SSA Data Communications Contracts With Paradyne Corporation Demonstrate the Need for Improved Management Controls
IMTEC-84-15
Published: Jul 09, 1984. Publicly Released: Aug 02, 1984.
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Highlights
In response to a congressional request, GAO reviewed the Social Security Administration's (SSA) two contracts with the Paradyne Corporation for improving the SSA data communications network.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Health and Human Services | The Secretary of Health and Human Services should direct the Assistant Secretary for Management and Budget to actively monitor all phases of ongoing and future SSA procurement actions requiring HHS approval. The Assistant Secretary should monitor SSA reconsideration of whether to buy the remaining leased Paradyne equipment to see that SSA has all the information it needs to make an informed decision. |
Closed – Implemented
SSA is in the process of replacing its leased Paradyne terminals with new purchased terminals from a different manufacturer.
|
| Department of Health and Human Services | The Secretary of Health and Human Services should direct the Commissioner of Social Security to provide for greater depth and scope in technical reviews of automatic data processing (ADP) and data communications acquisition proposals by reviewing the superseded version of Administrative Directives Systems Guide 200-5 and identifying, for incorporation into the current version, those specific and detailed proposal review instructions needed to achieve thorough technical reviews. |
Closed – Not Implemented
The SSA Administrative Instructions Manual System (AIMS) was completed and instructions were incorporated for technical review of proposed acquisitions.
|
| Department of Health and Human Services | The Secretary of Health and Human Services should direct the Commissioner of Social Security to review SSA systems organizational structure and make adjustments to provide for separation of functions within the procurement process for systems modernization-related data communications acquisitions, especially with regard to separating the procurement request, specifications development function from the technical specifications review function. |
Closed – Implemented
SSA recently established an independent Procurement Review Board to review procurement justifications, including the technical specifications.
|
| Department of Health and Human Services | The Secretary of Health and Human Services should direct the Commissioner of Social Security to limit requests for further delegations of procurement authority from the General Services Administration (GSA) for acquiring ADP and data communications resources until HHS and GSA agree that the SSA systems procurement process is sufficiently strengthened. Such requests should be restricted to those systems procurements which all three organizations agree cannot be deferred without jeopardizing agency operations. |
Closed – Implemented
SSA recently established a Procurement Review Board to strengthen its systems procurement process.
|
| Department of Health and Human Services | The Secretary of Health and Human Services should direct the Commissioner of Social Security to defer further consideration of the agency proposal to spend $16.2 million to purchase the remaining leased Paradyne terminals until: (1) equipment failures have been reduced to a rate approximately that experienced by similar systems; and (2) SSA has a clearer idea of what further use should be made of the Paradyne equipment. At that time, all viable alternatives for meeting SSA needs should be carefully considered, including replacement of the Paradyne terminals through the upcoming terminal acquisition effort. |
Closed – Not Implemented
SSA is replacing all Paradyne equipment with newly purchased equipment from another manufacturer.
|
| Department of Health and Human Services | The Secretary of Health and Human Services should direct the Commissioner of Social Security to ensure that the poor procurement practices used on the Paradyne acquisitions are not repeated on the upcoming 17,000-plus terminal procurement by: (1) closely reviewing the validity of the procurement justification; (2) performing an independent, in-depth review of the technical specifications contained in the pending solicitation to ensure that they include unambiguous and work-load-specific criteria for measuring vendor equipment performance during preaward and acceptance testing; and (3) using appropriately stringent performance validation techniques in conducting preaward and acceptance tests. |
Closed – Implemented
The recently established SSA Procurement Review Board is due to address this recommendation.
|
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Contract administrationElectronic equipmentInternal controlsLeasesProcurement practicesProduct evaluationSole source procurementTestingIT acquisitionsData communications