Audit of desktop computer acquisitions at the Idaho National Engineering and Environmental Laboratory

Federal and Department of Energy (Department) acquisition regulations, policies and procedures, as well as the terms of the current contract between the Idaho Operations Office (Idaho) and Lockheed Martin Idaho Technologies Company (Lockheed) require them to pay the lowest possible prices for desktop computers needed to support the overall mission at the Idaho National Engineering and Environmental Laboratory (Laboratory). The purpose of this audit was to determine Idaho`s and Lockheed`s success in achieving this price goal. Idaho and Lockheed have implemented numerous efficiency standards that are expected to reduce computer service and maintenance costs as well as increase employee productivity by approximately $3.6 million per year. However, the audit showed that Lockheed did not always pay the lowest possible prices for desktop computers because its standard desktop computer configuration was excessive. Additionally, some desktop computers that Lockheed acquired exceeded its established standard and were not fully justified in accordance with established policies and procedures. Further, Lockheed purchased desktop computers from a local vendor rather than a less costly alternative source and did not pursue the possibly more economical option of leasing computers