oversight

HHS ADP Procurement: Contracting and Market Share Information

Published by the Government Accountability Office on 1990-08-30.

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

GAO

  “”       ,,,l.l   .-l    _ -.   -._I “- .._..._ - _..._....
                                                           --..-.._-.-_   __“_--__-_--“-~-                              -------.---__I     ..__        -I-

Arlgllst                  I!b!N

                                                                          HHS ADP
                                                                          PROCUREMENT
                                                                          Contracting and
                                                                          Market Share
                                                                          Information



                                                                                                                                              142345




                                                                                                                                    - --
                                                                          !                                         ~~LJiASEJl
                                                                                   RESTRICTED ---Not        to be releksed outside fhe
                                                                                   General   Accounting   Office   unless specifkally
                                                                                   approved by the Offlce of Congressional
                                                                                   Relations.

                                                                                                  549341
(;A0 / ‘IM’I‘H’-!)O-X7FS
      United States
GAO   General Accounting  Office
      Washington, D.C. 20648

      Information      Management        and
      Technology      Division

      B-240600

      August 30,199O

      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 procurements.~ 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 Health and Human Services
      (HHS).The information we obtained from HHSshows that during the
      3-l/2 fiscal years ending in March 1989, HHShad a total of 145 procure-
      ments for mainframe computers and mainframe peripherals and that 92
      percent of these procurements (134) required some type of compati-
      bility. HHSrequired IBM compatibility 98 percent of the time (131 of its
      134 compatible procurements). When HHS’procurements required IBM
      compatibility, IBMequipment was supplied 79 percent of the time (103 of
      the 131 IBM-compatible procurements).

      HHSobligated $193.5 million for the 145 mainframe and mainframe
      peripheral procurements. When we used dollars for comparison-as
      opposed to the number of procurements-we      found that overall HHS

      ‘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 integrators--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.



      Page 1                          GAO/IhfTEG!Wf47FS      Contracting   and Market   Share Information
    obligated more dollars for IBMequipment than for all other manufac-
    turers’ equipment ($161.7 million for IBMversus $31.8 million for all
    others), including both compatible and other procurements where no
    compatibility was required. Of the 134 compatible procurements, with
    total obligations of $191.7 million, we found that HIIs obligated $190.6
    million to the IBM-compatible procurements. HHSobligated $161.7 million
    for the 103 IBM-compatible procurements that involved IBMequipment.

    As requested in discussions with your offices, we also obtained informa-
    tion from HHSon the procurement methods it used, including HHS’use of
    contractors that participate in the Small Business Administration’s pro-
    gram for small disadvantaged businesses-known        as 8(a) contractors.
    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. Also, because of your
    interest in the Health Care Financing Administration (HCFA),the
    National Institutes of Health (NIH), and the Social Security Administra-
    tion @A), we have included separate tables in appendixes III, IV, and V
    respectively of detailed statistics on their procurements.

    We are reporting information for the 3-l/2 fiscal years from October 1,
    1986, through March 31,1989. All the information is based on HHS’
    response to a questionnaire we devised and distributed to 35 agencies.
    We did not independently validate HHS’information, nor did we evaluate
    any documentation related to individual procurements. However, we
    checked the HHSdata for consistency with the instructions for our ques-
    tionnaire and made appropriate revisions. At your request, we did not
    solicit or obtain comments from HHSon this report. Appendix VI con-
    tains additional details on the objective, scope, and methodology of our
    work.

    In addition to this report on HHS,we previously reported similar infor-
    mation on the Departments of Agriculture, Commerce, and Defense. We
    also reported on the Army, Navy, Air Force, and the National Aeronau-
    tics and Space Administration.


    As arranged with your offices, unless you publicly announce the
    report’s contents earlier, we plan no further distribution until 30 days
    after the date of this letter. We will then send copies to HHSand will also
Y   make copies available to others upon request.




    Page 2                  GAO/IMTJZG90-87Fs   Contracting   and Market   Share Information
This information was compiled under the direction of Jack L. Brock, Jr.,
Director, Government Information and Financial Management, who can
be contacted at (202) 2753196, should you require additional informa-
tion, Other major contributors to this report are listed in appendix VII,




Ralph V. Carlone
Assistant Comptroller   General




Page 3                  GA0/IMTEG3047Fs   Contracting   and Market   Skare Information
I,                                                                                       I



     Contents


     Letter                                                                                           1

     Appendix I                                                                                       8
     Questions and
     Answers About HHS
     Procurements
     Appendix II
     Detailed Statistics on
     HHS Procurements
     Appendix III                                                                                    24
     Detailed Statistics on
     HCFA Procurements
     Appendix IV                                                                                     26
     Detailed Statistics on
     NIH Procurements
     Appendix V                                                                                      28
     Detailed Statistics on
     SSA Procurements
     Appendix VI                                                                                 30
     Objective, Scope,and
     Methodology
     Appendix VII                                                                                33
     Major Contributors to
     This Report



                              Page 4   GAO/IMTEG9O-t37FS cmmacting   and Market   Sham Information
                       Contents




Related GAO Products                                                           36

Tables                 Table II. 1: HHS Mainframe and Mainframe Peripheral
                           Procurements
                       Table 11.2:HHS Compatible Procurements According to     21
                           Type of Compatibility
                       Table 11.3:HHS IBM-Compatible Procurements According    21
                           to Manufacturer of Equipment
                       Table 11.4:HHS Compatible Procurements According to     22
                           Procurement Method
                       Table 11.6:HHS IBM-Compatible Procurements According    22
                           to Procurement Method
                       Table 11.6:HHS Mainframe and Mainframe Peripheral       23
                           Procurements According to Manufacturer of
                           Equipment
                       Table 11.7:HHS Operating System Software Contracts      23
                           According to Type of Mainframe
                       Table III. 1: HCFA Mainframe and Mainframe Peripheral   24
                           Procurements
                       Table 111.2:HCFA Compatible Procurements According to   24
                           Type of Compatibility
                       Table 111.3:HCFA IBM-Compatible Procurements            24
                           According to Manufacturer of Equipment
                       Table 111.4:HCFA Compatible Procurements According to   26
                           Procurement Method
                       Table 111.6:HCFA IBM-Compatible Procurements            26
                           According to Procurement Method
                       Table 111.6:HCFA Mainframe and Mainframe Peripheral     26
                           Procurements According to Manufacturer of
                           Equipment
                       Table IV. 1: NIH Mainframe and Mainframe Peripheral     26
                           Procurements
                       Table IV.2: NIH Compatible Procurements According to    26
                           Type of Compatibility
                       Table IV.3: NIH IBM-Compatible Procurements According   26
                           to Manufacturer of Equipment
                       Table IV.4: NIH Compatible Procurements According to    27
                           Procurement Method
                       Table IV.6: NIH IBM-Compatible Procurements According   27
                           to Procurement Method




