The Record is disseminated via the Internet on GPO's Access service, established pursuant to Public Law 103-40. It is available online the morning as soon as it is distributed in paper. The public can use the Access service free of charge onsite in depository libraries. Currently, there are about 500 depository_libraries nationwide that receive the Record online. The public can also access the Record free of charge from their homes or offices via electronic gateways established in cooperation with depository libraries. There are 14 such gateways currently in operation in Missouri, Washington, Alaska, Georgia, Pennsylvania, Virginia, the District of Columbia, Tennessee, Colorado, Rhode Island, and Ohio. Others are currently under development. Libraries participating in the operation of the gateways provide the equipment and the user support for their operation. In this respect, the gateways have proven to be an effective model for devolving the responsibility and resources for providing online access to Government information back to the local level, in lieu of requiring GPO to establish an expensive, centralized dissemination operation.

So successful has this approach been that in December 1994 the GPO Access serv ice won a Federal Technology Leadership Award from the Office of Management and Budget and Government Executive magazine. In March 1995, the service won the annual James Madison Award from the Coalition on Government Information, a coalition of national library and other organizations dedicated to promoting public ac cess to Government information. Since the Access service began operation in June 1994, approximately 1.3 million documents have been downloaded electronically by public users.

The success of the Access service has been used to support related Government information dissemination efforts. For example, we were asked by the leadership of the House to provide the Record database to the Library of Congress for dissemination via the THOMAS information service. The House leadership also asked us to provide THOMAS with the congressional bills database developed by GPO (this database has also been available since last fall on the GPO Access service). The GPO Access service, however, provides access to a number of other documents that are not available through the THOMAS service, including the Federal Register, the U.S. Code, and General Accounting Office reports.

Substitution of Online for Printed Version of the Record. If there were no overnight demand for the printed Record, the production costs for the Record would decrease, but they would not be eliminated. Costs would still be incurred for gathering all the information required to be produced in the Record for the Record database. Currently, the production of the Record database for printing comprises about twothirds of the cost of printing the Record. This work includes keying-in manuscript received from Congress, proofing and revising the work, creating pagination, assembling the GPO-keyed work with work generated electronically by Congress, and all related measures.

By delaying the printing of the Record until later, some savings would be generated from press and binding work by transferring the work from nights to days (although there would still be an expenditure, so the savings would be less than one-third of the current cost of the Record that is attributable to paper, press work, and binding). The bulk of the cost of the Record would continue to be incurred for database construction. Moreover, this work would continue to be required overnight in order to have the Record database available electronically by the next morning. Other Congressional Products.-Other major congressional products include bills, resolutions, and amendments; hearings; business and committee calendars; committee reports; committee prints; documents; miscellaneous publications such as the Congressional Directory; miscellaneous printing and binding, such as letterheads; and document envelopes and document franks. GPO also details printers to Congress to assist in preparing congressional products for printing. Altogether, GPO produced and delivered 2.3 billion units of congressional work to Congress and Federal agencies which requisitioned copies of it in fiscal year 1994. The availability of private sector contractors to produce this product mix in a similar volume and under comparable time constraints today is unknown.

The number of copies printed for various congressional products is established by Congress. We do not have the authority to refuse to print the number of copies ordered by Congress. In recent years, the "usual number" of copies required by Congress has been changed; for example, in the mid-1980's the usual number of copies of hearings delivered to committees was reduced. Congress has also taken action to reduce the number of copies of other products, including the allowable number of copies of the Congressional Record that may be sent by any Member to home states or districts.

In each of these cases, GPO has worked with the appropriate committees of Congress, including the Appropriations Committees, the committees on House Oversight and Senate Rules and Administration, and the JCP, to adjust the requisite number

of copies. Generally, deductions in the number of copies printed impacts the marginal cost of printing those additional copies, rather than the so-called "front-end" costs of prepress and makeready. These costs would continue to be charged unless the documents are eliminated altogether.

Product Standardization.—One way to reduce the costs of congressional printing products is to move to greater standardization of products in terms of size. This would reduce the need for different kinds of equipment to handle products with different dimensions. In recent years, we have discussed product size standardization with the Office of the Secretary of the Senate and the Clerk of the House, and these discussions need to continue. Increased product standardization would allow us to reduce and consolidate our core production capabilities into a more efficient equipment configuration.

Print-on-Demand.-Another cost-saving measure can be developed with the increased use of on-demand printing technologies. We have acquired this technology for our plant and we currently operate other equipment for the Senate. We are also working with the House to establish a similar capability. If utilized properly, this technology can be effective in reducing the need for large inventories of printed documents to be delivered to Congress.

