oversight

Justice ADP Procurement: Contracting and Market Share Information

Published by the Government Accountability Office on 1990-09-28.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                     United   States   General   Accounting   Office

GAO                  Fact Sheet f,or Congressional
                     Requesters



September   1990
                     JUSTICE ADP
                     PROCUREMENT
                     Contracting and
                     Market Share
                     Information




GAO/IM’IEC-90-4OFS                                                     .>
         c
     .
.T
      United States

GAO   General Accounting  Office
      Washington, D.C. 20648

      Information      Management        and
      Technology      Division

      B-510571

      September 28,199O

      The Honorable John Conyers, Jr.
      Chairman, Committee on Government
        Operations
      House of Representatives

      The Honorable Frank Horton
      Ranking Minority Member, Committee
        on Government Operations
      House of Representatives

      This report responds to your February 1989 requests for a comprehen-
      sive review of federal agencies’ compatible computer procurementsl In
      your initial requests and in subsequent discussions with your offices, we
      were asked to answer several specific questions about agencies’ procure-
      ments of mainframe computers and mainframe peripheral equipment.
      Your questions focused on identifying the extent to which agencies’
      procurements of mainframe computers and mainframe peripherals
      required compatibility with International Business Machines (IBM) or
      any other computer manufacturer. You were also interested in knowing
      details such as the identification of manufacturers whose equipment
      was acquired by each agency and the procurement methods used to
      obtain equipment.

      This report focuses on the Department of Justice. The information we
      obtained from Justice shows that during the 3-l/2 fiscal years ending in
      March 1989,100 percent of Justice’s 41 procurements for mainframes
      and mainframe peripherals required IBM compatibility.2 IBM equipment
      was supplied in 17 of the 41 procurements (42 percent). Overall, IBM
      equipment was supplied for more Justice mainframe and mainframe
      peripheral equipment procurements than any other manufacturer’s
      equipment. When we used dollars for comparison-as opposed to the
      number of procurements- we found that Justice obligated more dollars



       ‘A compatible procurement requires hardware or software that functions like specified or existing
       hardware or software, with little or no modification. Competition in such procurements may occur
       between manufacturers and marketers-such as system developers and system integrator+-to
       supply equipment that meets the compatible requirements. Since there is the potential for competition
       between manufacturers and marketers, a compatible procurement does not necessarily result in the
       award of a sole source contract.

       ‘Because several companies manufacture and market IBM+ompatible equipment; competition in IBM-
       compatible procurements may occur among a variety of manufacturers and marketers.



       Page I                           GAO/IMTECXO-4OFS Contracthg and Market Share Information
I%610571




to procurements involving IBM equipment than to any other manufac-
turer’s equipment. Of its $85.3 million total obligations, Justice obligated
$38.1 million for IBM versus $47.2 million for all others.

As requested in discussions with your offices, we also obtained informa-
tion from Justice on the procurement methods it used. The detailed
questions you asked and our answers are summarized in appendix I.
Appendix II contains tables with detailed statistics that are the basis for
our answers to your questions. We have also included separate tables in
appendix III of detailed statistics on the Federal Bureau of Investiga-
tion’s (FBI) procurements. Further, we requested separate data from Jus-
tice on the Immigration and Naturalization Service’s procurements.
However, Justice reported that the Immigration and Naturalization Ser-
vice did not conduct separate mainframe or peripheral procurements
during the period covered by our review.

We are reporting information for the 3-l/2 fiscal years from October 1,
1985, through March 31,1989. All the information is based on Justice’s
response to a questionnaire we devised and distributed to 35 agencies.
We did not independently validate the information, nor did we evaluate
any documentation related to individual Justice procurements. How-
ever, we checked Justice’s information for consistency with the instruc-
tions for our questionnaire and made appropriate revisions. At your
request, we did not solicit or obtain comments from Justice on this
report. Appendix IV contains additional details on the objective, scope,
and methodology of our work.

