NPR Savings Estimates

Pursuant to a congressional request, GAO reviewed the 180 additional recommendations that the National Performance Review ((NPR) made in September 1995 and that could save $70 billion from fiscal year (FY) 1996 to FY 2000 if implemented. GAO noted that: (1) it is difficult to verify the NPR II savings estimates because they are point-in-time estimates and their underlying analysis and assumptions are subjective; (2) the NPR II recommendations have many of the features that make cost estimation difficult, including the lack of details on how agency operations and programs would change to implement major institutional reforms; (3) obtaining the original data on which the savings estimates were based is impossible; and (4) it is difficult to determine if NPR II estimated savings are being achieved because many of the recommendations are still in the early stages of implementation and to isolate the precise budgetary impact of individual policy changes from the impacts of other policy changes on spending.