                       Page 6
          Table IV.6: NIH Mainframe and Mainframe Peripheral                                   27
              Procurements According to Manufacturer of
              Equipment
          Table V. 1: SSA Mainframe and Mainframe Peripheral                                   28
              Procurements
          Table V.2: SSA Compatible Procurements According to                                  28
              Type of Compatibility
          Table V-3: SSA IBM-Compatible Procurements According                                 28
              to Manufacturer of Equipment
          Table V.4: SSA Compatible Procurements According to                                  29
              Procurement Method
          Table V.6: SSA IBM-Compatible Procurements According                                 29
              to Procurement Method
          Table V.6: SSA Mainframe and Mainframe Peripheral                                    29
              Procurements According to Manufacturer of
              Equipment

Figures   Figure I. 1: Number of HHS Mainframe and Mainframe                                       9
               Peripheral Procurements
          Figure 1.2: Dollars for HHS Mainframe and Mainframe                                      9
               Peripheral Procurements
          Figure 1.3: Number of HHS Compatible Procurements                                        11
               According to Type of Compatibility
          Figure 1.4: Dollars for HHS Compatible Procurements                                      11
               According to Type of Compatibility
          Figure 1.6: Number of HHS IBM-Compatible Procurements                                    13
               According to Manufacturer of Equipment
          Figure 1.6: Dollars for HHS IBM-Compatible Procurements                                  13
               According to Manufacturer of Equipment
          Figure 1.7: Number of HHS Compatible Procurements                                        16
               According to Procurement Method
          Figure 1.8: Dollars for HHS Compatible Procurements                                      16
               According to Procurement Method
          Figure 1.9: Number of HHS IBM-Compatible Procurements                                    17
               According to Procurement Method
          Figure I. 10: Dollars for HHS IBM-Compatible                                             17
               Procurements According to Procurement Method
          Figure I. 11: Number of HHS Mainframe and Mainframe                                      19
               Peripheral Procurements According to Manufacturer
               of Equipment




          Page 6                GAO/IMTEG90-87F!3   Contracting   and Market   Share Information
Figure I. 12: Dollars for HHS Mainframe and Mainframe                                19
     Peripheral Procurements According to Manufacturer
     of Equipment




Abbreviations
ADP      automated data processing
HHS      Department of Health and Human Services
HCFA     Health Care Financing Administration
GAO      General Accounting Office
GSA      General Services Administration
IBM      International Business Machines
IMTEC    Information Management and Technology Division
NIH      National Institutes of Health
SSA      Social Security Administration


Page 7                GAO/IMTEG9O-S7F?3   CLMm&bg   and Market   Share Information
                                                                                             ,
Appendix I

Questions and Answers About
HHS Procurements

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

              HHS  had a total of 146 procurements and obligated a total of $193.6 mil-
              lion for mainframe computers and mainframe peripherals during the 3-
              l/2 year period ending in March 1989. The HHS data showed that com-
              patible procurements comprised 134 of their 146 total procurements,
              representing $191.7 million of the $193.6 million obligated. In each of
              the 3-l/2 fiscal years ending in March 1989-using the number of
              procurements as a measure-the percentage of compatible procure-
              ments was 84 percent or higher. Also, during the same period the per-
              centage of dollars obligated to compatible procurements was 99 percent
              or higher. Because the HHS statistics indicate a consistently high per-
              centage of compatible procurements, there was no trend toward
              increased compatible procurements.




              Page 8                 GAO/IMTJZG90467F!3   Contracting   and Market   Share Information
Figure Ll: Number of HHS Mainframe
and Mainframe Peripheral Procurement8
                                        M NumbuoiRoo-




Figure 1.2: Dollars for HHS Mainframe
and Malnframe Peripheral Procurements   (bum InYiubm)
                                        M
                                        a0
                                        M
                                        00
                                        411




                                        Page   B        GAOllMTWMM7FS   Contnwttng and Market &hue Information
Appendix I
Qneetlona and Answers   About
HHS Procurement.9




What is the distribution of HEM’Scompatible mainframe and main-
frame peripheral procurements   according to type of compatibility?

Those procurements that HHS identified as having a requirement for
compatibility were primarily for IBM compatibility. Specifically, 131 (98
percent) of the 134 procurements were to satisfy IBM-compatible
requirements representing $190.6 million (99 percent) of the $191.7 mil-
lion obligated for all compatible procurements. The remaining three
procurements, representing $1.1 million were to satisfy one Unisys-com-
patibility requirement, representing $900,000 of the obligations, and
two other compatible procurements representing $200,000.




Page 10                         GAO/IMTEG9O-S7PS   Contracting   and Market   Share Information
                                         Appendix I
                                         Questions and Answers                         About
                                         HUS Procurementa




Figure 1.3: Number of HHS Compatible
Procurements According to Type of        so       NumbwdProowmMnl~
Compatibility
                                         4s

                                         40

                                         2s

                                         a0

                                         26

                                         20

                                         16

                                         10

                                          6

                                          0




                                                        0         Fiaca! Yw   1924
                                                                  Flad    You 1987
                                                                  FluA Yew 1W

                                                        I         Fiscal Year 1989 (Through the SemtM Ouenec)



Figure 1.4: Dollars for HHS Compatible
Procurements According to Type of        (lhllamInullllons)
Compatibility                            66
                                         00
                                          IS
                                          SO
                                          41
                                          40
                                          aa
                                          a6
                                          22
                                          20
                                          16
                                          10
                                              6

                                              0   -I-




                                                            III    Flscd Year 1OBB
                                                                   Fld     Year 1987
                                                                   FkalYesr     MISS
                                                                   Fkal    Yesr lB69 (ThmI&jh ttm Second ouarter)




                                          Page 11                                               GAO/JMTJ3GQO-S7FS   Contracting   and Market   Share Information
ARrnndir1
Queetlona and Answem   About
HHS Procuremente




What equipment manufacturers  are involved in HHS’ IBM compatible
mainframe and mainframe peripheral procurements?

