oversight

Mainframe Procurements: Statistics Showing How and What the Government is Acquiring

Published by the Government Accountability Office on 1990-12-27.

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

                    United   States   General   Accounting   Office

GAO                  Report to the Chairman and Ranking
                     Minority Member, Committee on
                     Government Operations,
                   . House of Representatives

December   1990
                    MAINFRAME
                    PROCUREMENTS
                     Statistics Showing
                     How and What the
                     Government Is
                     Acquiring




 GAO/IMTEC-91-13
.’   ,,   .,r   .;
GAO
      United States
      General Accounting  Office
      Washington, D.C. 20548
                                                                          1Y3OJ8
      Information     Management        and
      Technology     Division
                                                                                                            i
      B-241387
                                                                                                            I
      December 27,199O

      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
                                                                                                            E
      This report responds to your February 1989 request for a comprehen-
      sive review of federal agencies’compatible computer procurements.’ In                                 3
                                                                                                            !
      your initial requests and in subsequent discussions with your offices, we                             I
      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’                                   ;i
      procurements of mainframe computers and mainframe peripherals                                         I
      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 contains consolidated statistics on governmentwide main-                                  /
      frame computer procurements totaling $1.9 billion for the 3-l/2 fiscal                                I
      years ending in March 1989. These statistics provide information on
      vendors and types of procurement actions for 35 federal agencies. See                                 1
      appendix I for the number and amount of mainframe procurements                                        1
      reported by each of the 35 agencies. In addition to this governmentwide                               1
                                                                                                            I
      report, we previously issued a series of 10 reports that provide specific
      information on t.hose agencies that obligated $50 million or more for                                 1
      mainframe computers and mainframe peripheral acquisitions. (See page                                  !
      32 for a list of these reports.)                                                                      /
      We found that agencies obligated $1,943.1 million for mainframe and                                   F
      mainframe peripheral procurements during the 3-l/2 fiscal years ending                                1
                                                                                                            I
      ‘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. Because of the potential for competition
      between manufacturers and marketers. a compatible procurement does not necessarily result in the
      award of a sole source cant ract.



      Page 1                          GAO/IMTFIGSl-13     Federal   Government   Mainframe   Acquisitions   1
                                                                                                            /
B-241387




in March 1989. Eighty-two percent ($1,587.8 million) of all the procure-
ments required compatibility with existing systems. IBM-compatible
procurements comprised 64 percent of the compatibility-limited
procurements ($1,013.5 million of $1,587.8 million) and 52 percent of all
procurements ($1,013.5 million of $1,943.1 million). IRM was the single
largest vendor with a 47 percent share ($922.9 million) of the total fed-
eral market. Unisys was the next largest vendor with a 20 percent share
($382.6 million).

Almost 60 percent of the total value of all procurements involved only
one vendor. Specifically, Modifications to Existing Contracts was the
most popular procurement method used, and accounted for 44 percent
($859.1 million). Other single vendor methods, New Contract-Sole
Source and New Contract-One Offeror accounted for 10 percent
($186.1 million) and 5 percent ($109.1 million), respectively.

When we used the number of procurements as the measure-instead of
dollars-we found that the agencies had a total of 3,225 procurements
for mainframe and mainframe peripherals and over 90 percent (2,948)
required some type of compatibility. The agencies required IBM compati-
bility 60 percent of the time (1,769 of the 2,948 compatible procure-
ments). When II3M compatibility was required, IBM equipment was
supplied 68 percent of the time (1,201 of the 1,769 IBM-compatible
procurements).

During discussions with your offices you asked additional detailed ques-
tions. Your questions and our answers are summarized in appendix II.
Appendix III contains the tables with detailed statistics that are the
basis for our answers to your questions.

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 the
responses to a questionnaire we devised and distributed to the 35 fed-
eral agencies, We did not independently validate the information, which
agencies supplied, nor did we evaluate any documentation related to
individual agencies’procurements. However, we checked the agencies’
information for consistency with the instructions for our questionnaire
and made appropriate revisions. At your request, we did not solicit or
obtain comments from the agencies on this report. Appendix IV contains
additional details on the objective, scope, and methodology of our work.




Page 2                 GAO/lMTEC-91-13   Federal Government   Mainframe   Acquisitions
B-241337




As arranged with your offices, unless you publicly announce this
report’s contents earlier, we plan no further distribution of it until 30
days after the date of this letter. We will then send copies to the 35
agencies and will also make copies available to others upon request.
Should you have any questions about this report or require additional
information, please contact me at (202) 275-3195. Major contributors to
this report are listed in appendix V.




