FROM: GENERAL SERVICES ADMINISTRATION
Saving Taxpayer Dollars: Freezing the Federal Real Estate Footprint
Statement of Dr. Dorothy Robyn
Commissioner, Public Buildings Service, General Services Administration
Before the House Committee on Transportation & Infrastructure
Subcommittee on Economic Development, Public Buildings, and Emergency Management
May 22, 2013
Good morning Chairman Barletta, Ranking Member Norton, and members of the Subcommittee. I am Dorothy Robyn, Commissioner of GSA’s Public Buildings Service. I appreciate being invited here today to discuss GSA’s effort to save taxpayer dollars and shrink the federal footprint.
Under new leadership, GSA has refocused on its mission of delivering the best value in real estate, acquisition, and technology services to government and the American people.
In the real estate area, GSA faces major challenges. Our inventory’s average age is 47 years – close to the 50-year life expectancy of most commercial office buildings. These buildings are maintained and renovated through the Federal Buildings Fund, which is supported by rents collected from the agencies we house. However, in recent years, we have not had access to all of the annual revenues collected by the Fund, limiting resources available to maintain and restore these assets and meet the needs of partner Federal agencies. This limitation has, in part, led to an increased reliance on leased space to house our federal colleagues, even though leasing is often more expensive than ownership.
Although the limits on the Federal Buildings Fund prevent us from taking many steps that would save taxpayers money, GSA is taking a threefold approach to addressing these challenges. First, we are working with agencies to reduce space requirements and shrink their footprint. We help our Federal partners optimize their existing portfolios, identify underutilized assets, and dispose of excess properties. Second, we are reducing our buildings’ operating costs. Investments here include “smart” building technology and energy-efficiency retrofits. Third, GSA is leveraging private capital to deliver better and more efficient space to our partner federal agencies. One example is our proposal to consider an exchange of the FBI’s aging J. Edgar Hoover Building for a new, consolidated headquarters within the National Capital Region.
My testimony today will focus primarily on the first of these initiatives: reducing space requirements and shrinking the federal footprint.
The Administration’s Efforts to Freeze the Federal Real Property Footprint
Over the past four years, this Administration has moved aggressively to ensure that Federal agencies dispose of unneeded properties and make more efficient use of the Government’s real estate assets. The Freeze the Footprint initiative is the latest in a series of actions the Administration has taken to this end.
In June 2010, President Obama issued a memorandum, “Disposing of Unneeded Federal Real Estate,” that required civilian agencies to achieve $3 billion in savings from sales, reduced operating costs, and improved utilization of existing inventory by the end of FY12. The agencies exceeded the goal, achieving $3.5 billion in cost savings and avoidance. GSA accounted for $350 million of that total by selling excess assets, eliminating operating costs associated with those assets, foregoing repair and alteration investments, and avoiding costly leases by using federally owned space.
In May 2012, Acting OMB Director Jeffrey Zients issued a memorandum entitled “Promoting Efficient Spending to Support Agency Operations,” which directed, in part, that agencies not increase the size of their civilian real estate inventory. In March, OMB Controller Danny Werfel issued guidance that outlined specific agency actions to freeze the federal real estate footprint and gave GSA (along with OMB) a central role in assisting and monitoring agency implementation of the policy.
Specifically, OMB’s March guidance directs each agency to submit a draft Real Property Cost Savings and Innovation Plan that contains four key elements. First, each agency must lay out a three-year plan to maintain or reduce its FY 2012 real property footprint. GSA is responsible for calculating and reporting to each agency its baseline measure using a combination of Federal Real Property Profile data, GSA occupancy agreements, and agency leasing agreements (for those agencies with independent leasing authority). Second, each agency must document its
current leasing costs as well as provide a plan to control these costs moving forward. Third, each agency must produce an analysis of its actions to increase space utilization and efficiency. Fourth, agencies must describe the internal controls and procedures in place to implement and
comply with the Freeze the Footprint policy.
GSA will work with OMB to monitor agencies’ domestic office and warehouse space and help agencies maintain or reduce their current footprints. Agencies will be required to submit annual evaluations of their management and utilization of real property. GSA will analyze these reports to measure compliance, validate agency data, and provide analysis and recommendations to OMB about each agency’s performance. (Information on agency progress will be available on www.Performance.gov.) As part of the effort to monitor opportunities for agencies to maintain or reduce their current footprints, GSA is also working with OMB to improve the quality of data in the Federal Real Property Profile and identify robust performance
metrics.