HHSobtained IBMequipment in the majority of its IBM-compatible
procurements in each of fiscal years 1986 through 1989 (through the
second quarter). Of the 131 IBM-compatible procurements, 103 (79 per-
cent) resulted in HHSobtaining IBMequipment. Similarly, of the $190.6
million obligated to IBM-compatible procurements, $161.7 million (86
percent) was for procurements involving IBMequipment. In addition to
IBM,other manufacturers involved in HHS’SIBM-compatible procurements
included Memorex, National Advanced Systems, NCR Comten, and
Storage Technology Corporation.




Page 12                        GAO/IMTEC%O-S7FS   Contracting   end Market   Share Information
                                       Appendix I
                                       Questions and Answers             About
                                       HHS Procurements




Figure 1.5: Number of HHS IBM-
Compatible Procurement8 According to   40   NumbuetPmav*m(a
Manufacturer of Equipment




                                                    Fbd   Year 1988

                                                    FbcalYeaf   1987

                                                    Fbd   Year 1988

                                                    Fbcal Yew 1989 flhrouph   lha Sea~nd ousner)



Figure 1.6: Dollar8 for HHS IBM-
Compatible Procurement8 According to
Manufacturer of Equipment
                     . .               .-

                                       40

                                       a0

                                       a0

                                       00

                                       20

                                       10

                                       10

                                        0

                                        0




                                       Page 13                                     GAO/JMTEG90-37FS   Contracting   end Market   Share Information
                                                                                                        I
               Appendix   I
               Questtone and Annvera About
               IiIiS Procurements




               What procurement      methods were used to obtain all types of com-
               patible maM?ame computers and mainframe peripheral equip-
               ment? And, did HHEIfrequently    use new contracts with 8(a)
               contractors  to obtain compatible mainframes and mainframe
               peripherals?

               Using the number of procurements as a measure, General Services
               Administration (GSA) schedule purchases was the most frequently used
               method of obtaining equipment when HHS identified compatible require-
               ments. This method accounted for 88 of the 134 compatible procure-
               ments. However, when measured using obligated dollars, HHS obligated
               the most dollars for procurements that required compatibility by modi-
               fying existing contracts. These contract modifications accounted for 24
               of the 134 compatible procurements and $97.6 million of the $191.7 mil-
               lion obligated. New contracts with 8(a) firms were not used by HHS in
               any of the 134 compatible procurements.




               Page 14                       GAO/IMTECSOWPS   Contracting   and Market   Share Information



.~.....-..I.
                                         Appendix I
                                         Questions and Answers             About
                                         HHS Procuremente




Figure 1.7: Number of HHS Compatible
Procurementr According to Procurement    m NUmtirdRoo-&
Method
                                         66




                                                       Flacal Year 1666
                                                        Flacd Yw    1967

                                                        Fiscal Year 1066
                                                       F!ac.d Yw    1666 (lhmugh    Ihe Second OWW



Figure 1.8: Doiiarr for HHS Compatible
Procurement8 According to Procurement    )11 pol,.,,,nm,,,loraj
Method
                                         49
                                         66

                                         69

                                         66

                                         69

                                         I6

                                         10

                                          6

                                          0
                                                               CJ




                                                0      Fiwal Year 1966
                                                        Flu-d Year 1667
                                                       Fiscal Yew 1966
                                                       FkdYurlW6(l’hmu6hIheSeca~O




                                         Page 16                                    GAO/IMTEG90-87FS   Contracting   and Market   Share Information



                                                                                                                                                _^.   ---
Appendix 1
Quaation~ and Auawe!n~ About
HliS Procurement83




What procurement     methods were used to obtain IBM-compatible
mainframe computers and mainframe peripheral equipment? And,
did HEISfrequently  use new contracts with 8(a) contractors to
obtain IBM-compatible mainframes and mainframe peripherals?

HHSmost frequently used GSAschedule purchases as the procurement
method for obtaining IBM-compatible equipment (88 of the 131 procure-
ments). However, modifications to existing contracts accounted for more
dollar obligations ($97.6 million of the $190.6 million obligated) than
any other procurement method. New contracts with 8(a) firms were not
used by HII~ for any of the 131 IBM-compatible procurements during the
3-l/2 year period.




Page 10                        GAO/IMTl%BO-S7F’S   Contracting   and Market   Share Information
                                        APpe-       1
                                        &w&ions     and Answers                    About
                                        IlliS Procurementa




Figure 1.9: Number of HHS IBM-
Compatible Procurements According to   S6   Numbwdlrroo-•
Procurement Method




                                                0           FldYur          1980
                                                            FM       Yew 1667

                                                            Fbcd Year IfI

                                                I           FlsulY~lWS(-fhm&th~~nd~)



Figure 1.10: Dollars for HHS ISM-
Compatible Procurement8 According to   46   (Oollam in MIIIIowJ
Procurement Method
                                       40

                                       66

                                       69

                                       66

                                       60

                                       16

                                       10

                                        6

                                       0
                                                                      LLI




                                                 El         FkdYul8W
                                                            Flscd VW        1087
                                                            FlwdY.wl@W

                                                 I          Fiaca!YwlWd(Thrmghthr~nd(luan)




                                       Page 17                                             GAO/IMTEG90437F!3   Contracting   and Market   Share Information
                                                                                       r
Appendix I
$w&atii~~hwere    About




What equipment manufacturers     are involved in HISS’mainframe and
mainframe peripheral procurements,     including both procurements
where compatibility is required and procurements     with no compati-
bility requirement?

IBM equipment was most frequently supplied to HHS for mainframe and
mainframe peripheral procurements in each of fiscal years 1986
through 1988 and the first half of 1989, with 103 (71 percent) out of
146 total procurements. Additionally, using obligated dollars as the mea-
sure, HHS’ obligations for IBM equipment during the same 3-l/2 year
period were $161.7 million (84 percent) of a total of $193.6 million.
Memorex, National Advanced Systems, NCR Comten, Storage Tech-
nology Corporation, Unisys, and others supplied equipment to HHS
during the 3-l/2 year period.




