ADP Consolidation

Defense Logistics Agency's Implementation Approach Is Not Justified Gao ID: IMTEC-91-34 August 6, 1991

Pursuant to a congressional request, GAO reviewed the Defense Logistics Agency's (DLA) decision to consolidate its 23 automated data processing facilities into 6 regional processing centers.

GAO found that DLA: (1) did not adequately justify its consolidation decision; (2) did not follow the contractors' or its own task force's alternative consolidation recommendations or perform an economic analysis of those alternatives before making its decision to consolidate into six sites; (3) based its justification for a six-site consolidation on a cost and benefit analysis that used incomplete or unverifiable data regarding operating, transition, computer equipment, and telecommunications costs; (4) could not support the results of its analysis with any verifiable data sources; (5) substantially completed one consolidation processing center, and was in the process of implementing the remaining five centers; and (6) failed to act on its program manager's November 1990 request to perform an economic analysis prior to proceeding with implementation of the remaining five consolidation centers.

Recommendations

Our 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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