USDA Proposal for Handling Conversions in ADPE Procurements

With modifications, GAO generally concurred with the Department of Agriculture's suggested approach to handling conversions in the procurement of automatic data processing (ADP) equipment. GAO also agreed with the proposed approach to be used in the pending procurements for two computer centers, and it will monitor the application of the approach in the two procurements for possible applicability to other ADP equipment procurements by the Government. In the proposed approach, it is mandatory for a hardware vendor to quote a separate price for the conversion part of the procurement and optional that the Government accept the offer. Award for conversion will be made according to predetermined criteria identified in the request for proposals (RFP) as part of a two-step procurement. Criteria to determine the proper inclusions in the cost of software conversions include: (1) application programs must be in standard COBOL or FORTRAN; (2) programs must be needed by the agency; (3) programs must have an economic life equal to or greater than the target computer system's life; (4) programs must be running on the existing computer system at the time of the delegation of procurement authority; and (5) redesign or resystemization shall be considered in preference to conversion for parts of the software inventory which are appropriate for conversion. The following constraints are placed upon the contract requirements for conversion: (1) adequate documentation will be provided to the vendor; (2) the specific volume of conversion will be stated in the RFP; (3) only the conversion dollar amount proposed by the hardware vendor will be considered in evaluating the conversion part of his overall proposal; and (4) hardware vendors and vendors of conversion services will be apprised of the basis for making awards in the RFP. The proposed approach to conversion will be evaluated against Federal policy and regulation.