ADP Equipment: Revised GSA Strategy for Microcomputer Purchases Can Improve Competition

Citation
General Accounting Office, ADP Equipment: Revised GSA Strategy for Microcomputer Purchases Can Improve Competition (IMTEC-86-20; B-221163) (May 15, 1986) (full-text).

Overview
Pursuant to a congressional request, the GAO reviewed the federal government's use of Office of Technology Plus (OTP) computer stores to: (1) investigate the desirability and feasibility of using one or more service contracts to provide federal users with the same types of services OTP offers; and (2) determine whether government microcomputer efforts should be revised relative to the present OTP procurement strategy.

The GAO determined that: (1) it is not desirable to use service contracts to provide the same types of services that OTP offers because of the potential increase in administrative costs to the agencies; and (2) agencies have an incentive to use OTP even though other procurement sources could potentially meet their needs at a lower cost.

The GAO believes that the government's objective of satisfying its automatic data processing (ADP) requirements through full and open competition could be enhanced if it revises its strategy for procuring microcomputer products and services by: (1) creating a procurement method that would increase the ability of retailers to compete with OTP, which would increase competition on about $22 million in microcomputer procurements; and (2) lowering the OTP maximum order limitation from $100,000 to $50,000, which would increase competition on about $9 million in microcomputer procurements.