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FGMSD-80-35 1 (1980-06-03)

handle is hein.gao/gaobabaqp0001 and id is 1 raw text is: II2Z33 BY THE COMPTROLLER GENERAL Report To The Chairman, Committee On Appropriations House Of Representatives OF THE UNITED STATES RELEASED RESTRICTED -Not to be released outside the General A~counting otfice except on the basis of specific approval Conversio: V Jrse, Process That Must Be Considered When Buying Computers Federal agencies have invested billions in computer programs. When an agency outgrows its present computer, the computer must be replaced. If the agency simply buys a larger computer from its present supplier, competition is denied. If there is a competitive procurement--and a new sup- glier is selected--the agency may face the com- plex job of converting its present programs to work on the new computer. How does one weigh the tradeoffs? GAO studied six computer procurements and found inconsistencies in what conversion costs had been included in evaluating competing vendor proposals, gross underestimates of these costs, and problems in managing a conversion. Considering conversion costs would not necessarily eliminate competition and in fact should provide greater assurance that a lower total cost would result. The General Services Administration should issue guidance on the treatment of conversion costs and develop technical guidelines to help agencies avoid problems. 112533 ,° , it /Zlllilililii33l3illl 7 0 FGMD-80-35 lCcoU1 ' JUNE 3, 1980

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