Department of Energy: Progress Made Under Its Strategic Alignment and Downsizing Initiative

GAO discussed the Department of Energy's (DOE) progress under its Strategic Alignment and Downsizing Initiative. GAO noted that DOE: (1) has met most of its targeted budget savings under the initiative and will save $221 million by amending its fiscal year (FY) 1996 budget request and selling excess assets; (2) plans to expand its savings to $1.7 billion by FY 1997; (3) is depending on process improvements and reengineering efforts to achieve its missions under a reduced budget; (4) is unlikely to reduce its costs to the maximum extent, since downsizing initiatives are premature; and (5) management needs to be accurate in validating cost savings, focus attention on implementing all planned actions, and consider additional opportunities for savings.