In addition to this report on Justice, we previously reported similar
information on the Departments of Agriculture, Commerce, Defense, and
Health and Human Services. We also reported on the Air Force, Army,
Navy, and the National Aeronautics and Space Administration.



 As arranged with your offices, unless you publicly announce the con-
 tents of this report earlier, we plan no further distribution until 30 days
 after the date of this letter. We will then send copies to Justice and will
 also make copies available to others upon request.




 Page 2                   GAO/IMTEC-90-4OFS Contract@ and Market Share Information
B-610571




This information was compiled under the direction of Jack L. Brock, Jr.,
Director, Government Information and Financial Management, who can
be contacted at (202) 275-3195, should you require additional informa-
tion. Other major contributors to this report are listed in appendix V.




Ralph V. Carlone
Assistant Comptroller   General




 Page 3                 GAO/IMTEG904FT3   Cmtraclhg   and Market Share Information
Contents



Appendix I                                                                                                    6
Questions and
Answers About
Justice Procurements
Appendix II                                                                                                   12
Detailed Statistics on
Justice Procurements
Appendix III                                                                                                  13
Detailed Statistics on
FBI Procurements
Appendix IV                                                                                                   14
Objective, Scope,and
Methodology
Appendix V                                                                                                    17
Major Contributors to
This Report
Related GAO Products                                                                                          20

Tables                   Table II. 1: Justice Mainframe and Mainframe Peripheral                              12
                             Procurements
                         Table 11.2:Justice IBM-Compatible Procurements                                       12
                             According to Manufacturer of Equipment
                         Table 11.3:Justice IBM-Compatible Procurements                                       12
                             According to Procurement Method
                         Table 111.1:FBI Mainframe and Mainframe Peripheral                                   13
                              Procurements
                         Table 111.2:FBI IBM-Compatible Procurements According                                13
                             to Manufacturer of Equipment



                         Page 4                 GAO/IMTEC9O-4OFS Co&acting   and Market Share   Information
          Contents




          Table 111.3:FBI IBM-Compatible Procurements According
              to Procurement Method

Figures   Figure I. 1: Number of Justice    Mainframe and Mainframe                          7
               Peripheral Procurements
          Figure 1.2: Dollars for Justice   Mainframe and Mainframe                          7
               Peripheral Procurements
          Figure 1.3: Number of Justice     IBM-Compatible                                   9
               Procurements According       to Manufacturer of
               Equipment
          Figure 1.4: Dollars for Justice   IBM-Compatible                                   9
               Procurements According       to Manufacturer of
               Equipment
          Figure 1.5: Number of Justice     IBM-Compatible                                  11
               Procurements According       to Procurement Method
          Figure 1.6: Dollars for Justice   IBM-Compatible                                  11
               Procurements According       to Procurement Method




           Abbreviations

           ADP       automated data processing
           FBI       Federal Bureau of Investigation
           GAO       General Accounting Office             *
           GSA       General Services Administration
           IBM       International Business Machines
           IMTJX     Information Management and Technology Division


           P-5                      GA0/1MTEC4040F’S   Cbntraeting and Market Share Information
Ppe

*&~kons and Answers About
Justice Procurements

             What are the numbers and dollar amounts of Justice’s mainframe
             and mainframe peripheral procurements requiring compatibility
             and is there any trend toward the increased use of compatible
             procurements?

             Justice had a total of 41 procurements and obligated a total of
             $86.3 million for mainframe computers and mainframe peripherals
             during the 3-l/2 fiscal years ending in March 1989. According to Justice
             statistics, IBM-compatible procurements comprised 100 percent of Jus-
             tice’s 41 total procurements and represented all of the $85.3 million obli-
             gated. Because Justice’s statistics indicate 100 percent IBM-compatible
             procurements in each of the 3-l/2 fiscal years, there was no trend
             toward increased use of compatible procurements,




             Page 6                   GA0/1MTEG9040FS   Contracting and Market Share Information
                                            Appendix I
                                            Q~eotiona and Answers About
                                            Justice Procurements




