Data Processing Management in the Federal Government

DATA PROCESSING MANAGEMENT IN THE FEDERAL

GOVERNMENT

TUESDAY, JULY 18, 1967

HOUSE OF REPRESENTATIVES,
GOVERNMENT ACTIVITIES SUBCOMMITTEE

OF THE COMMITTEE ON GOVERNMENT OPERATIONS,

Washington, D.C.

The subcommittee met at 10:15 a.m., in room 2247, Rayburn House Office Building, the Honorable Jack Brooks, chairman of the subcommittee, presiding.

Present: Representatives Jack Brooks, William S. Moorhead, William J. Randall, Dante B. Fascell, Fletcher Thompson, and Margaret M. Heckler.

Also Present: Ernest C. Baynard, staff administrator; Joseph L. Gibson, counsel; Hulen Selman, investigator; Irma Reel, clerk; Lynn Higginbotham, clerk; J. Richard Berman, assigned from GAO, supervisory accountant; Frank J. Borsellino, assigned from GAO, accountant; and William H. Copenhaver, minority counsel.

Mr. BROOKS. Gentlemen, we were expecting some other members but we have Congressman Thompson here from Georgia, who is still dedicated to serving. And, we are delighted to see him. The other members will be along. They are familiar with this, and I think we will proceed and not wait any longer.

The Government Activities Subcommittee, having been duly authorized by the rules of the committee and a quorum being present for the purpose of taking testimony, is hereby called to order.

In March 1963, I introduced legislation to provide a coordinated, Government-wide management system for Government data processing equipment. With data processing fast becoming a vital component to efficient and effective government, it became imperative that this costly and essential equipment itself be managed in the most efficient manner and applied in the most effective way. In October 1965, after almost 3 years of bitter struggle, this legislation was approved and is now Public Law 89-306.

During the past 20 months, the Bureau of the Budget, the General Services Administration and the National Bureau of Standardseach of which was delegated specific responsibilities under this statute-have had time to begin implementation of this new business-like management system.

Setting up this system is by no means complete. Much remains to be done and as time passes, improvements must constantly be made. But, even today, the benefits of this new approach are apparent. Earlier this year, the Bureau of the Budget announced savings on the order of between $100 and $300 million had already been achieved as a result of a coordinated approach to management of Government data processing as provided in this legislation.

The purpose of this hearing is to hear from those directly involved in this management effort to learn of their successes-but, more important, to define the problems confronting them as we seek fuller implementation of this management program and even greater efficiency and economy in the use of Government data processing.

It is vital that we keep in mind that improved management of Government data processing, important as it may be, is not an end in itself. Improved management is simply an essential means by which substantive utilization of these new techniques can be applied to bring better government to the people of this Nation. With effective management, with improved educational opportunities for Government decisionmakers into the mysteries of data processing, and with reasonable compatibility and standardization, literally billions in the Federal budget can be saved and used to meet urgent needs of the Nation. This subcommittee, as always, welcomes the advice and recommendations of knowledgeable individuals who share our deep concern for efficiency in Government. Our aim is to constructively recommend, not hinder, as we together seek to identify new problems and solve them in the public interest.

General, I want to welcome you in behalf of the subcommittee. During the period that you, Elmer Staats, have held the Office of Comptroller General, the subcommittee has continued to work closely with your staff, has received a full measure of cooperation from you that was traditional under your predecessor.

The GAO made a significant contribution to the enactment of this Public Law 89-306. You submitted to Congress and to Federal agencies more than 100 audit reports from 1958 through 1964, outlining the devastating deficiencies in the management of this equipment. The need for Public Law 89-306 was reflected in the findings of these audit reports; and the savings recently announced by the Bureau of the Budget, stated in terms of hundreds of millions of dollars, constitute the best evidence I know, of the soundness of our findings.

Now, before going to your statement, would you like to introduce the key members of your staff here with you, General?

STATEMENT OF ELMER B. STAATS, COMPTROLLER GENERAL OF THE UNITED STATES; ACCOMPANIED BY EDWARD J. MAHONEY, ASSOCIATE DIRECTOR, OFFICE OF POLICY AND SPECIAL STUDIES; ROBERT F. KELLER, GENERAL COUNSEL; AND ELLSWORTH B. MORSE, DIRECTOR, OFFICE OF POLICY AND SPECIAL STUDIES

Mr. STAATS. To my right, Mr. Chairman, is Mr. Ellsworth Morse, who is Director of our Office of Policy and Special Studies, and to my left here, Mr. Ed Mahoney, who is our top man in the ADP field and a member of the staff of that Office.

I have other members of our staff here, whom I will identify at the time they are called upon.