However, the operation of print-on-demand systems needs to be monitored closely. For many kinds of documents, production on offset press remains a more economical method than print-on-demand. To print 18,000 copies of the Congressional Record overnight-totalling an average of 3.6 million pages each night-would require as many as 275 print-on-demand systems. At a purchase price of $250,000 each, these systems would cost approximately $68.8 million to acquire.

Even for shorter run documents, the cost/benefit comparison of offset and printon-demand technologies must be compared carefully. For example, the marginal rate to print additional copies of bills on press (the cost of production after all composing and makeready costs have been expended in producing the first copy) is currently 1.4 cents per page, while the rate per page on the Senate print-on-demand system is 2 cents plus any applicable surcharge, or 43 percent more. If net reductions in the overall volume of bill pages produced are achieved through a print-on-demand initiative, there can be an overall savings. This is the objective of the Senate's current print-on-demand initiative. However, if there is only a one-for-one replacement of print-on-demand-produced bill pages for offset press-produced bill pages, there will be a net increase in costs.

Electronic Document Preparation.-Another way to reduce costs is to encourage the increased submission of electronic documents by Congress. This would enable reductions in the size of GPO's prepress operation, since (theoretically) fewer data entry functions would be required. However, savings will be achievable only to the extent that electronic document submissions to GPO do not require subsequent GPO intervention to proofread, correct, and perform other necessary functions prior to printing. Our experience with the Federal Register is instructive. Currently, much of the Federal Register is received electronically, but these submissions frequently require additional work to ensure that the coding structure has been properly used. GPO offers financial incentives to Federal agencies to submit "verified" electronic documents or electronic copy submissions requiring a minimum or no intervention by GPO prepress operations prior to printing. With the increasing use of electronic capabilities by Congress, a similar program could be established for congressional documents to achieve savings.

Printing Procurement.-In fiscal year 1994, approximately 75 percent of all printing processed by GPO was procured from the private sector. The vast majority of that work is procured for executive branch agencies.

Two primary values are served by procuring printing through GPO. First, printing procurement provided us with the flexibility we need to manage our plant operation efficiently. When congressional demand is low, work from Federal agencies can be processed on available equipment capacity to keep the plant operating efficiently. When the plant is fully loaded with congressional work, agency work can be procured from the private sector. (In actual practice, the sheer volume of agency work for the past 50 years has ensured that the bulk of it will be procured.) Our procurement capability is a critical instrument for assuring the economical operation of GPO's essential plant capacity.

Second, procuring printing through GPO ensures that the publications in the procurement stream will be made available to our distribution programs. If these two operations were not connected, there would be increased administrative costs to gather publications for distribution and increased risk that many publications would be lost to the distribution system.

GPO does not regard all Government printing as commercially procurable. Timeliness and control are major factors in determining whether to produce work inhouse

or to procure it from the private sector. Ensuring the timeliness of the Congressional Record and the Federal Register and maintaining strict control over their contents are why these publications are printed inhouse. Similar considerations apply to other congressional products, to the U.S. Budget, to State of the Union Addresses, and to a number of other products.

For the vast majority of Government printing, however, commercial procurement is a viable option. In the United States today, there is an enormous amount of private sector printing capacity. It makes more sense to utilize this capacity on a competitive basis to obtain commercially procurable printing than to invest in additional Government capacity.

Commercially procurable work going into the private sector generates employment, tax revenues, and a broad variety of other economic and social benefits nationwide. Most importantly, it saves money for the taxpayers. Our Printing Procurement Program operates on a highly competitive basis-far more so than in the executive branch-which drives prices down. Approximately 12,000 firms, or more than a quarter of the industry, representing nearly 240,000 employees, are registered on GPO's Master Bid List according to their equipment, staffing, and production capabilities. About 3,600 of these firms do business with GPO on a regular basis, ensuring intense competition for Government printing contracts. Studies have shown that it is generally less expensive to procure printing through GPO than to produce it in agency plants, although the extent of the savings can vary considerably.

Procurement through GPO vs. Production in Agency Plants.-Utilization of GPO's printing and procurement systems for obtaining agency needs guarantees that Federal publications will be included in the Depository Library Program and that there is a potential for savings. In 1994, Congress enacted permanent language in GPO's appropriations act requiring agencies to procure printing through GPO, with few exceptions, and defining printing to include duplicating. We maintain a number of direct deal term contracts for duplicating services that enable Federal agencies to obtain duplicating work at a low cost. This amendment also helps ensure that Federal printing produced by duplicating processes that meets the requirements for depository distribution is made available for the Depository Library Program.

