FEA Procurement of Automatic Data Processing Services

Gao ID: B-178205.52 April 16, 1976

GAO has expressed concern to the General Services Administration (GSA) that the spirit of the Brooks Act could be violated by automatic data processing (ADP) equipment acquisitions under facilities management services contractors. GSA review and delegation of procurement authority procedures and justification provisions had not been applied to ADP services procurements. GSA has reinterpreted its responsibilities under the Brooks Act and issued regulations which increased its role in the ADP services area. The provisions had the effect of increasing the GSA review role in agency procurements of ADP services, particularly where the Government will or may acquire title to ADP eqipment through a services contract. A planned amendment to Federal procurement regulations will make the regulations applicable to Government contractors when the equipment or system is leased and full leased costs are paid by the Government, or when ADP equipment is purchased by a contractor for the account of the Government, or when the title of ADP equipment will pass to the Government. GSA will consider expanding ADP equipment procurement and contracting guidance to all Federal agencies to assure that contractor incentives for efficient and economical contract performance will be preserved and to assure close control of costs that will be included in the Government contract prices. These regulations will also increase GAO involvement in the ADP services area to help assure that ADP requirements are properly reviewed and justified.

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