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T-NSIAD-91-54 1 (1991-09-24)

handle is hein.gao/gaobaapuq0001 and id is 1 raw text is: us only 7 days prior to this hearing--, we found that (1) some of the assumptions used to determine the savings estimate are questionable and might affect the results; (2) key decisions regarding printing plants, equipment and the realization of savings will not be made until after the consolidation takes place, and (3) the impact on procuring commercial printing services has not been determined. BACKGROUND On November 16, 1990, the Deputy Secretary of Defense approved a Defense Management Report Decision (DMRD) that called for the consolidation of all DOD printing and duplicating services under the Navy's industrially funded, centrally managed NPPS by October 1, 1991. Total in-house costs associated with printing, duplicating, and the overall management of the printing program in those facilities were approximately $206 million in fiscal year 1989. The DOD's Comptroller office estimated that the consolidation would save approximately $25 to $30 million annually. Estimated savings would not begin until the middle of fiscal year 1993 at which time the savings goals are estimated at $13.7 million and approximately $30 million annually beginning in 1994. According to officials from the Office of the Secretary of Defense (OSD), the military services, and DLA, the methodology used by DOD in Vreparing the savings estimate was questionable. OSD and Navy

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