GSA’s Role in Freezing the Footprint
Although GSA directly manages only about 375 million of the nearly 3.3 billion square feet of space under the government’s control, we have the statutory authority to acquire, manage, utilize and dispose of real property for most federal agencies. Thus, GSA is well positioned to drive change in this area—and, in fact, has been actively working to do so. As one illustration, in our prospectus-level lease program this fiscal year alone, GSA and our partner federal agencies reduced space needs from a proposed requirement of 3.4 million square feet to just 3.1 million square feet, a reduction of nearly 10 percent.
The design of many of today’s federal workspaces reflects a time when the government processed and stored paper and completed daily tasks in regimented and predictable ways. While today’s federal employees can accomplish their work in increasingly mobile and flexible ways, the physical office environment has remained largely static. This forces many federal employees to adapt to physical office space inefficiencies and utilize a workplace that doesn’t effectively support the kind of work they do, resulting in inefficient agency operations and a real estate portfolio that is larger than needed for those operations.
At GSA, we believe good workplace design supports the work that you do. Cost savings are not the only reason we seek to reduce real property footprints. Improving the utilization of real estate also can encourage a vibrant, collaborative, and productive workplace.
GSA is a government-wide leader in its efforts to maximize and increase efficiency in its utilization of space. We are committed to delivering the best value in real estate by creating workspaces that support collaboration, improve productivity, and optimize utilization. To this end, GSA is implementing innovative workplace strategies, including right-sizing individual and collaborative spaces, desk-sharing, and open-plan design. At the same time, GSA is supporting telework policy and training while providing the technology support to encourage mobility.
One impediment to improved space utilization is the need for upfront funding to reconfigure space. For this reason, the President’s FY 2014 Budget Request for GSA includes $100 million for the reconfiguration and renovation of GSA-owned space to support our ongoing work with federal agencies to improve their space utilization, decrease their reliance on costly leased space, and reduce the government’s environmental footprint. To ensure that these funds have a broad and immediate impact, GSA has proposed criteria that ensure no single project will exceed $10 million in costs and all projects will provide a payback in less than five years.
Additionally, we have requested funding in the FY 2014 Budget for a number of larger repair and alteration projects designed to renovate buildings and allow for federal agencies to consolidate their space needs, co-locate with other federal agencies, and move out of costly leases and into federally owned space. For example, at the Charles F. Prevedel Federal Building in Overland (St. Louis), Missouri, GSA is pursuing interior space alterations and building systems upgrades that will allow the Veterans Benefits Administration to consolidate operations and eliminate leases projected to cost more than $3.3 million annually. Execution of this project also will make space for second order moves that allow numerous agencies move from leased space into the Robert A. Young Federal Building in downtown St. Louis.
The President’s FY 14 budget request for GSA also includes funding for the ongoing construction of the consolidated Department of Homeland Security Headquarters at St. Elizabeths in Washington, D.C. When the Coast Guard Headquarters portion of the campus is complete later this fiscal year, it alone will eliminate five leases and convert nearly one million square feet of space from leased to federally owned space. When the entire project is complete, St. Elizabeths will house 14,000 seats and consolidate more than 50 DHS leases into one campus location. Through implementation of flexible workplace strategies, the 14,000 seat limitation can be leveraged to accommodate more than 14,000 employees. The 30-year, present value cost of this construction project is about $530 million less than the cost of leasing. In other words, this project carries an annual cost advantage of more than $30 million.
Reducing the Footprint of GSA-Occupied Space
Of course, GSA’s role in freezing the Federal government’s real property footprint starts with the space we occupy ourselves. At GSA, we will not only meet, but exceed, the Freeze the Footprint requirement by shrinking the amount of office and warehouse inventory that GSA occupies by 15 percent through FY 2015. Over the next three years, GSA will reduce its occupancy of government-owned and leased office space by more than 1 million usable square feet.
