POLICIES ON SELECTION AND ACQUISITION OF AUTOMATIC DATA PROCESSING EQUIPMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01577A000100010009-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: August 4, 2000
• Sequence Number: 9
• Publication Date: August 26, 1971
• Content Type: MEMO

'Approved For
Relea W*M#L2? .1iI F P 9-01 QA
:90}010009-1
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
*QMB Waiver Letter In ERU File*
August 26, 1971
CIRCULAR NO. A7.54
Transmittal Memorandum No. 3
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: 'Policies on selection and acquisition ofi
automatic data processing equipment
1. Purpose. This Transmittal Memorandum No. 3 amends
Circular No. A-54 to provide additional policy guidance
relating to the replacement of ADP equipment.
2...Amendment. Add the following subparagraph d to
paragraph4 :
"d. The selection of new ADP equipment to replace and
upgrade equipment on hand is frequently possible within the
same or anew product line of the vendor supplying the exist-
ing equipment. Usually such new equipment is compatible with
'existing equipment, and offers a better cost-performance'
ratio than is currently being achieved. These replacement
possibil.ties, often advanced by unsolicited proposals,
generally appear attractive on the surface. However,
several factors should be evaluated before making a deci-
sion to proceed with the replacement. These include:
(1) If the replacement is to be made without a
competitive evaluation, it is in effect a sole-source pro-
curement and is subject to the Federal Procurement Regula-
tions and Federal Property Management Regulations governing
sole-source procurements.
(2) If the replacement is being contemplated to
relieve a situation in which the work load is causing a
saturation of existing facilities, other actions should
also be considered. They are: (a) revalidate the work
load and data processing requirements to determine if a
reduction can be effected, and (b) determine the possi-
bility of improving the performance of existing facilities
through program modifications, rescheduling or the selective
replacement of software or peripheral devices which offer
greater efficiency or lower cost. For this latter action,
techniques are available to assist in evaluating the per-
formance of existing operations and identifying possible
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(No. A-54)
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areas of improvement. By making such improvements, it may
be possible to streamline the current process to a degree
equaling or exceeding that achieved through complete replace-
ment of the equipment.
(3) The use of alternative commercial sources of
supply (such as leasing companies), or alternative methods
of contracting for the existing equipment (such as the
purchase of leased equipment), might result in equally
significant cost/benefit improvements. Policies governing
alternative acquisition methods are contained in paragraph 5
of this Circular.
The mere availability of equipment within the exist-
ing vendor's product line which is compatible with the
installed equipment and which may offer a better cost/
performance ratio is not, therefore, a sufficient basis for
.deviating from the provisions of subparagraphs 4a, 4b, and
4c of this Circular. The policy objectives of defining
system specifications as the basis for selection so as to
encourage free competition, of according equal opportunity
to all qualified suppliers, and of making the selection on
the basis of capability and overall cost apply in these
cases as they do in the initial selection.o.f equipment.
The General Services Administration can advise agencies in
determining and evaluating alternative procurement possi-
bilities and methods. Decisions reached in this regard
will be properly documented as required by paragraph 7,
including a statement of the anticipated cost/benefit
improvements against which actual results can be analyzed."
GEORGE P. SHULTZ
DIRECTOR
Approved ForRelease 2000/08/29(N6LA R79-01577A000100010009-1