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IMTEC-85-12 1 (1985-06-17)

handle is hein.gao/gaobabnsl0001 and id is 1 raw text is: 



flCOMPTROLLER GENERAL OF THE UNITED STATES
                               WASHINGTON D.C. 20546



 B-213963                            June 17, 1985



 The Honorable Jack Brooks
 Chairman, Committee on Government
   Operations                                              127416
 House of Representatives

 Dear Mr. Chairman:

      Subject: GAO's Assessment of Affidavits Concerning HHS'
                Proposed Debarment of the Paradyne Corporation
                (GAO/IMTEC-85-12)

      Your letter of June 7, 1985, as amplified in conversations
 with members of your staff, requested our comments on certain
 affidavits and related material, which you provided us, regarding
 the Social Security Administration's (SSA's) contracts with the
 Paradyne Corporation. Specifically, you asked us to assess whether
 1) these affidavits, submitted by Paradyne in response to the
 Department of Health and Human Services' (HHS') proposal to debar
 Paradyne, refute the basis of HHS' debarment recommendation, and 2)
 Paradyne's actions in securing its data communications contract
 with SSA were consistent with common industry practice.

     To respond to your concerns we reviewed the information which
 you supplied in light of the two reports which we issued on this
 subject in 1984, our related testimony before your Subcommittee on
 Legislation and National Security, and supporting information.
 Because of the need for a prompt response, we are not providing a
 detailed point-by-point consideration of every assertion made in
 the affidavits. However, since our prior two reports and testimony
 addressed the same general issues, we have been able to conclude
 that the affidavits (1) do not refute the basis of HHS' proposal
 for debarment and (2) do not support Paradyne's argument that its
 actions in obtaining this contract were consistent with customary
 practices in the computer industry.

      In hearings you held on September 13, 1984, we acknowledged
that GAO believed that sufficient evidence existed for the
government to initiate suspension and debarment proceedings against
Paradyne. We based this opinion on information collected during
our review, which indicated that in its August 1980 proposal,
submitted in response to SSA's Request for Proposals (RFP),


(990516)

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