Mr. Chairman, I appreciate very much the opportunity to appear here today before your committee for the purpose of discussing current problems and developments in automatic data processing in the Federal Government.

Since the enactment in October 1965 of Public Law 89–306, in

systems in Federal programs has continued to expand and more sophisticated systems are being developed.

So, it seems to me that hearings of the type which you envisage here at the present time can be most helpful. All of us realize that important as any piece of legislation is, it may be equally important that here be adequate followthrough and continued interest on the part of the Congress if we are to accomplish the objectives which Congress had in mind when it enacted the legislation.

In my statement today I will discuss some of the new developments that are associated with the increasing use of computers and communication systems in what might be categorized as "third-generation systems." The Bureau of the Budget, the General Services Administration, and the National Bureau of Standards were given important roles to perform in carrying out the objectives of Public Law 89-306. Since representatives of these agencies will be testifying at these hearings, I do not plan to describe their activities under this law in detail. There seems to be no question that in the new environment of sophisticated application of communications and computers in these systems in the Government we will require, more than ever, a coordinated management approach such as envisioned in Public Law 89-306. This need is evidenced by requirements for coordination in such diverse areas as computer time sharing, ADP resource procurement matters, systems development, and standardization. It is also manifest in the demonstrated need for increased standardization of computer programs, data elements and codes, data communication facilities, and overall coding systems.

The need for information within the Government for use in providing effective management control over the billions of dollars of ADP resources acquired by the Government is vital if we are to promote more effective and efficient use of the new technology. Steps already taken by the Bureau of the Budget to develop a management information system for the ADP activities of the Government are most encouraging. Full development of such a system offers the potential for timely correction of developing problem areas, avoidance of unnecessary costs, and other possibilities for determining improvements in the Government's overall approach to ADP management. For example, matching of procurement needs with upcoming excesses of equipment or other ADP resources could be analyzed in advance. Also, bulk procurement opportunities could be more easily determined. In addition, Government investment policies on an overall basis would be susceptible to continuous review.

Sharing of ADP resources has increased during the past few years under the General Services Administration sharing program. In the February 1967 Bureau of the Budget Report to the President on ADP Management in the Federal Government, the Bureau reported that $26 million had been saved by using time available on Government computers at locations other than where the requirement existed rather than acquiring additional equipment. The report also pointed out that equipment valued at $70 million was redistributed within the Government, thereby avoiding expenditures for new equipment.

Sharing of computer equipment and other ADP resources could receive increased emphasis through the full development and use of

on systems design and development efforts as well as information on equipment, software, and personnel availability. Information on computer programs, procedures, and systems already developed for use in individual agencies can be used by other agencies to reduce duplication of development work. A good information system can also provide information on established standard codes and formats to assist in the development of systems for the automatic interchange of data between Government activities and for use in Central Government management activities.

The General Accounting Office has had a continuing interest in developments in the ADP program of the Bureau of the Budget, the General Services Administration, and the National Bureau of Standards. In addition, we have noted the continuous expansion in the development and use of the new technology by almost all agencies of the Government, by Government contractors, and by State and local government agencies working on Federal programs. We have also noted the report of the President's Science Advisory Committee on "Computers in Higher Education," which recommends a large-scale increase in Federal support for computers to be used by colleges and universities.

For effective and efficient use of the investment of billions of dollars already made by the Government in ADP systems of all kinds which involve Government programs, the Government must take the leadership in coordinating such activities to minimize duplication of effort and to promote efficient and effective use of these systems.

In order to improve coordination and leadership in this field, accelerated training at all levels of the Government is required. Some highly significant steps have already been taken by the U.S. Civil Service Commission through its recently established ADP Management Training Center which provides ADP training programs for Government employees and officials. The Civil Service Commission courses cover a wide range of activities-from programing concepts and advanced system technology to executive management information and reporting systems seminars. Our Office is working closely with the Commission and with other Government auditing agencies in the development of a course being offered Government-wide for the training of auditors in the use of ADP equipment.

The Civil Service Commission program has been very successful and it is contributing substantially to the Government's needs in this area. However, the explosion that has taken place in information processing in the past 8 to 10 years has been so great and new developments are occurring at such a fast rate that extensive additional training programs for all levels of Government will be required if we are to make the most effective use of the new technology in the years ahead.

During the past several years we have provided in-house ADP training for General Accounting Office auditors and accountants, 570 professional staff members have already taken 1- or 2-week courses in ADP in our Office. These courses are specifically tailored to the ADP audit policies of the General Accounting Office. In addition, 772 of our staff members have completed programed instruction courses in ADP. These are primarily home-study courses which, in addition to home study, involve a few days of on-the-job training for each course taken. We also have authorized the training of selected individuals at non

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