GPO's Private Sector Partners Are Keeping America Informed
By William Gindlesperger, Founder, Chairman and Chief Executive Officer, e-LYNXX Corporation
CHAMBERSBURG, PA—April 21, 2009—The U. S. Government Printing Office (GPO) has released its annual report for 2008 and in it are a host of highlighted accomplishments. In many ways, the GPO does demonstrate how government work should be effectively centralized.
While the report covers modernization, digitalization, plant expansion and going "green," it does not mention the important contributions of hundreds of private sector printers that account for almost half of the $1 billion dollars in government print work that is done for the executive, legislative and judicial branches of the federal government.
The U.S. Government Printing Office was established by Congress in 1813 with the core mission of Keeping America Informed. The GPO is the federal government’s primary centralized resource for gathering, cataloging, producing, providing, authenticating and preserving published information. That’s just about everything printed for the federal government. Further, as required by Title 44 of the U.S. Code, all federal agencies are required to use GPO to procure their printing.
Unlike most federal agencies, GPO operates much like a business, as it is not only reimbursed by its federal agency customers for the cost of work performed, but the GPO also receives from its federal agency customers a service fee which is based on a percentage of the work procured. Additionally, the GPO sells printing to its customers, and this is done at the huge GPO printing facility in Washington for work that is not outsourced to the private sector, such as the Congressional Record, Federal Register, and U.S. passports.
It is very interesting that the 2008 GPO Annual Report shows GPO operating revenues for 2008 are $1,042,425,000; less operating expenses of $996,164,000; resulting in net income of $43,261,000. Procurement and internal production are not separated, and, therefore, it is not clear whether outsourced procured print from the private sector is included in the statement whatsoever. However, it is clear that the $43,261,000 net income was produced totally by GPO’s mark-up on the procured value of the outsourced printing, and that without this mark-up, the GPO’s own production facility would be running seriously in the red, being underwritten by the Congressional budget through taxpayer money.
Therefore, it is difficult to understand why private sector printers are not gaining work as the GPO grows. GPO outsourcing statistics for 1992-2008 tell the story. In 1992, the total dollar value of work awarded by the GPO to private sector printers was just over $500 million dollars. Last year, that total was $440 million, and the five years prior were in the $380 million to $390 million range. That is roughly a 27% drop in income to private sector printers comparing 1992 to the six year average from 2003 through 2008. Factor in inflation and the drop is even more significant.
Private sector printers play a critical role in the GPO's success and its ability to get the government's print work done cost effectively, professionally and on time. Rather than being ignored, the hard work and dedication of those in business for themselves who are doing GPO work must be applauded. In fact without the income GPO receives from its mark-up on the procured value of the outsourced printing, GPO would be in financial shambles.
These private sector printers compete daily for a host of jobs of varying sizes and quality requirements. More often than not private sector printers are filling slots in their production schedules to get the work done. By doing so, they are offering the GPO their very best prices—sometimes reduced by as much as 60% compared to the amount that would be charged during busy production times. Taxpayer savings result. And because the quality and timeliness requirements are clearly specified, the GPO’s agency customers receive superlative quality and service.
Private Sector Partners That Are Keeping America Informed
We know this because we maintain the largest and most comprehensive database of its kind in or out of government that contains a 20+ year repository of GPO job specifications and bid results, and we operate a robust electronic system for obtaining, categorizing and disseminating all available GPO bid solicitations, amendments, results and histories. For more than 30 years we have been working with private sector commercial print, direct mail and print marketing suppliers to cut through GPO red tape and assist them to become successful in government print markets.
We at Government Print Management know the importance of private sector printers to the GPO. These are the companies—the employed men and women—that pay government taxes.
Rather than looking for ways to bring more of its work in-house, the GPO needs to channel more work to the private sector—an important industry segment that depends on that work. More importantly, private sector printers are vital to the GPO fulfilling its mission of Keeping America Informed while producing the net income that keeps GPO afloat.
About the Author
William Gindlesperger is a nationally recognized entrepreneur, inventor, author and consultant in print and procurement. He founded ABC Advisors and its successor, e-LYNXX Corporation, in 1975. Under Mr. Gindlesperger’s leadership the firm has grown into the recognized profit enhancement leader. Print buyers and suppliers alike have benefited from his insight and innovation.
Gindlesperger has directed major in-plant studies in both the private and public sectors and he is highly regarded for his knowledge, advice and work on behalf of firms in matters pertaining to the U. S. Government Printing Office (GPO). He has testified before the U. S. Senate Committee on Rules and Administration regarding government print and procurement policy. He also has worked directly with numerous Congressional and Senatorial members and staff and has advised Congress on the development, operations and future of GPO print procurement and the federal print program in general. He was founder and the first chairman of Printing Industries of America's (PIA) PrintPAC (political action committee), and he has been recognized for his contributions to PIA and services to the printing industry.
Gindlesperger invented the methodology that optimizes cost reduction in the procurement of specification-defined goods and services. He has been granted two separate business method patents by the U. S. Patent Office, first for the competitive procurement of print and then for the competitive procurement of all specification-defined goods and services.
The Chambersburg Chamber of Commerce named Gindlesperger Volunteer of the Year for his efforts in saving 3000 jobs at the Letterkenny Army Depot.
A native of Chambersburg, Pa., Gindlesperger is a graduate of Dickinson College.
About e-LYNXX Corp.
e-LYNXX Corp. (www.e-LYNXX.com) (888-876-5432) licenses its U.S. Business Method Patent No. 7,451,106 – The Gindlesperger Method – to buyers and third party procurement and system providers through its Patented Procurement Method division (www.PatentedProcurementMethod.com). e-LYNXX also works with print buyers to reduce their procured print costs through its American Print Management division (www.AmericanPrintManagement.com) and with print suppliers seeking to improve their revenues by winning government work through its Government Print Management division (www.GovernmentPrintManagement.com). Founded in 1975 as ABC Advisors, e-LYNXX Corp. is based in Chambersburg, PA 17201.
- People:
- William Gindlesperger
- Places:
- U.S.