This includes both the operation of DOD’s in-house  print facilities and the procurement of such services from outside DOD. DOD Has Made Progress toward Achieving Efficiencies in its Document Services, but Opportunities May Exist for Further Gains

DOD has taken steps toward achieving efficiencies in its document  services, including implementing a transformation plan for DLA Document  Services, taking steps to reduce the cost and number of office print  devices, and increasing its use of electronic content management. Based on the plan, DLA Document Services is  closing or consolidating 74 of its 112 brick and mortar facilities in the  continental United States over the course of fiscal years 2018 and 2019,  bringing its footprint to 38 facilities. Reducing the Cost and Number of Print Devices

DOD, including the military services, has also taken steps to reduce the  cost and number of office-level print devices, including identifying goals  for reducing the number of print devices and plans for each military  service to establish a mandatory source (e.g., one particular contract or  organization) for obtaining print devices. Opportunities May Exist to Achieve Further Efficiency Gains

DOD’s document services initiatives have gained efficiencies, but we  identified four areas where further gains may be possible, including (1)  managing fragmentation in printing and reproduction services, (2)  reducing overlap in procuring print devices, (3) meeting goals to reduce  the number of print devices, and (4) consolidating locations that provide  mission specialty printing. Reducing Overlap in Procuring Print Devices

Our review found that DOD has not implemented a department-wide  approach for acquiring print devices, and DOD components use at least  four different sources to acquire them, with costs that vary widely for  similar devices. 5). However, the  services have not demonstrated that they have achieved their goals for  print device reductions. The guidance noted that those  reductions could save millions of dollars annually. We also found some  cases in which DLA Document Services retained facilities that reported  less revenue for a given specialty than facilities that it did not retain. Additional efforts aimed at collecting and analyzing  information to examine areas for further consolidation of DLA Document  Services’ mission specialty locations might provide DOD with additional  cost savings. Recommendations for Executive Action

We are making a total of six recommendations to DOD. The Secretary of Defense should ensure that the Under Secretary of  Defense for Acquisition and Sustainment assesses whether DLA  Document Services’ single manager role for printing and reproduction  provides the best value to the government—as determined by quality,  price, and delivery time and in light of DLA Document Services’  transformation plan—and whether any additional efficiencies are possible,  and use the results of that assessment to inform the revision of DOD  Instruction 5330.03. However, we found that, based on this flexibility, DOD’s O&M budget  materials reported obligations for printing and reproduction that were  primarily for non-printing activities, such as the purchase of advertising  and radio and television time. DOD’s comments did not include plans to address this recommendation. Appendix I: Objectives, Scope, and Methodology

Our objectives were to evaluate (1) the progress the Department of  Defense (DOD) has made in achieving efficiencies in its document  services and opportunities, if any, for further efficiencies, and (2) the  extent to which DOD reports accurate financial information about its  document services to key stakeholders. To evaluate the extent to which DOD reports accurate and complete  financial information to key stakeholders to manage its document  services, we analyzed DOD’s operation and maintenance (O&M) budget  justification materials for fiscal years 2012 through 2016 and Defense  Logistics Agency data on its document services mission.
Why GAO Did This Study

DOD has reported printing costs that totaled about $608 million, on average, during fiscal years 2010 through 2015. DLA Document Services has key DOD-wide responsibilities for (1) printing and reproduction, (2) print device procurement, and (3) electronic content management (e.g., digital document repositories). Other DOD components, including the military services, also maintain some document services capabilities at various locations.
House Report 115-200 accompanying a bill for the National Defense Authorization Act for fiscal year 2018 included a provision for GAO to examine DOD's document services. This report evaluates (1) the progress DOD has made in achieving efficiencies in its document services and opportunities, if any, to achieve further efficiencies, and (2) the extent to which DOD reports accurate financial information about its document services to key stakeholders. GAO reviewed documents and interviewed officials regarding DOD's efficiency initiatives, including DLA Document Services' transformation plan; reviewed print device procurement contracts and pricing information; and analyzed DOD budget data for fiscal years 2012 through 2016.

What GAO Found

The Department of Defense (DOD) has taken steps to achieve efficiencies in its document services, including implementing a transformation plan to consolidate existing Defense Logistics Agency (DLA) Document Services facilities. However, GAO identified four areas where further gains may be possible:
Managing fragmentation in printing and reproduction services. DOD has designated DLA Document Services as the single manager for printing and reproduction services, but DOD customers, citing concerns with DLA's services, have also obtained these services directly from the Government Publishing Office and via in-house print facilities (see fig.). DOD has not assessed DLA's performance in this role or whether additional efficiencies may be possible in light of DLA's transformation plan.
Reducing overlap in procuring print devices. GAO found that DOD components used at least four different contract sources to acquire print devices. DOD has not assessed which acquisition approach represents the best value; doing so might better position DOD to further reduce its costs.
Meeting goals to reduce the number of print devices. DOD and the military services have not demonstrated that they achieved established goals for reducing the number of print devices. Additional controls and assignment of oversight responsibilities to monitor progress could better enable DOD to achieve its cost savings goals, estimated to be millions of dollars annually.
Consolidating DLA facilities. DLA is closing or consolidating 74 of its 112 facilities in the United States. However, GAO found that for four of seven types of specialty services, DLA plans to retain facilities that are responsible for less than 5 percent of the total revenue for each of those specialties, which suggests that further consolidations are possible.
DOD includes the cost of non-printing activities, such as the purchase of advertising time for recruiting, within its budget materials for printing and reproduction. It does not include costs to acquire print devices and for electronic content management. As a result, DOD and the Congress lack the oversight into total document services costs needed to make informed decisions.

What GAO Recommends

GAO is making six recommendations, including that DOD evaluate options to achieve additional cost savings and other efficiencies in its document services and report more accurate budget data. DOD generally agreed with the recommendations.