Reorganization Plan Surges Ahead to Streamline Federal Procurements

Sweeping changes to restructure and consolidate the Federal Supply Service (FSS) and Federal Technology Service (FTS) are moving forward at the U.S. General Services Administration (GSA)

By Kristin M. Atwater, Managing Editor

Serving as the massive purchasing arm of the federal government, the U.S. General Services Administration (GSA) reaches toward high ideals. The agency strives to fulfill its mission, dedicated “to help federal agencies better serve the public by offering, at best value, superior workplaces, expert solutions, acquisition services, and management policies.”

In keeping with its continual commitment to improve operations for enhanced efficiency, the GSA has embarked on a comprehensive plan to revamp two divisions. Under the proposed plan, the Federal Supply Service (FSS) would consolidate operations with the Federal Technology Service (FTS).

Currently, the FSS provides federal agencies with a range of commercial products, services, and programs, including workplace essentials, vehicles, and property management solutions. Meanwhile, the FTS specializes in acquisitions involving information technology and telecommunications, within the scope of hardware, software, and professional services.

The catalyst for the reorganization plan stemmed from analyzing GSA’s quarterly reviews, enacted to measure program performance. Upon evaluation, GSA senior managers found that the FSS and FTS duplicated various business processes and offerings. Officials determined that an FSS-FTS merger could streamline operations to benefit the agency itself, other federal agencies (its customers), vendors, and the public at large.

Stephen A. Perry, GSA Administrator, summarized objectives of the reorganization in a letter to employees, issued on January 28, 2005: “The objective is to strengthen the capability of GSA’s business lines to meet increasing customer requirements for excellent acquisition services, make it easier for industry contractors to interface with our acquisition processes, and enhance the efficiency of GSA’s administrative support functions by reorganizing and combining certain activities that are now performed in separate units.”

A prime reason for the reorganization also relates to the explosive growth and evolution of information technology. “Over the years, our agency has grown from a product supply organization to one that helps agencies buy more sophisticated services, including those that integrate information technology products and services,” Perry stated, in remarks made to the House Committee on Government Reform, during a congressional hearing held on March 16, 2005.

“Given the evolution of how information technology is acquired—buying solutions that are a mix of products and services rather than stand-alone hardware or services—we realized that separate supply and technology services are no longer needed,” Perry added. “Reorganizing and consolidating the two services into one will break down artificial barriers and create new efficiencies.”

Restructuring efforts will combine the FSS General Supply Fund with the FTS Information Technology Fund, thereby creating a unified fund for streamlining procurements.

“Two separate buying organizations operating out of different funds has become a barrier to coordinated acquisition of services and the technology needed to support the total solutions agency customers demand,” noted U.S. Congressman Tom Davis, Chairman of the House Government Reform Committee, as he addressed the March 16 hearing.

According to Davis, by creating a single entity that operates out of a unified fund, the reorganization will provide federal agencies with a “one-stop shop to acquire all of their goods and services.”

Because financial practices and procedures of the FSS and FTS will be standardized into one fund, federal laws must be changed and enacted to reflect the restructuring.

During the March 16 hearing, Davis also noted that he envisions a single “Federal Acquisition Service” to result from the FSS-FTS merger. However, an official name for the consolidated division has yet to be finalized.

A detailed action plan is currently being developed to determine operational and structural changes necessary for the reorganization.

“This action plan is in line with GSA’s mission to provide best-value services,” Perry stated during the March 16 congressional hearing. “It is in line with the principles outlined in President Bush’s management agenda to improve performance of all federal agencies, and it is in line with [Congress’s] pledge to streamline the federal government.”

Task Forces Take Form

To spearhead the reorganization, the GSA has created a steering team, as well as task force teams, to document the scope of work, identify areas of opportunity, and develop proposed changes and solutions.

Three task forces have been established: acquisition services, information technology management, and financial management. Each task force is headed by senior GSA managers, who oversee 12 or more subject-matter experts. The teams are supported by a recently hired contractor, who will present alternative organizational models, serve as a facilitator during meetings, and provide progress reports.