Jack L. Brock, Jr.
Director, Government Information        and
  Financial Management




Page 3                 GAO/IMTECSl-13   Federal Government   Mainfkame   Acquisitions
Contents


Letter                                                                                                   1

Appendix I                                                                                               8
Governmentwide
Mainframe
Procurement Statistics
Appendix II
Questions and
Answers About.
Government
Mainframe and
Mainframe Peripl leral
Procurements
Appendix III                                                                                            22
Detailed Statistics on
the Government’s
Procurements
Appendix IV                                                                                             25
Objective, Scope, and
Methodology
Appendix V                                                                                              28
Major Contributors to
This Report
Related GAO Products
                                                                                                        32

Tables                   Table I. 1: The Government’s Mainframe Procurement                              8
                             Statistics


                         Page 4                GAO/IMTEC91-18   Federal Government   lbfaMhme   Acqui&iotm
          Contents




          Table III. 1: The Government’s Mainframe and Mainframe                           22
              Peripheral Procurements
          Table 111.2:The Government’s Compatible Procurements                             22
              According to Type of Compatibility
          Table III.3: The Government’s IBM-Compatible                                     22
              Procurements According to Manufacturer of
              Equipment
          Table III .4: The Government’s Procurements According to                         23
               Procurement Method
          Table III.5: The Government’s IBM-Compatible                                     24
               Procurements According to Procurement Method
          Table 111.6:The Government’s Mainframe and Mainframe                             24
               Peripheral Procurements According to Manufacturer
               of Equipment

Figures   Figure II. 1: Number of the Government’s Mainframe and                               11
              Mainframe Peripheral Procurements
          Figure 11.2:Dollars Obligated for the Government’s                                   11
               Mainframe and Mainframe Peripheral Procurements
          Figure 11.3:Number of the Government’s Compatible                                    13
               Procurements According to Type of Compatibility
          Figure 11.4:Dollars Obligated for the Government’s                                   13
               Compatible Procurements According to Type of
               Compatibility
          Figure 11.5:Number of the Government’s IBM-Compatible                                15
               Procurements According to Manufacturer of
               Equipment
          Figure 11.6:Dollars Obligated for the Government’s IBM-                              15
               Compatible Procurements According to Manufacturer
               of Equipment
          Figure IL7: Number of the Government’s Compatible                                    17
               Procurements According to Procurement Method
          Figure II.8 Dollars Obligated for the Government’s                                   17
               Compatible Procurements According to Procurement
               Method
          Figure 11.9:Number of the Government’s IBM-Compatible                                19
               Procurements According to Procurement Method
          Figure 11.10:Dollars Obligated for the Government’s IBM-                             19
               Compatible Procurements According to Procurement
               Method




           Page 5                GAO/KMTECB1-13   Federal Govemment   Mahframe   Acqulultins
Contents




Figure II. 11: Number of the Government’s Mainframe and                            21
     Mainframe Peripheral Procurements According to
     Manufacturer of Equipment
Figure II. 12: Dollars Obligated for the Government’s                              21
     Mainframe and Mainframe Peripheral Procurements
     According to Manufacturer of Equipment




Abbreviations

ADP        automated data processing
GAO        General Accounting Office
GSA        General Services Administration
IMTEC      Information Management and Technology Division
IBM        International Business Machines


Page 6                 GAO/IMTEC91-13   Federal Government   Mainframe   Acquisitions
Page 7   GAO/IMTEG91-13   Federal Government   Mainframe   Acquisitions
Appendix I

