About Our Cover 

The U.S. Government Printing Office was established on March 4, 1861, and has experienced considerable change throughout its 125-year history. In keeping with our theme 

of "A Tradition of Excellence," it is appropriate that we reflect on that history and 

remember those qualities that have helped mold GPO's present and which will lay the 

groundwork for its future. The juxtapositioning of old and new photographs throughout 

this report illustrates the changing face of GPO and, in a larger sense, of the information industry. Our front cover depicts the facade of Building 1, completed in 1903, as it 

appeared in 1935, while the photo above shows the GPO complex today. 

Table of Contents 

Public Printer's Message................................................................................. 1 

GPO Management......................................................................................... 4 

Deputy Public Printer's Message..................................................................... 6 

Administration.............................................................................................. 10 

Human Resources.......................................................................................... 12 

Operations..................................................................................................... 14 

Procurement.................................................................................................. 16 

Superintendent of Documents........................................................................ 18 

Financial Highlights....................................................................................... 22 

Financial Statements...................................................................................... 24 
Ralph E. Kennickell, Jr. 

Public Printer 

Public Printer's 

Message 

During fiscal year 1986, we observed 

the 125th anniversary of the establishment of the Government Printing Office. Just as significant, we saw the 

consolidation and fruition of major 

changes in the structure and spirit of 

the GPO begun over the past two 

years, changes that have restored GPO 

to its traditional status as the natural 

vessel for information policy execution 

for the Federal Government. It is appropriate that this revitalization took 

place as we proudly celebrated our 

anniversary year, but it is a transformation that might have seemed impossible two years ago. 

Upon taking office as the 21st Public 

Printer in December 1984, it was evident to me that GPO suffered from a 

lack of clear and positive direction. 

There was contention where there 

should have been consensus, alienation 

instead of cooperation. GPO had a 

reputation for arrogance among its 

customers and was known within the 

industry as being anachronistic and 

unresponsive. The long-term outlook 

for GPO's very survival was bleak if it 

were to continue to operate in the 

same fashion. Instead, we stand today 

on the leading edge of a new and 

brighter era for GPO and for the 

Federal information industry as a 

whole. How did we, as an agency, accomplish this task? Technology has 

played a vital role, to be sure: a stateof-the-art computerized Executive Information System that is the envy of 

management firms across the country; 

a "dial-up" composition system linking 

microcomputers and laser printers to 

our photocomposers via phone lines or 

fiberoptic links; on-line retrieval 

capability for the Congressional Record 

Index; modernization of our pressroom 

and bindery, including a new five-color 

offset press and binding line for producing passports and postal cards; the 

full and final transition from hot metal 

to electronic photocomposition, capped 

off by a fully automated electronic job 

shop; and a sophisticated electronic 

network linking together our far-flung 

procurement operations. In fact, the 

new technology is the backbone of 

GPO's resurgence. 

But all the new technology in the 

world would be of little consequence 

without the energy, enthusiasm, and 

expertise of good people working 

toward a common goal-a phenomenon we have achieved in an incredibly short time. It came about 

through a revolutionary concept: a 

policy of simple honesty and fairness 

towards people. The real key to success 

in any organizational endeavor is to 

recognize the human potential of the 

people involved and to help them 

realize that potential through giving 

them a sense of their own worth and 

the feeling that they are valued as 

human beings. Although simple in 

theory, this concept is complex in its 

application, especially in an organization as diverse as GPO. 

We began with investing our 

employees with the goal of making 

GPO a truly "demand-driven, serviceoriented agency." It is a goal based 

upon the harsh reality that we now 

must compete to survive in today's 

marketplace and, more importantly, 

upon the idea that what we do and 

how we do it can truly make a difference. This latter idea has paved the 

way for entrepreneurial risk-taking 

among our managers that is exemplified by aggressive customer 

outreach and marketing programs; by 

electronic information systems that link 

together our procurement effort, 

facilitate service, lower costs, or make 

information more readily available for 

managerial decisionmaking; and by 

development of systems and programs 

that take advantage of the full range of 

new technology, both in-house and 

through commercial contracts. It can 

be found in the operating partnership 

1 
We stand today on the 

leading edge of a new 

and brighter era for 

GPO and for the 

Federal information 

industry as a whole. 

2 

that has developed between labor and 

management and in the real application of equal opportunity that allows 

individuals to rise commensurate with 

their abilities. It is embodied in a new 

sense of pride among workers and 

managers alike in the GPO's tradition 

of excellence and in a commitment to 

upholding that tradition in a new era. 

This new-found pride and commitment 

has led to significantly improved productivity which, coupled with new program efficiencies, has allowed us to 

meet all of the budget restrictions imposed by Gramm-Rudman-Hollings 

with minimum impact on our operations. As a matter of fact, we can assist 

customer agencies more severely 

impacted by the necessary budget 

restrictions with their printing and 

distribution work, thus ensuring that 

their information needs and those of 

the public will continue to be met. 

Pride and commitment has also been 

manifested in the spirit of volunteerism 

exuded by our employees, especially in 

our community outreach efforts. The 

generosity and caring that has 

characterized the response to our 

Adopt-A-Family program is, in a real 

sense, another facet of GPO's own 

sense of family pride. 

We have looked outward as well for 

the best possible advice and guidance 

in fulfilling our mission, strengthening 

and broadening our contacts with the 

printing and publishing industry. In 

addition to the Depository Library 

Council, we have revitalized GPO's 

participation in the Federal Publishers' 

Committee and the Interagency Council on Printing and Publications Services, both of which are important 

vehicles for intragovernmental cooperation and constructive feedback. GPO 

also intends to establish an Academic 

Advisory Council, bringing together 

distinguished educators from some of 

the most respected printing management schools to provide us with a 

"brain trust" of expert knowledge. We 

are also learning from the experiences 

of printing officials from foreign 

governments through an on-going 

visitation and exchange program; and 

we plan to host a major conference of 

government printers from around the 

world in Washington in 1988. We 

have strengthened our policy of procuring the best possible services at the 

lowest possible cost from commercial 

contractors. We have long recognized 

the benefits of utilizing the private sector, routinely dealing with over 10,000 

printing companies comprising about 

30 percent of the nation's total. 

Sometimes it is true that statistics fail 

to support the narrative, but the 

numbers compiled over the past year 

truly attest to our progress. In fiscal 

year 1986, GPO produced or procured 

more than 1 billion publications on 

over 369,000 printing orders from virtually every agency in the Federal 

Government, an average of almost 

1,500 per day, generating $768 million 

in revenues for a net income of $3.3 

million. Utilizing the nation's $55 

billion printing industry, GPO's Printing Procurement Department processed 

311,000 of those orders valued at more 

than $563 million. In addition, our 

sales program sold over 27 million 

publications at a total value of $63 

million, resulting in a net income of 

$5.5 million. GPO ended fiscal year 

1986 with a net income of $8.8 million 

despite the Government-wide impact of 

Gramm-Rudman-Hollings. In fact, 

GPO has generated total revenues in 

excess of $800 million in each of the 

last two years, realizing substantial net 

income to the government-and the 

taxpayer-in each of its main program 

areas. Further, in each of those years 

we have been in the unusual and enviable position of requesting less funding from Congress to finance specific 

Congressional printing and documents 

distribution needs. 
As we begin our 

second 125-year epoch, 

it is important to 

reflect on the qualities 

that have made GPO's 

tradition of excellence. 

Public Printer Augustus 

Giegengack officiated at 

the cornerstone-laying 

ceremonies for Building 3 

on February 21, 1939 

(right). Public Printer 

Ralph E. Kennickell, ]r., 

presents a commemorative 

plaque to Senator Charles 

McC. Mathias, Jr., 

Chairman of the ]oint 

Committee on Printing, on 

the occasion of GPO's 

125th anniversary, March 

4, 1986 (inset). 

As we begin our second 125-year 

epoch, it is important to reflect on the 

qualities that have made GPO's tradition of excellence. They are much the 

same qualities that will stand us in 

good stead in the future: pride in 

craftsmanship, confidence in our 

capabilities, a sense of partnership, and 

a commitment to public service. By 

harnessing these qualities through a 

policy of fairness, a new corporate 

orientation, improved customer service, 

the best available advice and guidance, 

greater reliance on the resources of the 

private sector, and the embracing and 

full utilization of the new technologies, 

GPO can successfully meet the 

challenges of fiscal constraint and 

technological change. GPO is prepared 

to lead the way with new, imaginative, 

and innovative approaches to meeting 

the information needs of our customer 

agencies and the public. We look forward to GPO's bright future as the 

vessel that carries and shapes Federal 

information policy and practices. 

Ralph E. Kennickell, Jr. 

Public Printer 

3 
4 

GPO Management 

The Joint Committee on Printing 

Charles McC. Mathias, Jr. 

