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UlUNITED STATES GENERAL ACCOUNTING OFFICE /2.bG3
] WASHINGTON. D.C. 20548
INFORMATION MANAGEMENT
& TECHNOLOGY DIVISION
B-217586 126430 MARCH 14,1985
The Honorable William E. Dannemeyer
House of Representatives
Dear Mr. Dannemeyer:
Subject: SSA's Acceptance Testing of a Mass Storage
System for Computerized Data Was Adequate
(GAO/IMTEC-85-5)
In response to your July 27, 1984, request (see encl. IV), we
are providing you information on a contract (No. 600-84-0046) the
Social Security Administration (SSA) awarded to the Masstor Systems
Corporation for a mass storage system for computerized data. You
expressed concern that SSA's acceptance testing of the Masstor sys-
tem had been repeatedly postponed and that SSA may have overlooked
significant mnandatory contract requirements. Specifically, you
asked us to observe the acceptance test to make sure mandatory
requirements were not waived.
SSA received two responses--one from the Braegen Corporation,
the other from Masstor--to its July 1983 request for a mass storage
system. On January 25, 1984, a $1.02 million contract was awarded
to Masstor, the lowest bidder. We found that during the procure-
ment process, SSA waived a channel cable length specification that
it no longer needed. In waiving this requirement, SSA was within
the boundaries of federal procurement regulations. Also, shortly
after the contract was signed, Masstor and SSA disagreed over the
interpretation of a clause in the contract which, according to SSA,
specified that Masstor must provide dual-channel access to four of
SSA's computers. Acceptance testing of the Masstor equipment,
which was supposed to begin in April 1984, was delayed for 4 months
while both parties worked to resolve this issue. Masstor eventu-
ally agreed to install additional equipment, and acceptance testing
began. We believe this testing--which lasted from August 6 to
October 8, 1984--provided reasonable assurance that the Masstor
system met SSA's needs as expressed in the contract.
Currently, Masstor has a $428,707 claim against SSA for com-
pensation for extra equipment provided to resolve the above issue.
Also, SSA has assessed Masstor with $99,665.28 in liquidated
damages for a 121-day installation delay.
Details of our review follow.
(510079)
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