As an example, we are significantly increasing utilization of GSA’s Headquarters Building at 1800 F Street Northwest through a multi-phase modernization and consolidation project. The modernization will ultimately reduce GSA’s occupied space in the National Capital Region (NCR)
by nearly 38 percent. Upon completion of Phase One, GSA will vacate six leased locations across the National Capital Region and nearly double the capacity of its Headquarters Building by using open offices, shared workspaces, telework, and mobility practices. Phase Two of the project, which is to be funded in a future fiscal year, will modernize the remainder of the Headquarters Building and allow consolidation of approximately 1,700 additional GSA employees from the NCR Regional Office Building to our 1800 F Street Headquarters. In the meantime, we have consolidated two expiring leases into GSA’s Regional Office Building for a reduction of 42,523 rentable square feet and annual lease savings of approximately $1.7 million.
Disposal of Real Property
GSA is the primary real property disposal agent for the federal government, and it has long worked aggressively to identify and target unneeded assets for disposal. The majority of GSA disposals involve property that is not under our jurisdiction or control. In fact, we just sold a 427-acre portion of the former Twin Cities Ordnance Plant, in Arden Hills, Minnesota, on behalf of the Department of the Army. The negotiated sale amounted to $28 million and eliminated 110 buildings and 1.7 million square feet of space from the federal inventory.
Since 2008, we have disposed of 94 GSA-managed properties and received $129.5 million in receipts for the Federal Buildings Fund, while avoiding more than $153.6 million in liability costs. Additionally, we have disposed of more than 650 properties on behalf of other Federal agencies, generating $230.5 million in proceeds.
GSA provides strategic direction and oversees the development of programs related to the utilization and disposal of excess and surplus real property across the federal government. GSA has the specialized skills to assist agencies by developing tailored disposal strategies specific to
an asset’s characteristics, environmental issues, community interests, market conditions, and other factors that influence the repositioning of the unneeded asset. Similarly, when preparing a property for public sale, GSA develops marketing plans that optimize the public offering. We
use tools and techniques designed to reach very broad audiences and we target specific niche interests.
Civilian BRAC
Despite our efforts to use space more efficiently and reduce costs, a number of challenges impede agencies’ ability to better utilize their inventory and dispose of unneeded assets, as the Government Accountability Office has repeatedly pointed out.1 These challenges include the high upfront costs of property disposal, the legal requirements prior to and during the disposal process, and stakeholder resistance.
We need a civilian BRAC process to help address these challenges. The Department of Defense’s (DOD) BRAC process has yielded significant savings and helped overcome such barriers as red tape and competing stakeholder interests. A year ago, as a senior DOD official, I testified in support of the Department’s request for additional BRAC rounds:
Of all the efficiency measures that the Department has undertaken over the years, BRAC is perhaps the most successful and significant.… The first four rounds of BRAC (1988, 1991, 1993, and 1995) are producing a total of about $8 billion in annual recurring savings, and the comparable figure for BRAC 2005 is $4 billion. This amount ($12 billion) represents the additional costs that the Department would incur every year for base operating support, personnel, and leasing costs had we not had BRAC. These annual savings, or avoided costs, are equivalent to what the Department would spend to buy 300 Apache attack helicopters, 124 F/A-18E-18E/F Super Hornets, or four Virginia class submarines.2
Replicating the BRAC process for civilian agencies would further expedite the disposal process and result in additional savings.
In 2011, President Obama proposed a Civilian Property Realignment Act designed to emulate critical characteristics of the BRAC process for the Federal government’s civilian properties. The Administration reiterated its support for this proposal in the President’s FY 2014 Budget. This proposal has two key features. First, it would create an independent Board of private and public sector leaders to overcome the obstacles to reducing the Federal real estate inventory through sales and consolidations. The Board’s actions would increase the number of properties available for disposal, streamline the disposal process, seek new opportunities to help the government realize financial savings, and look for opportunities to consolidate or co-locate similar functions within government. An independent, impartial Board is essential to navigating competing stakeholder interests. Second, the Board would bundle and deliver its recommendations to sell unneeded high-value assets and consolidate other assets in the real estate inventory to Congress for an all-or-nothing, up-or-down vote. Unless Congress disapproves the package as a whole, the Board’s recommendations would become effective. This provision prevents the removal of individual properties from the process and further insulates that process from stakeholder resistance.
We hope to work with Congress to develop this or a similar proposal that addresses these ongoing challenges in managing federal real property.
