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FGMSD-80-34 1 (1980-02-15)

handle is hein.gao/gaobabagw0001 and id is 1 raw text is: 




1976821


Accounting Office except on th'c la. u  specJiC approval
by the Office of tngres$iOnll leliOlS, - Rl to
COMP'ROLLZR GENCRAL OF THE UNITED STATM    ES

     RELEbASEruar7c.,z1
                               February 15, 1980


The Honorable Jamie Whitten
Chairman, Committee on Appropriations
House of Representatives       1-4 nc


111651


rear Mr. Chairman:

     Subject: (eview of Selected Computer System
              Rrocurements!(FGMSD-80-34)

     By letter of October 5, 1978, your Committee asked us
to study how conversion costs affect the procurement of new
computer systems. Of particular concern was whether includ-
ing conversion costs in computer procurements would result
in selecting the system that would cost the Government the
least over the life of the system; that is, not only the
lowest hardware procurement cost, but also conversion, oper-
ation, installation, training, and other costs.

     Conversion costs can be a significant factor in computer
replacement procurements. By staying within the incumbent
vendor's product line, or acquiring compatible computer equip-
ment, an agency can avoid many of these costs. Conversion costs
may run into millions of dollars when noncompatible equipment
is acquired.

     In making our study, we reviewed six computer procure-
ments in which a different make of computer was acquired. Our
primary objectives were to ascertain whether conversion costs
were considered when selecting the successful offerors and
whether the selected proposal cost the least over the life of
the system. The procurements we studied are shown in the table
below.


           Manufacturer of
Existing ecouipment   Replacement ecuirment


           Agency

A4oor9o94z- Energy


Environmental
  Protection
  Agency (EPA)


Navy


   Agriculture
     (USDA) 2 cases

   Veterans Adminis-
,¢   tration (VA)


Control Data Corp.

IBM


Univac
Univac


Univac


RCA, IBM


IBM, Burroughs
IBM


        -1
      2t~
p~CA~>


Honeywell
Honeywell

Honeywell


(913560)


S ()7


iAe,ccoCO i

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