The Los Angeles Times from Los Angeles, California • 92

Wednesday, March 13, 1985Part IV 9 ilooAnflclceSIimcB Could Someone Be BUGGING You or U.S. Seeks to Block Further Awards CURRENCY TAPPING Your Phones? try Paradyne Contract Under Fire guy' mm. Let CCS find out pioicssni'M elecuoniui-ly twatp tji inrn.iM", onri lull, ftiirlrtji'. trfK iCiO'ni If All Hlfl (I ('rtU'tl'tiplH t. Il'dl imijM (i( hiflfle'i (iii Hh I'USl I fl it.

i dtjiili't siiuT.Hd'itr it. i yti.i' Who could be bugging you1 Mvce' itiffia1, rfV.fH ('Offilif'. (omjiHihiM, Hi CCS cm help you lino out lor tuft1 I in i t'l i i (KiSuH.iiififi Mr. Conner requirements." "SSA's field offices have experienced extraordinary levels of equipment failures and poor performance since the instalation of the pradyne system." Brooks said in a statement that unless the agency quickly ends the contract, "the consequences will be increasingly and directly felt by the millions of Americans who depend on Social Security pay men -tys" Paradyne's president, Robert S. Wiggins, told a Government Operations subcommittee last fall that the firm had done nothing illegal and that its equipment was meeting contract requirements.

CCS COMMUNICATION CONTROL INC 4, AMERICAN SUNROOF CORPORATION MM S. 1U1 S. ClMtfa Vm Swts Am AmtUi M. HlywM4 (7M)5M-MH H)tO4-WO0 (111) 7M-MH WiWim Wvcl Hri'lily MiK WW 'IH Officii in -j M. CM TELEEPC30C3B chairman of the House Government Operations Committee, characterized the contract last October as "probably one of the worst contracts in the history of U.S.

government procurement." It called for Paradyne to be paid $115 million to install and maintain about 1,800 computer terminals in 1,300 Social Security field offices around the country. Brooks' committee, after two years of investigation, said in a report last fall that problems with computer terminals delivered by the Largo, firm had caused a three to four-year delay in the Social Security plans to modernize its data processing system. The House committee report said the Paradyne gear did not qualify for consideration for the Social Security contract because bid specifications called for use of proven equipment, not prototypes. The report said that: "Paradyne included in its proposal the use of equipment and software that had not been developed and did not exist." "At the pre-award oparational capability demonstration, Paradyne had relabelled and used another manufacturer's equipment." "The acceptance test requirements were significantly relaxed before Paradyne could meet the WASHINGTON P-The government said Tuesday the company being paid $115 million to computerize the Social Security Administration should be barred from future federal contracts, but should be allowed to continue work on existing computer contract. Health and Human Services Secretary Margaret M.

Heckler said Paradyne Corp. was found in an internal HHS investigation to have "substantially misrepresented" the status and availability of equipment needed for the computerization effort. However, the department said in a statement that the Social Security contract with Paradyne would not be immediately affected. "Immediate suspension of the present contract, which includes leasing and maintenance of data processing equipment in SSA offices throughout the country, would unnecessarily disrupt Social Security's operations and its service to beneficiaries," the department said. The department said most equip -ment called for in the Paradyne contract is now in place and operating satisfactorily.

The announcement followed extensive criticism of Paradyne in connection with the Social Security contract. Rep. Jack Brooks, (D-Texas), UJiu nff83 weslem union -iUt wtti.wi.Hn KRVlCE Drive safely with "mmtW ipuepaekxerHPahn0dFree DIRECT DIAL UHFVIIF from I CHRYSLER WESTERN MOBILE TELEPHONE (213) 747-4800 (714) 774-0520 Continued from Page 3 in the past two weeks, the British pound recovered from an all-time low of just under $1.04 to close Tuesday in London at $1,085. In the meantime, the United States is walking a very narrow line, said Mory Ogata, senior vice president and treasurer of Union Bank of Los Angeles. "The government does not want an out-and-out running away of the dollar because of the plight of exporters," he said.

"But, at the same time, the government needs a continued inflow of capital" to meet American demand for credit and does not want the dollar to collapse. The dollar's explosive gains have hit farmers and manufacturers hard, leading to a record $123-bil-lion trade deficit last year. When the dollar rises, the export price climbs for U.S. farm products and manufactured goods ranging from baseball bats to computers. "The sharp appreciation of the dollar since 1980 has cost 2 million jobs," said a study released Tuesday by Data Resources a private consulting firm in Lexington, Mass.