Conclusion
Thank you for inviting me to appear before you today. Given GSA’s expertise in asset management and our statutory authority over government-wide property disposal, we look forward to continuing this dialogue on how to improve utilization and disposal of real property. We welcome the efforts of OMB, this Subcommittee, and other Members of Congress to reform and improve Federal real property management. I am pleased to take your questions.
Showing posts with label GSA. Show all posts
Showing posts with label GSA. Show all posts
Thursday, November 14, 2013
Friday, November 8, 2013
GSA PURSUES CAR SHARING TO SAVE U.S. MONEY
FROM: U.S. GENERAL SERVICES ADMINISTRATION
Federal Government Looks to Car Sharing for Savings
November 5, 2013
With savings and efficiencies in mind, GSA announces new approach to fleet management and services
WASHINGTON — Following the lead of popular low-cost commercial car sharing ventures, GSA is actively pursuing similar initiatives to help federal agencies reduce costs, improve efficiencies, and optimize vehicle use. GSA manages more than 200,000 vehicles, one of the largest non-tactical federal fleets in the U.S. government. Today, the agency issued a Request for Information (RFI) seeking innovative ideas from commercial vendors that could help the federal government incorporate car sharing government-wide and reduce the federal fleet over time. GSA will also launch a car sharing pilot program in Washington DC, Boston, New York City and Chicago to immediately explore best practices and test how the government can effectively integrate low-cost alternative transportation services. GSA’s ultimate goal is to help agencies find savings in their fleet program.
Key Facts
GSA to offer a new cost-saving and sustainable alternative to fleet purchases government-wide.
Today, the agency issued a Request for Information (RFI) in search of car sharing best practices and innovations that allow agencies to focus on their core missions rather than fleet services.
In the coming months, GSA will also launch a car sharing pilot program in Washington DC, New York City, Boston, and Chicago to immediately begin exploring how car sharing can work across multi-federal agencies in large metropolitan cities.
Both the RFI and the pilot program will measure the effectiveness, cost savings, and overall benefits of car sharing for the federal workforce.
GSA anticipates that the demand for car sharing in the federal government will increase due to budget constraints and the need to find efficiencies and savings in government operations.
Car sharing allows agency flexibility and access to vehicles for short-term use; it saves money by reducing the need to purchase new vehicles; and provides a more sustainable approach to government fleet management.
GSA Administrator Dan Tangherlini and GSA Federal Acquisition Services Commissioner Tom Sharpe weigh in:
“Every day across America, families and businesses look for practical ways to save money. GSA is doing just that with this first-of-its-kind car-sharingprogram that drives down costs, increases efficiency, and improves operations of the government fleet program.” - Dan Tangherlini, GSA Administrator
“GSA manages one of the largest federal fleets in the U.S. government. This common-sense approach will help agencies focus their limited resources on their critical mission, rather than fleet services. We will be able to test whether it is more cost-effective and beneficial to use a car sharing service in lieu of taxi cabs, renting, leasing and/or purchasing a vehicle.” - Tom Sharpe, Federal Acquisition Services, GSA
Federal Government Looks to Car Sharing for Savings
November 5, 2013
With savings and efficiencies in mind, GSA announces new approach to fleet management and services
WASHINGTON — Following the lead of popular low-cost commercial car sharing ventures, GSA is actively pursuing similar initiatives to help federal agencies reduce costs, improve efficiencies, and optimize vehicle use. GSA manages more than 200,000 vehicles, one of the largest non-tactical federal fleets in the U.S. government. Today, the agency issued a Request for Information (RFI) seeking innovative ideas from commercial vendors that could help the federal government incorporate car sharing government-wide and reduce the federal fleet over time. GSA will also launch a car sharing pilot program in Washington DC, Boston, New York City and Chicago to immediately explore best practices and test how the government can effectively integrate low-cost alternative transportation services. GSA’s ultimate goal is to help agencies find savings in their fleet program.
Key Facts
GSA to offer a new cost-saving and sustainable alternative to fleet purchases government-wide.
Today, the agency issued a Request for Information (RFI) in search of car sharing best practices and innovations that allow agencies to focus on their core missions rather than fleet services.
