ADP Systems
Concerns About DOD's Composite Health Care System Development Contracts Gao ID: IMTEC-87-25 June 8, 1987GAO reviewed the Department of Defense's (DOD) award of initial systems development contracts for the acquisition and implementation of the Composite Health Care System (CHCS).
GAO found that: (1) DOD received six proposals for CHCS system development contracts, but it failed to conduct required discussions with offerers, which caused a 3-month program delay and increased costs; (2) DOD did not attempt to resolve certain apparent uncertainties and suspected mistakes in unacceptable proposals because it believed that the proposals could not be made acceptable through further discussions; (3) DOD failed to document discussions with offerers for revised proposals or any agreements reached in contract negotiations; (4) DOD did not consider all relevant cost factors as a result of adding a fourth proposal to the competitive range; (5) changes in the DOD acquisition strategy increased contract costs to $7 million; (6) DOD expected to reduce individual system development costs through cost-sharing arrangements, but did not have a reasonable basis to negotiate a fair cost-sharing agreement because it failed to verify proposed contributions; and (7) greater participation and documentation of discussions with contractors is necessary to achieve full compliance with federal acquisition regulations.
RecommendationsOur recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.
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