The Government Performance and Results Act of 1993 requires agencies to (1) develop strategic plans covering a period of at least 5 years and submit the first of these plans to Congress and OMB by the end of fiscal year 1997, (2) develop and submit annual performance plans to OMB and Congress beginning for fiscal year 1999 containing the agencies’ annual performance goals and the measures they will use to gauge progress toward achieving the goals, and (3) submit annual reports on program performance for the previous fiscal year to Congress and the President beginning with fiscal year 2000. These included cuts of 14 percent at HUD, 13 percent at DOI, 22 percent at GSA, 13 percent at NASA, and 42 percent at OPM. Scope and Methodology

To determine which components within HUD, DOI, GSA, NASA, and OPM were downsized and to what extent, we examined agency FTE data for fiscal years 1993 through 1996. To determine what actions were taken to maintain performance in the selected components as a result of downsizing, the results of these actions on performance, the effects of downsizing on customer satisfaction, and lessons learned, we interviewed officials from the parent agencies, components, unions, and employee associations. The lessons learned by components reflect the judgment of component officials. The downsizing of components at the five parent agencies we reviewed ranged from around 2 percent to 100 percent. In addition, the effect of each component’s downsizing on the parent agency’s total reductions varied. Components Took Three Categories of Actions to Maintain Performance

Although officials told us it was difficult to isolate actions that agencies and their components took to maintain performance independently of downsizing from those taken because of downsizing, the actions they said were taken to maintain performance amid downsizing fell into three categories: refocusing their missions, reengineering their work processes, and taking steps to build and maintain employee skills. According to component officials, most of the five components, under the guidance of their parent agencies, refocused their missions primarily to increase their efficiency. Nevertheless, some officials were concerned about the sufficiency of current or future workforces for some components. According to Component Officials and Employees, Actions Taken to Maintain Performance Were Generally Successful

Officials, employee representatives, and employees we spoke with at all five components said that they generally believed performance had been maintained; however, some officials expressed concern about whether performance could be maintained with additional downsizing. However, the data that were available showed that the components generally met performance goals they set for themselves. Agency Comments

We requested comments on a draft of this report from the heads of each of the five agencies or their designees from which we had obtained information. Another union official believed that customers had generally remained satisfied in spite of downsizing because the extra time employees were devoting to their jobs enabled the Office of Housing to continue providing levels of service after downsizing that were comparable to those provided before downsizing. Bureau of Reclamation, Department of the Interior

	Extent of Downsizing Varied by Component

The Department of the Interior (DOI) reduced its workforce by almost 10,200 FTEs between fiscal years 1993 and 1996. Table IV.1 shows the components with the largest percentage in downsizing. The officials said communication with employees should be open and honest.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Department of Housing and Urban Development (HUD), the Department of the Interior, the General Services Administration (GSA), the National Aeronautics and Space Administration (NASA), and the Office of Personnel Management (OPM) to obtain information on the effects downsizing has had on their performance and what actions were taken to maintain performance, focusing on: (1) which components within the five agencies were downsized and to what extent; (2) what actions were taken to maintain performance for one selected downsized component at each parent agency, the results of those actions on the component's performance, and the effect of the downsizing on customer service; and (3) the lessons that the five components learned about maintaining performance during a period of downsizing.

What GAO Found

GAO noted that: (1) most components within the five parent agencies were downsized to some extent, although how much varied considerably; (2) the percentage of agency components' full-time equivalent reductions from fiscal year (FY) 1993 through 1996 ranged from 3 percent to 100 percent at HUD, 2 percent to 87.5 percent at Interior, 10 percent to 37 percent at GSA, 3 percent to 42 percent at NASA, and 2 percent to 100 percent at OPM; (3) according to officials of the parent agencies and the five selected components, several actions helped the components maintain performance levels during the period of downsizing; (4) they explained that it was difficult to isolate actions taken independently of downsizing from those taken because of downsizing; (5) however, the actions the officials told GAO about generally fell into three categories: (a) refocusing of missions; (b) reengineering of work processes; and (c) building and maintaining employee skills; (6) the officials stated that the five components were generally able to maintain performance and fulfill the requirements of their missions despite the relatively large downsizing that occurred from FY 1993 to FY 1996; (7) although the officials stated that they could not connect specific actions taken with specific outcomes, they stated that without the three actions mentioned, the performance levels of the components would not have been maintained; (8) officials at some components stated that additional downsizing could hamper future performance; (9) it should be noted that GAO's results primarily reflect the viewpoints of officials from the agencies and components and are a snapshot at the time of its review; (10) performance measurement data, particularly baseline data with which current data could be compared, that would support agency officials' views or enable policymakers to track program performance and make informed decisions were limited; (11) the data that were available tended to substantiate the views of component officials that they were meeting goals they had set for themselves; (12) according to component officials and employees or their representatives at the five components, customers remained satisfied with the components' performance during the period of downsizing; and (13) among the lessons learned, officials stated that the most important was the need for early planning and open communication with employees.