In the coming months, GSA will also launch a car sharing pilot program in Washington DC, New York City, Boston, and Chicago to immediately begin exploring how car sharing can work across multi-federal agencies in large metropolitan cities.
Both the RFI and the pilot program will measure the effectiveness, cost savings, and overall benefits of car sharing for the federal workforce.
GSA anticipates that the demand for car sharing in the federal government will increase due to budget constraints and the need to find efficiencies and savings in government operations.
Car sharing allows agency flexibility and access to vehicles for short-term use; it saves money by reducing the need to purchase new vehicles; and provides a more sustainable approach to government fleet management.
GSA Administrator Dan Tangherlini and GSA Federal Acquisition Services Commissioner Tom Sharpe weigh in:
“Every day across America, families and businesses look for practical ways to save money. GSA is doing just that with this first-of-its-kind car-sharingprogram that drives down costs, increases efficiency, and improves operations of the government fleet program.” - Dan Tangherlini, GSA Administrator
“GSA manages one of the largest federal fleets in the U.S. government. This common-sense approach will help agencies focus their limited resources on their critical mission, rather than fleet services. We will be able to test whether it is more cost-effective and beneficial to use a car sharing service in lieu of taxi cabs, renting, leasing and/or purchasing a vehicle.” - Tom Sharpe, Federal Acquisition Services, GSA
Tuesday, October 15, 2013
GSA REDUCING COSTS OF JANITORIAL AND MAINTENANCE SUPPLIES THROUGH NEW BLANKET PURCHASE AGREEMENTS
FROM: GENERAL SERVICES ADMINISTRATION
GSA Releases RFQs for Janitorial and Maintenance Supplies
Deadline for Submission is November 12
October 9, 2013
WASHINGTON -- The General Services Administration's (GSA) Federal Acquisition Service (FAS) released a Request for Quotations (RFQ) for two new strategic sourcing solutions designed to help federal agencies purchase products at discounted prices. The RFQs include are for Janitorial and Sanitation (JanSan) supplies and Maintenance, Repair, and Operations (MRO) equipment and supplies. These two solicitations feature multiple new blanket purchase agreements (BPAs) and are now available for viewing and download through GSA Interact. The JanSan and MRO solutions support the Federal Strategic Sourcing Initiative (FSSI) program and the Obama Administration's goal of cutting $40 billion a year from procurement spending.
The federal government spends approximately $1.7 billion annually on JanSan and MRO products. In the first year alone, based on an estimated savings of 10 to 20 percent, GSA can help to save the government $24 million and in future years, based on increased usage, the savings can rise to $50 million.
"GSA's role as America's Buyer is to help federal agencies acquire commonly purchased items at prices that are representative of the high volume of products purchased across the federal government," said FAS Commissioner Tom Sharpe, Jr. "The consolidation of purchasing under programs such as these will help save taxpayer dollars and drive necessary spending on these type of products to our small business partners, making a real positive impact for government agency budgets and improving the bottom line for selected small businesses and suppliers."
The JanSan and MRO procurements, which were created based on requirements of agency customers, leverage feedback GSA received from the supplier community, including small businesses. "We performed extensive market research and made changes in the acquisition strategy to include reserving the overwhelming majority of awards for small business or service disabled veteran owned small business," said FAS Commissioner Tom Sharpe. "We also obtained a Waiver to the Non-Manufacturing rule from the Small Business Administration, which allows for both increased participation of small businesses in the JanSan and MRO programs and for greater utilization by federal agencies." As specified under the Small Business Jobs Act of 2010, GSA also performed an economic impact analysis of the draft contract requirements to understand the effects of the JanSan and MRO solutions on small business.
GSA is currently facilitating the development and launch of 10 new strategic sourcing solutions for completion by FY 2014. The Federal Strategic Sourcing Initiative (FSSI) began in 2005 under the direction of the Office of Management and Budget. Today, GSA's strategic sourcing program includes more than 20 agencies (military and civilian) that have collaborated to develop common procurement vehicles that offer greater discounts, provide improved management, and represent best practices.
