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FPCD-81-78 1 (1981-09-30)

handle is hein.gao/gaobabcmt0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 FEDERAL PERSONNEL AND COMPENSATION DIVISION B-201794 SEPTEMBER 30, 1981 The Honorable David A. Stockman Director, Office of Management and Budget 116569 Dear Mr. Stockman: Subject: Increased Agency Use of Efficiency Guidelines For Commercial Activities Can Save Millions (FPCD-81-78) We have completed a limited survey of the Office of Man- agement and Budget's (OMB's) program to increase the efficiency of commercial or industrial-type activities in the Government (referred to hereafter as commercial activities). We believe OMB might be able to save millions of dollars by requiring wider agency usage of OMB guidelines on developing performance standards. These OMB guidelines, originally issued to help as- sure that contract personnel perform required Government serv- ices at the lowest possible cost, can also be used to help assure that in-house personnel perform required services at the lowest possible cost by identifying unnecessary or inefficient work practices. Through its participation in the efficiency review program, the Department of Defense (DOD) has reported staffing reductions of about 600 personnel spaces, saving about $30 million over a 3-year period. However, the civilian agency with the largest commercial activity annual operating costs, the General Serv- ices Administration (GSA), has not followed the OMB guidelines on performance standards. As a result, its costs are higher than necessary. We are recommending that you take action to assure that all agencies follow the OMB guidelines. OBJECTIVES, SCOPE, AND METHODOLOGY Our objective was to determine if agencies developed and applied performance standards to increase commercial activ- ities' productivity and efficiency. Performance standards (966057)

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