27 



was about to award to a Japanese firm as 

 part d the proanemenL Trade with Japan 

 was paiticularly sensitive at the time, in part 

 because the Japanese were exchiding U.S. 

 companies from procurements for a major 

 new airport near Tokyo. Moreover, the sub- 

 contract in question induded the O.S. gov- 

 ernment's first major purchase of optical 

 storage technology, a purchase that Con- 

 gress hoped would spur development of a 

 new, national optical disk industry, the IG's 

 office reported. 



"Secretary BaWrige wanted the bid re- 

 confirmed in its entirety so that if the Japa- 

 nese woo we couM explain it to Congress, 

 and if the Americans woo. we couW explam it 

 to the Japanese," DeGeorge explains. "It 

 was a very dehcate situation." 



The IG's office "found no evidence to sug- 

 gest that the procurement was handled in- 

 correctly. . . . [and] no evidence of favorit- 

 ism." the office stated in its semiannual 

 report for November 1987. The subcontract 

 was awarded to the Japanese firm. 



The office has also had a hand m p l annin g 

 the 1990 decennial census, which will count 

 250 million Americans at a cost of about 

 $2.6 bUlion. Hoping to avoid sooie of the 

 unnecessary data coUectioo and processing 

 costs and other problems it incurred in the 

 1980 census, the Census Bureau in 1987 

 made plans to mcrease the number al pro- 

 cessing offices from 3 to 11, at a cost of 

 $550 milboo. The auditors persuaded Cen- 

 sus tliat they couW achieve the same results 

 by consolidabng the work load in seven cen- 

 ters, thereby saving $45 miDion. 



At the same traie, the IG's office reports. 

 Census agreed to automate some processes 

 that had been done manually at a cost of $40 

 millioo in the 1980 census; savings cannot be 

 estunated until after 1990, when the new 

 procedures are in place. The IG also sug- 

 gested pliniinanng some Other labor-inten- 

 sive procedures used to reduce the amount 

 of the census undercount on ttie grounds 

 tliat the resuhs did not justify the cost — 

 savmg about $37 miUioD. 



Tbrf Mtars 



Because agencies are in no way compelled to 

 abkle by the informatiao technology audi- 

 tors' recommendations, turf wars with 

 agency heads are a regular feature at its 

 task. While agencies are free to make then- 

 own decisions, the IG's office "can make it 

 embarrassing, noisy and uncomfortable" for 

 those that push opposing agendas, 

 DeGeorge admits. 



Commerce undersecretary for oceans and 

 atmosphere William Evans and other admin- 

 istrators declined to comment oo the oogo- 

 ing review of National Weather Service sys- 

 tems. Sources within the IG's office say the 

 audit has generated considerable tenskn be- 



tween the IG's office and Weather Service 

 executives. 



Giammo of the PTO gives a vivid descrip- 

 tioo of his interaction with the auditing staff. 

 Giammo was new to his job when the audit- 

 ing office stepped in last year and therefore 

 not personally respoosihte for the weak- 

 nesses tliey pointed out. Nevertheless, "We 

 hollered at each other across the table for 

 two days." Giammo recalls with wry amuse- 

 meoL "It was not a smooth, gentlemanly 

 interactiOQ. But it was a healthy ooe, and we 

 ended up with a common consensus." 



Giammo observes that many technical de- 

 dsioos "are judgment caDs; it's a question at 

 e mphaqQ In same cases we convinced (the 



IG was created for." 



At least once, the office's recommenda- 

 tioos have resulted in personnel displace- 

 menL In September 1987. the office's rec- 

 onunendatiao to NQAA that its proposed 

 Shipboard Data System III coukl be imple- 

 mented using off-the-shelf equipment, 

 rather than new designs, resulted in a design 

 team being disbanded. "Of course, tliey 

 were very unhappy with what we did. But it 

 gave NQAA $13 millxin to use somewhere 

 else." DeGeorge says. 



DeGeorge hasn't won them all, at course. 

 "But I'd say we've won 90 percent," he 

 says. "They have every right to disagree 

 with our judgment" 



COMMERCE'S NEW INFORMATION SYSTEMS 



TliJneen ma)Of intemiation systems are now undef devetopmem In the Cocnmeree 

 Depatment Here's a list. *ing with conservative estimates Itom the agencies of what 

 each system will cost over the next live yeare. 



OMca of tiM SMratwy 



mandal Manafamant tntofinatlon System 



kvM* of Export 4 

 EipoR Contnil Automated Support Syiten) 



Decenn ia l Census A u toinabon 

 Census Central Computer Facaty 

 GeopapISc Support System 



■lanwtloMi Tratf* A4aWs<ratiea 



Cuiisiw cla l m iKiiial k in ManaCMnent System 



toUoMl iMlMirta of tt««<»i<» am* Tack 



Departmental Sdendflc Computing Pn0vn 



Advanced Mtalher IntafBcttve Procsssmg System 



Navigation Products ProffBm 



Next Generation Waathar Radar 



Sateats Operations. Support Systems 



Marina Rsnarles hi luriii aU un Tectsiology Prajact 



Automstad Patent Systam 



(S in mWons) 



S134 

 $143 

 $245 



$339 

 $36 

 $343 



$133 

 $1S 



$867 



$a,*4e 



auditors! of miscooceptioas, that we needed 

 to make tradeoffs they weren't aware of. But 

 I was very impressed with the people. I don't 

 think it wouU work with less technically 

 competent people." In the final analysis. 

 Giammo says, "I weknme that kind of input. 

 It's good to have an objective opinioo." 



DeGeorge sees the information technol- 

 ogy unit as providing a level of accountability 

 that agency managers wouM not otherwise 

 have. "We don't work for you or with you; 

 our job is to review your performance." be 

 says. "No ooe wants to be secood-guessed 

 about ivbat you feel is your management 

 responsibiUty. But that is after aU what the 



' DeGeorge thinks other IGs wtw audit ma- 

 jor systems couU benefit from the front-end 

 approach. "Anytue could do this if tfiey were 

 willing to put up with the pain." he says. 

 "It's not that the agencies are trying to ran 

 away from anything — they would have the 

 same problem if 0MB or GAO walked in. 

 But we do it much earlier in the game. 

 That's the secret to our success, and that's 

 what makes it most difficult" 



More and more often, agencies "ccme to 

 us both for endorsement and for tprhniral 

 ac»icijnr»- once they realize we're not try- 

 ing to ck>bber them," DeGeorge says. "It's 

 not typical, but it is happening more." D 



