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Employees at the National Medical Audiovisual Center (NMAC) in Atlanta, Georgia, alleged that: NMAC was incurring excessive costs because it was contracting for audiovisual production rather than producing in-house, NMAC was lax in enforcing contract deadlines and was receiving poor quality work from contractors, and NMAC was not fully or productively using its personnel and equipment. Allegations that NMAC was incurring excessive costs by contracting for audiovisual production were inappropriate and lacked perspective. However, NMAC's contract program is expensive, and it needs to explore less costly ways of production. NMAC has been lax in enforcing contract deadlines, specifying product standards to be met by contractors, and monitoring contractors' progress. It has frequently extended completion dates, increased contract fundings, and received unsatisfactory products. NMAC has not fully or productively used many of its employees and much of its audiovisual production equipment, and morale is low among many employees. The Secretary of Health, Education, and Welfare should require that: a thorough evaluation is made of NMAC's mission and how effectively it is achieving it, a strategy and specific objectives and plans for accomplishing the mission are promptly developed and approved, an evaluation is made of the resources needed and the most cost-effective way to achieve its missions, no additional employees are hired or equipment purchased until an acceptable strategy and specific plans and objectives are developed, and appropriate actions are taken to deal with unnecessary equipment and personnel.

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