Increased Agency Use of Efficiency Guidelines for Commercial Activities Can Save Millions.

We have completed a limited survey of the Office of Management and Budgets OMBs 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 assure that contract personnel perform required Government services 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 Services 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.