Federal Productivity:

DOD Functions With Savings Potential From Private Sector Cost Comparisons

GGD-88-63FS: Published: Apr 8, 1988. Publicly Released: May 9, 1988.

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In response to a congressional request, GAO identified the specific areas with the greatest potential for savings in the Department of Defense's (DOD) implementation of Office of Management and Budget Circular A-76.

GAO found that: (1) DOD conducted 1,661 A-76 evaluations from 1976 through the first quarter of 1987 and estimated contract-related savings of $613 million; (2) DOD cost-comparison studies resulted in estimated personnel savings of 8,045 staff years; (3) DOD supply, storage, distribution, facilities, and maintenance activities had the greatest potential for A-76 cost savings; (4) continued A-76 efforts could further reduce staff levels in education and training, audiovisual, transportation, supply, warehousing, and distribution services; and (5) most A-76 savings resulted from contractors' staffing and wage reductions. GAO noted that: (1) it did not verify the DOD cost-comparison data; and (2) its past studies of A-76 activities indicated that conversions to contractor performance resulted in fewer savings than estimated.

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