Page 18                   GAO/IMTEG90-87Fs   Contracting   and Market   Share Information
                                         Appendix I
                                         Questions and Answers   About
                                         HIi!+ Procurements




Figure 1.11: Number of HHS Mainframe
and Mainframe Peripheral Procurements    40   NumbrotPmo~*
According to Manufacturer of Equipment
                                         66

                                         60

                                         66

                                         60

                                         16

                                         10

                                          6

                                          0




Figure 1.12: Dollars for HHS Mainframe
and Mainframe Peripheral Procurements
According to Manufacturer of Equipment

                                         66

                                         60

                                         66

                                         60

                                         I6

                                         IO

                                          6

                                         0




                                         Page 19                         GAO/IMTEG90-87FS   Contracting   and Market   Share Information
                                                                                            ,
Appe-     1
Queetiona and Answer   About
ISIS Procurement.43




How much mainframe computer operating system software did HHS
procure during the 3-l/2 year period ending March 31,1989, and
what types of mainframe computers was the software for?

HHShad 66 contracts for operating system software totaling $3.6 million
in obligations during the 3-l/2 year period. Fifty-two of these,
accounting for $3.4 million in obligations, were for IBM-compatible main-
frames, with the remainder divided among others.




Page 20                        GAO/IMTEG!30-87FS   Contracting   and Market   Sluue Information
                .
Appenhix II

D&ailed Statistics on HHS Procurements


Table 11.1:HHS Mainframe and Mainframe Peripheral Procurements
Dollars
^.         in millions
   ..._._._...._ __             _.- ..__--. __ -.-      --_. ..-....._. --. - _.._---..-.~.-..-
                                              Fiscal Year 1988            Fiscal Year 1987           Fiscal Year 1988      Fiscal Year 1989’             Total
                                              Number Amount               Number Amount              Number Amount         Number Amount             Number Amount
Compatlblk                     .--~.     .-.         44 __.__..._.
                                                .-- -...--  $38.9 _~ -.- 32..~      $63.9                  47     $50.7            11      $38.2         134      $191.7
Other     ...                                          0       0.0         6           0.8
                                                                         _~_~ -.- ..__.~..                  4       0.6             1        0.4          11         1.8
Total                                                44     $38.9         38        $64.7                  51     $51.3            12      $38.6         145      $193.5
Compatible Percent of Total                        100%       100%        84%           99%                92%       99%          92%         99%         92%            99%
                                                             “Fiscal year 1989 through the second quarter.



Table 11.2:HHS Compatible Procurements According to Type of Compatibility
Dollars in millions                                        -_-_ -..----
                                              Fiscal Year 1988      Fiscal Year 1987
                                                                                 __                  Fiscal Year 1988      Fiscal Year 1989’             Total
                                              Number Amount Number Amount                            Number Amount         Number Amount             Number Amount
IBM-Compatible
-- --   -_-.-     . --_~ -.--.---                  44         $38.9             32.--       $63.9          44     $49.6            11     $38.2          131      $190.6
Unisys-Compatible             ~.                     0            0.0             0           0.0           1       0.9             0       0.0            1         0.9
Other            .~              .      ~~           0 -.-.-...- ._....
                                                    _~            0.0     .~.~~~ 0..-         0.0           2       0.2             0       0.0            2         0.2
Total                                              44         $38.9             32          883.9          47     $50.7           11      $38.2          134     $191.7
                                                             “Fiscal year 1989 through the second quarter.



Table 11.3:HHS IBM-Compatible Procurements Accordinn to Manufacturer of Eauioment
Dollars tn millions
                                              Fiscal Year 1988            Fiscal Year 1987           Fiscal Year 1988      Fiscal Year 1989”             Total
                                              Number Amount               Number Amount              Number Amount         Number Amount             Number Amount
IBM
__ ..-            -                                34       $38.1                23         $43.5          3.5    $41.9            11     $38.2          103      $161.7
Memorex                                               3           b               1              b          0       0.0             0       0.0            4           b
National Advanced Systems                             0        0.0                1           14.5          1       5.2             0       0.0            2        19.7
NCR Comten
..-.__    ..__-...-  --.         ~-~~-~~~~-      ~~...0 ..__ 0.0                  3            0.1          2       0.2             0       0.0            5         0#3
Storage
-.”          Technology
    -.__.. _I...     ..-... Corporation
                                .- ~.-                7        0.8                4            5.8          6       2.3                     0.0           17         8.9
Total                                              44       s38.i                32         $83.9          44     $49.8           1:      $38.2          131     $190.8
                                                             “Fiscal year 1989 through the second quarter.
                                                             “Less than $50,000.




                                                             Page 2 J                                GAO/JMTJZGDO-87FS    Contracting   and Market   Share Information
                                                                                                                                                              r
                                                            Appendix II
                                                            Dct.allcd Stati6tice   on HHS ProcuremenU




Table 11.4:HHS Compatible Procurements Accordlna to Procurement Method
Dollars in millions
               -_ .~-..
                                             Fiscal Year 1986          Fiscal Year 1987         Fiscal Year 1988      Flscal Year 1989’             Total
.-    ._.-.. ..._..
                -.._~~..                     Number Amount             Number Amount            Number Amount         Number Amount             Number Amount
New Contract-Sole          Source
                         -_...----                    1       $0.1             2      $10.5             4     $4.0             0       $0.0           7       $14.6
New    Contract-One
 -_-_.-._-...-.                Offeror
              _-_-...- . ---_-...-          ..______ 3         4.6             0        0.0             1      0.1             1       35.8           5        40.5
New Contract-More                Than One
Offeror                                           .~- 1         0.3            2         5.7            3      6.1             1        2.0           7           14.1
New Contract-Developer                 or
Integrator
._.. ~..                .       ..-. ---...--___       0        0.0            1        14.5            2      5.3             0        0.0           3           19.8
Modifications to Existing
Contracts
   .._             -        .~.~
                               .~...._                10     32.4             7        32.2           7      32.9              0       0.0          24            97.5
GSA    Schedule
__. .I__~             Purchases
       _... . ..- -... -..--.--._-                    29       1.5           20          1 .o        30       2.3              9       0.4          88             5.2
Total                                                44     938.9            32       983.9          47     950.7            11      $38.2         134      9191.7
                                                            aFiscal year 1989 through the second quarter.



