ADP Acquisitions

Pursuant to a congressional request, GAO evaluated the Navy's Personnel and Pay Systems Consolidated Computer Center Project (PERSPAY) and presented: (1) background information and a chronology of events; (2) a synopsis of the automatic data processing (ADP) equipment purchased to support the project; and (3) funding and cost data.

GAO found that the Navy: (1) initiated the project to jointly and competitively procure ADP equipment for the Navy Finance Center and the Naval Military Personnel Command to satisfy delegations of procurement authority requirements and consolidate certain ADP operations for pay and personnel; and (2) believed that the consolidated acquisition would lower the cost of ADP equipment through economies of scale and reduce redundancy of information flow and data processing. Before the Navy could conduct the consolidated acquisition, it had to standardize its computer operations; therefore, Congress suggested that the Navy acquire interim ADP equipment while upgrading and standardizing before initiating the fully competitive consolidated acquisition. The Navy awarded contracts for interim computers which have been providing automated support for PERSPAY. The Navy was committed to a fully competitive computer acquisition in 1979; however, it is now planned for 1989 and the cost is expected to exceed $60 million.