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FDA Laboratories: Magnitude of Benefits Associated With Consolidation Is Questionable

  Premium   Download PDF Now (51 pages)
Report Type Reports and Testimonies
Report Date March 19, 1996
Report No. HEHS-96-30
Subject
Summary:

Because many of the Food and Drug Administration's (FDA) 18 testing laboratories across the country are old and need repair. FDA plans to replace old labs with five "megalabs" and four special-purpose facilities. GAO found, however, that projected cost savings of about $91 million may be based on assumptions that inflate the cost of replacing the existing labs. Moreover, current FDA workload data indicate that medium-sized labs--those having about 50 analysts per lab--are more efficient and effective than existing larger labs. In selecting sites for its megalabs, FDA did little analysis of the relative efficiency of alternative sites. FDA placed little emphasis on such factors as proximity to ports of entry and quantity of nearby food and other relevant businesses. Instead, FDA site selections were based mainly on where it thought it would receive congressional funding approval.

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