LETTER TO MR. BRUCE JOHNSON FROM JERRY T. JAMES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00933R000300330006-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 15, 2016
• Document Release Date: October 7, 2003
• Sequence Number: 6
• Publication Date: January 27, 1981
• Content Type: LETTER

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4801 MASSACHUSETTS AVE. N.W.
SUITE 600
WASHINGTON, D.C. 20016
January 27, 1981
Mr. Bruce Johnson
Central Intelligence Agency
Washington, D.C. 20505
REFERENCE: RFP #2-81A (3033MP or equivalent)
The Amdahl Corporation wishes to re-emphasize the cost
effectiveness of the 470V/8 as compared to an IBM 3033MP.
For essentially equivalent levels of performance, we
estimate, based on published list prices, a $2,351,000 cost-
avoidance for your agency if a 470V/8 is selected for use.
Accordingly, it is our absolute conviction that it would
be technically, operationally, and economically unwise and
improper for your agency to disqualify the 470V/8 for reasons
that have no appreciable impact on the effectiveness of the
solution to the Agency's requirements.
The most recent example of an unwise and improper "non-reason"
to avoid selecting an Amdahl 470V/8 has been the excessive
questioning of Amdahl's software. In this respect we wish
to point out the considerable difficulties associated with the
IBM VM/SP software which became available in October, 1980.
Specifically, Mr. Curt Symes, an IBM VM Product Administrator,
promised in November, 1980, to the IBM Louisville Share partici-
pants, and again in January, 1981, to the Metropolitan VM Users
Group in New York two reels of maintenance tapes for VM/SP that
contained over 300 PTF's and 20 critical fixes. As of January 9th
IBM has not delivered any of the long awaited fixes to VAR/SP.
Indeed, it is doubtful that the IBM software associated with
this procurement (VM/SP) is reliably running in a non-IBM
production environment on a 3033MP. In short, when all relevant
factors are considered, Amdahl considers its proposal as the
most reliable and the most cost-effective solution for the Agency.
In conclusion, Amdahl strongly supports President Reagan's
efforts to reduce unnecessary federal spending. We believe
that the proposed 470V/8 will make a $2,351,000 contribution
towards the President's goals.
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Mr. Bruce Johnson
Central Intelligence Agency
January 27, 1981
Page 2
We hope you share our confidence so that, together, we can
help achieve the Administration's objectives.
Very truly yours,
JTJ:dt
STATINTL
cc: Mr.
Mr.
Mr.
STATINTL Mr.
Mr.
Mr.
Mr.
George
Klaus, Amdahl
EIA
C amdahl
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28 January 1981
Note To: D/ODP
Subject: Some Suggested Language on the Amdahl Letter
We, of course, also strongly support President Reagan's
efforts to reduce unnecessary federal spending. In this regard,
we judiciously determine the necessary set of Agency mandatory
requirements in our procurement actions. The procurement of
systems that do not meet these mandatory requirements is not in
the best interest of the government and, in our judgement, would
be the cause of unnecessary federal spending. This elementary
principle is reflected in the Federal Property Management
Regulations (see attached). "Common sense" regulations such as
these guide the government in its procurement decisions. To do
otherwise and dilute requirements for a presumed short-term cost
saving is poor management, increases overall costs and is a
major cause of unnecessary federal spending.
STATINTL
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FP?/iit /0 / -3fxe,05
Title 41-Public Contracts, Property Management
by the contractor for
the Government or
the Government.
)ftware, maintenance,
-vices and supplies af-
licies stated herein are
radix A. Specific exclu-
.cies stated herein are:
DPE that are specially
configured) and/or
incorporated as a part
pon or space system or
for the Government
nental contract; or
hat is specially devel-
of systems described
of this section.
!ies and proce
:ng the determination
firing ADP. Determina-
te results of well docu-
systems and/or feasi-
for any acquisitions
anticipated purchase
U00,000 or where the
y rental will exceed
is dollar level, agency
.es should be docu-
tde appropriate man-
ation and approval. In
documentation must
-dicate that:
)r processes for which
be used are ;nen
mY.~..
general policy of Government to rely
on the private sector for its goods and
services except where such action is
not in the national interest. This basic
guidance is contained in OMB Circular
A-76, revised dated June 13, 1977, sub-
ject: "Policies for Acquiring Commer-
cial or Industrial Products and Serv-
ices for Government ;;se." The deci-
sion to establish or augment an in-
Government ADP facility or activity
must be preceded by a comparative
cost analysis to verify that a commer-
cial ADP services approach is not more
appropriate.
However, to ensure maximum benefit
from current Government investment
in ADP resources where excess or idle
capacity is available, sharing of al-
DPE, software or ADP related serv-
owned equipment has priority status
where such resource can meet the re-
quired ADP capability economically
and efficiently.
(c) Competitive acquisitions. (1)
Data systems specifications, equip-
ment performance requirements speci-
fications, and other specifications
shall be designed to ensure free and
open competition and equal opportuni-
ty and appropriate consideration to all
responsive and responsible suppliers,
including manufacturers, leasing com-
panies and third party vendors. These
flpeciflentlunv 0101 be ;IpplIclibl-e-As
Chapter 101-Federal Property Mgmnt. Regs. ? 101-35.206
necessary to adequately describe the
Government's requirement. All of
these specifications must be consistent
with FPMR, FPR (where applicable)
and thereafter agency procurement
sidered in the selection of equipment.
(i) Its capability to fulfill the system
specifications; and
(ii) Its overall costs, in terms of ac-
quisition, preparation for use, and op-
eration.
