Summary: GAO reviewed telecommunications data networks used by the Health Care Financing Administration (HCFA), focusing on whether HCFA was using the most cost-effective method of obtaining telecommunications services to support its automated systems.
GAO found that: (1) HCFA used commercial contracts to procure most of its telecommunications services under a General Services Administration (GSA) delegation of procurement authority; (2) as a result of the GAO review, GSA notified the Department of Health and Human Services (HHS) that HCFA needed to develop a plan to move to the Federal Telecommunications System (FTS) 2000, the government's telecommunications network; (3) HCFA showed reluctance in making the transition to FTS 2000; (4) in May 1990, HHS advised GSA that it unconditionally supported HCFA use of FTS 2000 and would work to ensure its timely implementation; and (5) in June 1990, the contractor providing FTS 2000 services to HHS informed HCFA that FTS 2000 could meet all of its data communications needs at less cost than it currently paid.
