This report reviews the Social Security Administration's (ssa) Systems Modernization Plan to determine whether ongoing and planned computer procurements are fully justified and whether they will meet the requirements of the agency. These procurements are major elements of an overall effort to develop a new system that is intended to improve major software applications, and data base management and access techniques. The procurements are intended to significantly increase the agency's automatic data processing (ADP) capacity. As currently structured, initial hardware commitments would increase the number of data communications terminals at least 500 percent (an optional quantity, if exercised, would result in a total increase in terminals of more than 900 percent), the data network capacity over 400 percent, and the host computer (a mainframe computer that is used to process the data communications workload) capacity by more than 650 percent.