Crop Insurance Program

Nationwide Computer Acquisition Is Inappropriate at This Time Gao ID: IMTEC-93-20 March 8, 1993

Uncertainties in the Federal Crop Insurance Corporation's (FCIC) future, including the restructuring of the Agriculture Department and reforms in the crop insurance program, make FCIC's planned $62-million computer acquisition a high-risk venture. By modernizing its information technology during such uncertain times, FCIC could be wasting millions of dollars on a project that will not meet its current or long-term needs. FCIC maintains that it needs the computers to meet the immediate needs of its offices and to ensure continued delivery of the crop insurance program. Yet it has neither analyzed its immediate needs nor determined which of its offices--if any--need more equipment right away. Rather than proceed with its nationwide acquisition project at this time, FCIC should identify and satisfy only its immediate technology needs until its future role and structure are clarified.

GAO found that: (1) organizational changes in the Department of Agriculture (USDA) and the crop insurance program altered FCIC information technology needs and created risks for FCIC-planned acquisitions; (2) proposed changes to the service approach at FCIC field offices would alter business processes and information flow among the field offices; (3) despite uncertainties in its organization and mission, FCIC believes the project is needed to meet immediate computer needs and ensure delivery of the crop insurance program; (4) FCIC has not analyzed its immediate needs or determined which offices need additional equipment; and (5) if restructuring or program changes occur, FCIC will need to evaluate how its technology needs will change and adjust its modernization plans accordingly.

Recommendations

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