	Background

NTIS’s basic statutory function is to collect research reports, maintain a  bibliographic record and permanent repository of these reports, and  disseminate them to the public. NTIS charges user fees for the sale of its  products to the public and services to federal agencies. To carry out its statutory functions of  collecting and maintaining a permanent repository and bibliographic  record of research reports, and to disseminate them, the agency offers a  variety of products, such as fee-based access to the reports in its  repository. In addition, NTIS offers information-related services to federal  agencies, such as distribution and order fulfillment, web hosting, and e- training, that are less directly related to its basic statutory function. NTIS operates as a unit within Commerce and receives oversight from  the Deputy Secretary of Commerce, the Director of NIST,advisory board. In this regard, the NTIS Director communicates progress  toward agency goals to the Deputy Secretary of Commerce. Further, NTIS receives guidance on its operations from the NTIS Advisory  Board, which was established by law policies and operations of NTIS, including policies related to fees and  charges for its products and services. The board, comprised of a  chairperson and four members appointed by the Secretary of Commerce,  is required to meet at least every 6 months to discuss NTIS’s activities. in 1988 to review the general  As of late October 2012, NTIS was supported by 181 staff, all except 6 of  which held full-time positions. For  example, for fiscal year 2011, the agency reported that net earned  revenues from all its functions (products and services) totaled about $1.5  million. However, over most of the last decade, the agency has incurred net costs  for its products. In contrast, NTIS’s overall financial performance has been supported by  revenues from its service offerings. Improve NTIS’s utilization by other agencies by increasing the breadth  and depth of its own collection and enhancing the suite of information  management services that it can provide. Additions to NTIS’s Repository Have Mostly Included Older Reports, but Demand for More Recent Reports Is Greater

From fiscal year 1990 through 2011,repository were older reports published in the year 2000 or before;  however, the greater demand was for more recently published reports. Of these 419,657  reports, approximately 78 percent were distributed through a subscription  only. For  example, we estimate that between 96 and 100 percent of the reports  published from 2001 through 2011 had been distributed, while only about  21 percent of reports published in 1989 or earlier were distributed during  this time period. Most Reports Added Since 1990 Are Freely Available from Other Websites

Based on our sample, we estimate that most (about 74 percent) of the  reports added to NTIS’s repository during fiscal years 1990 through 2011  were readily available from other public websites, and nearly all of these  (95 percent) could be obtained for free. Specifically, we estimate that  approximately 621,917, or about 74 percent, of the 841,502 reports  added to NTIS’s repository from fiscal years 1990 through 2011 are  readily available from one of the other four publicly available sources we  searched (i.e., the issuing organization’s website; the Government  Printing Office’s Federal Digital System website; the U.S. government’s  official web portal, USA.gov; or from another website located through a  Google search).searching for was another website located through  http://www.Google.com  The source that most often had the report we were  . Conclusions

NTIS serves as a permanent repository and disseminator of technical  information, and by statute, is required to be financially self-sustaining, to  the fullest extent feasible, by charging fees for its products and services. While the agency had cumulative net earned revenues as of September  30, 2011, its costs exceeded revenue by an average of about $1.3 million  over the last 11 years from the sale of technical information. Matter for Congressional Consideration

In light of the agency’s declining revenue associated with its basic  statutory function and the charging for information that is often freely  available elsewhere, Congress should consider examining the  appropriateness and viability of the fee-based model under which NTIS  currently operates for disseminating technical information to determine  whether the use of this model should be continued. However, the department said NTIS  did not believe our conclusions (that the fee-based model under which it  operates for disseminating technical information may no longer be viable  or appropriate) fully reflect the additional value that NTIS provides with  the work that it performs. Appendix I: Objectives, Scope, and Methodology

Our objectives were to determine (1) how the National Technical  Information Service (NTIS) is currently organized and operates, including  its various functions, current staffing level, reported cost of operations,  and revenue sources; (2) the age of and demand trends for reports added  to NTIS’s repository; and (3) the extent to which these reports are readily  available from other public sources. We supplemented our analyses with interviews of the  Director of NTIS and other relevant agency officials; we also interviewed  officials of the Department of Commerce and its National Institute of  Standards and Technology (NIST), which have specific reporting  relationships with NTIS.
Why GAO Did This Study