Governmentwide Mainframe
Procurement Statistics


Table 1.1: The Government’s    Mainframe   Procurement     Statistics
Dollars In milltons
                                                                                             Number of
                                                                                           procurements                                      Dollars obliqated
Agencies                                                                                                         -_.-..-..
Aqrwltur~                                                                                                         208                                         $646
Ai Force                                                                                                             795                                      384 5
Army                                                               -_.      .--                                      489                                      269.1
Commerce                                                                                                             114                                       61.6
DOD (excluding DLA)                                                                         113                                             $48.4
  DLA,                                                                                       42      ._    155                                33.7               82.1
Education                                                                                                    0                                                       0
                                                                                                        ~”
Energy                                                                                             -        30                                                   16.8
EPA                                                                                                         21                                                   22.8
iOP                                                                                                         14                                                    1 I!
FEMA                                                                                                        16 ~~.                                                6.9
GSA                                                                                                         74                                                   31.4
HHS (excluding HCFA, NIH and SSA)                                                            60                                               5.5
   HCFA                                                                                      35                                              17.3
   NIH                                                                                       42                                             139.0
                                                                                                   . . ~...
   SSA                                                                                        8                      145                      31 7            1935
HUD                                                                                                .-
                                                                                                                       R                                        -.”
                                                                                                                                                                50
                                                                                                                     43~ _-...~..”             ~~~
lnteriot                                                                                                                                                       30.1
                                                                   ---.-.
Justice (excluding FBI)                                                                     14                                               37 9
  FBI                                                                                      -27                                                                 85.3
                                                                                                   .~                41      ~~             - 47.4     ~-         ~
Labor                                                                                                                 vn                                          0
NASA                                                                                                                 187                                      104.4
                                                                                                   -~.
Navy (excluding Marine Corps)                                                      ~______ 449                  .~                          224.2
   Marine Corps                                                                              3            452                                52.7            276.9
                                                                                                           ._..~__..                 ~~-
OPM                                                                                                                                                           14.2
                                                                                            -________.-~~ 20 ^.~.
SEC                                                                                                        35                                                     5.6
                                                                                                ____~
State                                                                                                      18                                                     5.6
Transportation (excluding Coast Guard and FAA)                                               25                                                39
   Coast Guard                                                                               0                                                  0
   FAA                                                                                      11                       36                       5.3                 92
                                                                                                        ..-.~
Treasury (excluding Customs, INS and IRS)                                                   49                                               28.5
  Customs                                                                                    4                                               41.5
                                              ~~    ~~~-           ~..
  INS                                                                                        0                                                  0
  IRS                                                                                      270                   323--.                     200.9            270 9
VA                                                                                                                                 .-
                                                                                                                  ~.1             ~._~..~                      0.8
Total Procurements    Governmentwide                                                                          3,225                                      $1,943.1




                                              Page 8                              GAO/IMTEC91-13   Federal Government                 Mainframe      Acquisitions
Page 9   GAO/IMTEG91-13   Federal Government   Maiuframe   Acquisitions   E
                                                                          Y
                                                                          I
Appendix II

Questions and Answers About Government
MainfYame and Mainframe
Peripheral Procurements
              What are the numbers and dollar amounts of the government’s
              mainframe and mainframe peripheral procurements? And, what is
              the distribution of compatible procurements?

              The 35 federal agencies had 3,225 procurements and obligated $1,943.1
              million for mainframe computers and mainframe peripherals during the
              3-l/2 fiscal years ending in March 1989. Compatible procurements com-
              prised 2,948 of the total 3,225 total procurements (over 90 percent) and
              represented $1,587.8 million of the $1,943.1 obligated (over 80 percent).




              Page 10               GAO/IMTEC-91-13   Federal Government   Mainframe   Acquisitions
                                           Appendix II
                                           Questions and Answers About Government
                                           Mainframe and Mainframe
                                           Peripheral Procurements




Figure 11.1: Number of the Government’s
Mainframe and Mainframe Peripheral
Procurements    (3,225)




                                                                                               $+ol     Data Corporation- Compatible




                                                                                               9%
                                                                                               Honeywell Bull-Compatible (292)




                                                                                               IBM-Compatible (1,769)




Figure 11.2: Dollars Obligated for the
Government’s     Mainframe and Mainframe
Peripheral Procurements      ($1,943.1M)



                                                                                                Non-Compatible ($355.3M)



                                                                                               3%
                                                                                                Control Data Corporation- Compatii
                                                                                                ($53.9M)




                                                                                                Honeywell Bull-Compatible (5123M)
                                                                                               %,.,at        ibla ($1 ,Ol3.5M)
                                           Compatible pmcuremenrs represent $1567.8 million (82 percent) of the IOIA acquisilions




                                           Page 11                                    GAO/IMTFC91-13             Federal Government    MaInframe   AcquIsitIona
Appendix II
Questions and Answers Ahout Government
Mainframe and Mainframe
Peripheral Procurements




What is the distribution of the government’s compatible mainframe
and mainframe peripheral procurements      according to type of
compatibility?

Those procurements the 35 government agencies identified as having a
compatible requirement were primarily for either Control Data Corpora-
tion, Honeywell Bull, IBM, or Unisys compatibility. IBM and Unisys com-
prised the largest share of the compatible requirements. Specifically,
1,769 of the 2,948 procurements (60 percent) were to satisfy IBM-
compatible requirements representing $1 ,0 13.5 million of $1,587.8
million obligated for all compatible procurements (64 percent). Unisys-
compatible requirements were second largest. Unisys-compatible
requirements represented 794 procurements (27 percent) and $387.3
million (24 percent).




