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<classification authority="sudocs">GA 1.13:AIMD-97-39</classification>
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 <subject>Privatization</subject>
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 <subject>Strategic information systems planning</subject>
 <subject>Interagency relations</subject>
 <subject>Federal agency reorganization</subject>
 <subject>Information resources management</subject>
 <subject>Computer services contracts</subject>
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 <title>Defense IRM: Investments at Risk for DOD Computer Centers</title>
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<abstract>Pursuant to a congressional request, GAO reviewed: (1) the Department of
Defense&apos;s (DOD) plans to consolidate, outsource, and modernize its
computer center operations; and (2) whether DOD has an effective
framework in place for making and executing these decisions. GAO did not
validate the accuracy of the information provided by DOD on the numbers
and costs of computer centers, the alternative analyses, funding plans,
and processing capacities.&lt;p/&gt;GAO noted that: (1) DOD has recognized the need to continue reductions
in the cost of its computer centers&apos; operations through consolidation,
modernization, and outsourcing, but it has not yet established an
effective framework for making these decisions; (2) this framework would
include departmentwide policies and procedures critical to the success
of its efforts to improve computer centers; (3) these policies and
procedures would establish targets for how many computer centers DOD
actually needs, define how mainframes and mid-tier computer operations
should be consolidated, and identify the numbers and skill mix of staff
that are required to operate the centers, and what constitutes an
optimum computer center; (4) DOD also has no mechanism for ensuring that
the best money-saving opportunities have been considered by the
individual services and components or that consolidation efforts will
conform to federal requirements or even meet the needs of DOD as a
whole; (5) as a result, DOD services and components have developed
individual strategies for consolidating and modernizing their computer
centers that are inconsistent and contradictory to DOD as a whole and
may well cause DOD to waste millions of dollars in computer center
expenditures; (6) in addition, the consolidation strategies of the
military services and DOD components did not always fully address
critical planning elements required by the Office of Management and
Budget (OMB) requirements that could help reduce the risk of waste,
including alternative analyses, high-level implementation plans, and
funding plans; (7) further, GAO found that the OMB and departmental
guidance, particularly addressing mid-tier computer centers, was
unclear; (8) this resulted in inconsistent interpretation and reporting
for these centers; (9) therefore, OMB and DOD do not have assurance that
the computer consolidation strategies are sound; (10) without better
management over the implementation of its computer center strategies,
DOD at best will only achieve optimization at the component level and
forgo optimization for DOD as a whole; and (11) moreover, DOD&apos;s chief
information officer (CIO) is now required by the Paperwork Reduction Act
of 1995, Clinger-Cohen Act of 1996, and the Fiscal Year 1997 DOD
Authorization Act to develop and implement a plan for a management
framework with policies and procedures as well as effective oversight m*</abstract>
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<identifier type="preferred citation">GAO/AIMD-97-39</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/AIMD-97-39; Defense IRM: Investments at Risk for DOD Computer Centers;
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<subject>
 <topic>Privatization</topic>
 <topic>ADP</topic>
 <topic>Strategic information systems planning</topic>
 <topic>Interagency relations</topic>
 <topic>Federal agency reorganization</topic>
 <topic>Information resources management</topic>
 <topic>Computer services contracts</topic>
 <topic>Defense economic analysis</topic>
 <topic>Management information systems</topic>
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