Figure 1.1:Number of Justice Mainframe
and Mainframe Peripheral Procurements       Numbor   otPmounmmto




Figure 1.2: Dollars for Justice Mainframe
and Mainframe Peripheral Procurements
                                             30 gloouoInYHbno)




                                              Page 7                      GAO/IMTEG!JO4OFS   hbadng   and Market Share   Information
AppendIxI
QneoUono and Answera About
JorticaProcurementi




What equipment manufacturers are involved in Justice’s IBMCOm-
patible mainframe and mainframe peripheral procurements?

Justice obtained IBM equipment more frequently than any other manu-
facturer in fiscal years 1986 through 1989 (through the second quarter).
Of the 41 IBM-compatible procurements, Justice obtained IBMequipment
in 17 procurements representing $38.1 million in obligated dollars.
Amdahl equipment was obtained in 7 procurements representing
$26.6 million in dollars obligated while National Advanced Systems
equipment was used in 9 procurements totaling $19.4 million. Storage
Technology Corporation and others were among those manufacturers
involved in the remainder of Justice’s IBM-compatible procurements.




Page 8                       GAO/IMTEG904OFS   Comacting   and   Market Share Iniornustion
                                       Appendix I
                                       Questions and Answers About
                                       Justice Procurements




Figure 1.3: Number of Justice IBM-
Compatible Procurements According to   7-ot-
Manufacturer of Equipment




Figure 1.4: Dollars for Justice IBM-
Compatible Procurements According to
                                        51 (Ddurlnrn
Manufacturer of Equipment

                                        a0



                                        16



                                        10



                                          I



                                          0
                                               hd                    Lb          d-




                                         Page 9                      GAO/IMTJ3G9@40P?3 Con&acting and Market Share Information
Appendls I
questioM 8nd Almwera About
Jumtice Procurementa




What procurement methods were used to obtain nsss+zompatible
mainf’kame computers and mainframe peripheral equipment? And,
did Justice frequently use new contracts with 8(a) contractors to
obtain this equipment?

Using the number of procurements as a measure, Justice used two
methods most frequently-modifications       to existing contracts and Gen-
eral Services Administration (GM) schedule purchases-to obtain equip-
ment for its IBM-compatible requirements. Justice used these methods 16
and 13 times respectively for its 41 procurements (71 percent). Using
dollars as a measure, Justice used new contracts with a developer or
integrator and modifications to existing contracts most frequently.
Through these methods, Justice obligated $36.3 million and $32.2 mil-
lion respectively (79 percent of the total $86.3 million Justice obliga-
tions). The method-new contracts with 3(a) firms-was not used by
Justice in any of its 41 compatible procurements.




 P8ge 10                     GAO/IMTEGBO-4.0~   Con-   and Market Share Information
                                       Appendix I
                                       queati0M and Awwem About
                                       Justice Procurements




Figure 1.5: Number of Justice IBM-
Compatible Procurements According to   7    -al-
Procurement Method




Figure 1.6: Dollars for Justice IBM-
Compatible Procurements According to   21 fodnhl*wr)
Procurement Method
                                       a8




                                           Page 11                GAO/IMTJZG90-4OF8 ChWmchg   and Market Share Information
Appendix II

Deta,iledStaWics on Justice Procurements


Table 11.1:Justice Mainframe and Mainframe Peripheral Procurements
Dollars in millions
                                   Fiscal Year 1966     Fiscal Year 1967        Fiscal Year 1966       Fiscal Year 196p         Total
                                   Number Amount        Number Amount           Number Amount          Number Amount        Number Amount
Comoatible                               8    $24.9           15       $22.0           12     $32.4          6      $6.0        41     $85.3
Other                                    0      0.0            0        0.0            0        0.0          0       0.0         0       00
Total                                    6    $24.9           15      $22.0           12      $32.4          6      $6.0        41     $65.3
Comoatible Percent of Total            100%      100%        100%        100%        100%       100%       100%      100%      100%      100%
                                              aFiscal year 1989 through the second quarter.