Page 12                     GAO/IMTFSSl-13   Federal Government   Mainframe   Acquisitions
                                            Appendix II
                                            Questions and Answers About Government
                                            Mainframe and Mainframe
                                            Peripheral Procurements




Figure 11.3: Number of the Government’s
Compatible Procurements      According to
Type of Compatibility  (2,948)




                                                                              Honeywell Bull-Compatible (292)




                                                                               IBM-Compatible (1,769)




Figure 11.4: Dollars Obligated for the
Government’s     Compatible Procurements
According to Type of Compatibility                                            Unisys-Compatible ($367343

($1,587.81111)
                                                                              Other Compatible ($lO.lM)


                                                                              Cwtrol Data Corporation- Compatible
                                                                              (s53.9MJ


                                                                              8%
                                                                              Honeywell Bull-Compatible (8123M)




                                                                              IBM-Compatible (81.013.6M)




                                            Page 13                     GAO/IMTEG91-13        Federal Government    Mainframe   Acquisitions
 Appendix II
 Questions and Answers About Government
 Mainframe and Mainframe
 Peripheral Procurements




 What equipment manufacturers  are involved in the government’s
 IBM-compatible mainframe and mainframe peripheral
 procurements?

 During the 3-l/2 fiscal years ending in March 1989, IBM equipment was
 obtained in the majority of the government’s IBM-compatible procure-
 ments. Of the 1,769 IBM-compatible procurements during the 3-l/2 year
 period, 1,201 (68 percent) resulted in agencies obtaining IBM equipment.
 Similarly, of the $1 ,0 13.5 million obligated to IsM-compatible procure-
 ments, $662.5 million (65 percent) was for procurements involving IBM
 equipment. In addition to IBM, other manufacturers involved in IBM-
 compatible procurements included Amdahl, Memorex, National
 Advanced Systems, NCR Comten, and Storage Technology Corporation.




Page 14                     GAO/IMTEC-91-13   Federal Government   Mainframe   Acquisitions
                                             Appendix II
                                             Questions and Answers About Government
                                             Mainframe and Mainframe
                                             Peripheral Procurements




Figure 11.5: Number of the Government’s
IBM-Compatible    Procurements                                                 4%
According to Manufacturer    of Equipment                                      Memorex (65)
(1,769)
                                                                                      Advanced Systems (67)




                                                                              Storage Technolcgy Corpxation (141)




Figure 11.6: Dollars Obligated for the
Government’s     IBM-Compatible
Procurements     According to                                                   Memorex
                                                                                      (t9.5M)
Manufacturer    of Equipment (1,013SM)
                                                                                National Advanced Systems (fl02.5M)




                                                                               Amdahl (S151.9M)




                                                                                IBM ($662.5M)




                                            Adpstment made due lo mm&g.




                                            Page 16                       GAO/IMTEGSl-13        Federal Government    Mainframe   Acquisitions
Appendix II
Questions and Answers About Government
Mainframe and Mainframe
Peripheral Procurements




What procurement methods did the government use to obtain all
types of compatible mainframe computers and mainframe periph-
eral equipment? And, did the government frequently use new con-
tracts with 8(a) contractors to obtain compatible mainframes and
mainframe peripherals?

Modifications to Existing Contracts was the most frequently used
method of obtaining equipment when the government agencies identi-
fied compatible requirements. Also, more dollars were obligated to Modi-
fications to Existing Contracts than to any other procurement method
during the 3-l/2 fiscal years. These contract modifications accounted
for 1,296 of the 2,948 compatible procurements and $780.9 of the
$1,587.8 million obligated. The agencies did not frequently use the New
Contract--8(a) Firms method to obtain compatible mainframes or per-
ipherak. This method accounted for only 24 of the 2,948 compatible
procurements and $17.4 million of the $1,587+8 million obligated.




