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<classification authority="sudocs">GA 1.13:NSIAD-98-71</classification>
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 <subject>Federal agency reorganization</subject>
 <subject>Centralization</subject>
 <subject>Defense cost control</subject>
 <subject>Military downsizing</subject>
 <subject>Defense economic analysis</subject>
 <subject>Inventory control systems</subject>
 <subject>Military inventories</subject>
 <subject>Reductions in force</subject>
 <identifier>DOD Provisioning Cataloging Technical Support System</identifier>
 <identifier>Battle Creek (MI)</identifier>
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<titleInfo>
 <title>Defense Infrastructure: Savings From Cataloging Consolidation Are Uncertain</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the Department of
Defense&apos;s (DOD) decision to centralize and consolidate DOD cataloging
operations in Battle Creek, Michigan, focusing on: (1) the likelihood
that DOD&apos;s decision will result in the estimated personnel reductions
and savings; (2) challenges DOD may face when implementing the
consolidation effort; and (3) proposals made by two employee groups that
state that DOD could achieve even greater personnel reductions and
savings by centralizing and consolidating cataloging operations in other
locations.&lt;p/&gt;GAO noted that: (1) it is uncertain that the estimated personnel
reductions and savings will occur; (2) DOD&apos;s estimates are based on
several assumptions that either will not necessarily occur or have
changed since DOD made the estimates; (3) DOD based the estimates, for
example, on an assumption of what a standardized cataloging process may
look like but has not settled on an actual design of the centralized and
consolidated system; (4) detailed studies to document existing
cataloging processes are still ongoing and will be important for
determining how cataloging processes can be separated from other
materiel management functions; (5) DOD also assumed that an ongoing
system development project to develop a standardized cataloging system
would be successful and thus did not consider any system development
costs in estimating savings; (6) however, DOD has since halted work on
that system, and costs to develop a new one are uncertain; (7) DOD faces
significant challenges in implementing the consolidation; (8) prior DOD
cataloging consolidation efforts incurred problems that will need to be
taken into consideration in developing detailed implementation plans for
consolidation; (9) separating cataloging from other service provisioning
and materiel management functions may be difficult and could negatively
affect cataloging operations during the transition; (10) DOD may lose
much of its cataloging experience because of the reluctance of
experienced catalogers to relocate; (11) a Defense Logistics Agency
(DLA) official stated that DLA has begun developing plans that address
these risks and that no cataloging functions will be transferred to
Battle Creek until these plans are complete; (12) planning for the new
standardized cataloging process and the necessary standardized
cataloging system will not be completed until after catalogers are moved
to Battle Creek; (13) DOD also plans, in conjunction with the move, to
reduce the number of catalogers to levels envisioned only after process
reengineering and consolidation of cataloging have occurred; (14) DOD
officials believe the move will increase the likelihood of catalogers
adapting to the as yet unplanned new processes and systems; (15)
however, senior officials responsible for service cataloging operations
have expressed concerns about the risks inherent in proceeding without
detailed plans to guide the consolidation; and (16) until a standardized
cataloging process is developed, it is not possible to determine the
reasonableness of the employee groups&apos; proposals concerning further
staff reductions.</abstract>
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<identifier type="preferred citation">GAO/NSIAD-98-71</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/NSIAD-98-71; Defense Infrastructure: Savings From Cataloging Consolidation Are Uncertain;
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<subject>
 <topic>Federal agency reorganization</topic>
 <topic>Centralization</topic>
 <topic>Defense cost control</topic>
 <topic>Military downsizing</topic>
 <topic>Defense economic analysis</topic>
 <topic>Inventory control systems</topic>
 <topic>Military inventories</topic>
 <topic>Reductions in force</topic>
 <topic>DOD Provisioning Cataloging Technical Support System</topic>
 <topic>Battle Creek (MI)</topic>
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