Table 11.2:Justice IBM-Comoatible Procurements Accordina to Manufacturer of Eaubment
Dollars in millions
                                   Fiscal Year 1966     Fiscal Year 1967        Fiscal Year 1966    Fiscal Year 196W   Total
                                   Number Amount        Number Amount           Number Amount       Number Amount Number Amount
Amdahl                                   1      $5.9            3      $12.1            2      $6.0        1      $1.6  7    $25.6
IBM                                      5      15.0            6        2.3            5      20.6        1       0.2 17     30.1
National Advanced Systems                1       3.8            4        7.6            2       5.1          2        2.9        9       19.4
Storage Technology Corporation           1       0.2           1            b           1       0.2          1        1.1        4        1.5
Other                                    0        0.0          1            b           2       0.5          1        0.2        4        0.7
Total                                    6     $24.9          15       $22.0           12     $32.4          6      $6.0        41     $65.3
                                              aFiscal year 1989 through the second quarter

                                              bLess than $5O,CCG.



Table 11.3:Justice IBM-Comuatible Procurements Accordino to Procurement Method
Dollars in millions
                                   Fiscal Year 1966   Fiscal Year 1967   Fiscal Year 1966 Fiscal Year 1969   Total
                                   Number Amount Number Amount Number Amount Number Amount Number Amount
New Contract-Sole      Source             0      $0.0        1      60.2        1         b      0      $0.0  2    $02
New Contract-One       Offeror            0       0.0        1       0.5        0      $0.0      0       0.0  1     0.5
New Contract-More       Than One
Offeror                                   1       3.8           1         4.1            1       4.9          1       2.8         4      15.6
New Contract-Developer       or
Integrator                               2       15.0           0         0.0            3      20.3          0       0.0         5      35.3
Modifications to Existing
Contracts                                 1       5.9           6        16.5            4       6.6          5       3.2        16      32.2
 GSA Schedule Purchases                  4       0.2            6        0.7            3       0.6           0       0.0        13        1.5
Total                                    6     524.9           15      $22.0           12     532.4           6      $6.0        41     585.3
                                               aFiscal year 1989 through the second quarter

                                               bLess than $5O,ooO.




                                               Page 12                          GAO/IMTEG9MOFS         Contmcthg and Market Sham Infonnation
Appendix III

Detailed Statistics on FBI Procurements


Table 111.1:FBI Mainframe and Mainframe Peripheral Procurements
Dollars In millions
                                   Fiscal Year 1986     Fiscal Year 1967        Fiscal Year 1966       Fiscal Year 1989           Total
                                   Number Amount        Number Amount           Number Amount          Number Amount          Number Amount
Compatrble                               4     $13.9          10      $10.7            9      $21.2          4        $1.6        27       $47.4
Other                                    0       0.0           0        0.0            0        0.0          0         0.0                   0.0
Total                                    4    $13.9           10      $10.7            9      $21.2          4        $1.6        2;       $47.4
Compatible Percent of Total            100%      100%        100%        100%        100%       100%       100%        100%      100%        100%
                                              aFiscal year 1989 through the second quarter



Table 111.2:FBI IBM-Compatible Procurements According to Manufacturer of Equipment
Dollars in millions
                                   Flrcal Year 1988 Flrcal Year 1987   Fiscal Year 1988 Fiscal Year 1989’  Total
                                   Number Amount    Number Amount Number Amount Number Amount Number Amount
Amdahl                                   0     $0.0        2      $5.0        1         b      0      $0.0  3     $5.0
IBM                                      3     10.1        5       2.2        5     $20.6      1       0.2 14     33.1
National Advanced Systems                1      3.8        3       3.5        1       0.2      1       0.1  6      7.6
Storage Technology Corporation           0      0.0        0       0.0        1       0.2      1       1.1  2      1.3
Other                                    0      0.0        0       0.0        1       0.2      1       0.2  2      0.4
Total                                    4    $13.9       10    $10.7         9    921.2       4      51.8 27    847.4
                                              aFiscal year 1989 through the second quarter.