Page 16                    GAO/IMTEC81-13   Federal Government   Mainframe   Acquisitions
                                           Appendix II
                                           Questions and Answers About Government
                                           Mainframe and Mainframe
                                           Peripheral Procurements




Figure 11.7: Number of the Government’s
Compatible Procurements     According to
Procurement Method (2,948)
                                                                           Other (196)
                                                                           4%
                                                                           New Gmtrad-Sole Source (127)

                                                                           New Contrad-fhe     Ohm    (132)

                                                                           New Cmtrad-More Than One Oifemr


                                                                           New Contract- lhvelqmr    or Integrator




                                                                           New   Contrad-6(a) Firm (24)




Figure 11.8: Dollars Obligated for the
Government’s     Compatible Procurements
According to Procurement Method                                            :&    Schedule Purchases ($72.51)
($1,587.8M)
                                                     F                     E2er($30.1M)
                                                                           New Cfmtrad-Sote Source (11654M)




                                                                           7%
                                                                           New ContradOne OIleror (5103.9M)
                                                                           New Contrad-More Than One OIleror
                                                                           ($213BM)

                                                                           New Contract- Developer or Integrator
                                                                           ($203.EM)




                                                 I                         New Contract-B(a) Firm ($17.4M)
                                                                           Modifications to Exislhg Contracts
                                                                           ($780.9#)




                                           Page 17                     GAO/IMTEGSl-13           Federal Government   Mainframe   Acquisitions
Appendix II
Questions and Answers About Govemment
Mainframe and Mainframe
Peripheral Procurements




What procurement      methods did the government use to obtain IBM-
compatible mainframe computers and mainframe peripheral equip-
ment? And, did the government frequently use new contracts with
8(a) contractors   to obtain mwcompatible   mainframes and main-
frame peripherals?

GSASchedule Purchases was the most frequently used procurement
method for obtaining IBM-compatible equipment (707 of 1,769 procure-
ments). However, using total dollars obligated as the measure, Modifica-
tions to Existing Contracts was the most favored procurement method.
Of the $1,013.5 million obligated for IBM-compatible procurements, Modi-
fications to Existing Contracts accounted for $459.7 million in dollar
obligations. New Contracts++!(a) Firms represented 22 of the govern-
ment’s IBM-compatible procurements and accounted for $17.0 million in
obligated dollars during the 3-l/2 fiscal years,




Page 18                    GAO/I.MTEG-91-13   Federal Government   Mainframe   Acquisitions
                                           Appendix II
                                           Questions and Answers About Government
                                           Mainframe and Mainframe
                                           Peripheral Procurements




Figure 11.9: Number of the Government’s
I&l-Compatible    Procurements
According to Procurement Method
(1,769)
                                                     r                    -I-




                                                                         Other(M)
                                                                          4%
                                                                          NewContrac1-SoleSource(67)




                                                                         Modificationato Existing Contracts (474)




                                                                         GSA Schedule Purchases (707)



Figure 11.10: Dollars Obligated for the
Government’s    IBM-Compatible
Procurements    According to Procurement                                 GSA Schedule Purchasea (S627M)
Method ($1,013.51111)




                                                                         7%
                                                                         NW Contraft-CJneCfleror (S69.7t.4)




                                                                         New Cantmu- Developer or Integrator
                                                                         ($1s3.W)




                                           Page 19                    GAO/IMTEC-91-13           Federal Government   Mainframe   Acquisitions
Appendix Il
Questions and Answers About Government
Mainframe and Mainframe
Peripheral Procnrements




What equipment manufacturers       are involved in the government’s
mainframe and mainframe peripheral procurements,         including both
procurements   where compatibility    is required and procurements
with no compatibility requirement?

IBM equipment was supplied to the government more frequently than
any other manufacturer’s for mainframe and mainframe peripheral
procurements for the 3-l/2 fiscal years ending in March 1989, with
1,339 out of 3,225 total procurements. Additionally, using obligated dol-
lars as a measure, government obligations for procurements involving
IBM equipment during the same period were $922.9 million (47 percent)
of a total of $1,943.1 million When measured using either numbers or
dollars, Unisys equipment was next most frequently supplied-772 of
3,225 procurements (24 percent) and $382.6 million of $1,943.1 million
obligated (20 percent). Other equipment manufacturers included
Amdahl, Control Data Corporation, Honeywell Bull, Memorex, National
Advanced Systems, NCR Comten, and Storage Technology Corporation.




