Accession Number:

ADA113200

Title:

Teleprocessing Services Contracts for the Support of Army and Navy Recruitment Should be Recompeted.

Descriptive Note:

Corporate Author:

GENERAL ACCOUNTING OFFICE WASHINGTON DC ACCOUNTING AND FINANCIAL MANAGEMENT DIV

Personal Author(s):

Report Date:

1982-03-24

Pagination or Media Count:

8.0

Abstract:

Both the Army and the Navy have acquired teleprocessing services from Boeing Computer Services Company to support their recruiting efforts. Both are experiencing high cost overruns. The Armys initial cost projection for the Boeing proposal was about 8.5 million for the 60-month life of the contract it now projects a cost of about 120 million. The Navys initial cost projection for the Boeing proposal was about 524,000 for the 42-month life of the contract it now projects a cost of about 13 million. Both the Army and the Navy used benchmarks to evaluate proposals. Neither benchmark adequately represented the actual workload subsequently placed on the system and as a result was a poor indicator of system life costs. Computer resources used by both the Army and the Navy greatly exceeded the amount anticipated. Because Boeing submitted an apparently unbalanced proposal in which commercial rates were charged for teleprocessing services beyond the projected level, both services incurred costs well beyond that expected. Further, the lack of appropriate management controls--budgetary and cost controls for the users--has also contributed to the problem of excessive costs.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis
  • Logistics, Military Facilities and Supplies

Distribution Statement:

APPROVED FOR PUBLIC RELEASE