 01:214 7-

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