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LCD-80-50 1 (1980-04-14)

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GAO
United States General Accounting Office
Washington, DC 20548


B-198208


  Logistics and
  Communications
  Division

APRIL 14, 1980


The Nonorable Willis D. Gradison, Jr.
[louse of Representatives

Dear Mr. Gradison:

     Subject: Consolidation of the Cincinnati and Dayton
                Defense Contract Administration Services
                Management Are!J (LCD-80-50)

     Your February 4, 1980, letter asked us to review a
proposed Defense Logistics Agency__ _PA) plan to consolidate  C
the Cincinnati and Dayton, Ohio, Defense Contract Administra-DL   r7
tion Services 11anAqent Areas (DCASAs) at Dayton.     Your.
letter expressed concern that this consolidation wouid reduce
service to Government contractors in southern Ohio and Ken-
tucKy and increase contractors' costs to conduct Government
business, which would be reflected in greater expense to the
Government.

     In a meeting with members of your office on February 22,
1980, we agreed to focus on (1) the imoact of the reaiinement
on operations at Cincinnati and Dayton and (2) the most cost-
effective approach to consolidation from the Government's
point of view. Therefore, we examined records pertaining to
the consolidation, including Cincinnati's and 'avton's work-
loads, and discussed the consolidation with officials at DLA
headquarters in Washington, D.C.; the Defense Contract Admin-
istration Services region in Cleveland, Ohio; and the DCASMIAs
in Cincinnati and Dayton. We also met with Government con-
tractors serviced by the Cincinnati DCASMA and a representa-
tive of the National Federation of Federal Employees.


     Because of your desire for us to provide your office
with a briefing prior to April 1, 1980, the consolidation
implementation date, we limited the scope of our work to the
areas described above.

     We found the consolidation would result in savings to
the Government, and such savings would be greater by consol-
idating at Dayton. Further, contractors in southern Ohio
and Kentucky-should not experience serious reductions in
service nor incur increased operating costs since a Cincin-
nati residency will be retained.


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