CONGRESSIONALLY DIRECTED STUDY OF COMPUTER PROCUREMENTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90M00005R000700060009-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 27, 2016
• Document Release Date: June 6, 2013
• Sequence Number: 9
• Publication Date: August 26, 1988
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved for Release 2013/06/06: CIA-RDP90M00005R000700060009-5
bhCR r COMPT 88-1313 V
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26 August 1988
MEMORANDUM FOR: Director of Central Intelligence
Deputy Director of Central Intelligence
FROM: Leo Haziewood
Comptroller
SUBJECT: Congressionally Directed Study of Computer Procurements
1. I recommend that you sign the attached letters to our four
congressional committees. The letters forward the summary of a special study,
undertaken at the request of the House Appropriations Committee, by the
Agency's Inspector General on how we procure computer equipment. Both the
letters and the study have been coordinated with the Deputy Director for
Administration and the Inspector General, and w reviewed by the Executive
Director before he departed on leave.E 7
2. Since 1984, we have arm-wrestled with the House Appropriations
Committee over the most appropriate method for acquiring computer equipment.
The House Committee, alone among the four committees with which we deal on
funding issues, has repeatedly insisted that all computer equipment be
purchased outright. -Agency management has argued strongly that for both
financial and non-financial reasons we must preserve our flexibility to use
the v ase-to-purchase arrangements offered by manufacturers such as
IBM. ~rious 1_~
3. The IG's report supports the Agency's traditional position on the
advantages of lease-to-purchase acquisitions, but notes the need for improved
management review of the use of "installment plans" to acquire computer
equipment. I understand that the DDA is already well along in implementing
those recommendations, and the letter to the congressional committees endorses
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4. From a budgetary standpoint, it is very important that we
retain--where justified on financial and non-financial grounds--our ability to
employ a range of options for procuring computer equipment.
Without continuing recourse to acquisitions on the installment plan,.
the Agency could not afford to make investments in computer power
needed to handle continually increasing amounts of intelligence data.
The lease-to-purchase arrangements allow us to spread the cost of a
large capital-acquisition over five years--at a cost (adjusted for
inflation) that is less than 1 percent above the straight purchase
price.
-- Loss of the ability to make lease-to-purchase acquisitions will
present us with a serious problem in FY 1989: an unfunded requirement
installed equipment. This would have to come from other
parts of the Agency's budget, further straining resources in what
already promises to be a tight year.
5. Please t me know if you need any additional information on this
Attachments:
A. House Appropriations Report Language Requesting IG Study
B. House Appropriations Report Language for FY 1989
C. Letters Forwarding ADP Procurement Study.
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