Defense Management:

DOD's Estimated Savings for Printing Consolidation

NSIAD-92-66: Published: Dec 31, 1991. Publicly Released: Dec 31, 1991.

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Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) plans to consolidate the printing and duplicating functions of the Army, Air Force, Marine Corps, and the Defense Logistics Agency (DLA) under the Navy Publishing and Printing Service (NPPS), focusing on the validity of DOD consolidation plans and savings estimate data.

GAO found that: (1) although DOD adjusted its $28.8-million annual savings estimate to reflect cost information based on NPPS actual experience, DOD has not tested the overall cost comparison methodology on any NPPS activities; (2) DOD based its savings estimate on three assumptions involving reduced costs, unchanged annual demand for in-house printing, and centralized management of commercial printing requirements; (3) although NPPS intends to reduce the services' and DLA costs by identifying equipment, personnel, and plant changes that it can make after the consolidation, NPPS has not identified how much it expects to save from each of those reduction actions; (4) NPPS stated that the bulk of its savings will come from personnel reductions and changes; (5) although a Senate report directed the services to deal directly with the Government Printing Office for commercial printing services, NPPS stated that, without commercial printing, its savings estimate is invalid; and (6) a congressional conference report supported the Senate report's direction and gave DOD additional directions providing for congressional oversight of the printing consolidation.