To consider all aspects of the merger, the GSA will also hold various meetings, in which key stakeholders, employees, other federal agencies, and industry partners can express their views and offer suggestions about the proposed plan.

Task forces are scheduled to complete the first draft of a detailed reorganization plan by May 31, 2005. After the teams arrive at their findings and recommendations, results will be presented to a steering committee, which will determine if proposals meet reorganization goals.

Final plans for the reorganization and consolidation are due in July 2005. The plans will then be submitted to the U.S. Congress, which will amend federal laws to incorporate the unified funding.

Because other aspects of the reorganization do not require congressional action or approval, however, the GSA will proceed to implement specific changes in stages, as plans are finalized.

Contrasting Concerns

Although the FSS-FTS consolidation promises greater efficiencies, what do GSA employees think of the proposed merger?

“The rank and file employees at GSA vehemently oppose a merger between the FTS and the FSS,” said Richard N. Brown, President of the National Federation of Federal Employees, as he addressed the March 16 congressional hearing. He notes that the merger will affect approximately 7,000 GSA employees.

In response to Brown’s comments, Mary Alice Johnson, GSA Public Affairs Specialist, replies: “We believe this reorganization is essential to continuing to improve upon our ability to help other agencies meet their missions. That said, change is never easy.”

Johnson continues, “Organizational redesign usually results in changes to the current associate skill mix, and in some cases, elimination of positions. It is too early in the process to say what will happen. If this is the case, GSA will do everything possible to make sure associates are provided access to our Employee Assistance offering.”

In a related move, the GSA, Office of Federal Procurement Policy, and U.S. Department of Defense recently announced a program to standardize and expand training offered to federal contracting employees. To implement the program, the Federal Acquisition Institute will now be located at the same site as Defense Acquisition University, based in Fort Belvoir, VA.

One reason for the training boost relates to increasing the pool of skilled acquisition professionals throughout federal agencies. In February of this year, the GSA announced a plan to hire dozens of contract support employees from the private sector to compensate for the shrinking number of skilled professionals in the contracting arena.

While the FSS-FTS merger is underway, other GSA initiatives will continue to be enacted and refined.

“It is important for everyone, especially our customer agencies, to understand that while the reorganization and consolidation of FTS and FSS takes place, momentum will not be slowed on several other important GSA initiatives,” Perry noted, during the March 16 congressional hearing. “These range from acquisition initiatives such as our “Get it Right” campaign to ensuring proper use of GSA’s contracting vehicles, to citizen-oriented electronic government initiatives like firstgov.gov, to provide faster and easier public access to information about government activities and services.”

One particularly successful ini-tiative is GSA Auctions, which offers the public an opportunity to bid electronically on a wide array of federal surplus property and other assets. In 2004, online sales of federal property reached $32 million (up from $11 million in 2001, the year the program was established). Currently, the Web site boasts about 64,000 registered users.

Meanwhile, Perry emphasizes to GSA employees that the FSS-FTS merger is necessary to assure best-value acquisition services and to keep the GSA as the provider of choice for the agency’s federal customers. “This [reorganization] will be a difficult undertaking,” he says, “and success will depend upon our collaborative efforts.”

 

GSA Expo Gets Set for May Show

A multitude of public procurement professionals and private-sector suppliers will soon flock to San Diego, CA, to attend the 11th annual International Products and Services Expo, sponsored by the U.S. General Services Administration (GSA). The event will be held May 3 to 5, 2005, at the San Diego (CA) Convention Center.

Last year, more than 10,000 attendees participated in training opportunities offered at the Expo. This year’s sessions address six categories:
• Personnel, Building, and Workplace Solutions.
• Product, Service, and Supply Solutions.
• Professional Procurement.
• Small Business Support Training.
• Technology Solutions and the e-Zone.
• Travel, Transportation, and Personal Property Solutions.

Delegates can also venture into the show’s bustling exhibit hall to interact with nearly 600 vendors, each having a current Federal Supply Service contract for their company’s products or services. Booth sales for this year’s Expo sold out within 18 days.

Admission to the GSA Expo is free to government employees and members of the military.

For additional information about this year’s show, or to register online, visit: www.govinfo.bz/4590-101.