GSA Releases RFQs for Janitorial and Maintenance Supplies
Deadline for Submission is November 12
October 9, 2013
WASHINGTON -- The General Services Administration's (GSA) Federal Acquisition Service (FAS) released a Request for Quotations (RFQ) for two new strategic sourcing solutions designed to help federal agencies purchase products at discounted prices. The RFQs include are for Janitorial and Sanitation (JanSan) supplies and Maintenance, Repair, and Operations (MRO) equipment and supplies. These two solicitations feature multiple new blanket purchase agreements (BPAs) and are now available for viewing and download through GSA Interact. The JanSan and MRO solutions support the Federal Strategic Sourcing Initiative (FSSI) program and the Obama Administration's goal of cutting $40 billion a year from procurement spending.
The federal government spends approximately $1.7 billion annually on JanSan and MRO products. In the first year alone, based on an estimated savings of 10 to 20 percent, GSA can help to save the government $24 million and in future years, based on increased usage, the savings can rise to $50 million.
"GSA's role as America's Buyer is to help federal agencies acquire commonly purchased items at prices that are representative of the high volume of products purchased across the federal government," said FAS Commissioner Tom Sharpe, Jr. "The consolidation of purchasing under programs such as these will help save taxpayer dollars and drive necessary spending on these type of products to our small business partners, making a real positive impact for government agency budgets and improving the bottom line for selected small businesses and suppliers."
The JanSan and MRO procurements, which were created based on requirements of agency customers, leverage feedback GSA received from the supplier community, including small businesses. "We performed extensive market research and made changes in the acquisition strategy to include reserving the overwhelming majority of awards for small business or service disabled veteran owned small business," said FAS Commissioner Tom Sharpe. "We also obtained a Waiver to the Non-Manufacturing rule from the Small Business Administration, which allows for both increased participation of small businesses in the JanSan and MRO programs and for greater utilization by federal agencies." As specified under the Small Business Jobs Act of 2010, GSA also performed an economic impact analysis of the draft contract requirements to understand the effects of the JanSan and MRO solutions on small business.
GSA is currently facilitating the development and launch of 10 new strategic sourcing solutions for completion by FY 2014. The Federal Strategic Sourcing Initiative (FSSI) began in 2005 under the direction of the Office of Management and Budget. Today, GSA's strategic sourcing program includes more than 20 agencies (military and civilian) that have collaborated to develop common procurement vehicles that offer greater discounts, provide improved management, and represent best practices.
Saturday, September 28, 2013
GSA TOUTS COMMEMORATION OF VAN BUREN BORDER CROSSING
FROM: GENERAL SERVICES ADMINISTRATION
New Van Buren Border Crossing Supports Security and Commerce
Federal and local officials commemorate opening of Van Buren Land Port of Entry
September 25, 2013
BOSTON -- Today, the U.S. General Services Administration (GSA) and U.S. Customs and Border Protection (CBP) were joined by U.S. Senators Susan Collins, Angus King and Congressman Michael Michaud in Washington, DC, to officially open the state-of-the-art land port of entry facility in Van Buren, Maine. GSA and CBP worked with national and local firms to design this new facility that uses modern technology to enhance border security, speed the flow of commerce, and save energy. Officials in Washington, DC joined the event via video teleconferencing technology and kicked off the ribbon cutting in Van Buren, Maine.
“Land ports of entry are important investments in the nation’s infrastructure that also support commerce and ensure safety,” said Dan Tangherlini, GSA Administrator. “The Van Buren Land Port of Entry restores and enhances an essential border crossing facility in this region and provides Customs and Border Protection the tools it needs to serve the American people.”
“Following the devastating floods in 2008, I toured the temporary facilities in Van Buren and recognized the need to modernize them to meet the challenges of securing the border while supporting a robust exchange of visitors between the U.S. and Canada,” said U.S. Senator Susan Collins. “I am pleased to join so many in celebrating this new state-of-the-art facility, which sets a standard that will benefit the people and businesses of this region for years to come. With this modern facility and the continued dedication of those who work here, our new front door will be both secure and welcoming.”
“The new Van Buren Port of Entry is an extraordinary facility that will not only enhance our nation’s border security, but also encourage and promote trade, commerce, and cross-border relationships,” U.S. Senator Angus King said. “I applaud the collaborative work of the General Services Administration, U.S. Customs and Border Protection, and all of the national and local firms involved throughout the design and construction process. Without question, this state-of-the-art, environmentally-friendly facility will greatly benefit Maine and the nation for years to come.”
