ADP Acquisition

Defense Logistics Agency Has Not Justified Need for Additional Computer Gao ID: IMTEC-91-33 May 23, 1991

Pursuant to a congressional request, GAO reviewed the Defense Logistics Agency's (DLA) efforts to procure a large mainframe computer, costing about $7.8 million, for its Columbus, Ohio, information processing center.

GAO found that DLA overestimated its required computer capacity by about 50 percent, since: (1) it improperly assumed that the Columbus processing center computers would process Department of Defense (DOD) contract payment transactions that the Air Force will continue to process; (2) it used inappropriate historical data to estimate the contract payment transactions; (3) it assumed that all high peak-hour user demand from its 23 field locations around the country occurred at the same time for both payroll and contract payment transactions regardless of geographic time zones; and (4) available capacity was sufficient to handle current and projected work loads.

Recommendations

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