Recent literature suggests that using the Internet to expand supply sources and compare prices can produce savings. According to the Office of Inspector General’s report on computer acquisitions at DOE’s Idaho laboratory, the contractor there determined that millions of dollars in cost savings were possible if mandatory performance standards for purchasing such equipment were implemented. The laboratory contractor required all departments to comply with the standard. Standardizing the Brands and Models of Computer and Computer-Related Equipment

The Los Alamos contractor could save money if it increased its use of a standard brand of computer and computer-related equipment. Appendix II: Scope and Methodology

To determine whether supplemental funding was being spent in the most economical fashion, we randomly selected 17 items of replacement equipment that had already been purchased for further review. Appendix III: Comments From the Department of Energy
Why GAO Did This Study

The Department of Energy (DOE) received $13.2 million in supplemental funding to replace equipment lost at the Los Alamos National Laboratory in the May 2000 Cerro Grande fire. GAO reviewed the practices used by the contractor that runs the laboratory--the University of California (UC)--to determine whether it can benefit from modified purchasing practices.

What GAO Found

GAO found that UC can save money by (1) expanding its supply sources to include suppliers such as the General Services Administration and the Internet; (2) establishing mandatory maximum performance standards for computer purchases to avoid unjustified, costly, and unnecessary capabilities; and (3) increasing its use of a standard brand of computer and computer-related equipment to maximize volume discounts with selected suppliers.