Senator from Maryland 

Chairman 

Mark 0. Hatfield 

Senator from Oregon 

Dennis DeConcini 

Senator from Arizona 

Ed Jones 

Representative from 

Tennessee 

Ted Stevens 

Senator from Alaska 

Frank Annunzio 

Representative from Illinois 

Vice Chairman 

Robert E. Badham 

Representative from 

California 

Wen dell H. Ford 

Senator from Kentucky 

Joseph M. Gaydos 

Representative from 

Pennsylvania 

Pat Roberts 

Representative from 

Kansas 
GPO Senior Staff 

Ralph E. Kennickell, Jr. 

Public Printer 

Joseph E. Jenifer 

Deputy Public Printer 

Burkey W. Boggs 

Assistant Public Printer 

(Operations) 

Stuart M. Foss 

Assistant Public Printer 

(Human Resources) 

S. Bruce Scaggs 

Assistant Public Printer 

(Procurement) 

Patricia R. Gardner 

Assistant Public Printer 

(Administration) 

Donald E. Fossedal 

Assistant Public Printer 

(Superintendent of 

Documents) 

5 
Joseph E. Jenifer 

Deputy Public Printer 

GPO has taken up the 

challenge to stay in 

the forefront of 

technology application 

as well as to maintain 

its adherence to traditional values of service 

and craftsmanship. 

6 

Deputy Public 

Printer's Message 

GPO stands at a crossroads in its 

history and in the history of the information industry. On the one hand, it 

occupies what has always been a comfortable niche in the Federal establishment, overseen by Congress and protected by Title 44 of the U.S. Code, 

performing many of its familiar tasks 

with relatively low-technology equipment. Conversely, it also occupies an 

important and potentially vulnerable 

role in the burgeoning information 

processing revolution, in which the 

means of data access are becoming increasingly decentralized, and the 

distinction between data processing 

and information reproduction and 

dissemination are becoming more and 

more blurred. 

Twenty years ago, GPO helped lead 

the way in automated electronic 

photocomposition by developing the 

Linotron 1010 in conjunction with, appropriately enough, the Mergenthaler 

Linotype Company. It was perhaps as 

much of a technological marvel in its 

day as movable type was in 

Gutenberg's time, as the Linotype itself 

was in 1886, or as microchip-based 

electronics are today. The Linotron 

1010 represents a turning point in 

GPO's perception of its role in the application of technology; it became proactive rather than reactive. Last year, I 

noted yet another milestone on this 

journey, the final phase-out of our hot 

metal typesetting operation. This transition was a feat not only of technology but of people, labor and 

management alike, as it occurred 

gradually, with minimal job displacement and with no detriment to the 

traditions of GPO's service to its 

customers. 

Today, I am proud to say that GPO 

has taken up the challenge to stay in 

the forefront of technology application 

as well as to maintain its adherence to 

traditional values of service and craftsmanship. As will be seen in the following pages of this annual report, we are 

pursuing innovative approaches in such 

areas as electronic networking and data 

transfer, management systems, contracting, customer service, and marketing. Such innovation, complemented 

by a sense of tradition, will ensure a 

bright future for GPO as it carries the 

Federal information industry forward. 

Individualized Service to Customers 

GPO's Customer Service Staff made 

important contributions to preserving 

our tradition of excellence in 1986. 

Today's Electronic lob Section, featuring 

such equipment as the PDP 11/40 (above) 

and Xeta workstations (below) is geared 

for the economical composition of specialty 

work. 
Hot metal typesetting, 

exemplified by this late 

1930's scene in the 

Monotype casting section 

(below), was a mainstay of 

GPO's product line until 

the 1980's. 

The Staff, which coordinates all aspects 

of the printing, binding, and distribution requirements of the Congress and 

Federal agencies, was the focal point 

for interagency advisory committees 

and was responsible for the highly successful Printing Assistant Training 

Program. 

The Departmental Account 

Representative Division completed its 

transformation into a full-service 

organization providing individualized 

attention to our customers. Our Account Representatives have engaged in 

an aggressive and well-received 

customer outreach program, including 

over 500 meetings with agency 

representatives and more than 100 

agency visits. Suggestions by Division 

personnel saved customers over a 

quarter of a million dollars in 1986. 

GPO's Congressional Printing 

Management Division continued its efforts to improve services to Congress. 

Major achievements included: complete 

automation of the Congressional 

Record mailing lists, which allowed the 

Record to also be offered on microfiche; 

7 
8 

new procedures allowing more 

expedient production of the Bound 

Record; and cost savings totaling an 

estimated $400,000. To ensure continued satisfaction with GPO's service, the Superintendent met with the 

staff heads of all House committees, 

and is scheduled to meet with the 

Senate committees early in fiscal year 

1987. 

In consonance with its mission of 

planning in-plant work in the most 

cost-effective manner possible, the Production Planning Division was responsible for several economy measures 

during 1986. The commercial binding 

contract, which allows us to more fully 

utilize GPO's press capacity and save 

our customers money on binding costs, 

saw an increase of 24 percent in jobs 

placed and a 4 percent increase in 

dollar volume, to 932 jobs and 

$2,350,000 respectively. Production 

planners saved an additional $63,000 

through suggested specification 

changes. 

A high level of demand for design 

and art services from the Typography 

and Design Division reflected staff 

reductions in the graphics areas of our 

customers. Among the publications 

that involved the efforts of Division 

personnel were "The State of Small 

Business 1986" for the Small Business 

Administration, "Advance" magazine 

for the African Development Foundation, and a series of full-color recruitment brochures for the Naval Supply 

Systems Command. 

Combating Waste, Fraud, and 

Abuse 

An important key to GPO's internal 

corporate health is the development of 

a highly professional Office of the Inspector General (OIG). This approach 

continued to pay dividends as recommendations from audits of GPO operations generated potential cost savings 

of over $825,000. In all, the OIG 

issued 19 audit reports containing 

recommendations for more efficiency 

and improved internal controls against 

waste, fraud, and abuse. 

Investigations conducted by the OIG 

led to the conviction of two contractors and one former GPO official and 

the fining or debarment of several 

other contractors for fraudulent activities. Monies recovered through summary judgment and compensatory 

damages amounted to over $200,000. 

Maintenance of Facilities 

The Industrial Services Department 

provided extensive support in maintenance and cleaning, construction, 

equipment maintenance, and aroundthe-clock utilities service. 

Two major and necessary maintenance projects were completed in 

1986. Windows were replaced on the 

first five floors of Building 1 with 

double-glazed units that will reduce 

heat loss by 40 percent. The roof over 

Buildings 3 and 4 was replaced and 

reinsulated, reducing heat loss by 50 

percent. 

Other efforts included the installation 

of the new five-color sheetfed press and 

passport binding machine, the beginning of a 12,000 square foot renovation 

to house the Office of the Inspector 

General, and the start of the muchneeded cafeteria renovation. In addition, two consecutive contracts for 

asbestos removal were awarded in 

1986. 

Public Affairs and Community 

Programs 

The Office of Legislative and Public 

Affairs (LP A) was, in large measure, 

responsible for the success of several 

important and highly visible programs 

during 1986. 

Under the chairmanship of the 

Historian/Curator and with the active 

support of the entire LP A, the formal 
Collating signatures was a 

tedious, labor-intensive 

operation for GPO's 

bindery employees in 1912 

(below), while GPO's stateof-the-art computercontrolled adhesive binding 

system requires minimal 

manual intervention (inset). 

125th anniversary celebration on 

March 4 and Open House on March 5 

were very well-received. The Staff also 

coordinated all arrangements for the 

press conference marking the release of 

the Budget of the United States, which 

was held for the first time ever in 

GPO's Harding Hall. It included the 

Secretary of the Treasury, the Director 

of the Office of Management and 

Budget, and the Chairman of the 

Council of Economic Advisers, who 

addressed nearly 500 reporters. 

A program was established for the 

creation of regional public affairs 

representatives, and a two-day training 

conference for them was held to help 

incorporate GPO's regional employees 

into the full range of GPO programs 

and benefits. 

The LP A Staff also implemented 

phase two of the GPO Community 

Outreach Program in November 1985 

with the inauguration of the Adopt-AFamily project, a partnering of needy 

families in the Washington area with 

GPO organizations. By March 1986, 15 

families had been screened and 

matched with various areas within 

GPO. It is hoped that this effort, 

which has been enthusiastically supported throughout GPO, will continue 

to expand and serve as a model for 

business and government alike. 

9 
Patricia R. Gardner 

Assistant Public Printer 

(Administration) 

Dramatic developments in automation 

and increased productivity keynoted 

improved operations in 

GPO's Financial 

Management Service. 

10 

Administration 

The Assistant Public Printer (Administration) is responsible for a full 

range of information management, 

financial management, security, and 

support services which provide complete administrative assistance to the 

operations of the GPO. 