Table 11.5:HHS IBM-Comnatible Procurements Accordina 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                     1      $0.1             2      $10.5             3     $3.1             0       $0.0           6       $13.7
New Contract-One
            “._..“-- ~.     Offeror
                            ..- _ ...~~_               3       4.6             0        0.0             0      0.0             1       35.8           4        40.4
New Contract-More            Than One
Offeror                                                1    .-..~0.3           2         5.7            3      6.1             1        2.0           7           14.1
New Contract-Developer               or
Integrator
._I.._..-__
          - ._-_-. -__.._. --.--~                      0        0.0            1        14.5            1      5.2             0        0.0           2           19.7
Modifications to Existing
Contracts
  ._ . .             ~~.~~.~. -_ ~.                   10
                                          .-.__._.._.__
                                                     ~~..     32.4 ____. 7             32.2             7     32.9             0        0.0          24           97.5
GSA
  .-....Schedule
            - -__ Purchases   - _........
                                      -. -           29        1.5      20               1 .o         30       2.3             9        0.4          88             5.2
Total                                                44     $38.9       32            $63.9           44    $49.6            11      $36.2         131      $190.8
                                                            aFiscal year 1989 through the second quarter




                                                            Page 22                             GAO/IMlWGQO-g7FS     Contracting   and Market   Share Information
                                              DetaIled   Statistics   on HHS Procurement8




Table 11.6:HHS Malnframe and Mainframe Peripheral Procurements According to Manufacturer of Equipment
-Dollars in millions
                                   Fiscal Year 1986      Fiscal Year 1987         Fiscal Year 1988       Fiscal Year 198ga             Total
~--                                Number Amount         Number Amount            Number Amount          Number Amount             Number Amount
 IBM                                    34     $38.1            23       $43.5          35     $41.9             11     $38.2          103     $161.7
 Memorex
 --                                      3         b             1            b          0       0.0              0       0.0            4           b
 National Advanced Systems
 ~--                                     0       0.0             1         14.5          1       5.2              0       0.0            2        19.7
 NCR Comten                              0       0.0             3          0.1          2       0.2              0       0.0            5         0.3
~Storage _.---.-
          Technology Corporation         7       0.8             4          5.8          6       2.3              0       0.0           17         8.9
 Unisys _L._.“-~.-                       0       0.0             0          0.0          1       0.9              0       0.0            1         0.9
Other                                    0       0.0             6          0.8          6       0.8              1       0.4           13         2.0
Total                                   44    838.9             38       $64.7          51     $51.3            12      $38.8          145     $193.5
                                              ‘Fiscal year 1989 through the second quarter.
                                              bLess than $50,000.



Table 11.7:HHS Operating System Software Contracts According to Type of Mainframe
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
IBM-Compatible                          15     $0.8               9       $0.8          17      $1 .o            11       $0.8          52        $3.4
Other                                    1        b               0        0.0                   0.1              0        0.0                     0.1
Total          .--                      16     $0.8               9       $0.8          1:      $1.1            II        $0.8          5:        $3.5
                                              aFiscal year 1989 through the second quarter
                                              bLess than $50,000.




                                              Page 23                             GAO/IMTECBO+37F6      Contracting   and Market   Share Information
                                                                                                                                                             r)
Appendix III

Detailed Statistics on HCFA Procurements                                                                                                                          ’


Table 111.1:HCFA Mainframe and Mainframe Peripheral Procurements
Dollars  in.“..___...
  ..^. .._.. millions_...-.
                                                Fiscal Year 1988 Fiscal Year 1987                 Fiscal Year 1988       Fiscal Year 198Qa Total
                                                Number Amount -- Number Amount                    Number Amount          Number Amount Number Amount
Compatible                                               9        $1 .o          8        $5.4           18     $10.9             0       $0.0          35        $17.3
Other                                                    0         0.0           0         0.0            0       0.0             0        0.0           0          0.0
Total                                                    9        $1.0           8        $5.4           18     $10.9             0       $0.0          35        $17.3
Compatible Percent of Total                           100%         100%       100%         100%        100%      100%         100%        100%        100%            100%
                                                                aFiscal year 1989 through the second quarter



Table 111.2:HCFA Compatible Procurements According to Type of Compatibility
Dollars In millions
                                                Fiscal Year 1988          Fiscal Year 1987        Fiscal Year 1988       Fiscal Year 198Q8 Total
““.I. .._      .I._-_.-... .-_.._....__.-
                                    ---.-       Number Amount             Number Amount           Number Amount          Number Amount Number Amount
IBM-Compatible
____.__.
      -..-._-.                                           9        $1 .o          8        $5.4          18      $10.9             0      $0.0           35        $17.3
Other                                                    0         0.0           0         0.0           0        0.0             0       0.0            0          0.0
Total                                                    9        $1.0           8        $5.4          18      $10.9             0      $0.0           35        $17.3
                                                                aFiscal year 1989 through the second quarter.



Table 111.3:HCFA IBM-Comuatible Procurements Accordina to Manufacturer of Eauiument
Dollars   in millions ___.
--..--.-_---
                                                    Fiscal Year 1988      Fiscal Year 1987        Fiscal Year 1988       Fiscal Year 1989O Total
                   -.         _.~.l...l_I. .*_._I.. Number
                                                .I._.i__ -----_. Amount
                                                      .I_...      ----.   Number Amount           Number Amount          Number Amount Number Amount
IBM .--                                         6                 $0.4           4        $5.1           11      $8.5             0       $0.0          21        $14.0
NC% Comten                                      0                  0.0           2           b            1       0.1             0        0.0           3          0.1
Storage Technology   Corporation
                        -- -___-..--_..-.__---- 3                  0.6           2         0.3            6       2.3             0        0.0          11          3.2
      ._ .--_-   ..-___...
Total                                                    9        $1.0           8        $5.4           18     $10.9             0      80.0           35        $17.3
                                                                aFiscal year 1989 through the second quarter.

                                                                ‘Less than $50,000.




                                                                Page 24                          GAO/IMTEG!+O-WFS       Contracting   and Market   Share Information
                                                        Appendix HI
                                                        Detailed StaWka on HCFA Procurement8




Table 111.4:HCFA Compatible Procurements Accordino to Procurement Method
Dollars in millions..-.__       -~
                                              Fiscal Year 1988   Fiscal Year 1887   Fiacai Year 1988             Fiscal Year 1989@  Total
                                             Number Amount Number Amount Number Amount                           Number Amount Number Amount
New Contract-Sole               ...._-_..-- __..___ 0
                            Source                          $0.0        0      $0.0        2      $3.0                  0      $0.0  2    $3.0
New Contract-More           Than One
Offeror                     .- _-.-----.--         I       0.3
                                                           _.-           0         0.0           1        5.9             0        0.0           2             62
Modifications to Existing
Contracts                                          1       0.1           3         5.2           1        0.1             0        0.0           5             5.4
GSA
 . ,_._Schedule
            . Purchases
                   . .__.-..--...                  7       0.6           5         0.2          14        1.9             0        0.0          26             2.7
Total                                              9     $1.0            8       $5.4           18      $10.9             0      $0.0           35       $17.3
                                                        BFiscalyear 1989 through the second quarter.



