NASA-Ames Research Center Should Not Have Awarded Computational Services Contract to SBA and Technology Development of California

Gao ID: AFMD-83-40 June 9, 1983

In response to a congressional request, GAO reviewed the National Aeronautics and Space Administration's (NASA) Ames Research Center contract that was awarded for computational services. The contract was noncompetitively awarded to the Small Business Administration (SBA) which then subcontracted to Technology Development of California (TDC) under the Minority Business Program.

GAO found that the contract is not in the best interests of the government, because the government will pay more than it would have if the equipment had been leased directly from TDC. Further, separate purchases of the computer equipment would have been a lower cost alternative than the contract approach followed by NASA. GAO concluded that the purchase cost to the government would have been significantly reduced by a different acquisition method.

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: Accounting and Financial Management Division Phone: (202) 275-3482


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