Productivity Through Automation 

Dramatic developments in automation and increased productivity 

keynoted improved operations in 

GPO's Financial Management Service 

(FMS). The implementation of the 

second phase of the Voucher Order 

Processing and Payment System allowed 

automatic billing of 131,540 commerically procured jobs representing 

$132.1 million. FMS was also involved 

in the planning and scheduling of the 

new "Lady Liberty" paper check program which will replace the computer 

card check. A program of monthly 

financial briefings designed to aid GPO 

managers in better understanding 

financial planning was continued and 

enhanced by computer graphics. In addition, a microcomputer option for the 

submission of internal budget estimates 

and justifications was provided and 

automatically uploaded to the 

mainframe. 

Information Management 

This year of continued innovation 

witnessed the reorganization of Data 

Systems Service into a new entity entitled the Office of Information 

Resources Management (OIRM). This 

reorganization, which consolidates 

systems and services and brings GPO 

up-to-date with industry and government, brings together several additional 

GPO components, including the Information and Office Automation Group, 

the Production Information Management Group, the Telecommunications 

Group, and the Data Base Management Group. In addition, a major 

assessment and evaluation study of 

OIRM was conducted by an outside 

consultant during fiscal year 1986. 

Although it commended the level of 

service OIRM provides, room for improvement was noted in the area of 

coordination and planning. As a result, 

OIRM and senior GPO officials established the IRM Steering Committee 

made up of senior level executives and 

the supporting ADP Coordinators 

group comprising technically oriented 

representatives from major GPO components. 

Services to users increased 

dramatically, as computer programs 

in use were up by 26 percent and online transactions increased by over 

20 percent to 36.6 million. Major 

enhancements were made to the Executive Information System as well as to 

other administrative ADP systems. 

Public Documents systems underwent 

major data processing changes; one 

Mail List System modification to support the Commerce Business Daily 

operations in Chicago was expected to 

result in savings of $150,000 in mailing 

costs. The major recurring theme was 

the planned interfacing of ADP systems 

to provide data more quickly and to 

eliminate the need for redundant files. 

Security and Support Efforts 

As their new title indicates, Security 

and Support Services combined their 

Discounts Taken On 

Commerical Printing 

(In Millions of Dollars) 

6.0 

4.3 4.0 

82 83 84 

7.9 

7.1 

85 86 
The GPO Paymaster's 

Office as it appeared in 

1914 (below) contrasts with 

today's microcomputers and 

sophisticated software used 

by Financial Management 

Service (inset). 

operations in 1986. Major efforts in the 

security area included establishment of 

the Emergency Command Center, installation of a new fire and security 

emergency alarm system, implementation of anti-terrorist measures, procurement of an enhanced Emergency 

Communications System, and coordination of GPO's National Emergency 

Program with the Federal Emergency 

Management Agency. Security also improved GPO training efforts by inviting 

specialists from the FBI, A TF, and 

other law enforcement agencies to 

share their expertise, and by utilizing 

the Federal Law Enforcement Training 

Center's 8-week training course. 

The support area developed a 

number of automated programs to 

better serve GPO offices and 

employees, including the parking program, the GPO Directives Program, the 

processing of intraoffice subscriptions, 

and monthly and cumulative postage 

reports. The Mail Management staff 

provided vital support in helping GPO 

celebrate its 125th Anniversary 

through a temporary postal station for 

the processing of commemorative 

cachet envelopes. A much-needed 

renovation of the Mail and Messenger 

Section was also completed this year. 

11 
Stuart M. Foss 

Assistant Public Printer 

(Human Resources) 

GPO's bindery chiefs met 

for this group photo in 

1914. 

12 

Human Resources 

The Assistant Public Printer (Human 

Resources) is responsible for all personnel, labor-management relations, equal 

employment opportunity, and employee safety matters at GPO. 

Established last year by combining 

several scattered but related functions 

from throughout GPO, Human 

Resources underwent a major reorganization in fiscal year 1986 intended to 

place its management on a more rational footing and to provide a vehicle 

for the more efficient and effective 

delivery of its services. The reorganization included: the merger of LaborManagement Relations and Employee 

Relations; the merger of the Safety 

Office with the Occupational Health 

Division under the Director, Occupational Health and Environmental 

Services; the establishment of a 

Manpower Planning function; and 

the transfer of the Personnel Security 

Branch from Administration. 

Upward Mobility Survey 

Perhaps the most important achievement of Human Resources in fiscal 

year 1986 was the completion of a tenmonth upward mobility survey personally conducted by the Assistant 

Public Printer (Human Resources) and 

the Public Printer's Special Assistant. 

The survey, involving on-site visits to 

all of GPO's regional offices and including interviews with 87 percent of 

our regional personnel, resulted in a 

report titled "Improving Upward 

Mobility in the Regional Printing 

Procurement Offices." 

The report identified problem areas 

and made recommendations for improving the situation, including specific 

changes to the overall training 

program, making regional managers 

accountable for employee development, 

encouraging them to use vacancies for 

upward mobility, and assisting them in 

utilizing the incentive awards program. Human Resources will work 

closely with Procurement during fiscal 

year 1987 to implement these recommendations. 

A prime concern for the Labor and 

Employee Relations Service was 
Perhaps the most important achievement 

of Human Resources 

in fiscal year 1986 was 

the completion of a 

ten-month upward 

mobility survey. 

negotiating the impact and implementation of the 1985 wage agreement providing for an 8-hour day including a 

paid half-hour lunch period. Negotiations were also conducted with the 

Joint Council of Unions on a new 

master agreement covering 13 bargaining units as well as on the impact of 

several reorganizations and the implementation of the OSHA Hazard 

Communications Standard. In order to 

keep GPO managers and supervisors 

apprised of the changes in labor relations law, a newsletter entitled "Labor 

Lore" was developed and is being 

distributed regularly. 

On-site EEO Reviews 

The Equal Employment Opportunity 

Service participated in on-site reviews 

of EEO implementation at GPO installations in Seattle, San Francisco, 

Los Angeles, Columbus, Chicago, and 

St. Louis. It also continued to expand 

the agency effort to enhance the competitiveness of GPO employees within 

the agency through career planning 

seminars, individual guidance, comprehensive career planning guides, 

upward mobility training for GPO 

supervisors, and similar programs. 

The year was also highlighted by increased participation in the Career 

Awareness Program, which provides 

students of our adopted schools, Dunbar High School and the Lemuel Penn 

Career Center, with in-depth exposure 

to careers prior to their completion of 

high school. Another major success 

was the Mayor's Summer Youth 

Employment Program, in which GPO 

provided 58 worksites throughout the 

central office and facilities within the 

District, including the Office of the 

Public Printer. A concerted effort was 

made to provide quality educationbased work experience and training for 

96 participants. 

Recruitment Programs 

In order to fill certain hard-to-fill 

vacancies, the Personnel and 

Workforce Management Service 

established intensive recruitment programs including paid advertisements, 

expanded sources, and frequent contacts with OPM. The Office implemented its first Student Volunteer 

Program; in addition, expansion of the 

Cooperative Education Program in the 

Office of the Inspector General was approved, involving several area universities. Of special note were the 

approximately 955 applications received 

for the Bookbinder Training Program. 

This was probably the largest number 

of applications ever received for a GPO 

vacancy announcement. In the area of 

training and career development, a 

new self-study program called Growth 

Resources on Wheels was introduced to 

provide managers an opportunity for 

personal enrichment and to obtain new 

ideas and techniques. 

Health and Safety 

Employee health and safety is always 

a top priority at GPO. To that end, 

the office of Occupational Health and 

Environmental Services continued its 

efforts, begun last year, in working 

with top management and the unions 

on the Alcohol and Drug Abuse Task 

Force to develop new and more effective approaches to assist our employees. 

In the same regard, it conducted an indepth program evaluation of the drug 

and alcohol counseling services it provides. Other important accomplishments of this area included development of the Hazard Communication 

Program, formation of an Emissions 

Control Committee to help comply 

with the Clean Air Act, and oversight 

for asbestos removal projects. 

13 
Burkey W. Boggs 

Assistant Public Printer 

(Operations) 

GPO's in .. plant opera .. 

tion has undergone a 

dramatic transforma .. 

tion over the past 

decade, a change that 

has seen traditional 

crafts displaced yet 

traditional craftsman .. 

ship preserved. 

14 

Operations 

The Assistant Public Printer (Operations) is responsible for all pre-press, 

press, and binding operations at GPO's 

central office printing plant, as well as 

for the provision of quality control and 

related technical assistance to all GPO 

production and procurement operations. 

GPO's central office printing plant 

primarily serves the short-turnaround 

printing requirements of the U.S. Congress. It is located four blocks north of 

the U.S. Capitol and employs nearly 

2,200 production personnel to provide 

a full line of printing, binding, and 

related products and services to the 

Federal community. Last year, GPO's 

central office in-plant operations produced a net income of $1.6 million. 

Major congressional products include 

the Congressional Record, bills, resolutions, amendments, reports, and 

hearings. 

GPO printed 27 daily editions of the 

Congressional Record totaling more 

than 300 pages each in 1986, with 5 

exceeding 400 pages. GPO produced a 

total of 44,216 Congressional Record 

pages in 1986, 11,896 more than in 

1985, an increase of 37 percent. This 

increase was largely due to Congress 

being in session 56 more days than in 

1985. 

