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Summary: GAO was asked for its opinion on the propriety of the Navy's providing printing services, on a reimbursable basis, to two nonappropriated fund instrumentalities (NAFI's). The Navy has used its printing facilities to print and wrap advertising circulars for the exchanges. Although NAFI's are government instrumentalities, GAO has ruled that debts owed to NAFI's are not debts due the United States and that NAFI'S may not use government transportation request forms to procure transportation for their employees. In addition, GAO has held that obtaining goods and services from a NAFI is tantamount to obtaining them from a nongovernmental, commercial source. Federal regulations provide that NAFI's are not subject to government printing regulations; therefore, government printing facilities may not do printing work for NAFI's. GAO did not believe that producing advertising circulars and similar publications for the NAFI's is the type of printing that Congress intended to be carried out at government printing facilities. Therefore, GAO concluded that the Navy may not lawfully continue to provide printing services to the exchanges and similar, commercially oriented NAFI's.