Page 20                     GAO/IMTEC-91-13   Federal Government   Mainframe   Acquisitions
                                           Appendix II
                                           Questions and Answers About Government
                                           Mainframe and Mainframe
                                           Peripheral Procurements




Figure 11.11: Number of the Government’s
Mainframe and Mainframe Peripheral                                         Unisys (772)
Procurements    According to                                              Other(372j
Manufacturer   of Equipment (3,225)
                                                                          4%
                                                                          Amdahl (116)
                                                                          3%
                                                                          conlrcll Data csoipmtion (loo)




                                                                          9%
                                                                          Honeywell Bull (304)




Figure 11.12: Dolfars Obligated for the
Government’s    Mainframe and Mainframe
Peripheral Procurements     According to
Manufacturer   of Equipment ($1,94X1 M)

                                                                           Amdahl(S157.6M)




                                                                           3%
                                                                           Honeywell Bull (5147.6t.i)




                                                                           IBM (5922.9M)




                                             I’::                          National Advanced Synems (8102.8M)

                                                                           Slotage Technology Corpora~bn
                                                                           ($54.7M)




                                           Page 21                     GAO/lMTEG91-13            Federal Government   Mainframe   Acquisitions
Appendix III

Detailed Statistics on the
Government’s Procurements


Table 111.1:The Government’s      Mainframe     and Mainframe             Peripheral     Procurements
Dollars in millions                                    --                      -I               ..~
                                                                                                Percent of                                                       Percent of
                                                                   Number                           number                          Dollars                          dollars
Compatible
    Control Data Corporation-Compatible                                  69- ~~-                          2                       _.-~ 353.9                               3
     Honevwell Bull-Comoatible                 .-
                                                                        292                               9 -                          123.0                               6
-’
     IBM-Compatible                                                   1,769    -.-                       55            -Ti13.5                       ‘.                   52
-.-.
     Unlsys-Compatible                                                  794 -                            25                           387.3                               20
    Otherdompatlble            -..                                       24                               1                            10.1                                1
Totat Comoatible                                                     2,948                               92%           --          $1,587.8                               82%
Total NonCompatIble                                                     277                               8%                           355 3              ~-              18%
Total Procurements                                                   3,225                              100%                -      $1,943.1                              100%
                                                      (Adjustment made due to rounding.)



Table 111.2:The Government’s      Compatible        Procurements          According      to Type of Compatibility
Dollars in millions
                                                                                                Percent of                                                     Percent of
--                                                                 Number                          number                           Dollars                        dollars
Control Data Corr;loration-Comoatlble                                  69                                 2                            $53.9                               3
Honeywell Bull-Compatible                      -.                       292                              10                            123.0                               8
IBM-Compatible                                                        1,769
                                                                          _~                             60                          1,013 5                             64
Unisys-Compatible                                                       794            I~~               27                            387.3              __________ 24
Other-Compatible                                                         24                               1                             10.1                               1
Total Compatible                                                     2,948                              100%                       $1.587.8                              100%



Table 111.3:The Government’s    IBM-Compatible              Procurements       According      to Manufacturer       of Equipment
Dollars In milllons ..--     _ ____                                 -.~                                                                                        _~.~
                                                                                                 Percent of                                                      Percent of
                                                                   Number                     .-. number
                                                                                                      ~.~_______                  Dollars                             dollars
Amdahl -       .-                                                        107            ~~       ,..~      6                ~~~. $1519                                      15
                                                                                                                                                                    .-
IBM                                                                   1,201             ~~~~ ~         -  68                        662.5                                   65
Memorex                                                                -- 65                               4                   ~.~     9.5                     ~~~            1
National I________._______-
          Advanced Systems                      ~      ~~~                67                               4     .-~                102.5                                   IO
NCR Comten
       -~-                                   .-      ~~~~                 48--.-        ~. ~~-      ____ -~3                          12.7                                    1
                                                                                                                                         ~.-.~
Storage Technology
               -_ Corporation               ~-.-_____                  141             ___~               8            ~.-..~~.        54 0                          .-.      6
Other                .--~~                ~~                            140                               7                            20.4                                   2
                                                                                                                                                                   --
Total IBM-Compatible                                                 1,769                              100%                      $1,013.5                                100%
                                                      (Adjustment made due to rounding.)




                                                     Page 22                                  GAO/IMTEC-91-13       Federal Government         Mainframe       Acquisitions
                                                    Appendix III
                                                    Detailed Statistics on the
                                                    Government’s Procurements




