	Twenty-four Areas Identified to Improve Efficiency and Effectiveness across the Federal Government

In our 2015 annual report, we identify 12 new areas in which we found  evidence of fragmentation, overlap, or duplication, and we present 20  actions to executive branch agencies and Congress to address these  issues. An  example of duplicative federal efforts is the US Family Health Plan  (USFHP)—a statutorily required component of the Department of  Defense’s (DOD) Military Health System—and TRICARE Prime, which  offers the same benefits to military beneficiaries. To eliminate this duplication within  DOD’s health system and potentially save millions of dollars, we  suggested that Congress terminate the statutorily required USFHP. In addition to areas of fragmentation, overlap, and duplication, our 2015  report identified 46 actions that the executive branch and Congress can  take to reduce the cost of government operations and enhance revenue  collections for the U.S. Treasury in 12 areas. These opportunities for  executive branch or congressional action exist in a wide range of federal  government missions (see table 2). Examples of opportunities to reduce costs or enhance revenue collections  from our 2015 annual report include updating the way Medicare pays  certain cancer hospitals, rescinding unobligated funds, and re-examining  the appropriate size of the Strategic Petroleum Reserve. Congress and Executive Branch Agencies Continue to Make Progress toward Addressing Our Identified Actions

In addition to the 66 new actions identified for this year’s annual report,  we have continued to monitor the progress that executive branch  agencies or Congress have made in addressing the issues we identified  in our 2011-2014 annual reports. In total, as of March 6, 2015, the date we completed our audit work,  we found that overall 169 (37 percent) were addressed, 179 (39 percent)  were partially addressed, and 90 (20 percent) were not addressed. Executive branch and congressional efforts from fiscal years 2011  through 2014 have resulted in over $20 billion in realized cost savings to  date, with another approximately $80 billion in additional benefits  projected to be accrued through 2023.the progress that has been made over the last 4 years. This level of  spending suggests that by using smarter buying practices the government  could realize billions of dollars in savings. These recommendations, if effectively implemented, could  improve program management, help reduce improper payments in these  programs, and achieve cost savings. Existing and New Tools Can Assist in Identifying, Evaluating, and Addressing Fragmentation, Overlap, or Duplication

For GAO’s most recent work on GPRAMA, see GAO, Government Efficiency and  Effectiveness: Inconsistent Definitions and Information Limit the Usefulness of Federal  Program Inventories, GAO-15-83 (Washington D.C.: Oct. 31, 2014); Managing for  Results: Selected Agencies Need to Take Additional Efforts to Improve Customer Service,  GAO-15-84 (Washington D.C.: Oct. 24, 2014); and Managing for Results: Agencies’  Trends in the Use of Performance Information to Make Decisions, GAO-14-747  (Washington D.C.: Sept. 26, 2014). To help analysts and decision makers better assess the extent of  fragmentation, overlap and duplication, GAO has developed an  evaluation and management guide (GAO-15-49SP), which is being  released concurrently with our 2015 annual report. Part one provides four steps for analysts—including federal,  state, and local auditors; congressional staff; and researchers—to identify  and evaluate instances of fragmentation, overlap or duplication. In recognition that the pervasiveness of fragmentation, overlap, and  duplication may require attention beyond the program level, the guide  also includes information on a number of options Congress and the  executive branch may consider to address these issues government- wide.
Why GAO Did This Study

As the fiscal pressures facing the government continue, so too does the need for executive branch agencies and Congress to improve the efficiency and effectiveness of government programs and activities. Such opportunities exist throughout government.
To bring these opportunities to light, Congress included a provision in statute for GAO to annually identify federal programs, agencies, offices, and initiatives (both within departments and government-wide) that are fragmented, overlapping, or duplicative. As part of this work, GAO also identifies additional opportunities to achieve cost savings or enhanced revenue collection. GAO's 2015 annual report is its fifth in this series ( GAO-15-404S P).
This statement discusses (1) new opportunities GAO identifies in its 2015 report; (2) the status of actions taken to address the opportunities GAO identified in its 2011-2014 reports; and (3) existing and new tools available to help executive branch agencies and Congress reduce or better manage fragmentation, overlap, and duplication. To identify what actions exist to address these issues and take advantage of opportunities for cost savings and enhanced revenues, GAO reviewed and updated prior work, including recommendations for executive action and matters for congressional consideration.

What GAO Found

GAO's 2015 annual report identifies 66 new actions that executive branch agencies and Congress could take to improve the efficiency and effectiveness of government in 24 areas. GAO identifies 12 new areas in which there is evidence of fragmentation, overlap, or duplication. For example, GAO suggests that Congress repeal the statutorily required US Family Health Plan—a decades-old component of the Department of Defense's (DOD) Military Health System—because it duplicates the efforts of DOD's managed care support contractors by providing the same benefit to military beneficiaries. GAO also identifies 12 areas where opportunities exist either to reduce the cost of government operations or enhance revenue collections. For example, GAO suggests that Congress update the way Medicare has paid certain cancer hospitals since 1983, which could save about $500 million per year.
The executive branch and Congress have made progress in addressing the approximately 440 actions government-wide that GAO identified in its past annual reports. Overall, as of March 6, 2015, 37 percent of these actions were addressed, 39 percent were partially addressed, and 20 percent were not addressed. Executive branch and congressional efforts to address these actions over the past 4 years have resulted in over $20 billion in financial benefits, with about $80 billion more in financial benefits anticipated in future years from these actions. Although progress has been made, fully addressing all the remaining actions identified in GAO's annual reports could lead to tens of billions of dollars of additional savings.
Addressing fragmentation, overlap, and duplication within the federal government is challenging due to, among other things, the lack of reliable budget and performance information. If fully and effectively implemented, the GPRA Modernization Act of 2010 and the Digital Accountability and Transparency Act of 2014 could help to improve performance and financial information. In addition, GAO has developed an evaluation and management guide ( GAO-15-49SP ), which is being released concurrently with the 2015 annual report. This guide provides a framework for analysts and decision makers to identify and evaluate instances of fragmentation, overlap and duplication and consider options for addressing or managing such instances.