NTIS was established by statute in 1950 to collect scientific and technical research reports, maintain a bibliographic record and repository of these reports, and disseminate them to the public. NTIS charges fees for its products and services and is required by law to be financially self-sustaining to the fullest extent possible.
GAO was mandated by Congress to update its 2001 report on aspects of NTIS's operations and the reports in its collection. Specifically, GAO's objectives were to determine (1) how NTIS is currently organized and operates, including its functions, current staffing level, reported cost of operations, and revenue sources; (2) the age of and demand trends for reports added to NTIS's repository; and (3) the extent to which these reports are readily available from other public sources. To do this, GAO reviewed agency documentation, analyzed a sample of reports added to NTIS's collection from fiscal years 1990 through 2011 (reports from the period since GAO's last study and other older reports), and interviewed relevant agency officials.

What GAO Found

As a component of the Department of Commerce, the National Technical Information Service (NTIS) is organized into five primary offices that offer the public and federal agencies a variety of products and services. As of late October 2012, NTIS was supported by 181 staff, all except 6 of which held full-time positions. NTIS reports its progress toward agency goals to the Deputy Secretary of Commerce, and the Director of NTIS reports to the Director of Commerce's National Institute of Standards and Technology. In addition, NTIS receives oversight of its functions and strategic direction from an advisory board with members appointed by the Secretary of Commerce. NTIS's product and service offerings include, among other things, subscription access to reports contained in its repository in both print and electronic formats, distribution of print-based informational materials to federal agencies' constituents, and digitization and scanning services.
NTIS revenues are generated exclusively from direct sales or subscriptions for its products and services. NTIS reported that net revenues from all its functions (products and services) totaled about $1.5 million in fiscal year 2011. However, over most of the last 11 years, its costs have exceeded revenues by an average of about $1.3 million for its products. While NTIS has not recovered all of its costs for products through subscriptions and other fees, it has been able to remain financially self-sustaining because of revenues generated from its services such as distribution and order fulfillment, web hosting, and e-training. The NTIS strategic plan states that the electronic dissemination of government technical information by other federal agencies has contributed to reduced demand for NTIS's products. As a result, the agency is taking steps to reduce its net costs, such as improving business processes and increasing the breadth and depth of its collection.
NTIS's repository has been growing with mostly older reports, but the demand for more recent reports is greater. Specifically, NTIS added approximately 841,500 reports to its repository during fiscal years 1990 through 2011, and approximately 62 percent of these had publication dates of 2000 or earlier. However, the agency was more likely to distribute (by direct sale or through a subscription) reports published more recently. For example, GAO estimated that 100 percent of the reports published from 2009 through 2011 had been distributed at least once, while only about 21 percent of reports published more than 20 years ago had been.
Of the reports added to NTIS's repository during fiscal years 1990 through 2011, GAO estimates that approximately 74 percent were readily available from other public sources. These reports were often available either from the issuing organization's website, the federal Internet portal (http://www.USA.gov), or from another source located through a web search. Reports published from 1990 to 2011 were more likely to be readily available elsewhere than those published in 1989 or earlier. Further, GAO estimated that 95 percent of the reports available from sources other than NTIS were available free of charge. NTIS's declining revenue associated with its basic statutory function and the charging for information that is often freely available elsewhere suggests that the fee-based model under which NTIS currently operates for disseminating technical information may no longer be viable and appropriate.

What GAO Recommends

GAO is suggesting that Congress reassess the appropriateness and viability of the fee-based model under which NTIS currently operates for disseminating technical information to determine whether the use of this model should be continued. In comments on a draft of this report, the Department of Commerce stated that NTIS believes GAO's conclusions do not fully reflect the value that the agency provides. However, GAO maintains that its conclusions and suggestion to Congress are warranted.