Summary: Pursuant to a congressional request, GAO reviewed the Defense Logistics Agency's (DLA) decision to consolidate its 23 automated data processing facilities into 6 regional processing centers.
GAO found that DLA: (1) did not adequately justify its consolidation decision; (2) did not follow the contractors' or its own task force's alternative consolidation recommendations or perform an economic analysis of those alternatives before making its decision to consolidate into six sites; (3) based its justification for a six-site consolidation on a cost and benefit analysis that used incomplete or unverifiable data regarding operating, transition, computer equipment, and telecommunications costs; (4) could not support the results of its analysis with any verifiable data sources; (5) substantially completed one consolidation processing center, and was in the process of implementing the remaining five centers; and (6) failed to act on its program manager's November 1990 request to perform an economic analysis prior to proceeding with implementation of the remaining five consolidation centers.