Electronic Products. In addition to printed products and provision of online access through the GPO Access service, we have been providing a wide range of electronic products for Congress and Federal agencies for the past several years. We are an acknowledged leader in the Government in CD-ROM technology. In 1992, we won the annual CD-ROM award from the Special Interest Group for CD-ROM Applications and Technology, the largest CD-ROM user group in the world. In 1993, the General Accounting Office reported that GPO's sales prices for CD-ROM products are among the lowest in the Government.

GPO has established a genuine record of success with electronic products based on our ability to provide a recognized value-added service to these products. Unlike printing, Federal agencies are not required to come to GPO for electronic products. Current statutes provide only that GPO is authorized, not required, to produce electronic products for agencies. The GPO Electronic Information Access Enhancement Act, while requiring GPO to provide the Congressional Record online, states that GPO is authorized to work with other agencies to provide their products online. Likewise, other laws, such as the Brooks Act, provide substantial roles to other agencies in electronic product provision. Within this statutory framework, however, GPO has nevertheless been successful in positioning itself as a leader in providing electronic products for Government and public use.

DISTRIBUTION OPERATIONS

Congress linked the Superintendent of Documents' publications distribution function with GPO's production function to ensure that the most comprehensive body of publications possible is made available for distribution to the public. Although electronic information dissemination is expanding, and while GPO is a part of the growing use of electronic dissemination, printed publications still comprise a major means of public access to Government information. We distribute approximately 100 million printed publications each year through our various distribution programs. Sales Program.-The Sales Program is the Superintendent of Documents largest operation. In fiscal year 1994, the program generated $81.9 million in revenues, yielding a net income of $6.2 million. This program employs approximately 625 FTE's. No appropriated funds are used in the operation of this program. Publications are offered for sale by the Superintendent of Documents based on a pricing formula established by section 1708 of Title 44. Approximately 12,000 titles are of fered for sale, and the program includes both print and electronic formats such as CD-ROM and online dissemination. Major bestsellers include the U.S. Budget, the

Dictionary of Occupational Titles, the Statistical Abstract, the Government Manual, the Economic Report of the President, and the Federal Register, although congressional documents frequently attract substantial sales interest. Most sales are made via GPO's mail order operation, but bookstores around the Nation generate millions in sales annually. The typical publication ranges in price from 50 cents to $17, with the average price of $11. This compares favorably with the average prices for similar books in the private sector bookdealing industry.

Depository Library Program.-The Depository Library Program is one of the Government's oldest programs for providing the public with access to Government information. Its antecedents date to 1813 when Congress ordered the distribution of congressional publications to State historical and antiquarian societies. As codified in chapter 19 of Title 44, today the program distributes Government publications to Federal depositories in approximately 1,400 public, academic law, and Federal agency libraries nationwide. Funding for this program in fiscal year 1994 totaled $24.5 million from the S&E Appropriation.

Libraries are designated as Federal depositories by Senators and Representatives as well as by law. GPO sends the libraries copies of all Government publications that are not purely of an administrative nature, cooperatively sponsored, or classified for reasons of national security. The majority of the depository libraries are selective depositories which tailor their Government publications acquisitions to local needs, choosing from among 7,000 organizational and series categories. Fifty-three libraries, or roughly one per State, are regional depositories and receive every publication distributed by the Program. These libraries also provide inter-library loan and related services to other depositories in their regions. More than 167,000 persons utilize Federal depository library collections nationwide each week.

The linkage between production and distribution that resides in GPO is especially critical where the Depository Library Program is concerned. The comprehensiveness of selections for the program is guaranteed by that linkage. Without it, the likelihood would increase that publications which belong in depository libraries would be lost to the program. Currently, such a problem already exists with "fugitive" documents, documents which belong in the program but which are excluded because they are printed elsewhere than GPO.

The publications printed for depository libraries are paid for by the S&E Appropriation. The appropriation also covers the cost of distributing the publications, as well as all administrative costs associated with program operations. The average cost of printing, cataloging, and distributing each publication shipped to depositories is approximately $1, a cost made possible by the volume of publications distributed in microfiche. The libraries that receive the publications are required to make them available for the free use of the public, ensuring equitable access to Government information.

