The Defense Finance and Accounting Service is mismanaging some of its information
systems, the Defense Department inspector general reported last week.

In the report, Management of Defense Finance and Accounting Service Mid-Tier Systems,
the IG found poor communication between the Directorate for Technical Infrastructure and
the service’s seven Financial Systems Activities, which prevented the activities from
having adequate input on policy decisions related to DFAS midtier systems.

“Appropriate performance measures and monitoring tools were lacking after the 1996
midtier systems restructuring,” the IG report said. Neither the directorate nor the
activities ensure the efficient development of midtier systems, the IG said.

DFAS, in response to the report, has resumed the quarterly meetings of a midtier
workgroup and plans to implement performance measures for the systems by September.

Lockheed Martin Corp. will not protest the IRS award last month of the
multibillion-dollar Prime systems modernization contract to Computer Sciences Corp.,
saying it was satisfied with the service’s debriefing about the selection process.

The Lockheed Martin team included Arthur Andersen & Co., Electronic Data Systems
Corp. and Intuit Inc. of San Diego.

The company has several ongoing projects with the IRS, Lockheed Martin spokeswoman Judy
Gan said. Since 1990, the company has worked on the agency’s Integrated Collection
System, which supports IRS revenue officers.

“We began with mainframes and are replacing the hardware with servers, printers
and laptops,” Gan said.

Lockheed Martin also is the contractor for the Integrated Submissions and Remittance
Processing system project. IRS service centers will use ISRP to capture data from paper
returns and checks digitally.

Compaq Computer Corp. late last year consolidated its federal operations with those of
subsidiary Digital Equipment Corp., laying off 29 percent of personnel in duplicate

Gary Newgaard, vice president of sales and marketing for Compaq’s federal
division, did not specify how many people the division employs.

As a result of Compaq’s acquisition of Digital, the company took over the Postal
Service Acquisition of Desktop Extended Processing Technology and Veterans Affairs
Department Procurement of Computer Hardware and Software contracts.

Compaq sells hardware built on Intel Corp. chips running Microsoft Windows NT. It will
continue to produce systems with Digital’s Alpha chips and to sell 64-bit Unix,
OpenVMS and NonStop Himalaya products. It will also continue to develop high-end systems
around both processor lines.

Bell Atlantic Federal has established a Web site at with
information about year 2000 readiness of equipment available through the company’s
government contracts.

Federal customers can search a database by manufacturer name and product number to find
out if equipment is ready. Besides product identifications and descriptions, the site
contains manufacturers’ statements of status in five categories: ready, not ready,
projected readiness, scheduled to be fixed, or scheduled to be retired.

Federal customers also can get information by calling 877-223-3337 or sending e-mail
queries to

The Bureau of Labor Statistics is again posting supplementary statistical data on its
Web site.

BLS stopped posting such data after an employee in November accidentally released some
unemployment data before it had been fully reviewed by BLS managers [GCN, Nov. 23, 1998, Page 1].

The agency now is applying the same rule to supplementary data that it has long applied
to its time-sensitive data: The creator of a document does not have final approval.

Supplementary data will go to a central office for review before it is loaded on to the
BLS Web server. The Labor Department agency’s information technology staff will
likely do the posting, said Deborah Klein, associate commissioner for publications and
special studies.

What caused the problem in November was that an employee thought the data was being
loaded on a server accessible only by BLS employees when the employee in fact was posting
it to a public-access site.

Agencies grappling with results-oriented management initiatives can get consulting help
under the so-called balanced scorecard approach from American Management Systems Inc. of
Fairfax, Va.

The Government Performance Results Act of 1993 established new ways for agencies to
automate their annual performance measures and operational analyses, AMS vice president
John Claman said. AMS will license balanced scorecard software from data warehouse vendor
Gentia Software Inc. of Wakefield, Mass.

The balanced scorecard method, developed by Renaissance Worldwide Inc. of Newton,
Mass., lets organizations aggregate multiple performance indicators into composite
indexes. A 50-user license for AMS’ software will cost about $150,000.

Contact American Management Systems at 703-267-8000.

The Environmental Protection Agency has delayed the award of the fourth and final piece
of its Enterprise Technology and Systems Services procurement until at least Feb. 20.

The agency had planned to award the five-year, $35 million contract this month. Through
the final ETASS buy, EPA wants to hire a vendor to analyze the agency’s overall
systems architecture and create a strategy for designing and buying new systems.

In November, EPA awarded the third portion for systems design and development to
Science Applications International Corp. of San Diego. That award was worth $263 million
over five years.

Lockheed Martin Corp. won the first two portions of ETASS for hardware and software
support at EPA sites nationwide and at agency headquarters.

The two contracts are worth a combined $469 million.

Government travelers will continue to get a discount on in-flight telephone services
from Claircom Communications Group Inc. following that company’s acquisition by
Iridium LLC.

The Washington consortium announced in December it would buy the aeronautical telephone
business from AT&T Corp. for $65 million.

The General Services Administration had signed a deal with AT&T in June for a 50
percent government discount from the $2.99-a-minute rates. Claircom provides in-flight
service on American, Alaska, Northwest, Southwest and Canadian airlines, and on Delta
Airline’s international fleet. The company has about 40 percent of the in-flight
service market. GTE Corp., which has a similar agreement with GSA, has the other 60

—Merry Mayer, Florence Olsen, Bill Murray, and William Jackson

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