Located on a 22-acre site on the northeastern border of Maine, the 44,000 square foot facility screens and welcomes travelers, workers, and commercial trucks to and from Canada. The new facility now provides the region with a full service commercial screening station, which will support commercial vehicle traffic. This facility marks the return of a fully functioning border crossing to the region after the previous facility was significantly damaged in a 2008 flood. CBP had been operating out of trailers since the flood. GSA began the $46 million construction project in 2011, which was funded by the American Recovery and Reinvestment Act. The project was completed on time and on budget this year. CBP now has a new facility that will support their vital mission to secure the nation’s borders. .
“President Obama has asked federal employees to help build the government of the 21st century,” remarked Robert Zarnetske, GSA New England Regional Administrator. “Successful projects like these not only satisfy a critical need in securing our borders but also help grow local economies. The government of the 21st century seizes the opportunity to help communities by connecting national objectives with local skills and opportunities.”
“While it seems like quite some time now since the floods compromised the port here, this facility was worth the wait. Simply updating or repairing it wouldn’t have given this area the safe and state-of-the-art port of entry it deserved. That’s why I pushed so hard to have this new facility built. I’m confident this new Van Buren Land Port of Entry will serve our community well for many years to come. Not only does it provide a safe working environment for all personnel, it’s also a green facility. And most importantly, it will help improve security while facilitating commerce and reducing congestion for people and goods travelling across our border,” said Rep. Mike Michaud.
The facility also uses sustainable technology and design features to cut energy and utility costs and save taxpayer dollars. The sustainability features of this facility include: energy-efficient construction using insulated pre-cast concrete panels; a ground-sourced geothermal heating and cooling system with nearly fifty 400’-deep geothermal wells; radiant floor heating; a solar hot water heating system which provides hot water to building sinks and showers; solar tubes which provide daylight to interior rooms; energy-efficient lighting (including LED); and a 1,250kW generator which provides backup power in case of power outages. These energy efficient features are expected help the facility achieve a LEED Gold rating from the U.S. Green Building Council.
“This project created contracting opportunities and jobs in this region. GSA’s private sector partners included the award winning Julie Snow Architects, Inc., J&J Contractors, Inc., and Robert Siegel Architects. In addition, there were 27 Maine based companies that helped complete this project.
New Van Buren Border Crossing Supports Security and Commerce
Federal and local officials commemorate opening of Van Buren Land Port of Entry
September 25, 2013
BOSTON -- Today, the U.S. General Services Administration (GSA) and U.S. Customs and Border Protection (CBP) were joined by U.S. Senators Susan Collins, Angus King and Congressman Michael Michaud in Washington, DC, to officially open the state-of-the-art land port of entry facility in Van Buren, Maine. GSA and CBP worked with national and local firms to design this new facility that uses modern technology to enhance border security, speed the flow of commerce, and save energy. Officials in Washington, DC joined the event via video teleconferencing technology and kicked off the ribbon cutting in Van Buren, Maine.
“Land ports of entry are important investments in the nation’s infrastructure that also support commerce and ensure safety,” said Dan Tangherlini, GSA Administrator. “The Van Buren Land Port of Entry restores and enhances an essential border crossing facility in this region and provides Customs and Border Protection the tools it needs to serve the American people.”
“Following the devastating floods in 2008, I toured the temporary facilities in Van Buren and recognized the need to modernize them to meet the challenges of securing the border while supporting a robust exchange of visitors between the U.S. and Canada,” said U.S. Senator Susan Collins. “I am pleased to join so many in celebrating this new state-of-the-art facility, which sets a standard that will benefit the people and businesses of this region for years to come. With this modern facility and the continued dedication of those who work here, our new front door will be both secure and welcoming.”
“The new Van Buren Port of Entry is an extraordinary facility that will not only enhance our nation’s border security, but also encourage and promote trade, commerce, and cross-border relationships,” U.S. Senator Angus King said. “I applaud the collaborative work of the General Services Administration, U.S. Customs and Border Protection, and all of the national and local firms involved throughout the design and construction process. Without question, this state-of-the-art, environmentally-friendly facility will greatly benefit Maine and the nation for years to come.”