                                              bLess than $!X,OOO.



Table 111.3:FBI IBM-Compatible Procurements According to Procurement Method
Dollars in millions
                                   Fiscal Year 1986      Fiscal Year 1987       Fiscal Year 1988       Fiscal Year 1989           Total
                                   Number Amount         Number Amount          Number Amount          Number Amount          Number Amount
New Contract-Sole      Source            0      $0.0            1        90.2           1          b            0      $0.0            2     $0.2
New Contract-One       Offeror           0       0.0            1         0.5           0      $0.0             0       0.0            1      0.5
New Contract-More       Than One
Offeror                                   1       3.8           0         0.0           0        0.0            0       0.0            1      3.8
New Contract-Developer        or
Integrator                                1      10.1           0         0.0           3       20.3            0       0.0            4     30.4
Modifications to Existing
Contracts                                0        0.0          5         9.4            3       0.6             4       1.6        12        11.6
GSA Schedule Purchases                   2          b          3         0.6            2       0.3             0       0.0         7        0.9
Total                                    4     $13.9          10       $10.7            9     921.2             4      91.6        27      547.4
                                              aFiscal year 1989 through the second quarter.
                                               bLess than $5O,ooO.




                                               Page 13                          GA0/IMTEG904F’S        cmhchg       and Market Sham Information
Appendix IV

Objective,Scope,and Methodology


              In February 1989 we were requested by the Chairman and the Ranking
              Minority Member, House Committee on Government Operations, to per-
              form a comprehensive review of the government’s use of IBM-compatible
              automated data processing procurements, In response to the requests
              and in discussions with the Chairman’s and Ranking Minority Member’s
              offices, we agreed that procurements of mainframes and mainframe per-
              ipherals would be included in our review, with emphasis on compatible
              procurements. Our review covered procurements during the 3-l/2 fiscal
              years ending in March 1989, at 36 federal agencies.

              Our primary objective was to obtain and analyze information on specific
              aspects of each agency’s AuP-related procurements. This report focuses
              on the Department of Justice and includes the number and aggregate
              dollar value of Justice’s mainframe-related contracts, distribution of
              procurements among equipment manufacturers, and various procure-
              ment methods used by Justice to obtain mainframe-related equipment.
              Further, we included separate tables of detailed statistics on FBI’S
              procurements in appendix III.

              We used the following mutually exclusive procurement methods to
              group Justice’s procurements. The first three methods represent specific
              types of new contracts with mainframe and peripheral equipment man-
              ufacturers. These consist of sole source new contracts, new contracts
              that resulted from competitive procedures where only one offeror
              remained in the procurement at the time the awardee was selected, and
              new contracts that resulted from competitive procedures where the
              awardee was selected from among multiple competitors. We also
              included a category for new contracts with system developers and inte-
              grators. Additionally, we obtained and analyzed data on Justice’s modi-
              fications to existing contracts and its use of GSA’S multiple award
               schedule contracts.

              To accomplish our objective and facilitate Justice’s information gath-
              ering, we designed a questionnaire which, when properly completed by
              Justice, provided us with the necessary information. Our questionnaire
              included several charts and provided detailed instructions, with defini-
              tions and examples, to help Justice identify and report the relevant
              information. Our questionnaire instructions cited pertinent federal regu-
              lations to ensure consistency in understanding of the terms used and to
              identify key definitions.

