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LCD-76-123 1 (1976-06-02)

handle is hein.gao/gaobaaajq0001 and id is 1 raw text is: UNI'£ STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 LOGITICS AND COMMUNICATIONS 1 B-115369 Lt. General Lew Allen, Jr. Director, National Security Agency Fort George G. Meade. Maryland 20755 Dear General Allen: We have reviewed certain of the methods of acquiring automatic data processing (ADP) -quipment at the National SecurityAgency. Our review included severa-l major ADP con- Ligurations, of which some were owned and some were leased, with a value in the tens of millions of dollars. We have noted two areas that have potential for substantial dollar savings in the leasing of certain ADP equipment and are recom- mending actions by the Agency with respect to these areas. As you know, section 236 of the Legislative Reorganiza- tion Act of 1970 requires the head of a Federal agency to sub- mit a written statement on actions taken on our recommendations to the House and Senate Cormittees on Government Operations not later than 60 days after the date of the report and to the House and Senate Conmittees on Appropriations with the Agency's first request for appropriations made more than 60 days after the date of the report. FULL PAYOUT LEASE OF FOUR IBM 370/168 COMPUTERS During the period October 1, 1974, through February 25, J975, four International Business Machines (IBM) Corporation 370/168 computers were-installed at the Agency's complex. This resulted from the upgrading of the four IBM 370/165's. These four computers are beinq leased from the IBM Corpora- tion undeL their Term Lease Plan at an annual cost ot over $3 million, excluding maintenance costs. Although purchasing is generally more economical than leasing, we have been told that the ourchas..ng of these eaoipments was not feasible because the Agency projects the use of computers at only 4 years. We also understand that an inquiry by the Agency for procurement funds from the ADP Revolving Fund of the General Services Administration resulted in a neqative response. We believe that, if purchase is not feasible, the Agency can still reduce LCD-76-123 Pe os 4Ac r#-n A, / no, ., prc-e.5;-, oi~ _

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