Table 111.4:The Government’s    Procurements         According    to Procurement           Method
Dollars in millions                                                                                  -          _.                    -__.          _~
                                                    Number                                                                        Dollars
                                     Percent                                                                         Percent
                          Corn-      of com-                               Percent                 Corn-             of com-                                           Percent
Methods                  patible      patible         Other        Total    of total             patible              patible -   ..“. Other                Total       of total
New Contract-Sole
Source                         127              4         26         153            5               $165.4                 10           $20.7              $186.1                10
New Contract-One
Offeror                        132              4         21         153               5             1039                   7                5.2            109.1                 5
New Contract-More
Than One Offeror               219              7         25         244               7             213.8                 13            29.3               243.1                13
New Contract-
Developer Or
lntearator                     143              5         24       . 167               5             203.8                 13           214.8               418.6                22
New Contract-8(a)
Firm                            24              1             1       25               1                 17.4               1                1 .o               18.4               1
Modifications to
Exlstlng Contracts         1,296           44            119       1,415           44                780.9                 49            78.2               859.1                44
                                                                                                                                  ~-
GSA Schedule
Purchases
l-__”  ..-.--                  811         28             34         845           26               72.5                   5                                  77.2            4
Other                          196          7             27         223            7               30.1                   2                 1.4              31.5            1
Total Procurements         2.948          100%           277      3.225          100%          $1 S87.8                  100%          $355.3            $1.943.1           100%
                                                     (Adjustment made due to rounding.)




                                                    Page 23                                GAO/IMTEGSl-I3               Federal Government          Mainframe     Acquisitions
                                                  Appendix nI
                                                  Detailed Statistics on the
                                                  Government’s Procurements




Table 111.5:The Government’s     IBM-Compatible      Procurements       According    to Procurement     Method
Dollars in millions
                                                                                       Percent of                                               Percent of
                                                             Number                       number                    Dollars                         dollars
New Contract-Sole    Source                                        67                            4                     $37.0                                4
New  Contract-One
-.- . .-..-.-.----- Offeror                                        65                            4                       69.7                               7
New Contract-More    Than One Offeror                             167                            9                     163.8                              16
New Contract-Developer     or Integrator                          131                            7                     193.3                              19
New Contract--B(a) Firm                                            22                            1                  --.-.-17.0.I _                          2
Modjfications to Existing Contracts                              474                            27                    459.7                               45
GSA Schedule Purchases                                           707                            40
                                                                                              ~~~~_                 - 62.7                  --. -..~        6
Other                                                             136                            8                     10.3                                 1
                                                                                                                                                          _....
Total Compatible                                               1,769                           100%               $1,01X5 .~ ~. .--                      100%




Table 111.6:The Government’s     Mainframe   and Mainframe      Peripheral     Procurements     According    to Manufacturer         of Equipment
Dollars in millions
                                                                                       Percent of                                               Percent of
                                                             Number                       number                    Dollars                         dollars
Amdahl                                                            116                            4                   $157.6’..                              8
Control Data Corporatron                                          100                            3                      96.9         ~~-                    5
Honeywell Bull                                                    304                            9                     147.6                                8
IBM                                                             1,339                           42                     922.9                              47
Memorex                                                            66                            2                       96                                 1
National Advanced Systems                                          69                            2 -.                 102.8                               5
NCR Comten                                                         64                            2                     17.6                               1
Storage Technology Corporation                                    153                            5                     54 7                               3
Unisys                                                           772                            24                    382.6                              20
Other                                                            242                             7                     488                                2
Total Procurements                                             3,225                           100%               $1,943.1                              100%
                                                  (Adjustment made due to rounding )




                                                  Page 24                           GAO/IMTEG91-13      Federal Government      Mainframe     Acquisitions
Appendix IV

Objective, Scope,and Methodology


               In February 1989, the Chairman and the Ranking Minority Member,
               House Committee on Government Operations, asked us to perform a
               review of the government’s use of IBM-compatible automated data
               processing (ADP) procurements. In response to these requests and in dis-
               cussions with the Chairman’s and Ranking Minority Member’s offices,
               we agreed that procurements of mainframe and mainframe peripherals
               would be included in our review, with emphasis on compatible procure-
               ments. Our review covered procurements at 35 federal agencies, during
               the 3-l/2 fiscal years ending in March 1989.

               Our objective for this report was to focus on governmentwide statistics
               collected from the 35 agencies and present the number and aggregate
               dollar value of the government’s mainframe-related contracts, the distri-
               bution of procurements among equipment manufacturers, and a break-
               down of the various procurement methods agencies used to obtain
               mainframe-related equipment. Previous reports describe the specific
               aspects of the ADP-related procurements of individual agencies.

