86 



12 



and how efficiently and efifectively BPA produces it. Customers will be 

 represented on each of the functional review teams. At the present time, BPA 

 does not intend to contract outside the agency for such a review. 



Question 7: BPA has announced that cuts will occur in the administrative budget, including 



employee training, travel, supplies and support services. What level of 

 reductions will you take from current levels in these and other administrative 

 areas? What cuts wrill be taken in FY 94 and FY 95 from budgeted levels? 



Answer: On April 9, 1993, BPA announced cuts of up to 50 percent in the remaining 



fiscal year 1993 budgets for administrative costs. The purpose of these cuts is to 

 conserve maximum cash in FY 1993 so that BPA can make its annual payment of 

 approximately $700 million to the U.S. Treasury on September 30, 1993. 

 Examples of the administrative cuts BPA is making include limiting travel, 

 eliminating most training, reducing office supply purchases, restricting overtime, 

 limiting use of support service contracts, increasing charges for employee 

 services, and placing a moratorium on work station and equipment moves. The 

 actual savings from these cuts is still being identified by BPA managers. 



At the same time, BPA is undertaking an agency-wide function-by-function 

 review to identify all possible cost-savings and efficiencies that can be gained 

 on a permanent basis. BPA customers have been invited to participate in this 

 review. 



Simultaneously, BPA is reviewing its FY 1994 and FY 1995 program levels, in 

 an effort to minimize the rate increase slated to go into effect on October 1, 

 1993. BPA program managers have been asked to look at the impacts of cuts 

 ranging from 5 to 25 percent. Over the next several weeks, customers, key 



