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DOD Computer Contracting: Inadequate Management Wasted Millions of Dollars

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Report Type Reports and Testimonies
Report Date June 25, 1993
Report No. IMTEC-93-31
Subject
Summary:

The Pentagon office overseeing military computer contracting lacked internal controls and consistently exercised poor contract management in the 2-1/2-year period ended January 1991, during which the government spent nearly $16 million on unneeded or questionable computer equipment and services. These problems resulted in (1) lost equipment and unnecessary warehouse costs totaling almost $1.5 million; (2) more than $9.5 million in contracts awarded for equipment, software, and services without required justification; (3) $2.3 million spent for a resources management system and a related subsystem that were discontinued because they never worked; (4) payment of an estimated $250,000 for services that may not have been received; (5) about $2 million paid for excessive technical and maintenance services; and (6) more than $200,000 spent annually on little-used computer training facilities. The new office director has taken steps to correct these problems and prevent their reoccurrence.

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