               We used the following mutually exclusive procurement methods to
               group the government’s procurements. The first three methods
               represent specific types of new contracts with mainframe and periph-
               eral equipment manufacturers. These consist of sole source new con-
               tracts, 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 proce-
               dures where the awardee was selected from among multiple competi-
               tors. We also included a category for new contracts with system
               developers and integrators-except     any contracts separately catego-
               rized as awarded to 8(a) firms. We also obtained and analyzed data the
               agencies provided on modifications to existing contracts, the use of GSA’S
               multiple award schedule contracts, and other miscellaneous procure-
               ment method’s,

               To obtain governmentwide statistics we designed a questionnaire, which
               when properly completed by the 35 agencies provided us with the neces-
               sary information. Our questionnaire included several charts and pro-
               vided detailed instructions, with definitions and examples, to help
               agencies identify and report the relevant information. Our questionnaire
               instructions cited pertinent federal regulations 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 26                GAO/IMTEG91-I3   Federal Government   Mainframe   Acquisitions
Appendix Iv
Objective, 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, GSA, other federal agency officials, and Datapro,’ 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 characters that do not belong to a mainframe family
and are manufactured by companies that are not traditionally recog-
nized as mainframe manufacturers were not classified as mainframes.
We provided a list of mainframe manufacturers and models in the
instructions for our questionnaire as examples of computers that agen-
cies 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 senior information resources management officials at the agencies
to complete the questionnaire.

Our questionnaire was furnished to the 35 agencies in mid-April 1989,
Upon receiving individual agency responses, the information was
reviewed to determine if the instructions were followed correctly and if
the information was clear and consistent. Although we did not indepen-
dently validate the information supplied in the various agency
responses, our questionnaire contained several internal checks to deter-
mine if inconsistencies were present. In some situations we modified the
data on the basis of discussion with agency officials, In other cases we
excluded inappropriate data. For example, we directed the agencies to
include only procurement data for mainframe-related equipment. How-
ever, in a few instances agencies included procurements for computers
other than mainframes. In order to maintain consistency in the statistics
across the 35 federal agencies, any procurements reported by the agen-
cies for equipment other than mainframes and related peripherals were

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




Page 26                            GAO/IMTECYl-13       Federal Government      Mainframe   Acquisitions
Appendix     IV
Objective,    Scope, and Methodology




deleted from our analysis. Our work did not include solicitation or evalu-
ation of documents related to the agencies’individual procurements,
The figures and tables in appendixes I through III were developed from
our analysis.

We did not solicit or obtain comments from the agencies about this
report, however, we discussed our scope and methodology with indi-
vidual agency officials through the course of our review. Our work was
conducted from February 1989 through September 1990 in accordance
with generally accepted government auditing standards.




Page 27                          GAO/IMTEGSl-13   Federal Government   Mainframe   Acquisitions
Ammdix   V

Major Contributors to This Report


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




                       Page 28               GAO/IMTEGSl-13   Federal Government   Mainframe   Acquisitions
Page 29   GAO/IMTEC-91-13   Federal Government   Mainframe   Acquisitions
                                                                            i




                                                                            i




Page 30   GAO/IMTEC-91-13   Federal Government   Mainframe   Acquisitions
                                                                                 z
                                                                           “.,
                                                                                 i
                                                                                 1




Page 31   GAO/IMTEC-91-13   F&era1 Government   Mainframe   Acquisitions
Related GAO Products ~-


               Agriculture ADI' Procurement: Contracting and Market Share Informa-
               tion (GAo/IMTE~~~,o-~;zFs,,June 27, 1990).

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

               Army ADP Procurement: Contracting and Market Share Information
               (GAO/IMTF:C-~o-~s~s, Mar. 1, 1990).

               Commerce ADP Procurement: Contracting and Market Share Information
               (GAO,'IMTN-HO-77FS, ,July 31, 1990). -

               Defense ADP Procurement: Contracting and Market Share Information
                                  .Junc 8, 1490).
               (GAO/l~lTEC-RO-CjOFS,

               HHS ADP Procurement: Contracting and Market Share Information (GAO/
               IMTEC40-87FS> Aug. 30, 1990).

               Justice ADP Procurement: Contracting and Market Share Information
               (GAO/IMTEC-SO-~OFS,Sept. 28, 1990).

               NASA ADP Procurement: Contracting and Market. Share Information
               (GAOJMTEC-%KSWS, Apr. 20, 1990).

               Navy ADP Procurcmcnt: Contracting and Market Share Information                  (GAO/
               IMTEC-S!+tXFS, Sept. 15. 1989).

               Treasury ADP Procurement: Contracting and Market Share Information
               (GAO~IMTEC-WHFS, Nov. 13, 1990).




(610609)      Page 32                GAO/IMTEC-91-13   Federal Government   Mainframe   Acquisitions
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