The audit report “Opportunities for Cost Savings in Purchasing
Peripheral and Accessory Equipment and Supplies for Desktop Computing
Services” (IG-03-020) has been posted to the NASA Office of Inspector
General Web site at:

The master Outsourcing Desktop Initiative for NASA (ODIN) contract
requires the ODIN contractor at each NASA installation to offer
optional computer products (that is, peripheral equipment, accessories,
and supplies) to augment the ODIN desktop seats. NASA users may order
the optional products through an on-line catalog maintained by the ODIN
contractor at each installation. In 2002, for example, NASA purchased
$13.9 million in computer products from ODIN catalogs.

Results of Audit

We found that contracting officers for ODIN had not adequately reviewed the
prices of ODIN catalog products. We also found that NASA may have
opportunities to realize additional volume discounts when purchasing ODIN
catalog products. Additionally, because NASA had not established a
uniform, Agencywide approach for purchasing computer products for ODIN
seats, not all installations used an approach that provided the greatest
benefit to the Agency.

We recommended that NASA ensure that the ODIN contracting officers
adequately review ODIN catalog prices for reasonableness and
consistency with current market prices, fully document the results of
such reviews, and recover an overpayment to the Headquarters ODIN
contractor. We also recommended that NASA establish procedures for the
consolidation of ODIN purchasing requirements and negotiate volume
discount provisions into future ODIN delivery orders. Additionally,
NASA should require all installations to use the ODIN catalogs as an
optional rather than mandatory source for purchasing computer
peripherals, accessories, and supplies.

Management’s Response

Management concurred with the recommendations and initiated corrected
actions. We consider management’s planned or implemented actions

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