The Federal Register, GPO's major 

Executive Branch daily product, contains proposed and final regulations 

and announcements by Federal agencies. It comprised 52,212 total pages in 

1986, a 7-percent drop from 1985 that 

is attributable to the effects of GrammRudman-Hollings. Approximately 

32,000 copies of the Register were 

printed each day; there were 267 

separate issues averaging 196 pages 

each. 

The central office plant also produced nearly 5 million passports for 

the State Department and over 536 

million postal cards for the U.S. Postal 

Service during 1986. 

Technological Transformation 

GPO's in-plant operation has 

undergone a dramatic transformation 

over the past decade, a change that 

has seen traditional crafts displaced yet 

traditional craftsmanship preserved. All 

hot metal composing activities have 

been converted to electronic photocomposition and the majority of letterpress 

equipment has been replaced with offset technology. The objective in every 

instance has been to utilize the newest 

technology effectively to continue our 

tradition of service. 

In the forefront of this transformation has always been electronics 

technology, and 1986 was no exception. The Graphic Systems Development Division (GSDD) developed a 

dial-up data base composition service 

which gives customers the full power of 

GPO's composition system in their offices. This system, which permits 

transmission of data keyed on word 

processors or microcomputers over 

phone lines to GPO for page composition and return for proofing via laser 

printers, is presently in use by the 

Federal Aviation Administration 

(FAA), the Office of the Clerk of the 

House, and the House Veterans' 

Affairs Committee. The Senate Office 

of Legislative Counsel is also connected 

into the system through a fiberoptic 

cable. GSDD also wrote a totally 

automated change page feature for the 

Automated Composition System that 

will be used for FAA's documentation 

program and the Congressional 

Record. GPO's Electronic Systems 

Development Division, in addition to 

providing technical support for the 

dial-up composition networks, assembled 

and made operational a Text Edit 

System from surplus equipment. The 

system, which serves as the prime unit 

for composing FAA data, represents a 

savings of about $60,000 over a new 

unit. 
In fiscal year 1986 the 

new Electronic Job 

Section became fully 

operational and 

exceeded its perf ormance expectations. 

Of great significance 

beyond even the 

Federal community 

was the development 

of Composition 

Attributes and their 

distribution for review 

throughout the 

industry. 

Electronic Job Section Operational 

In fiscal year 1986, the new Electronic Job Section became fully operational and exceeded its performance 

expectations. A major accomplishment 

of this section was the complete production of the 316-page Annual Report 

of the President on Small Business. The 

data base for the book, which contained charts, graphs, and illustrations, was 

received on floppy diskettes and was 

converted for use in the Modular 

Composition System (MCS). 

In another important initiative, the 

traditional two-person proofreading 

teams have been supplanted by individual silent reading. This change, 

obviated by a rapidly diminishing supply of qualified proofreaders, has 

significantly increased the number of 

folios read with no apparent decrease 

in accuracy. 

As reported last year, the Press Division acquired four surplus 19 x 25-inch 

presses in lieu of new equipment. 

Three of these units have been overhauled and are in operation. In addition, a new 36-inch web press was 

installed, giving more flexibility in 

printing a variety of jobs including 

congressional bills, Presidential 

Documents, the Postal Bulletin, and, in 

the future, the House Calendar. The 

new 5-color, 50-inch sheet-fed press for 

the production of passports and postal 

cards is being installed in Building 4 

and should be operational by early 

1987. 

The Binding Division benefited from 

the much-needed resolution of the promotion and training aspects of the 

court decision on the class action 

discrimination case. The promotion 

area of the case was satisfied initially 

with the selection of 15 women to fill 

positions from Group Chief through 

Foreman. The procedures for testing 

and selecting Bookbinder Trainees were 

also completed; 20 trainees are scheduled to begin the program during fiscal 

year 1987. A new microprocessorcontrolled cutting machine was installed to support the automated 

passport system. 

Of special note is the Production 

Department's attack on waste and 

spoilages in a concerted effort to 

reduce financial losses. The waste plan 

achieved a savings of $245,088 during 

1986, including a reduction of 8 

percent in back-to-press jobs and a 

decline of 31 percent in spoilages. 

Achievements in Quality 

The Quality Control and Technical 

Department develops, coordinates, and 

monitors quality systems for products 

produced and procured by GPO. These 

systems encompass specifications and 

standards, inspection and sampling, 

process controls, quality audits, mathematical studies and analyses, and 

management reports. 

Highlights of this area's 1986 achievements include development of a successful weigh count operation to 

eliminate more than $100,000 in shortages claimed by outside binding firms 

annually. Quality Control developed 

various paper specifications, including 

the Fosdic forms for the 1990 Census, 

and reformulated our standard inks to 

comply with the discontinuance of 

hazardous raw materials. This area also 

worked with Production, Customer 

Service, and the Internal Revenue 

Service on bar coding requirements including designs, process control, and a 

course in bar code fundamentals. Of 

great significance beyond even the 

Federal community was the development of Composition Attributes for 

the Quality Assurance Through Attributes Program (QAT AP) and their 

distribution for review throughout the 

industry. 

15 
S. Bruce Scaggs 

Assistant Public Printer 

(Procurement) 

GPO adheres to the 

Governmentwide 

policy of utilizing 

private sector contractors to the maximum 

possible extent to 

obtain products and 

services at the most 

competitive prices. 

16 

Procurement 

The Assistant Public Printer (Procurement) is responsible for the purchasing 

of the Government's printing and 

binding requirements from commercial 

contractors and for the acquisition and 

management of all materials, supplies, 

paper, and equipment used by the 

Office. 

In fulfilling the information needs of 

the Federal establishment, GPO 

adheres to the Governmentwide policy 

of utilizing private sector contractors to 

the maximum possible extent to obtain 

products and services at the most competitive prices. Reflecting this policy, 

about 73 percent of GPO's total fiscal 

year 1986 printing and binding revenue 

came from work contracted to commercial printers. 

Owing largely to the effects of the 

Gramm-Rudman-Hollings Act, the 

Printing Procurement Department 

experienced a slight drop in orders procured, from over 314,000 last year to 

311,082 in fiscal year 1986. Revenue 

decreased by 5. 7 percent, from $597 

million to $563 million, reflecting a 

trend towards smaller orders. This was 

still 3 percent above the $54 7 million 

procured in fiscal year 1984. About 70 

percent of total orders were placed 

through GPO's regional procurement 

offices. 

There were significant administrative 

accomplishments in 1986. For example, 

a comprehensive training program was 

Purchased Printing Revenue 

(In Millions of Dollars) 

548 597 

437 464 

82 83 84 85 

563 

86 

planned and instituted for 18 college 

graduates. A state-of-the-art information network, the IBM System 36, was 

installed Department-wide, including 

the Regional Printing Procurement Offices. This system provides increased 

access to the Procurement Information 

Control System (PICS), more direct 

control over specification development 

in both one-time bid jobs and term 

contracts, and on-site capability of 

generating specifications in the regional 

offices. PICS also received extensive 

upgrading, including interfaces with the 

Production Estimating and Planning 

System (PEPS) and the Executive Information System (EIS) and two 

automated print order systems. 

New Term Contract Services 

Several new term contract services 

were developed during fiscal year 1986. 

For example, a new contract for U.S. 

Savings Bonds was awarded which is 

expected to garner savings of nearly 

$650,000 over the Treasury Department's previous contract. Over $5 

million in orders were placed on a 

similar contract for paper checks in 

only its first full year. 

A new contract was written for the 

Social Security Administration's timecritical Program Operations Manual 

System which drastically reduces the 

time required to deliver the product to 

the ultimate user. The Internal 

Revenue Service asked GPO to write 

and award contracts for some of their 

most critical printing needs that were 

previously procured by waivers. One of 

these is a five-year contract for the Internal Revenue Manual, Part Three, 

worth just under $1 million per year. 

In addition, the Defense Mapping 

Agency allowed GPO to award a contract for its publication "Sailing Directions" at a savings of $250,000 over the 

previous direct procurement. 
In order to bring our 

services closer to our 

major customers, four 

regional satellite 

offices were opened 

during fiscal year 

1986. 

Bringing Services Closer to 

Customers 

In order to bring our services closer 

to major customers, four regional 

satellite offices were opened during 

fiscal year 1986 in Charleston, SC; San 

Diego, CA; Oklahoma City, OK; and 

New Orleans, LA. A Management Exchange Program was established to 

enhance the effectiveness of the 

Superintendent's office and selected 

RPPO's, and an electronic publishing 

committee was formed, comprising the 

managers of four regional offices. Additionally, a number of public seminars 

on "How to do Business with GPO" 

have greatly increased awareness of our 

services. 

