Navy Did Not Adhere to Procurement Regulations in Acquiring a Computer for Its Ships Parts Control Center

Gao ID: IMTEC-84-16 July 16, 1984

In response to a congressional request, GAO evaluated the Navy's acquisition and use of a computer installed at the Ships Parts Control Center. In 1979, the Corps of Engineers leased this computer under the foreign military sales program to support the Saudi Arabian Naval Expansion Program. Later the Navy acquired the computer for a project.

GAO found that the Corps of Engineers followed established laws, rules, and regulations in leasing the computer for the Saudi Arabian Naval Expansion Program. However, the Navy did not follow applicable laws, rules, and regulations in acquiring the computer, prompting the unnecessary expenditure of about $831,000 for a sole-source lease of the computer and the acquisition of a computer that exceeded project needs. Furthermore, the Navy used the computer for its own project needs while the computer was being leased with Saudi foreign military sales funds. Finally, the Navy knew that it had not followed proper procedures in acquiring the computer.

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.

Director: Carl R. Palmer Team: General Accounting Office: Information Management and Technology Division Phone: (202) 275-4649


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