Table 111.5:HCFA IBM-Compatible Procurements According to Procurement Method
Dollars
.._._. in millions
                                             Fiscal Year 1988     Fiscal Year 1987       Fiscal Year 1988        Fiscal Year 1989’  Total
                                             Number Amount        Number Amount          Number Amount           Number Amount Number Amount
New Contract-Sole      Source
                            ..__ i.._....-         0      $0.0           0        $0.0           2       $3.0           0      $0.0  2    $3.0
New Cor%act-&lore       Than One
Offeror                                            1       0.3           0         0.0           1        5.9             0        0.0           2             6.2
Modifications to Existing
Contracts                                          1       0.1           3        5.2            1        0.1             0        0.0           5         5.4
GSA Schedule Purchases_.-..---                     7       0.6           5        0.2           14        1.9             0        0.0          26          2.7
Total                                              9     $1.0            8       $5.4           18      $10.9             0       $0.0          35       $17.3
                                                        aFiscal year 1989 through the second quarter.



Table 111.8:HCFA Mainframe and Mainframe Peripheral Procurements According to Manufacturer of Equipment
Dollars in millions
                                             Fiscal Year 1988     Fiscal Year 1987       Fiscal Year 1988     Fiscal Year 198Q8   Total
                                             Number Amount        Number Amount          Number Amount        Number Amount Number Amount
IBM                      - -..-..-__-~-            6      $0.4           4       $5.1           11       $8.5        0      $0.0 21     $14.0
NCR Comten                                         0       0.0           2          b            1        0.1        0       0.0   3      0.1
Storage Technology Corporation                     3       0.6           2        0.3            6        2.3        0       0.0 11       3.2
Total                                              9     $1.0            8       $5.4           18      $10.9        0      $0.0 35     $17.3
                                                        aFiscal year 1989 through the second quarter.
                                                        bLess than $50,000.




                                                        Page 26                          GAO/lMTEWWS7FS         Contracting   and Market   Share Information
Appendix IV

Detailed StaCsticson NIH Procurements


Table IV.l: NIH Malnframe and Mainframe Peripheral Procurements
Dollars
      _ i..in millions
              ...”__ _ ._._
                          --_--i-.-.--
                                                  Fiscal Year 1986     Fiscal Year 1987        Fiscal Year 1988         Fiscal Year 1989”             Total
                                                  Number -~Amount      Number Amount           Number Amount            Number Amount             Number Amount
Compatible
_.._
   . .._ _ ..._.....
                 .       ..__...-.__                   15    $33.0           8      $36.1              7     $32.3               1     $35.8            31      $137.2
Other                                                   0      0.0            6.         0.8           4       0.6               1       0.4            11         1.8
Total                                                  15    $33.0           14      $36.9            11     $32.9               2     $36.2            42     $139.6
                                                             ‘Fiscal year 1989 through the second quarter.



Table IV.2: NIH Compatible Procurements According to Type of Compatibility
Dollars in millions                        ~~-                                -_--
                                            Fiscal Year 1986           Fiscal Year 1987        Fiscal Year 1968         Fiscal Year 198ga             Total
_...._._...
       .__ -- .-- . - .._        -. ._.-...- Number
                                         ..__-_
                                              ~--    Amount            Number Amount           Number Amount            Number Amount             Number Amount
IBM-Compatible                  --.....-. ---~.        15    $33.0            8       $36.1            5     $32.1               1     $35.8          29    $137.0
Other                                                   0
                                                  _________-   0.0            0         0.0            2       0.2               0       0.0             2             0.2
Total                                                  15    $33.0            8      $36.1             7     $32.3               1     $35.8            31     $137.2
                                                             “Fiscal year 1989 through the second quarter.



Table IV.3: NIH IBM-Compatible Procurements According to Manufacturer of Equipment
Dollars in millions
           .~.._ .~~- . ..-.     .         _
                                               Fiscal Year 1986      Fiscal Year 1987   Fiscal Year 1988 Fiscal Year 198ga  Total
                                              Number Amount Number Amount Number Amount Number Amount Number Amount
IBM          II                   _                  15
                                            ..- - ~..--~~-. $33.0
                                                            __--___.        8     $36.1        5     $32.1      1     $35.8 29    $137.0
Other                                                   0        0.0 -__
                                                                --...._    _-..0         0.0           0         0.0             0        0.0            0             0.0
Total                                                  15    $33.0            8      $36.1             5     $32.1               1     635.0            29     $137.0
                                                             ‘Fiscal year 1989 through the second quarter.




                                                             Page 26                           GAO/IMTEG90#7FS         Contracting   and Market    Share Information
                                                         Appendix      IV
                                                         Detailed    Statistics         on   NIH     Procurements




Table IV.4: NIH Compatible Procurements Accordina 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                   1        $0.1                  1               $9.0             0     $0.0               0       $0.0            2        $91
New Contract-One           Offeror                  1         0.4                  0                0.0              1       0.1             1       35.8            3        36.3
New Contract-Developer            or
lntearator                                          0          0.0                 0                0.0              1       0.1             0        0.0            1             0.1
Modifications to Existing
Contracts
____-_ ---_-.-...- ._-_.____.
                           -. _ _^.._.
                                    --___           9     32.3                     3          26.9                  5     32.1               0       0.0            17        91.3
GSA   Schedule
___-.----           Purchases
                     ~-_-~                          4       0.2                    4            0.2                 0       0.0              0       0.0             8         0.4
Total                                              15    $33.0                     8         $36.1                  7    $32.3               1     $35.8            31     $137.2
                                                         aFiscal year 1989 through the second quarter.



