"This appropriation provides for the direction and coordination of a comprehensive Government-wide program for the management, procurement, and utilization of automatic data processing and communications equipment and services, and for providing specialized services to civilian agencies in each of these fields." (From The Budget for 1974.)

JUSTIFICATION

The Administrator of General Services directed that a study be undertaken of the automated data processing and related activities of GSA, the objectives of which were to "Study and evaluate the adequacy of GSA's Government-wide and internal ADP and related activities and make recommendations designed to impro the organizational and other arrangements for carrying out these activities from both a current and a long-range standpoint."

The Study Report included recommendations concerning the combination of GSA's Government-wide ADP and telecommunications functions into a new Automated Data and Telecommunications Service. The Administrator approved these recommendations and established the new Service effective July 15, 1972.

The Government-wide automatic data processing function was transferred fro the Federal Supply Service to the newly established Automated Data and Telecommunications Service (+$2,150,000), and the transportation, motor equipment, and public utilities activities were transferred to the Federal Supply Service from the former Transportation and Communications Service (-$3,490,000). The 1973 comparable availability is thus $6,160,000.

The 1974 estimate of $6,688,000, represents an increase of $528,000 from the 1973 adjusted level. This increase is solely due to full year's cost of FY 1973 positions in the activities under the new organization ($453,000) and administrative operations support ($75,000).

In accordance with administration policy, the recently granted classified pay increases are to be absorbed within total appropriations currently availabl to GSA for fiscal year 1973. In addition, the appropriations requested in the President's Budget for 1974 do not reflect the impact of the full-year cost of these increases.

APPROPRIATION LANGUAGE

For necessary expenses of transportation, communications, and other public utilities management7 For expenses, not otherwise provided, necessary for carrying out Government-wide responsibilities relating to automated data management, telecommunications and related activities, as [provided authorized by law, including services as authorized by 5 U.S.C. 3109, $7,500,000 $6,688,000.

EXPLANATION OF PROPOSED CHANGE IN APPROPRIATION LANGUAGE

The proposed change in the appropriation language is in consonance with the newly established Automated Data and Telecommunications Service.

"Resources are devoted to the control and coordination of Government-wide programs and activities relating to the procurement and utilization of ADP equipment and services, and the operation of Federal Data Processing Centers for the use of Federal agencies." (From The Budget for 1974.)

JUSTIFICATION

The Office of Automated Data Management Services serves as the primary management organization for GSA's control and coordination of Governmentwide ADP activities. Responsibilities for procurement, reutilization of excess equipment, the ADP Equipment Lease Program, and Federal Data Processing Center operations activities are all lodged in this office.

The GSA program of providing for the economic and efficient procurement, maintenance, operation, and utilization of Automatic Data Processing equipment, and related supplies and services for Federal agencies, is financed by this activity and the revolving fund entitled "Automatic Data Processing Fund."

GSA, in carrying out responsibilities stipulated in a 1965 amendment to the Federal Property Act, has made significant contributions in improving the overall efficiency and economy of Automatic Data Processing operations in the Federal Government. Specific examples are set forth below:

a. The twelve Federal Data Processing Centers (FDPC's) operated by SA provided centralized data processing services to GSA and other Governent agencies valued at $20.6 million during FY 1972. It is estimated to each $24.7 million in FY 1974. GSA is continuing its efforts to satisfy ther Government agency requirements for centralized data processing suport. The number of users outside of GSA whose selected ADP resource équirements were met by centralized FDPC services increased from 124 in Y 1971 to 161 in FY 1972. Operating costs of the FDPC's are paid by the utomatic Data Processing Fund which is described in greater detail under hat heading.

b. Excess owned and leased ADP equipment has been redistributed for utilization by other Government agencies, thereby avoiding new procurements. ring FY 1972, excess Government-owned ADP equipment, including Department Defense (DOD) interservice transfers, valued at $130.0 million at acquition cost was redistributed for reutilization.

In addition, during FY 1972, excess Government leased ADP equipment, cluding DOD interservice transfers, valued at $42.1 million at acquisition st was reutilized.

1. Automated Data Management Services

(Continued)

C. During FY 1972, Federal Supply Schedule contracts and amendments thereto awarded by GSA contained improved terms and conditions negotiated with ADP equipment suppliers. Cost reduction during the past year resulting from these improved terms and conditions which were negotiated during FY 1972 and continuing from prior years amounted to an estimated $36.5 million.

d. GSA centralized ADPE procurement assistance and contract awards during FY 1972 for Federal agencies will result in cost reductions of $286.6 million over systems life cycles of 3 to 6 years. This cost reduction represents the difference between contractor's original offers to the Government or the contractor commercial list price and the final price negotiated by GSA.

The increase of 3.6 man-years and $79,500 for this activity will be devoted to projects to increase savings in the area of ADP equipment procureSpecific examples are:

ment.

(1) The restriction, through the issuance of Federal Property Management Regulations, of sole source procurement of general purpose ADP equipment by agencies.

(2) A project to enter into third party leases. This is an alternative method of bidding whereby offerers will be solicited to provide for straight leasing, purchase or multiyear leasing. The objective is to replace currently installed leased ADP equipment by third party lessors or brokers at substantial savings to the Government.

(3) The concept of more centralized procurement will be implemented in order to achieve greater economies for the Federal Government.

11

EXPLANATION OF DISTRIBUTION BY OBJECTS (See Activity Data Sheet) Personnel Compensation and Staffing. $1,051,700 for 56 permanent positions (55.2 average employment), all in the Central Office.

12 Personnel Benefits.- $94,800.- Includes $73,600 for retirement contribution, $13,600 for health benefits, $2,500 for moving allowances, and $5,100 for group insurance as required by law in support of the above employment.

21 Travel and Transportation of Persons. - $8,000. $7,000 for approximately 150 days of travel for the procurement function and inspections, and $1,000 for motor pool services.

1. Automated Data Management Services (Continued)

13 Rents, Utilities, and Communications Services. $13,700. Includes $13,000 for telephone and teletype services, and $700 for depreciation of administrative equipment.

24 Printing and Reproduction.

$20.200 for costs of printing solicitations,

and invitations for bids, and schedules.

25 Other Services. - $14.400. Includes $12,300 payment to the working capital fund, $1,200 to commercial contractors, and $600 for services to other agencies plus $300 for miscellaneous costs.

26 Supplies and Materials. - $5,700. Includes $1,800 for operating supplies, $2,800 for technical publications, and $1,100 for operating forms.