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LCD-77-407 1 (1976-11-17)

handle is hein.gao/gaobaacab0001 and id is 1 raw text is: R~ESTRICTED - lt't toi h- re0to Outside the be nvmi Accountir:.,,. - ..... :' approval bythoc; ., -1!5a record of wch Is kept by ti.e. i . _zQ zo W r ubS CO10MLhOU. GMMKAL C MU;yn WASINGrO. Dr 2100 B-114829 NOV17 1916 The Honorable Frank Thompson, Jr. Chairman, Joint Committee on Printing Congress of the United States Dear Mr. Chairman: LMOI5 In an August 3, 1976, letter the Chairman of the Joint Committee on Printing asked us to review the General Services Administration's proposal to reduce its Region 3 printing plant workload on a 36-month schedule. The Chairman pointed out that, as a result of its review of the Region 3 plant's operations, the Joint Committee had requested the Administrator of General Services to reduce the plant workload to a maximum practical level. Although he be- lieved the reduction could be made in 1 year, the Chairman said he would interpose no objection to a maximum time of 18 months. General Services Administration officials believed that an 18-month reduction would have a disastrous effect on their Working Capital Fund, but that the reduction could be accom- plished in an orderly iashion within a 36-month period. We reviewed the 18-month and 36-month alternatives and their effects on the Region 3 printing operations and deter- mined that there would be no major difference between the two alternatives. General Services Administration officials believed that the cost of termination payments to employees separated from service because of the reduction would seri- ously affect the Working Capital Fund if the plant reduction took place over 18 months, but that this effect would be lessened if the plant reduction took place over 36 months. Our analysis showed that estimated severance payments and terminal leave payments would be approximately $81,000 for an 18-month reduction. These termination payments-for a 36-month plant reduction would be abeut $33,000 sinceat- trition would reduce the number of employees needed to be separated from service. Termination costs of this nagnitude would have little effect on the status of the Working Capi- tal Fund, which was funded with $450,000 and presently has- monthly cash balances in excess of $700,000. LCD-77-407 - V -I

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