Opportunities for Improving the Management of DOD Computer Systems

Testimony was given concerning opportunities for improvement in the Department of Defense's (DOD) management of its computer systems. DOD is the largest consumer of computer hardware and services in the Government. Expenditures for both general purpose and embedded computer systems are expected to experience continued growth, and the costs for embedded systems will be substantial. However, through greater management attention to its computer resources, DOD can reduce its costs and increase the effectiveness of its computer support. DOD leases most of its general purpose computers and, although leasing is an appropriate acquisition method under a variety of circumstances, ongoing leases should be periodically analyzed and evaluated by DOD for continuing efficiency and cost effectiveness. GAO presented several cost-effective alternatives to continuing the present leasing contracts, including: (1) the exercise of purchase options; (2) the acquisition of title to computer equipment, but selling the equipment to a third party and leasing it back; (3) buying similar equipment on the used market; and (4) leasing similar equipment from a dealer in used equipment. DOD embedded computers are acquired rather than leased, and software costs for these computers will increase to more than two-thirds of total computer costs. GAO suggested four factors for consideration before embedded computer software is acquired: (1) objectives and user needs must be completely identified before software development is begun; (2) system designs need to be more responsive to user needs and have the flexibility to incorporate new capabilities; (3) the software development process needs to be improved by capitalizing on proven state-of-the-art software development techniques and tools; and (4) provisions should be made during development for inserting new hardware technology for growth potential and to postpone or avoid obsolescence during the system life-cycle.