Despite slightly lower workload and 

revenue figures, it is evident that more, 

and more complex, services are being 

requested as customer agencies' funding 

is cut back and they are forced to look 

for ways to make their printing dollars 

go further. One area which will demand our attention is automated 

publishing contracts. With increasing 

frequency, agencies are requesting contracts for data base management, electronic distribution, and on-demand 

printing. We are responding and will 

continue to respond by training our 

personnel in different methods of contracting such as two-step formal advertising and negotiation. 

Procured Printing vs. 

Jn .. House Work 

Fiscal Year 1986 

(Dollars in Millions) 

$562.9/Procured Printing _ _ _ 

$13.7/Regional Printing ______ _ 

$171.8/Plant Printing* ____ _ 

*Excludes blank paper and other operations. 

Managing Materials 

GPO's Materials Management Service 

(MMS) is responsible for the acquisition and management of materials, supplies, equipment, and services for GPO. 

During 1986, the total value of MMS 

procurements was $98.5 million, including $41 million for paper; paper 

prices rose by more than 14 percent in 

contrast to last year's 19-percent decline. 

The value of paper and envelopes 

issued was $4 7.3 million, representing 

104.9 million pounds, with paper for 

in-plant use comprising 60 percent of 

the total value. 

Public Printer Kennickell cuts the ribbon 

to open the GPO satellite procurement 

office at Tinker AFB, Oklahoma, on 

June 11, 1986. 

Procured Printing vs. 

Jn .. House Work 

Fiscal Year 1985 

(Dollars in Millions) 

$596.0/Procured Printing _ _ 

$13.2/Regional Printing -------

$171.8/Plant Printing*------

17 
Donald E. Fossedal 

Assistant Public Printer 

(Superintendent of 

Documents) 

GPO's Sales of 

Publications Program 

produced revenue of 

$62.8 million against 

expenses of $57.3 

million, for a net 

income of $5.5 

million, a 25 percent 

increase over 1985. 

18 

Superintendent of 

Documents 

The Assistant Public Printer 

(Superintendent of Documents) is 

responsible for a broad range of 

Government information dissemination 

programs and services through the sale 

of Government publications, the compilation of catalogs and indexes of 

Government publications, the distribution of publications to depository 

libraries as required by law, and reimbursable mailings. Funding for these 

programs was provided through $62.8 

million in publication sales, $21.8 

million from the Superintendent of 

Documents salaries and expenses appropriation, and $4.8 million from 

other Government agencies for reimbursable distribution services. 

Increased Revenue From Sales 

In 1986, GPO's Sales of Publications 

program produced revenue of $62.8 

million against expenses of $57.3 

million, for a net income of $5.5 

million, a 25 percent increase over 

1985. Although primarily a mail order 

operation, $11.5 million in sales were 

realized through GPO's network of 23 

bookstores, a 24 percent increase over 

1985, and almost $2.5 million in 

revenue came from consigned agent 

sales. On June 2, 1986, GPO bookstore 

Net Income from Sales 

of Publications 

(In Millions of Dollars) 

6.8 

6.1 

4.9 

4.4 

82 83 84 85 

5.5 

86 

sales of the "Tax Reform Act, H.R. 

3838," Parts 1, 2, and Report, totaled 

$459,945. On September 22, 1986, 

GPO bookstore sales of the "Tax 

Reform Act of 1986, H.R. 3838" totaled $554,630. These were the largest 

single day sales totals in GPO 

bookstore history. 

The implementation of Retail Stock 

Accounting on October 1, 1985, has 

resulted in more complete data for 

managers and increased accuracy of 

status and availability information. The 

accuracy of the data has resulted in a 

savings of $100,000, as there was no requirement for an annual physical 

inventory to be conducted this year. 

Due to the impact of GrammRudman-Hollings, several agencies 

asked GPO to sell forms that had 

previously been distributed at no 

charge by the issuing agency. GPO 

sold mortgage application forms for the 

Department of Housing and Urban 

Development and the Veterans' Administration, and Medicare forms for 

the Health Care Financing Administration. In addition, GPO signed an 

agreement with the Internal Revenue 

Service to sell IRS forms to tax practitioners for the 1986 tax year. 

Another result of Gramm-RudmanHollings was the Congressional Sales 

Program. Its creation was a cooperative 

effort among GPO, the Secretary of 

the Senate, and other concerned parties from the private and public sector. 

Sales of Congressional committee 

prints and hearings began on April 14, 

1986, at Main GPO, and other Congressional items were offered for sale in 

the Senate Document Room on June 2, 

1986. 

The number of copies sold in the 

Low-Priced Publications Program continued to soar, as 971,000 copies were 

distributed, an increase of 125 percent 

over 1985. 
Marketing Government 

Information 

In fiscal year 1986, the Office of 

Marketing broadened and deepened its 

efforts to increase public awareness of 

and access to Government information. 

The quarterly "U.S. Government 

Books" catalog continued as the 

leading public promotional vehicle as 

438,000 copies were mailed. Catalog requests were generated largely by the 

reissuing of our print and broadcast 

media Public Service Announcements 

(PSA's); now several years old, the TV 

spots will be replaced by a new series 

set for distribution in early 1987. Four 

new direct mail flyers in the successful 

"Books for Professionals" series were 

produced, and 396,000 copies were 

printed and distributed. 

Marketing continued its ongoing 

efforts to foster agency-sponsored promotions, and staff members assisted 

agency publishing officials with their 

marketing and promotional efforts. 

Bookstore marketing efforts were 

another focal point of activity, and included new flyers, localized radio 

scripts, and the development of 

marketing skills among bookstore 

personnel. In addition, members of the 

Marketing staff visited 10 bookstores to 

gauge their specific needs. The 

Marketing staff also continued to support the needs of the Depository 

Library Program through presentations, 

speeches, development of a portable 

display unit, and the distribution of 

1 million bookmarks and over 500,000 

brochures during 1986. 

Depository Library Services 

As of the end offiscal year 1986, 

there were 1 ,394 libraries designated as 

Federal depositories required by law to 

ensure free public access to Government publications. During 1986, GPO 

distributed over 24.5 million copies of 

51,000 titles in both paper and 

microfiche format, representing a continued decline in the number· of titles 

and copies distributed. In addition, the 

Department of Energy distributed 2.1 

million copies of microfiche to depositories, a decline from 10.2 million 

in 1985 reflecting the end of its 

retrospective fiche distribution last 

year. The U.S. Geological Survey 

distributed 1.1 million maps, a program 

begun in 1985. 

Sales of Publications 

Revenue from .GPO's Sales of 

Publications Program in 1986 was $62.8 

million, an increase of $3.5 million 

over fiscal year 1985. Expenses 

associated with the program increased 

by only $2.4 million, to $57.3 milli'an, 

resulting in a net income of $5.5 

million compared to $4.4 million last 

year. The total number of publications 

sold increased slightly over fiscal year 

1985, due in part to increased 

patronage of the GPO bookstore 

system. The dollar volume of bookstore 

sales increased by 22 percent, to $11.5 

million. 

Salaries and Expenses 

Salaries and expenses associated with 

the operation of the By-Law Distribution Program, the Reimbursable 

Distribution Program, the Depository 

Library Program, and the Cataloging 

and Indexing Program decreased by 

$2.2 million from fiscal year 1985 to a 

total of $26.7 million. This decrease 

was due to the sequestrating of funds 

under the Gramm-Rudman-Hollings 

Deficit Reduction Act and a decline in 

the cost for printing services for the 

Depository Library Program. 

Capital Expenditures 

Capital expenditures this year 

amounted to nearly $9 million compared to $8.8 million last year. Major 

acquisitions and, efforts included. 

19 
20 

upgrading of equipment at the regional 

printing offices, renovation and con, 

struction of offices for the Inspector 

General, relocation of the Philadelphia 

Bookstore, renovation of the Denver 

Regional Procurement Office, a new 

embossing press for the Production 

Department, and the installation of 

text editing systems and non,impact 

printers. 

The Micrographics Section con, 

verted 29,000 titles to microfiche for a 

total of 12.8 million copies for distribu, 

tion, a decline of 54 7,000 from last 

year, but representing 56.5 percent of 

total copies distributed compared to 54 

percent in 1985. Microfiche conversion 

has become more vital in light of the 

lower salaries and expenses appropria, 

tion mandated by Congress. 

Of special note is the 35 percent 

decline in library claims for non,receipt 

of publications, from 62,000 to less 

than 40,000 this year. This dramatic 

decrease can be attributed to the em, 

phasis placed on quality assurance by 

management and to the implementa, 

tion last year of the Lighted Bin 

System. 

The volume of new publications 

received for classification declined, with 

131,897 new publications received for 

fiscal year 1986. This decrease and the 

effective recruiting of new staff resulted 

in a 64 percent reduction in classifica, 

tion backlogs. Responsiveness to user 

correspondence and inquiries was great, 

ly improved, and the consistency and 

accuracy of the classification process 

has been greatly enhanced by the 

system,wide usage of "A Practical 

Guide to the Superintendent of 

Documents Classifications System" 

which was distributed to all depository 

libraries this year. 