But the rising dollar has not been all bad. With prices of imports falling, U.S. manufacturers also have had to hold down costs and improve productivity, helping tame inflation from the double -digit pace of 1979-80. And the surge in shipments of goods to the United States has helped lift foreign economies out of a slump. At the same time, the flow of foreign funds into dollar-denominated investments has helped the government finance record deficits and still allow interest rates to fall.

Pardee said foreign investors are still holding on to their large U.S. investment portfolios but have started taking some defensive actions to reduce the risk, such as buying options that would enable them to sell dollars at a guaranteed exchange rate at a specific date in the future. And where is the dollar headed? "The speculative tide has started to turn against the dollar," said Lawrence Kreicher, an international economist at Irving Trust Co. in New York. "There really seems to be a fundamental reappraisal of the dollar over the last few days." A combination of low inflation and relatively high interest rates, coupled with the political stability of the United States, has been a major attraction for foreign ABC: Broadcast Shake-Up Continued from Page 2 Liberty (perhaps a play on Iacoc-ca's deep involvement in the campaign to restore the Statue of Liberty).

But some analysts questioned the significance of Iacocca's pledge to beat Saturn to the showroom floor. "Sure, Chrysler can come out with a new product before Saturn," said David Cole, director of the Center for the Study of Automotive Transportation at the University of Michigan. "But Saturn is more than just a new car. it is an attempt to-transform the manufacturing processes used in the auto industry. And I would question whether Chrysler has the technological resources that General Motors has to do a total revolution in its manufacturing processes of the kind that Saturn represents." Another reason Iacocca's pledge met with some skepticism is that it came just days after he announced that Chrysler was tripling its imports of small cars from Japan while de-emphasizing its domestic production of subcompacts.

In response to the Reagan Administration's decision not to urge Japan to extend auto import quotas for a fifth year, Iacocca said in New York last week that Chrysler's proposed P-car, a U.S.-built sub-compact scheduled to be introduced late in the 1986 model year, was being converted into a more expensive compact model that will not compete as directly with Japanese imports. NINE MONTHS 10.25 ONE YEAR $2500 MINIMUM president with the parent ABC Inc. who Tuesday was named executive vice president of the ABC Broadcast Group. Both divisions previously had reported to Severino. Thomopoulos said the reorganization, was intended to streamline the decision-making process and clarify responsibilities within the broadcast division.

He acknowledged that Tuesday's shake-up was prompted "in part" by ABC-TV's poor prime-time ratings performance this season for the first time in 10 years, it is running third behind CBS and NBC and by the division's flat financial performance during the fourth quarter of 1984. In other moves, ABC elevated James E. Duffy from president of the ABC Television Network to the newly created position of president of communications for the ABC Broadcast Group, responsible for public relations. His job will be filled by George H. Newi, who had been vice president and general manager of the ABC Television Network.

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Seventh St. 90804 213-433-0971 Pasadena: 2675 E. Colorado Blvd. 91 1 07 81 8-795-4253 Studio City: 12175 Ventura Blvd. 91604 818-760-0822 Tarzana: 18585 Ventura Blvd.

91356 818-881-6691 WestCovina: 1505 Amar Rd. 91792 818-965-3417 Woodland Hills: 22001 Ventura Blvd. 91364 81 8-347-9943 fsLic Federal regulations require substantial penalties (or early withdrawals Continued from Page 2 family's Encino home during the nearly four years that he was based in New York, where he maintained an apartment. He had commuted between the two residences. Named to replace him as president of ABC Television was Mark Mandala, who had been president of the TV stations division since January, 1983.

However, as part of the reorganization announced by Anthony Thomopoulos, president of the ABC Broadcast Group, Mandala's responsibilities will be more restricted than were Severino's. Reporting to him will be the TV stations division and the ABC Television Network, which is responsible for advertising sales and affiliate relations. ABC Entertainment, which produces and acquires programming for the TV network, will now report directly to Thomopoulos. The broadcast operations and engineering division will report to Mark H. Cohen, formerly a vice mm Make yourself at home for as low as $33 a night! Rbo.

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