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 United States General Accounting Office Washington, DC 20548 Permit No. GlOO Official Business L Penalty for Private Use $300
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)