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Study Shows
Government Can Save
$300 Million By
Contracting with
Private Surveying and
Mapping Firms
BALTIMORE, MD —The Federal Government can save
between $100 and $300 million dollars by increasing
potential utilization <strong>of</strong> private surveying and mapping
firms, according to a study recently released by John M.
Palatiello.
In a paper presented at a national surveying and mapping
conference in Baltimore, government relations consultant
John M. Palatiello said "the savings can be
achieved by applying Office <strong>of</strong> Management and Budget
(OMB) Circular A-76 to all government agencies with
surveying and mapping activities or requirements."
The circular requires agencies to implement management
efficiencies and compare the government's cost <strong>of</strong>
providing goods or services to proposals from private
firms. If the private entity can provide quality services at
a lower cost, it wins the contract. If the government is
more inexpensive, the service stays in-house. In either
case, the taxpayer is the winner, since the management
efficiencies applied when a service remains with the
government also result in savings. Past OMB efforts on
other services result in savings between $10,000 and
$30,000 per Federal employee studied, with about 50 percent
kept in-house. OMB has targeted map-making related
services for A-76 studies in the 1990 budget submitted
to <strong>Congress</strong> earlier this year.
"More than 20 Federal agencies employ 10,000 Federal
workers and spend $1 billion each year on surveying and
mapping. Meanwhile, there are 6,400 qualified private
surveying and mapping firms capable <strong>of</strong> providing the
services the government needs. A number <strong>of</strong> Federal surveying
and mapping agencies not only perform their
own work instead <strong>of</strong> contracting out, but they market
their services to other Federal agencies, State and local
government and foreign governments, thus becoming
direct competitors <strong>of</strong> U.S. firms," Palatiello said.
Palatiello is principal <strong>of</strong> John M. Palatiello & Associates,
a Reston, VA based marketing, pubhc relations and
government affairs consulting firm specializing in services
to the surveying and mapping community. He also
serves as Executive Director <strong>of</strong> the Management Association
for Private Photogrammetric Surveyors (MAPPS), a
national trade association <strong>of</strong> 80 surveying and mapping
firms. His research findings were presented in a paper
"The Case for Privatization <strong>of</strong> Federal Mapping Services"
at the convention <strong>of</strong> the <strong>American</strong> <strong>Congress</strong> on Surveying
and Mapping and <strong>American</strong> Society for Photogrammetry
and Remote Sensing. ©
28 The California Surveyor Fall 1989