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.] SUBCOMMITTEE ON ECONOMY IN GOVERNMENT GEORGE D. KRUMBHAAR RICHARD F. KAUFMAN RAY WARD, Consulting Economist (II) HOUSE OF REPRESENTATIVES WRIGHT PATMAN, Texas MARTHA W. GRIFFITHS, Michigan WILLIAM S. MOORHEAD, Pennsylvania BARBER B. CONABLE, JR., New York CLARENCE J. BROWN, Ohio 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 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_ National Bureau of Standards responsibility. GAO making followup study to Report B-115369. Memorandum-General Accounting Office, June 22, 1970. Common facility for Foreign Affairs Community- Staats, Hon. Elmer B., Comptroller General of the United States-Con. Reports to the Congress on ADPE.. Government inventory practices regarding ADP equipment--- Interrogation: Staffing needs of NBS. NBS basically agrees with GAO on staffing needs__. 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. 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. 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. Possibility of a supplemental request?.. Ink, Dwight A., Assistant Director for Executive Management, Office of NBS has program in 1972 budget cycle_ Interface problem of particular importance.. 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_ 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. 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 DOD, 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. Suppliers of ADPE to the Government. Impact of delay on interface problem__ Records kept by subcontractors vs prime contractors_ Need to know item costs_ Possible foot-dragging on interface standards. Government know-how in making standards. Dependence on external ideas by NBS. Need for computer costs and analyses.. Potential savings from interface standards_ Role of Office of Management and Budget (OMB). 30 30 Federal inventory of ADPE by suppliers.. National Census of ADPE by selected years 31 31 31 34 34 34 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. 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. Congressional interest in computer costs. Followup on Stubbings report_- |
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