Library Programs Service catalogers 

processed 28,581 titles in 1986, a slight 

gain over last year which was achieved 

without last year's commercial catalog, 

ing contract and with four fewer 

catalogers. 

Fiscal year 1986 marked the first full 

year for the newly reorganized 

Depository Library Inspection T earn. 

The team is completely trained and is 

fully staffed for the first time in three 

years. The number of individual in, 

spections reached a record high of 335, 

covering 27 states. Seven libraries were 

placed on probation, four were re, 

moved from probation, and one was 

removed from the program. 

By Law and Reimbursable Mailing 

In accordance with statutory re, 

quirements, GPO distributed approx, 

imately 7.2 million free copies of 

Government publications in fiscal year 

1986, virtually the same number as last 

year. This ended a three, year decline 

in statutory workload from the 17 

million publications distributed in 

1982. 

GPO's largest reimbursable distribu, 

tion operation is the Consumer Infor, 

mation Center (CIC), which is operated 

on behalf of the General Services Ad, 

ministration at the Public Documents 

Distribution Center in Pueblo, CO. 

During 1986, 19.2 million catalogs and 

other publications were distributed 

through this facility, a decline from the 

21.9 million handled last year. 

GPO also received and mailed about 

2 7.8 million publications for other 

Government agencies, down from 28.1 

million a year ago. In all, GPO re, 

ceived $4.8 million in customer agency 

reimbursements for this service. 
The GPO bookstore circa 

1933 (above) and its lineal 

descendent, the modem 

Kansas City, MO, 

bookstore, located in a 

commercial shopping mall 

(inset). 

A section of the Documents 

Division as it appeared in 

1914. 

21 
Financial Highlights 

Title 44 of the U.S. Code requires 

the U.S. Government Printing Office 

(GPO) to fulfill the printing and binding needs of the Federal Government 

and to distribute Government publications to the general public. GPO's 

printing and binding operations are 

accomplished through a central printing plant located at Washington, DC; 

6 smaller regional printing plants; and 

the procurement of printing and binding through the central office, 14 

regional offices, and 5 smaller satellite 

offices. Superintendent of Documents 

operations include the sale of publications, distribution to depository 

libraries, reimbursible and statutory 

distribution, and the cataloging and 

indexing of all Government 

documents. 

All GPO activities are financed 

through a revolving fund, which is 

reimbursed by payments from customer 

agencies, sales made to the general 

public, and transfers from various 

appropriations. GPO's consolidated 

financial statements also include the 

activities and fund balances of the 

Congressional Printing and Binding 

and the Printing and Binding appropriations. These annual appropriations 

are used to reimburse GPO for costs 

incurred in performing printing and 

binding for the Congress and for the 

printing, binding, and distribution of 

Government publications authorized to 

be distributed without charge to recipients designated by law. Reimbursements from the appropriations are 

included in GPO's total printing and 

binding revenue. 

Results of GPO Operations 

GPO achieved a consolidated net 

income for fiscal year 1986 of $8.8 

million, compared to $10.4 million for 

fiscal year 1985. This decrease can be 

attributed to the overall effect of the 

Gramm-Rudman-Hollings balanced 

budget act. Total consolidated revenue 

decreased by $33 million in 1986 to 

$826 million, while total expenses also 

decreased by $32 million to a balance 

of $817 million. The decrease in expenses was mainly generated by the 

decreased dollar volume in procured 

printing. For the fifth consecutive year, 

GPO's Sales of Publications Program 

continued to produce a healthy net 

income. 

Printing and Binding Operations 

In fiscal year 1986 GPO's in-house 

and commerically procured products 

generated a revenue of $768 million, 

which is 90 percent of total GPO 

revenue. Revenue from commercially 

procured printing was $563 million, 

representing about 73 percent of 

the total dollar volume for printing 

GPO's 1986 Revenue Dollar 

Where It Came From 

64.8¢/Purchased Printing ____ _ 

.6¢/Reimbursements _____ _ 

2.~S & E Appropriation ___ __ 

7.~Sales of Publications ____ _ 

24.4¢/ln-House Printing~ 

22 

Where It Went 

61.9¢/Procured Printing ------

1.1¢/Capital Expenditures ____ _ 

1.6¢/0ther j 

2.3¢/Sales of Publications __/ / 

3.5¢/Rents, Comm., Utilities__/ / 

6.2¢/Supplies & Materials~ 

23.4¢/Labor _______ ~ 
and binding work. During the year, 

GPO processed 369,000 printing 

orders, an average of nearly 1 ,500 

orders a day. The average value of an 

order produced in-house was about 

$3,550; the average revenue generated 

from a commercially-procured job was 

about $1,800. GPO used or sold nearly 

105 million pounds of paper, 61 

percent of which was used for in-house 

printing and 39 percent of which was 

sold to customer agencies. 

Central Plant Printing Operations 

GPO's central plant printing operations (excluding materials operations) 

earned $1.6 million in net income this 

year compared to a net income of $1.4 

million for 1985. Total revenue was 

$142.2 million compared to $140.9 

million last year, while expenses 

amounted to $140.6 million against 

$139.5 million in 1985. Materials operations experienced a net loss of 

$934,000, a significant improvement 

over last year's $2.3 million loss. Other 

operations, including the sale of waste 

and scrap, generated a net income of 

$252,000, compared to $1.1 million last 

year. 

Regional Printing Operations 

The Chicago, Denver, and Seattle 

regional plants recorded modest net 

surpluses in 1986 while the San Francisco plant broke even. Losses were 

posted by the Rapid Response Center, 

located at the Washington, DC Navy 

Yard, and the New York office. 

Overall, GPO's regional printing operations experienced a combined net 

deficit of $720,000 in fiscal year 1986 

compared to a $1.3 million loss last 

year. 

Central Office and Regional 

Printing Procurement Operations 

Although GPO's printing procurement operations experienced some 

reversals in procured printing during 

1986, both revenue and volume were 

still greater than those recorded in 

1984. Total revenue was $562.9 

million, a decrease of $33.9 million 

or 6 percent under 1985, resulting 

in a net income of $3.2 million. Of 

the revenue, $154.2 million was from 

central office term contracts, $170.5 

million was from central office one-time 

bid work, and the balance was from 

regional operations. Most of the 

decline from last year was in central office one-time bid work ($21.2 million). 

Approximately 311,000 orders were 

procured during the year, a decrease of 

3,000 from the recordsetting number 

procured in 1985 but still about 4,000 

more than in 1984. 

GPO's 1985 Revenue Dollar 

Where It Came From 

66. 7¢/Purchased Printing ____ -;-

.5¢/Reimbursements _____ _ 

2.~S & E Appropriation ___ _, 

6.9~Sales of Publications ____ _ 

23.1¢/In-House Printing------''-:-

Where It Went 

63.5¢/Procured Printing -----'-

l.O~Capital Expenditures ___ _ 

1.6¢/0ther ,., / 

2.~Sales of Publications ___/ / 

3.3¢/Rents, Comm., Utilities__/ / 

6.4¢/Supplies & Materials_____/ ____.-:;: 

22.2~Labor___..--

23 
24 

Financial Statements 

Consolidated Balance Sheet 

As of September 30, 1986, and 1985 (Notes 1 and 2) (in thousands of dollars) 

Assets 

Current Assets: 

Cash: 

On-hand and in-transit 

Revolving Fund 

Appropriations 

Accounts receivable (Note 3) 

Inventories: 

Publications for sale, net (Note 4) 

Paper 

Materials and supplies 

Total Current Assets 

Property, Plant, and Equipment (Note 5): 

Land and buildings 

Equipment and building improvements 

Less: accumulated depreciation 

Net Property, Plant, and Equipment 

Total Assets 

1986 

$1,370 

100,336 

49,539 

202,593 

11,664 

12,590 

8,314 

386,406 

18,648 

101,965 

120,613 

65,174 

55,439 

$441,845 

The accompanying notes are an integral part of these financial statements. 

