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ECONOMY IN GOVERNMENT PROPERTY MANAGEMENT
PROCUREMENT OF DATA PROCESSING EQUIPMENT
JOINT ECONOMIC COMMITTEE
[Created pursuant to sec. 5(a) of Public Law 304, 79th Cong.)
WRIGHT PATMAN, Texas, Chairman
WILLIAM PROXMIRE, Wisconsin, Vice Chairman
HOUSE OF REPRESENTATIVES
RICHARD BOLLING, Missouri
JOHN SPARKMAN, Alabama HALE BOGGS, Louisiana
J. W. FULBRIGHT, Arkansas HENRY S. REUSS, Wisconsin
HERMAN E. TALMADGE, Georgia MARTHA W. GRIFFITHS, Michigan
STUART SYMINGTON, Missouri WILLIAM S. MOORHEAD, Pennsylvania ABRAHAM RIBICOFF, Connecticut WILLIAM B. WIDNALL, New Jersey
JACOB K. JAVITS, New York W. E. BROCK 3D, Tennessee
JACK MILLER, Iowa BARBER B. CONABLE, JR., New York LEN B, JORDAN, Idaho CLARENCE J. BROWN, Ohio
CHARLES H. PERCY, Illinois
John R. STARK, Executive Director
JAMES W. KNOWLES, Director of Research
LOUGHLIN F. McHugh
JOHN R. KARLIK
RICHARD F. KAUFMAN
COURTENAY M. SLATER
Minority: DOUGLAS C. FRECHTLING
GEORGE D. KRUMBHAAR
SUBCOMMITTEE ON ECONOMY IN GOVERNMENT
WILLIAM PROXMIRE, Wisconsin,
HOUSE OF REPRESENTATIVES JOHN SPARKMAN, Alabama
WRIGHT PATMAN, Texas STUART SYMINGTON, Missouri
MARTHA W. GRIFFITHS, Michigan LEN B. JORDAN, Idaho
WILLIAM S. MOORHEAD, Pennsylvania CHARLES H. PERCY, Illinois
BARBER B, CONABLE, JR., New York
CLARENCE J, BROWN, Ohio
RAY WARD, Consulting Economist
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; Řobert A.
Raup, Director for Automation Policy; and Henry Lichstein, Director
for Advanced Computer Techniques
Caveney, L. Richard, president, Computer Peripheral Manufacturers
Association (CPMA) --
Harmon, George O., president, Comma Corp., New York, N.Y..
STATEMENTS AND EXHIBITS
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..
Common practice to procure all ADPE from systems manufac-
Possibilities for large savings..
Need for interfacing devices.
Industry working on standard interface media-
Slow progress by industry -
National Bureau of Standards responsibility -
Lack of funds in NBS..
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..
Use of smaller manufacturers-
Legal responsibility of GSA..
Staats, Hon. Elmer B., Comptroller General of the United States—Con.
Prepared statement of Elmer B. Staats..
Reports to the Congress on ADPE..
Government inventory practices regarding ADP equipment.--:
Potential savings available by the acquisition of peripheral equip-
ment from independent peripheral manufacturers-
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?.
ADPE procured under various types of contract..
BOB and GSA inventory of Government ADPE.
ADPE inventories of DOD, AEC, and NASA.-
Use of ADPE for commercial work.
ADPE used part-time Government and commercial not in in-
Regulations controlling use of ADPE.
ADPE in hands of contractors not covered by OEP Order 8555.1.
Acquisition of ADPE by contractors.
Statement that contractors get title to Government computers.
Cost of ADPE for DOD.
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-
Remuneration to Government by contractors..
GAO followup study-
Machine-by-machine use records opposed by some companies
Kind of records kept by companies...
What top agencies exert management control?.
Followup collection action on contractors using Government
GA) 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 --
NBS budget request for interface research.
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:
New Office of Management and Budget (OMB).
ADPE inventory system for Government.
4,666 ADPE systems in Federal inventory---
Federal Government and National Census of computers.
Equipment in the hands of contractors.
Procurement from small producers.
Unbundling by IBM.-
Key conference called by BOB...
22 22 22 23 23 24 25 25 26
29 30 30 30 31 31 31
Ink, Dwight A., Assistant Director for Executive Management, Office of
Management and Budget-Continued
BOB Bulletin 70-9---
Amended BOB Circular No. A-11
Prepared statement of Dwight A. Ink.
Recommendations No. 6 and 7 of Subcommittee report-
Total Federal inventory of ADPE---
Distribution of Federal inventory according to supplier
Equipment in hands of contractors.
Conference convened by BOB.--
Comments on recommendations-
NBS resources inadequate.
NBS appropriation cut for ADP work
Justification for funds for interface..
Total expenditure for ADPE-
$1.9 billion spent for ADPE in Government inventory -
Communications ADPE, etc., not included in inventory-
Costing ADPE in systems.
Overall cost of ADPE...
BOB puts total ADPE cost-$2.19 billion.
Inventory report of Government ADPE filed with committee.
Reliability of ADPE costs.
Government-owned ADPE only included in inventory
85 percent of ADPE costs for BOD, AEC, and Space-
ADPE included and omitted from DOD figures..
Weapons' systems ADPE not included.
General purpose ADPE on ships are included.
Military process computers omitted.--
History of Government participation in use of ADPE.
Growth in use of computers---
Suppliers of ADPE to the Government-
Impact of delay on interface problem.-
Records kept by subcontractors vs prime contractors.
Use of breakout idea for other equipment purchases
Lack of in-house capability in Government-
Need to know item costs.
Possible foot-dragging on interface standards.
Influence of industry in making 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.
Government impact on industry development-
Steps taken by agencies in renting or buying ADPE.
Decisions by OMB.
Expertise in OMB.
Staff in OMB
Decision on where to buy---
OMB not in procurement action -
GSA is procuring agency -
Special program for ADPE setup in BOB in 1966_
History of ADP activities in OMB --
Lack of data on total Government ownership of ADPE.
IBM's new 370 series
Congressional interest in computer costs.
Followup on Stubbings report.-