Summary: Pursuant to a congressional request, GAO reviewed the Department of Defense (DOD) Federal Logistics Data on Compact Disc Program, focusing on: (1) the appropriateness of developing a new system, given the availability of existing commercial products; (2) the Defense Logistics Services Center's (DLSC) management of the program; (3) the Defense Logistics Agency's (DLA) procurement plans, including the extent of commercial involvement; and (4) how the inclusion of sensitive data in the system might affect the procurement strategy.
GAO found that: (1) the prototype disc development program was appropriate, since it satisfied statutes requiring that DOD agencies establish their needs before procurement of a new product; (2) DLSC did not comply with applicable laws and regulations in managing the prototype project, resulting in $145,000 in improper expenditures; (3) DLA will procure the new disc system through the Government Printing Office, which requested bids in late 1989; (4) the DLA solicitation allows for full and open competition and encourages the greatest possible commercial involvement; and (5) the inclusion of sensitive data in the product did not affect the DLA procurement strategy, but was a factor in excluding the use of existing products, since DLA would be unable to effectively monitor distribution with multiple vendors.