              In preparing instructions for our questionnaire, we recognized the need
              to clearly and consistently identify mainframe computers, as opposed to


              Page 14                 GAO/IMTEC40-40~   Contmcting and Market Share Infommtion
APW* IJ’
ObJecthe, Scope, and Methodology




superminicomputers and supercomputers. Because technology changes,
criteria such as storage capacity, processing speed, physical size, cooling
requirements, and cost do not provide an adequate basis for clear and
consistent identification of mainframes. Therefore, after consulting with
computer vendors, General Services Administration, other federal
agency officials, and Datapro, we considered vendor marketing
strategy-in     addition to computer architecture and performance-as
the basis for classifying particular computers as superminicomputers,
mainframes, or supercomputers. Like Datapro, we classified as main-
frames some smaller and less expensive models if they belong to a
product line, or family, of mainframes sharing a common architecture or
operating system. However, models with similar performance character-
 istics that do not belong to a mainframe family and are manufactured by
 companies that are not traditionally recognized as mainframe manufac-
 turers were not classified as mainframes. We provided a list of main-
 frame manufacturers and models in the instructions for our
 questionnaire as examples of computers that agencies should include in
 completing the questionnaire.

We obtained comments on preliminary copies of our questionnaire from
information resources management officials at the Departments of Agri-
culture and Transportation, to aid in ensuring the questionnaire’s
clarity. After modifying the questionnaire based on comments received,
we asked the senior information resources management officials at Jus-
tice and 34 other federal agencies to complete the questionnaire.

 Our questionnaire was furnished to Justice in mid-April 1989. Upon
 receiving Justice’s (excluding FBI) response in June 1989 and FBI’s
 response in September 1989, the information was reviewed to determine
 if the instructions were followed correctly and if the information was
 clear and consistent. Although we did not independently validate the
 information supplied in the Justice response, our questionnaire con-
 tained several internal checks to determine if inconsistencies were pre-
 sent. In some situations we modified the data on the basis of discussions
 with agency officials. Our work did not include solicitation or evaluation
 of documents related to Justice’s individual procurements. The figures
 and tables in appendixes I, II and III were developed from our analysis.

 We did not solicit or obtain comments from Justice about this report,
 however, we discussed our scope and methodology with Justice officials


 rlEz%hoftwareprovide4
       ro ia a trade publication that        detailed information on computers, peripheral equip




 Page 16                           GAO/IMTEC-904OF‘S Contxacthg and Market Share Information
Appendix IV
ObJectlve, Scope, and Methodology




in August 1990. Our review was conducted from February 1989 through
August 1990 and was performed in accordance with generally accepted
government auditing standards.




P8ge 16                       GAO/IMTEC-904OFS Con&acting and Market Share Information
Appendix V

Major Contributors to This &port


                       Mark E. Heatwole, Assistant Director
Information            Mark T. Bird, Senior Evaluator
Management and         Paul J. Bollea, Senior Evaluator
Technology Division,
Washington, DC.




                       Page 17                GAO/IMTEG!JO4OFS Con&acting and Market Share Information
Page 18   GAO/IMTJZG9@4OF’S Contmcting and Market Share Information
Page 19   GAO/IMTEG~Fs   Con-   and   Market   Share   Information
7E#iF%GAOProducts


           I!(;   ADP   Procurement: ‘6RRR?TTQqand Market Share
                          90-87~~4 Aug. 30,199O).

                     ADP Procurement: Contracting and Market Share
            ~h’rlrudw~~‘r’ti~, July 31, 1990).

           ..mlrlw    ADP Procurement: 6WTZWKt: and Market &m!WGL
           :w (GAO/MEG~O-~ZFS, June 27,199O).

           I~WIW ADP Procurement: Contracting and Market Share GTGEiiFWi
             ~www,%~~,     June 8, 1990).

           -%RR ADP Procurement: Contracting and Market Share nQiEW?Y
            ~~!A~F,~~-~QFs, Apr. 20, 1990).

           ..‘TZb;i;l:: ADP Procurement: Contracting and Market Share ~GEiiF5w
           ~IXCUWZWW,           Apr. 9, 1990).

           ~bqj    ADP   Procurement: WV?7GEQ and Market Share ETn)mm


                   ADP   Procurement: Contracting and Market Share
                                                            6


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