Table IV.5 NIH IBM-Compatible Procurements Accordina to Procurement Method
Dollars In millions
                                              Fiscal Year 1966       Fiscal Year 1987                       Fiscal Year 1988        Fiscal Year 1989’             Total
_-__ ..- ..        ..-^“.____..-----_         Number Amount          Number Amount                          Number Amount           Number Amount             Number Amount
New Contract-Sole           Source                --_1       $0.1                  1         ---$9.0                0     $0.0               0       $0.0            2        $9.1
New Contract-One            Offeror                  1        0.4                  0             0.0                0      0.0               1       35.8            2        36.2
Modifications to Existing
Contracts           -..   ._l”.---.-.-              9       32.3          3                   26.9                  5     32.1               0       0.0            17        91.3
GSA Schedule Purchases                              4        0.2          4                     0.2                 0       0.0              0       0.0             8         0.4
Total                                              15    $33,0-.~--‘--.‘- 8                  $36.1                  5    $32.1               1     $35.8            29     $137.0
                                                         aFiscal year 1989 through the second quarter



Table IV.8: NIH Malnframe and Mainframe Peripheral Procurements According to Manufacturer of Equipment
Dollars in __
 .I__. _“_ millions
             I., .._ __l_l.......--__.I.---
                                              Fiscal Year 1986       Fiscal Year 1987                       Fiscal Year 1988        Fiscal Year 1989’             Total
                                              Number Amount          Number Amount                          Number Amount           Number Amount             Number Amount
IBM                                                15    $33.0                     8
                                                                                  .--        $36.1                   5   $32.1               1     $35.8            29     $137.0
Other                                               0       0.0                    6           0.8                   6     0.8               1       0.4            13         2.0
_...
Total                                              15    s33.0----                14         $36.9                  11   $32.9               2     $36.2            42     $139.0
                                                         aFiscal year 1989 through the second quarter.




                                                         Page 27                                           GAO/IMTEG90#7FS         Contracting   and Market    Share Information
Appendix V

Detailed StaGsticson SSA Procurements


Table V.1: SSA Mainframe and Mainframe Peripheral Procurements
Dollars
..---_. ~ in millions
                                       Fiscal Year 1988     Fiscal Year 1887        Fiscal Year 1988       Fiscal Year 1989’             Total
-_.._..
     .._-_I_.--_. -_-                  Number Amount        Number Amount           Number Amount          Number Amount             Number Amount
Compatible
___~-~-                                      1       $3.9           3      $21.4            3      $6.2             1       $0.2           0       $31.7
Other                                        0        0.0           0        0.0            0       0.0             0        0.0           0         0.0
Total
.------ ~                                    1       $3.9           3      $21.4            3      $6.2             1       $0.2           8       $31.7
Compatible Percent ot Total                100%      100%        100%        100%        100%      100%          100%       100%        100%         100%
                                                   aFiscal year 1999 through the second quarter.



Table V.2: SSA Compatible Procurement8 According to Type of Compatibility
-Dollars in millions                                                                                                                       ----
                                       Fiscal Year 1g88   Fiscal Year 1987          Fiscal Year 1988       Fiscal Year 198g8             Total
                                       Number Amount Number Amount                  Number Amount          Number Amount             Number Amount
IBM-Compatible
.._....
     -- __.~                                  1      $3.9        3     $21.4                2      $5.3             1      $0.2            7
                                                                                                                                      _________  $30.8
Unisys-Compatible
--_“I_._-.
         -.~    .-..-.                       0       0.0            0        0.0            1       0.9             0       0.0            1    -- 0.9
Total                                        1      $3.9            3      $21.4            3      $8.2             1      $0.2            8     $31.7
                                                  aFiscal year 1989 through the second quarter.



Table V-3: SSA IBM-Compatible Procurements Accordina to Manufacturer of Eauipment
Dollars in millions
                                       Fiscal Year 1988     Fiscal Year 1987        Fiscal Year 1988       Fiscal Year 198g8             Total
                                       Number Amount        Number Amount           Number Amount          Number Amount             Number Amount
IBM                                          1      $3.9            1       $1.5            1      $0.1             1      $0.2            4       $5.7
National       Advanced Systems
..-_“._._--...---.--                         0       0.0            1       14.5            1       5.2             0       0.0            2        19.7
Storage - -...
._._-._       Technology
                  .~_.   Corporation         0       0.0            1        5.4            0       0.0             0       0.0            1         5.4
Total                                        1      $3.9            3      $21.4            2      $5.3             1      $0.2            7      $30.8
                                                  aFiscal year 1989 through the second quarter




                                                  Page 28                          GAO/tMTEGQOI7FS        Contracting   and Market   Share Information
                                                    Appendix V
                                                    Detalled Statistica   on SSA Procurements




Table V.4: SSA Compatible Procurements According to Procurement Method
Dollars In millions
                                        Fiscal Year 1988      Fiscal Year 1987        Fiscal Year 1988      Fiscal Year 1989O  Total
                                        Number Amount         Number Amount           Number Amount         Number Amount Number Amount
New Contract-Sole
      I _.. ._..- .     Source                0       $0.0            1        $1.5             1   $0.9           0      $0.0  2    $2.4
New Contract-One
            _     __.   Offeror
                    --- ._-_                  1        3.9            0         0.0             0    0.0             0        0.0            1            3.9
New Contract-More        Than One
Offeror                                       0        0.0            1         5.4             1    0.1             0        0.0           2             5.5
New Contract-Developer        or
Integrator                                    0        0.0            1        14.5             1    5.2             0        0.0           2        19.7
GSA Schedule Purchases                        0        0.0            0         0.0             0    0.0             1        0.2            1        0.2
Total                                         1      $3.9             3      $21.4              3   $6.2             1       $0.2           8       $31.7
                                                    aFiscal year 1989 through the second quarter



Table V.5: SSA 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        $1.5             0   $0.0             0       $0.0            1       $1.5
New Contract-One            Offeror           1        3.9            0         0.0             0    0.0             0        0.0            1        3.9
 New Contract-More           Than One
Offeror
 .----.-.--- ._._. -_.._____--._                       0.0            1         5.4             1    0.1             0        0.0           2             5.5
New Contract-Developer            or
-Integrator
   ...-..... - ---.__ ..--                             0.0            1        14.5             1    5.2             0       0.0            2         19.7
GSA Schedule Purchases                                 0.0            0         0.0             0    0.0             1       0.2             1        0.2
Toia~ _._”
        .-.-._--_-__-                                $3.9             3      $21.4              2   $5.3             1      $0.2            7       $30.8
                                                    aFiscal year 1989 through the second quarter.



