ECONOMY IN GOVERNMENT PROPERTY MANAGEMENTPROCUREMENT OF DATA PROCESSING EQUIPMENT 91-2 HEARING BEFORE THE SUBCOMMITTEE ON ECONOMY IN GOVERNMENT OF THE JOINT ECONOMIC COMMITTEE CONGRESS OF THE UNITED STATES NINETY-FIRST CONGRESS For sale by the Superintendent of Documents, U.S. Government Printing Office JOINT ECONOMIC COMMITTEE [Created pursuant to sec. 5(a) of Public Law 304, 79th Cong.] WRIGHT PATMAN, Texas, Chairman WILLIAM PROXMIRE, Wisconsin, Vice Chairman CONTENTS Proxmire, Hon. William, chairman of Subcommittee on Economy in Bulletin No. 70-9, dated February 2, 1970, Executive Office of the CHRONOLOGICAL LIST OF WITNESSES JULY 1, 1970 Staats, Hon. Elmer B., Comptroller General of the United States, accom- panied by Edward J. Mahoney, Deputy Director, Office of Policy and Special Studies (OPSS); Harry J. Mason, Jr., Assistant Director (OPSS); and James Hammond, Associate Director, Defense Division; U.S. General Accounting Office (GAO) - Johnson, Hon. Robert L., Office of the Secretary of Commerce, accom- panied by James P. Nigro, Chief, Division of Information Processing Technology, National Bureau of Standards (NBS)_. Sanderson, Hon. Albert F., Office of Emergency Preparedness (OEP), Executive Office of the President.. Ink, Hon. Dwight A., Assistant Director for Executive Management, Office of Management and Budget, Executive Office of the President, accompanied by Joseph F. Cunningham and Clark R. Renninger, automatic data processing staff. Abersfeller, Hon. Heinz A., Commissioner, Federal Supply Service, General Services Administration (GSA), accompanied by George W. Dodson, Jr., Assistant Commissioner, Office of Automated Data Man- agement Services, Federal Supply Service. Warren, Col. Joseph B., U.S. Air Force, Deputy Comptroller for Data Automation, Office of the Secretary of Defense, accompanied by Comdr. Jan S. Prokop, U.S. Navy, Assistant Deputy Comptroller; Robert A. Raup, Director for Automation Policy; and Henry Lichstein, Director for Advanced Computer Techniques-- Caveney, L. Richard, president, Computer Peripheral Manufacturers Harmon, George O., president, Comma Corp., New York, N.Y......... Staats, Hon. Elmer B., Comptroller General of the United States: GAO recommended better inventory of automatic data processing Need for better data to improve reutilization of ADPE..... Need for current and reliable information on ADPE.. Possibilities for large savings.. Industry working on standard interface media_ GAO making followup study to Report B-115369. Memorandum-General Accounting Office, June 22, 1970. Common facility for Foreign Affairs Community_ Reviews being made of computer systems- Staats, Hon. Elmer B., Comptroller General of the United States-Con. Reports to the Congress on ADPE.. Government inventory practices regarding ADP equipment... Potential savings available by the acquisition of peripheral equip- Report recommendations.. Interrogation: Staffing needs of NBS.. NBS basically agrees with GAO on staffing needs.. Current use of NBS staff__ Savings on magnetic tapes in millions annually. GAO estimates ADPE annual costs $4 to $6 billion.. $4 billion to $6 billion-a fantastic spread_ Government contractors not required to furnish costs on Gov- ADPE cost breakdown for DOD, AEC, and NASA. DOD costs are 62 percent of in-house total_ ADPE purchases by contractors. Contractors pay rent for industrial plant equipment (IPE) used When does contractor take title on purchase-rental equipment?_ BOB and GSA inventory of Government ADPE. Use of ADPE for commercial work_ _ _. ADPE used part-time Government and commercial not in in- Regulations controlling use of ADPE_ Page 666 ADPE in hands of contractors not covered by OEP Order 8555.1. Statement that contractors get title to Government computers. Over buy and use of computers.. Need for good planning before buying ADPE.. Quality of management of $47 billion stores in DOD... Chairman of House Appropriations Committee interested in GAO authority to set controls over Government property - GAO followup study. Machine-by-machine use records opposed by some companies __ What top agencies exert management control?_ Followup collection action on contractors using Government GAO to check into rental-purchase agreements. OEP Order 8555.1 does not cover ADPE (only IPE) OEP is amending Reg. 8555.1 to forbid use of Government-owned IPE held by contractors more than 25 percent commercially__ Responsibility for budget request. NBS has failed to get a standard by consensus_ NBS has program in 1972 budget cycle_ Possibility of a supplemental request?_ Interface problem of particular importance_ Ink, Dwight A., Assistant Director for Executive Management, Office of Management and Budget: Oral statement: New Office of Management and Budget (OMB). 32 ADPE inventory system for Government_ 32 Ink, Dwight A., Assistant Director for Executive Management, Office of Oral statement-Continued Conference conclusions_ BOB Bulletin 70-9_. Amended BOB Circular No. A-11. Prepared statement of Dwight A. Ink. Recommendations No. 6 and 7 of Subcommittee report_. Distribution of Federal inventory according to supplier. Conference convened by BOB. Conference recommendations. Interrogation: NBS resources inadequate_ NBS appropriation cut for ADP work Total expenditure for ADPE.. $1.9 billion spent for ADPE in Government inventory_ Communications ADPE, etc., not included in inventory. Overall cost of ADPE__ BOB puts total ADPE cost-$2.19 billion. Inventory report of Government ADPE filed with committee_ Government-owned ADPE only included in inventory. 85 percent of ADPE costs for ĎOD, AEC, and Space_ Weapons' systems ADPE not included.. General purpose ADPE on ships are included_ Military process computers omitted.. History of Government participation in use of ADPE. Suppliers of ADPE to the Government. Records kept by subcontractors vs prime contractors_ Use of breakout idea for other equipment purchases_ Possible foot-dragging on interface standards. Private industry has no veto... .... Government know-how in making standards. Dependence on external ideas by NBS. Need for computer costs and analyses. Role of Office of Management and Budget (OMB). Government equity in ADPE procured by contractors Potential savings from interface standards. National Census of ADPE by selected years. Federal inventory of ADPE by suppliers... Government ownership versus private ownership of ADPE. Government owned 12 to 15 percent of National Census in 1962. Steps taken by agencies in renting or buying ADPE. Decisions by OMB_ Expertise in OMB. Staff in OMB... Lack of data on total Government ownership of ADPE.. Page 35 36 36 36 36 37 37 38 39 39 39 40 40 41 41 41 41 42 42 42 43 43 43 43 44 44 44 45 46 47 48 50 50 51 51 52 52 53 53 54 54 54 55 55 55 55 57 58 59 59 59 60 60 60 61 61 61 61 62 62 63 64 65 |