Electronics and Depository Distribution.-As an increasing amount of Government information is converted to electronic formats, the Depository Library Program is changing to meet the requirements of electronic dissemination. Already, GPO's Access service is providing depository library users nationwide with online Access to the Congressional Record, the Federal Register, congressional bills, and the U.S. Code.

With the establishment of locally-configured electronic depository gateways nationwide, the Access service is being structured in accordance with the decentralized, distributed nature of the Depository Library Program. The essential concept of the Depository Library Program is to allow libraries to develop their Government information collections in accordance with the information needs of their local communities. The establishment of depository gateways nationwide allows this locallydriven program to add electronic online services to its information offerings, rather than requiring all information offerings to be dictated by a centralized service based in Washington.

The role of the Depository Library Program will be enhanced as the program makes the transition from dissemination of Government information in paper and microfiche formats to a system of electronic on-demand delivery of the information. Such delivery, in either image or full-text format, offers potential future economies for both libraries and the Government. With the increased dissemination of Government information in electronic formats, depository libraries will also act in new roles, serving as intermediaries helping their local publics find paths to Federal electronic information.

Depository libraries must also continue to service the historical paper and microfiche collections of Government documents while expanding their capability to handle electronic information. Depositories should be able to offer users access to work stations with a choice of a text-based or graphical user interface, CD-ROM capability, Internet connections, and the ability to print or download extensive documents.

A recent survey of the electronic capabilities of depository libraries showed that the vast majority now have personal computers, CD-ROM capability, and access to the Internet. Eventually, these capabilities will allow anyone to connect from classroom, home, or office to GPO's Access service databases, the storage facility, or the electronic locator via a depository gateway.

Other Distribution Programs.-The Superintendent of Documents is required by sections 1710 and 1711 of Title 44 to index and classify Government publications and prepare the Monthly Catalog of U.S. Government Publications, which contains authoritative descriptions of Government documents. Access to the comprehensive body of publications printed by GPO is especially important to the fulfillment of this mission. This program is funded by the S&E Appropriation. Funding in fiscal year 1994 was $3.2 million.

Under various sections of Title 44, the Superintendent of Documents is required to distribute certain publications free of charge to recipients designated by law. These include the Congressional Record (the CP&B Appropriation pays for the cost of printing copies of the Congressional Record for official recipients and the S&E Appropriation pays for distributing them). This program is also funded by the S&E Appropriation. Funding in fiscal year 1994 was $629,000.

Under international treaties, which were subsequently codified in section 1719 of Title 44, U.S. Government publications such as the Congressional Record are distributed to foreign libraries in exchange for publications produced by their governments, which are shipped to the Library of Congress. The Library administers this program and GPO distributes the publications. This program is funded by the S&E Appropriation. Fiscal year 1994 funding was $712,000.

Section 1701 of Title 44 authorizes the Superintendent of Documents to distribute publications on behalf of Federal agencies to recipients designated by those agencies. This is a reimbursable operation; GPO provides the service and is paid by the publishing agencies. There is no direct appropriation to GPO for this program. The largest reimbursable operation is the Consumer Information Center in Pueblo, CO, which is run by GPO on behalf of the General Services Administration. The Center distributes free and low cost consumer-oriented publications. In fiscal year 1994, GPO generated total revenues of $5.6 million from reimbursable distribution activities, yielding a net income of $250,000.

Mr. Chairman and Members of the Subcommittee, this concludes my prepared statement. I trust this information will be helpful to the Subcommittee in its consideration of GPO. Again, my staff and I are prepared to cooperate with and assist the Subcommittee, and I would be pleased to answer any questions you may have.

SUMMARY STATEMENT

Mr. DIMARIO. Thank you, Mr. Chairman.

Well, at the beginning, I would like to express my thanks to Larry Harris and Keith Kennedy for their assistance to us in getting ready for the hearing. They have been extremely helpful to us. We have also had some preliminary meetings with Ray Strong from the Secretary of the Senate's Office to discuss the operation of the Senate's print-on-demand initiative, where we are operating the Xerox Docutech in the Senate Document Room to print copies of documents on an as-needed basis, which we think will be a critical element in reducing the cost of congressional printing, and especially the Senate's printing, in the future.

We are working very closely with the Secretary's office to encourage the increased submission of data for the Congressional Record in electronic format. In fact, this process was discussed in the Washington Post this morning.

We already accept approximately 36 percent of the Senate portion of the Congressional Record electronically, and we will work to increase that percentage.

I also want to say that we look forward to working with the incoming Secretary, Kelly Johnston, to streamline the Senate's printing needs and reduce printing costs.