1985 

$1,260 

57,636 

72,857 

229,769 

10,998 

12,125 

7,956 

392,601 

18,648 

94,091 

112,739 

60,169 

52,570 

$445,171 
Liabilities and Investment 1986 1985 

Current Liabilities: 

Accounts payable (Note 6) $81,055 $79,542 

Advances from customers (Note 7) 35,492 36,343 

Accrued salaries and wages 8,349 7,473 

Taxes and other withholdings 821 819 

Total Current Liabilities 125,717 124,177 

Other Liabilities: 

Accrued annual leave 8,659 8,353 

Excess receipts from sales of 

publications, due U.S. Treasury 

(Note 8) 5,516 4,378 

Total Other Liabilities 14,175 12,731 

Total Liabilities 139,892 136,908 

Investment of U.S. Government: 

Appropriations obligated but unexpended 48,884 59,836 

Revolving Fund: 

Contributed capital (Note 9) 110,679 110,745 

Retained earnings (Note 10) 141,012 137,682 

Reserved per Public Law 99-500 (Note 8) 1,378 

Total Revolving Fund 253,069 248,427 

Total Investment 301,953 308,263 

Total Liabilities and Investment $441,845 $445,171 

25 
26 

Consolidated Statement of Revenue and Expenses 

by Function and Retained Earnings 

Fiscal Years 1986 and 1985 (Notes 1 and 2) (in thousands of dollars) 

Printing and Binding (Note 11) 

Revenue: 

Printing and Binding 

Sales of Publications 

Appropriations 

Reimbursements 

Total Revenue 

Expenses: 

Personnel compensation and benefits 

Travel and transportation 

Rents, communications and utilities 

Printing and reproduction 

Other services 

Supplies and materials 

Depreciation 

Publications sold 

Unsaleable publications 

Total Expenses 

Net Income 

In-House 

Printing 

$205,4 72 

$205,472 

$139,025 

508 

10,439 

2,243 

47,786 

5,292 

$205,293 

$179 

Retained Earnings, Beginning of Fiscal Year 

Retained Earnings Before Payable to U.S. Treasury 

Less: 

Excess receipts from sales of 

publications, due U.S. Treasury 

Retained Earnings, End of Fiscal Year 

Purchased 

Printing 

$562,933 

$562,933 

$26,021 

1,663 

2,705 

527,031 

817 

1,244 

301 

$559,782 

$3,151 

The accompanying notes are an integral part of these financial statements. 

Total 

$768,405 

$768,405 

$165,046 

2,171 

13,144 

527,031 

3,060 

49,030 

5,593 

$765,075 

$3,330 ' 
Information Dissemination 

Sales of Salaries 

Publi- and 

cations Expenses Total 

$62,850 $62,850 

$21,853 21,853 

4,806 4,806 

$62,850 $26,659 $89,509 

$22,843 $9,217 $32,060 

485 245 730 

11,928 4,129 16,057 

948 11,181 12,129 

819 842 . 1,661 

1,506 745 2,251 

120 300 420 

15,899 15,899 

2,786 2,786 

$57,334 $26,659 $83,993 

$5,516 $5,516 

Eliminations 

($31,768) 

(348) 

($32,116) 

($2,845) 

(604) 

(28,028) 

(445) 

(194) 

($32,116) 

Total GPO 

1986 

$736,637 

62,850 

21,505 

4,806 

$825,798 

$194,261 

2,901 

28,597 

511,132 

4,276 

51,087 

6,013 

15,899 

2,786 

$816,952 

$8,846 

137,682 

$146,528 

5,516 

$141,012 

1985 

$771,162 

59,301 

24,229 

4,177 

$858,869 

$190,440 

2,605 

28,597 

545,683 

3,890 

54,559 

5,765 

14,516 

2,418 

$848,473 

$10,396 

131,664 

$142,060 

4,378 

$137,682 

27 
28 

Consolidated Statement of Changes in Financial Position 

Fiscal Years Ended September 30, 1986, and 1985 (Notes 1 and 2) (in thousands of dollars) 

Funds Provided: 

Net Income 

Add expenses not requiring working capital: 

Depreciation 

Book value of retired assets 

Total Funds Provided by Operations 

Disposal of fixed assets 

Appropriations 

Reimbursements 

Increase in accrued annual leave 

Total Funds Provided 

Funds Applied: 

Purchase of fixed assets 

Funds returned to U.S. Treasury: 

From Sales of Publications 

From Appropriations 

Public Law 99-177 Reductions 

Printing and Binding 

Obligated Appropriations (Note 12) 

Total Funds Applied 

Decrease in Working Capital 

Changes in Working Capital 

Current Assets: 

Cash: 

On-hand and in-transit 

Revolving Fund 

Appropriations 

Accounts receivable 

Publications for sale 

Paper 

Materials and supplies 

Current Liabilities: 

Accounts payable 

Advances from customers 

Accrued salaries and wages 

Taxes and other withholdings 

Decrease in Working Capital 

1986 

$8,846 

6,013 

1 

14,860 

28 

103,941 

4,806 

306 

123,941 

8,977 

23,546 

4,469 

68,025 

26,659 

131,676 

($7, 735) 

$110 

42,700 

(23,318) 

(27,176) 

666 

465 

358 

(1,513) 

851 

(876) 

(2) 

($7' 735) 

The accompanying notes are an integral part of these financial statements. 

1985 

$10,396 

5,765 

51 

16,212 

72 

122,868 

4,177 

312 

143,641 

8,814 

8,238 

49,771 

69,262 

28,934 

165,019 

($21,378) 

($509) 

11,150 

(8,030) 

(18,723) 

1,413 

(5,089) 

165 

1,682 

(2,692) 

(719) 

(26) 

($21,378) 
Status of Appropriated Funds 

Fiscal Years Ended September 30, 1986, and 1985 (Notes 1 and 2) (in thousands of dollars) 

Congressional Printing Salaries Total Appropriated Funds 

Printing and and 

and Binding Binding Expenses 1986 1985 

Status of Appropriations, 

Beginning of Fiscal Year $51,223 $4,752 $16,882 $72,857 $80,887 

Funds Provided: 

Initial Appropriations 69,405 11,555 22,981 103,941 122,868 

Intra-Office Funding 3,000 3,000 

Reimbursements 4,806 4,806 4,177 

Total Funds Provided 120,628 16,307 47,669 184,604 207,932 

Funds Applied: 

Printing and Binding 65,523 12,535 78,058 59,273 

Obligated appropriations 28,992 28,992 26,031 

Funds returned to U.S. Treasury 20,667 847 2,032 23,546 49,771 

Public Law 99-177 Reductions 2,984 497 988 4,469 

Total Funds Applied 89,174 13,879 32,012 135,065 135,075 

Status of Appropriations, 

End of Fiscal Year $31,454 $2,428 $15,657 $49,539 $72,857 

The accompanying notes are an integral part of these financial statements. 

29 
30 

Notes to Financial Statements 

As of September 30, 1986, and September 30, 1985 

(all amounts in thousands of 

( 1) Organization 

The Government Printing Office provides printing, binding, and distribution 

services to the Congress and Federal agencies and distributes publications to the 

public. Title 44 of the U.S. Code established the Government Printing Office 

Revolving Fund to finance these operations. The Revolving Fund is reimbursed 

by payments from agencies, receipts from sales of publications, and by transfers 

from the Congressional Printing and Binding and Printing and Binding Appropriations. 

The Salaries and Expenses Appropriation is appropriated for necessary expenses 

incurred by the Superintendent of Documents' operations for depository library 

and other by-law distribution of publications, and for the cataloging and indexing of Government publications. 

(2) Summary of Significant Accounting Policies 

Principles of Consolidation-The consolidated financial statements include 

all funds of the Government Printing Office. Inter-fund and inter-operational 

transactions and balances have been eliminated. 

Restatement of Comparative Data-The Status of Appropriated Funds has 

been revised to reflect funds expended rather than billings rendered. The change 

has no effect on the net income or loss of Government Printing Office 

operations. 

Basis of Accounting-Assets, liabilities, revenue, and expenses are recognized 

on the accrual basis of accounting following generally accepted accounting principles. 

Expense Allocation-General and administrative expenses have been 

distributed among the various expense categories. To the extent practicable, 

general and administrative expenses were allocated to the various programs based 

on the estimated level of effort associated with each program. 

Revenue Recognition-Printing and binding revenue is recognized on the 

basis of work performed by the Government Printing Office due to the 

fact that all printing and binding work is required by law to be reimbursed on 

the basis of services rendered. Revenue on work procured from commercial 

printers is recognized on constructive date of shipment or actual date of payment, whichever occurs first. Revenue for distributing and selling publications to 

the public is recognized when publications have been shipped, or when services 

have been performed. During Fiscal Year 1986, the GPO guaranteed prices on a 

large volume of in-house work. The estimated losses, if any, on work completed 

substantially during the fiscal year have been recorded in the accounts. 

Cash Management-During Fiscal Year 1986, the Government Printing Office 

instituted improved cash management procedures. These procedures decreased the 

cycle time between cash paid out to contractors and cash received from customer 

agencies. The large increase of cash on hand at yearend is a direct result of the 

implementation of these procedures. 
Inventories-Various inventory valuation methods are used; publications for 

sale are valued using the weighted-average cost method, while paper, materials, 

nnd supplies are valued using the moving-average cost method. 

Property, Plant, and Equipment-Property, plant, and equipment are carried at cost. Expenditures which substantially increase the useful life of the assets 

are capitalized. Maintenance and repairs are expensed as incurred. Depreciation is 

computed using the straight-line method with estimated useful lives ranging from 

42 to 50 years for buildings and from 3 to 30 years for machinery and equipment 

and building appurtenances. Depreciation expense for machinery and equipment 

and building improvements is recovered from billings to customer agencies. 