The term "overall costs," as used in
this subparagraph, shall be interpret-
ed to include but not limited to such
cost elements as personnel, purchase
price or rental, maintenance of pur-
chased equipment, site preparation
and installation, programing, training,
and conversion costs. In considering
conversion costs, care must be taken to
avoid undue biases or predispositions
which are prejudicial to free and open
competition. Conversion costs may be
considered only to the extent that
such costs can be shown to be clearly
essential to continuing agency needs
taking into account the probable eco-
nomic life of the resources to be con-
verted; that due consideration has
been given to the possibility of rede-
signing current systems and software
to take advantage of enhanced system
capabilities or eliminating obsolete or
nonstandard software in conflict with
applicable Federal Information Proc-
essing Standards; and that the bases
for such conversion costs are clearly
dclincated in the solicitation documen-
conversion costs and/or operational
impact are substantial and the re-
questing agency regards them as es-
sential in a determination of "best in-
terests of the Government", such con-
version factors should be clearly and
fully justified and documented.
(4) If ADPE for an interim upgrade
is acquired noncompetitively then the
agency shall commit itself to replace
the complete ADPE complex (or some
logical and substantial subset thereof)
of which the interim equipment forms
a part. Such acquisition shall be based
on new specifications and shall be ac-
complished through a competitive pro-
curement within 2 years of the initial
acquisition. The agency and GSA may
mutually agree to a longer period of
time when there are unusual circum-
stances.
(d) Determinations of least cost al-
ternative. (1) The method of acquiring
ADPE, software, maintenance, ADP
related services, and supplies shall be
determined after careful consideration
of the relative merits of all methods
available; i.e., purchase, lease. or lease-
with-option-to-purchase, or any other
legally acceptable method. The
method chosen shall be that which
offers the greatest advantage to the
Government under the circumstances
which pertain to each situation.
(2) A comparative cost analysis of
the alternative n rr1oa of acquisition
shall be performed to determine which
method shall provide the Government
with the lowest overall cost (price and
other factors considered). over the
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12 February 1981
STATINTL
MEMORANDUM FOR:
Administrative Contracting Officer,
ADP & EB/PD/OL
THROUGH:
STATINTL FROM:
SUBJECT:
Deputy Director for Processing, ODP
Chief, Engineering Division, ODP
C/SEB/ED/P/ODP
Response to Questions Raised At Amdahl Meeting
on 9 February 1981
1. This memorandum answers the questions cited in paragraph
three (3) of your 11 February 1981 memorandum to Chief, Engineering
Division, ODP. The questions are addressed out of sequence (Question
2 preceding Question 1), because the answer to Question 2 has some
bearing on Question 1.
Question 2: Requested an explanation as to the Agency's
rationale for selecting IBM VM/SP as the only software which
will meet the needs of the Agency.
Answer: VM/SP was required for the following reasons:
(A) The Agency as a state-of-the-art user of
IBM compatible computer systems must insure
that any system procured by it is capable of
using the latest releases of IBM software.
To accept any system not capable of using
the latest, and by implication, succeding releases
of IBM software would restrict the Agency
from taking advantage of new technological
advances in the future. Examples of future
advances that would be precluded by not
keeping abreast of current software include
new peripheral devices and new software
packages.
(B) VM/SP is the required software for the only
computer system (the IBM 3033 MP) capable
of meeting the Agency's VM benchmark. It
is therefore part of the standard by which
equivalent proposals must be evaluated.
(C) As part of the Agency's overall plan for
meeting all of its data processing requirements
in the space available to it, the use of
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SUBJECT: Response to Questions Raised At Amdahl Meeting on
9 February 1981
IBM 3380 DASD or their functional equivalent
for both VM and other services is mandatory.
The VM/SP software is required if 3380-type
equipment is to be used in the VM environment.
Question 1: Requested an explanation of the Agency's
relationship with IBM with respect to the alledged prerelease
of VM/SP.
Answer: Because of the critical time requirement for the
new VM processor (service demands are projected to exceed current
resources in the second quarter of FY-81), the Agency took
pre-release of a version of VM/SP in August and participated
in IBM's First Customer Ship (FCS) program starting in October
of 1981. This was done so that the Agency's local modifications
could be integrated into VM/SP in a timely fashion. The Agency
was not a Beta Test Cite for this product.
2. In regard to the reliabiliey of VM/SP, the Agency chose to
become one of the early users of this new software release because
it was the only way to utilize proven hardware (the IBM 3033 MP)
capable of meeting its projected requirements. Because of the
lead-time available, the RFP requirement of at least one operational
site, and. the fact that this was a new version of previously tested
software, the risks involved were not judged to be inordinant.
STATINTL
-2-
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l 6011 MASSACHUSETTS AVE. N.W. [phone] t}`~ "y~ 'j y y
SUITE 600
WASHINGTON, D.C. 20016
December 15, 1980
Mr. Don Wortman
Deputy Director for Administration
Central Intelligence Agency
Washington, D.C. 20505
The purpose'of this letter is to 'bring to your
attention an active procurement situation within
the Agency with regard to which we feel we will
be compelled to file a formal protest with the Agency
Director. The Amdahl Corporation is concerned that
the RFP 2-81A solicitation is in effect a sole source
procurement under the guise of a fully competitive
procurement.
The proposals in response to the RFP are due on
December 22, 1980. We feel that the lack of adequate
response by the procurement department and their tech-
nical. representatives to the issues that we have raised
will compel us to exercise our fullest administrative
remedies.
In the hope of resolving this matter without a
protest, I request a conference with you at your
earliest convenience.
Your consideration of this matter is sincerely
appreciated.
Very truly yours-,,-
L. L_ Gorge Klaus
Vice President of Marketing
Federal Region
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