Table V.8: SSA Mainframe and Mainframe Peripheral Procurements According to Manufacturer of Equipment
Dollars in millions
                  ._I_._--.----- .-..
                                        Fiscal Year 1986      Fiscal Year 1987        Fiscal Year 1988   Fiscal Year 198Q8  Total
                                        Number Amount         Number Amount           Number Amount      Number Amount Number Amount
IBM             - .-.. --.-.~.                1       $3.9            1        $1.5             1   $0.1        1      $0.2  4     $5.7
National
   _     Advanced
           ..^_ -...- Systems                 d
                                            _____      0.0            1        14.5             1    5.2        0       0.0  2     19.7
Storage Technology        Corporation
              _......---.__-.                 0        0.0            1         5.4             0    0.0        0       0.0  1      5.4
UnGys    -..                                  0        0.0            0      -0.0            -1      0.9        0       0.0  1      0.9
Total                                         1      $3.9             3      $21.4              3   $6.2        1      $0.2  8    $31.7
                                                    aFiscal year 1989 through the second quarter
                                *




                                                    Page 29                           GAO/IMTEGQO-87FS     Contracting   and Market   Share Information
Appendix VI
                                                                                               .
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 (ADP) procurements. In response to the
               requests and in discussions with the Chairman’s and the Ranking
               Minority Member’s offices, we agreed that procurements of mainframes
               and mainframe peripherals would be included in our review, with
               emphasis on compatible procurements. Our review covered procure-
               ments 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 ADP-related procurements. This report focuses
               on HHSand includes the number and aggregate dollar value of HHS’main-
               frame-related contracts, distribution of procurements among equipment
               manufacturers, and breakdown of the various procurement methods HHS
               used to obtain mainframe-related equipment.

               Additionally, we are reporting on the various procurement methods HHS
               used to obtain mainframe-related equipment. We used the following
               mutually exclusive procurement methods to group the procurements.
               The first three methods represent specific types of new contracts with
               mainframe and peripheral equipment manufacturers. 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 integrators-except     any contracts sepa-
               rately categorized as awarded to 8(a) firms. We also obtained and ana-
               lyzed data on HHS’modifications to existing contracts, use of GSA’S
               multiple award schedule contracts, and other miscellaneous procure-
               ment methods.

               To accomplish our objective and facilitate HHS’information gathering,
               we designed a questionnaire which, when properly completed, provided
               us with the necessary information. Our questionnaire included several
               charts and provided detailed instructions, with definitions and exam-
               ples, to help HHS identify and report the relevant information. Our ques-
               tionnaire instructions cited pertinent federal regulations to ensure
               consistency in understanding of the terms used and to identify key
               definitions.



               Page 30                GAO/IMTECXOWFS   C!ontracting   and Market   Share Information
    t

.       Appendix     VI
        Objective,   Scope, and Methodology




        In preparing instructions for our questionnaire, we recognized the need
        to clearly and consistently identify mainframe computers, as opposed to
        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, GSA, other federal agency officials, and Dataproz, we
        considered vendor marketing strategy-in      addition to computer archi-
        tecture and performance- as the basis for classifying particular com-
        puters as superminicomputers, mainframes, or supercomputers. Like
        Datapro, we classified as mainframes 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 sim-
        ilar performance characteristics that do not belong to a mainframe
        family and are manufactured by companies that are not traditionally
        recognized as mainframe manufacturers were not classified as main-
        frames. We provided a list of mainframe 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
        from officials at the Departments of Agriculture and Transportation, we
        asked the senior information resources management officials at HHS and
        other federal agencies to complete the questionnaire.

        Our questionnaire was furnished to HHS in mid-April 1989. Upon
        receiving HHS’ response in June 1989, followed by additional information
        in November 1989 and June 1990, the response was reviewed to deter-
        mine 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 HHS 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 HHS officials. In other cases we excluded inappropriate data. For
        example, we directed HHS to include only procurement data for main-
        frame-related equipment. However, in a few instances HHS included


        ‘Datapro is a trade publication that provides detailed information on computers, peripheral equip-
        ment, and software.



        Page 31                         GAO/IMTEG9OWFS         Contracting   and Market   Share Information
Appendix     VI
Objective,   Scope, and Methodology




procurements for computers other than mainframes. In order to main-
tain consistency in the statistics across the 35 federal agencies, any
procurements reported by HHS for equipment other than mainframes
and related peripherals were deleted from our analysis. Our work did
not include solicitation or evaluation of documents related to HHS' indi-
vidual procurements. The figures and tables in appendixes I, II, III, IV
and V were developed from our analysis.

We did not solicit or obtain comments from HHS officials about this
report. Our review was conducted from February 1989 through July
1990, in accordance with generally accepted government auditing
standards.




Page 32                          GAO/IMTEC90-87PS   Contracting   and Market   Share Information
Appendi;   VII

M’ajor Contributors to This Report


                       Mark E. Heatwole, Assistant Director
Information            Mark T. Bird, Senior Evaluator
Management and         Ona M. Noble, Senior Evaluator
Technology Division,   Darlene D. Rush, Evaluator
                       Peter C. Wade, Evaluator
Washington, D.C.




                       Page 33               GAO/IMTEG9OWFS   Contracting   and Mark&   Share Information
Page 34   GAO/iMTEC9O-S7FS   Contracting   and Market   Ware Information
Page 35   GAO/IMTEG9OWFS   Contracting   and Market   Share Information
RelaM GAO ITroducts


               Commerce ADP Procurement: Contracting and Market Share Information
               (GAO/IMTEG9O-77FS, July 31,199O).

               Agriculture ADP Procurement: Contracting and Market Share Informa-
               tion (GAO/IMTEG90-62FS, June 27, 1990).

               Defense ADP Procurement: Contracting and Market Share Information
                                 June8, 1990).
               (GAO/IMTEGFJO-~OFS,

               NASA ADP Procurement: Contracting and Market Share Information
               (GAO/IMmc-9o-39m, Apr. 20, 1990).

               Air Force ADP Procurement: Contracting and Market Share Information
               (GAO/IMTEC-90-36FS, Apr. 9, 1990).

               Army ADP Procurement: Contracting and Market Share Information
               (GAO/IMTEc-go-28Fs, Mar. 1,lQQO).

               Navy ADP Procurement: Contracting and Market Share Information
               (GAO/IMTEG89-66FS, Sept. 15,1989).




           Y




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