Mr. WHITTEN. Please identify for the record those repairs to be initiated in the fiscal year 1988 budget. Mr. FRANKE. Certainly, USDA remains committed to execute projects which will correct deteriorated conditions that create safety or operational problems. [The information follows:] Proposed FY 1988 projects: South building roof repairs, phase III Bathroom renovation and repair complexwide. Replace obsolete induction units, phase II..... Fire separations attic south building.... Repair masonry south and administration buildings, phase I... Asbestos abatement south and administration buildings, phase I... Chiller replacement administration building.. These represent the major projects that will be initiated in FY 1988. Also to be accomplished will be approximately $1,000,000 of minor repairs (less than $10,000) within the operating budget. BACKLOG GROWTH Mr. WHITTEN. At what rate is the backlog growing? Mr. FRANKE. From the current estimate of repairs needed, the cost of the backlog is projected to grow at five percent a year. Three percent of this is the inflation rate increase and two percent is a conservative estimate of deterioration. Also, as our engineers analyzed the buildings in detail, several large projects were added to the backlog such as asbestos abatement, masonry repairs and parapet wall construction. COMPUTER CENTERS Mr. WHITTEN. Please provide for the record a list of the major users of each Computer Center and the distribution of workload by user and the allocation of total cost per user for each center. Mr. FRANKE. Mr. Chairman, we will be pleased to furnish that information. [The information follows:] BREAKDOWN OF WORKLOAD AND DOLLAR COST BY MAJOR USER DEPARTMENTAL COMPUTER BREAKDOWN OF WORKLOAD AND DOLLAR COST BY MAJOR USER DEPARTMENTAL COMPUTER 1 Other USDA users total 26 (does not include non-USDA users). Percentages of workload and cost for these users range from 0.0 to 3.9 percent. These were not considered to be "major" users. Mr. WHITTEN. According to the explanatory notes you are requesting increases for the Washington Computer Center and the Fort Collins Computer Center and a decrease for the Kansas City Computer Center. Explain in some detail why you expect workload increases at the two centers and decreases at the Kansas City Computer Center and what agencies are responsible for the change in workload. Mr. FRANKE. The fact is, Mr. Chairman, we are not anticipating workload decreases at Kansas City. The reduction in costs associated with that center reflect more cost effective acquisition strategies. That is, purchases of equipment allow us to avoid more costly lease agreements for the same equipment, and leased equipment which will be paid in full in FY 1987 or early FY 1988 will still be in use for all FY 1988. For example, the lease-to-purchase arrangement for IBM 3081Q hardware at Kansas City will result in reduced ADP rental charges in FY 1988, while equipment upgrades acquired in FY 1984, which will still be used in FY 1988, will be fully paid off resulting in a reduction in FY 1988 operating costs. The reductions you have cited in the explanatory notes reflect cost reductions stemming from enhanced efficiency at the Kansas City Center, not from workload reductions. The Fort Collins and Washington Computer Centers expect increases in use by non-USDA agencies which will have the effect of minimizing unit costs to USDA agencies. However, specific agreements have not yet been signed. A-76 REVIEWS Mr. WHITTEN. What specific centralized services are scheduled for A-76 reviews in 1987 and 1988? What determines which services would be appropriate to centralize? Mr. FRANKE. Mr. Chairman, there are not now any centralized services which have been placed on our formal A-76 review calendar. I hasten to point out, however, that we have recently completed a major review of our Departmental Computer Centers, which has resulted in our consideration of a merger of the Kansas City and Washington facilities. We have also completed a comprehen sive review of mail services in the Department, resulting in a consolidation of mail services into a centralized unit available to all of our USDA agencies. Other management initiatives taken in recent years which have improved services include the contracting out of Central Supply Forms activities, consolidation of Departmental imprest fund activities into a centralized unit, closing of the Printing Plant, and the conversion of reimbursable activities to Working Capital Fund support to take advantage of cost-based financial management and closer oversight of services and finances. We strongly believe in the goals of A-76. All of us who manage centralized services in USDA seek to deliver service in the most cost effective manner possible, whether through public or private means. The initiatives just described have enabled us to streamline our operations. I assure you, Mr. Chairman, that we intend to comply with A-76 regulations regarding commercial activities in USDA. And, it is those regulations which will determine which activities are eventually scheduled for review. In the meantime, however, we have the initiative to improve central service management wherev er we can. NON-USDA REIMBURSEMENTS TO THE WORKING CAPITAL FUND Mr. WHITTEN. Please provide for the record a list of all nonUSDA reimbursements to the Working Capital Fund, identifying the source of the reimbursements and describing the services provided in fiscal year 1986 and the estimates for 1987 and 1988. Mr. FRANKE. Mr. Chairman, we are pleased to provide that information to the Committee. |