Buildings and structures have been paid for from Legislative appropriations. Accordingly, depreciation is recorded but not reimbursed on these items. Fully 

depreciated assets still in use total $24,111 in 1986. Retirements are removed from 

the accounts. 

lntra .. Office Funding-Beginning in Fiscal Year 1986, the Salaries and Expenses Appropriation was funded in part by excess receipts derived from sales of 

publications. In Fiscal Year 1986, this type of funding provided $3,000 to the Appropriation. In Fiscal Year 1987, $1,3 78 will be provided to the Salaries and Expenses appropriation from this source. 

Balanced Budget and Emergency Deficit Control Act of 1985, Public 

Law 99-177-As a result of this legislation, funds were sequestered during Fiscal 

Year 1986. For ease of presentation, reductions are referred to in the financial 

statements, accompanying notes, and schedules as Public Law 99-177 Reductions. 

Pensions-Government Printing Office employees are covered by the 

Civil Service Retirement and Disability Fund or the Federal Old-Age, Survivor, 

and Disability Insurance Fund. Consequently, the GPO has the responsibility for 

withholding the required percentage from each employee's salary and for contributing to the funds. The GPO's contributions were $11,332 and $11,045 in 

1986 and 1985, respectivelv. 

Federal Employee Retirement System-Effective January 1, 1987, all 

employees hired on or after January 1, 1984, will be covered by the new Federal 

Employees Retirement System (FERS). Employees currently covered by the Civil 

Service Retirement System (CSRS) will be allowed to make an irrevocable election to FERS. The Federal Employee Retirement System is a three-tiered retirement plan composed of Social Security Benefits, a Basic Benefit Plan, and a Savings Plan in which employees under FERS may choose from Government 

Securities, Fixed Income, and Common Stock Index Investment Funds. 

Employees covered by CSRS may also participate in the Savings Plan. However, 

for CSRS employees, the Government will not contribute to the Savings Plan. 

CSRS employee funds will be invested in the Government Securities Fund only. 

On January 1, 1987, the GPO will be required to make a retroactive contribution 

to the Savings Plan. The contribution will be one-percent of the salaries and 

wages for all employees hired on or after January 1, 1984, retroactive to the date 

of their employment. As a result, a current liability has been recorded in the accounts for $50. 

31 
32 

Contingencies-The Government Printing Office has received a claim for 

various costs associated with the termination of the contract for Program 600-S. 

If all amounts claimed are recognized and GPO determined to be liable, eventual 

payment may exceed $26,500. As a comprehensive review of the claim is now 

underway, no estimate of any potential settlement amount can be made at this 

time. 

(3) Accounts Receivable 

Accounts receivable as of September 30, 1986, and 1985, is comprised of the 

following: 

Accounts Receivable 

Billed to Government Agencies 

Unbilled completed work 

Unbilled work in process 

Other 

Totals 

1986 

$40,984 

118,585 

42,082 

942 

$202,593 

1985 

$44,135 

126,730 

57,646 

1,258 

$229,769 

Other accounts receivable for 1986 include a non-trade promissory note from 

the Refectory Cafe Limited of $165. At the end of the prior year, this note was 

$32. 

(4) Publications for Sale, Net 

Publications for sale, net as of September 30, 1986, and 1985, are comprised of the 

following: 

Publications for sale 

Allowance for unsaleable publications 

Publications for sale, net 

1986 

$14,759 

(3,095) 

$11,664 

1985 

$13,540 

(2,542) 

$10,998 
(5) Property, Plant, and Equipment 

Property, plant, and equipment as of September 30, 1986, and 1985, is com~ 

prised of the following: 

Land 

Buildings 

Building improvements 

Acquisition 

Value 

$9,992 

8,656 

30,712 

Leasehold improvements 636 

Plant machinery and 

equipment 62,439 

Office machinery and 

equipment 6,985 

Furniture and fixtures 244 

Motor vehicles 715 

Capital improvements 

in progress 234 

Totals $120,613 

(6) Accounts Payable 

1986 

Accumulated 

Depreciation 

$8,373 

13,885 

129 

38,131 

3,882 

179 

595 

$65,174 

Net 

Book Value 

$9,992 

283 

16,827 

507 

24,308 

3,103 

65 

120 

234 

$55,439 

1985 

Net 

Book Value 

$9,992 

381 

15,449 

48 

21,762 

3,948 

78 

102 

810 

$52,570 

Accounts payable as of September 30, 1986, and 1985, is comprised of the following: 

Accounts Payable 

Commercial printing 

Other 

Totals 

1986 

$69,233 

11,822 

$81,055 

1985 

$66,597 

12,945 

$79,542 

33 
34 

(7) Advances from Customers 

Advances from customers as of September 30, 1986, and 1985, are comprised of 

the following: 

Advances 

Advanced billings to customer agencies 

for printing services 

Customer deposits for publications 

Subscriptions, including prepaid subscription 

service and unearned subscription revenue 

Undelivered publication orders 

Totals 

(8) Amount Due U.S. Treasury 

1986 

$8,125 

7,606 

17,985 

1,776 

$35,492 

1985 

$10,616 

7,474 

16,042 

2,211 

$36,343 

Title 44 requires the Government Printing Office to deposit in the United 

States Treasury excess receipts from sales of publications. The amount due the 

U.S. Treasury through September 30, 1986, was determined as follows: 

Amount due U.S. Treasury, September 30, 1985 

Amount used to finance Fiscal Year 1986 Salaries and Expenses 

Appropriation as per Public Law 99-151 

Amount to be used to finance Fiscal Year 1987 Salaries and 

Expenses Appropriation as per Public Law 99-500 

Fiscal Year 1986 Excess Receipts 

Amount Due U.S. Treasury, September 30, 1986 

(9) Contributed Capital 

$4,378 

(3,000) 

(1,378) 

16 

$5,516 

Contributed capital as of September 30, 1986, and 1985, was derived from the 

following: 

Contributed 1986 1985 

Beginning net worth when the Revolving Fund 

was established $33,807 $33,807 

Book value of contributed buildings and land 712 811 

Appropriations for improvements to air 

conditioning and electrical systems 12,900 12,900 

Appropriations for working capital 

and site acquisition 62,600 62,600 

Donated equipment 660 627 

Totals $110,679 $110,745 
(10) Retained Earnings 

During the fiscal year, the GPO contracted to purchase a parcel of land adjoining the Central Office Complex. The amount of retained earnings restricted by 

this purchase commitment is approximately $9,500. 

(11) Printing and Binding 

In-house printing and binding and purchased printing net income or (loss) for 

central and regional operations for September 30, 1986, and 1985, are as follows: 

1986 1985 

In-House Printing 

Central $900 $221 

Regional (721) (1,260) 

Subtotal 179 (1,039) 

Purchased Printing 

Central 2,372 3,207 

Regional 779 3,850 

Subtotal 3,151 7,057 

Totals $3,330 $6,018 

(12) Obligated Appropriations 

Obligated appropriations at September 30, 1986, and 1985, are as follows: 

Programs 1986 1985 

Distributions for other agencies $6,286 $6,236 

Depository library distribution 18,043 20,037 

Cataloging and indexing 2,330 2,661 

Totals $26,659 $28,934 

35 
These scenes of (clockwise 

from bottom left) the Hand 

Section in 1912, the Job 

Section in 1914, the 

Linotype and the 

Proofroom Section in 1933, 

and the Electronic Job 

Section today graphically 

depict the evolution of 

typesetting technology in 

GPO. 

36 

AT radition of Excellence 

Throughout the history of the GPO, 

composing has been the backbone of 

our operation. This craft had changed 

little from the time of Gutenberg until 

the late 19th century, when a revolution of mechanization occurred. With 

the introduction of the Mergenthaler 

Linotype in 1886 and the Lanston 

Monotype in 1892, the handsetting of 

foundry type was rendered obsolete. 

The Government Printing Office 

entered this modern era in 1904 with 

the purchase of 46 Linotypes and 28 

Monotypes. In its heyday, the Composing Division comprised in excess of 150 

Linotypes and lntertypes, 120 

Monotype keyboards, and 125 casters, 

and as recently as 1969 hit its high of 

1,706 employees. A 1925 acount 

reported that GPO has the capacity to 

machine-set the entire Holy Bible 

within only 6 hours. 

The real story of hot metal composing is one of people-the men and 

women who learned and devoted 

themselves to an exacting craft requiring knowledge not only of the printing 

process but of things beyond the walls 

of this Office. There were linguists, 

grammarians, and other experts to 

whom the Federal Government turned 

time and again for the "last word" in 

language and usage. This amazing versatility of the GPO compositor has 

always been reflected in the U .S. 

Government Printing Office Style 

Manual, and in-house product that has 

long been an industry-wide standard. 

The transition to electronic 

photocomposition is complete, and 

technology will continue to play a 

major role in the operations of the 

GPO. We will strive to insure that the 

tradition of excellence built over the 

past 125 years will continue as well. 

U.S. GOVERNMENT PRINTI NG OFFICE 198 7 0 - 170- 899 QL 2