Located on a 22-acre site on the northeastern border of Maine, the 44,000 square foot facility screens and welcomes travelers, workers, and commercial trucks to and from Canada. The new facility now provides the region with a full service commercial screening station, which will support commercial vehicle traffic. This facility marks the return of a fully functioning border crossing to the region after the previous facility was significantly damaged in a 2008 flood. CBP had been operating out of trailers since the flood. GSA began the $46 million construction project in 2011, which was funded by the American Recovery and Reinvestment Act. The project was completed on time and on budget this year. CBP now has a new facility that will support their vital mission to secure the nation’s borders. .
“President Obama has asked federal employees to help build the government of the 21st century,” remarked Robert Zarnetske, GSA New England Regional Administrator. “Successful projects like these not only satisfy a critical need in securing our borders but also help grow local economies. The government of the 21st century seizes the opportunity to help communities by connecting national objectives with local skills and opportunities.”
“While it seems like quite some time now since the floods compromised the port here, this facility was worth the wait. Simply updating or repairing it wouldn’t have given this area the safe and state-of-the-art port of entry it deserved. That’s why I pushed so hard to have this new facility built. I’m confident this new Van Buren Land Port of Entry will serve our community well for many years to come. Not only does it provide a safe working environment for all personnel, it’s also a green facility. And most importantly, it will help improve security while facilitating commerce and reducing congestion for people and goods travelling across our border,” said Rep. Mike Michaud.
The facility also uses sustainable technology and design features to cut energy and utility costs and save taxpayer dollars. The sustainability features of this facility include: energy-efficient construction using insulated pre-cast concrete panels; a ground-sourced geothermal heating and cooling system with nearly fifty 400’-deep geothermal wells; radiant floor heating; a solar hot water heating system which provides hot water to building sinks and showers; solar tubes which provide daylight to interior rooms; energy-efficient lighting (including LED); and a 1,250kW generator which provides backup power in case of power outages. These energy efficient features are expected help the facility achieve a LEED Gold rating from the U.S. Green Building Council.
“This project created contracting opportunities and jobs in this region. GSA’s private sector partners included the award winning Julie Snow Architects, Inc., J&J Contractors, Inc., and Robert Siegel Architects. In addition, there were 27 Maine based companies that helped complete this project.
Wednesday, September 11, 2013
U.S. FISH AND WILDLIFE SERVICE LEASE DEAL TO SAVE TAXPAYERS $3.8 MILLION
FROM: GENERAL SERVICES ADMINISTRATION
GSA Announces New Lease for U.S. Fish and Wildlife Service
Deal saves $3.8 million dollars in lease payments annually
Contact: Chris Tollefson (USFWS) (703) 358-2222 chris_tollefson@fws.gov
WASHINGTON, DC -- Today, the U.S. General Services Administration (GSA) announced a new lease agreement for the U.S. Fish and Wildlife Service (Service) headquarters in Virginia, which will consolidate three expiring leases in the region and save taxpayers more than $3.8 million dollars annually for the next fifteen years. The building provides nearly 183,000 square feet of office space for the Service to deliver on its mission to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people.
The new lease offers the Service a much lower rental rate from their current leases and includes three years of free rent. The annual rental rate will decrease by $6 a square foot, which is a 17 percent reduction. Additionally, the new lease reduces the agency’s footprint by 72,233 square feet.
The lease award is the result of an open and competitive procurement. The selected offer met all the minimum requirements of the Request for Lease Proposals and was the lowest priced offer providing the best overall value to the taxpayers.
The agency's headquarters will move from their current location in Ballston to 5275 Leesburg Pike in Falls Church, Virginia in summer of 2014.
The new facility, owned by Vornado-Charles E. Smith, will utilize efficient space planning allowing the Service to minimize its physical footprint. The new facility will also use less energy and water than typical office buildings.
###
About the U.S. General Services Administration The mission of the U.S. General Services Administration (GSA) is to deliver the best value in real estate, acquisition, and technology services to the government and the American people.
About the U.S. Fish and Wildlife Service The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. We are both a leader and trusted partner in fish and wildlife conservation, known for our scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service.
GSA Announces New Lease for U.S. Fish and Wildlife Service
Deal saves $3.8 million dollars in lease payments annually
Contact: Chris Tollefson (USFWS) (703) 358-2222 chris_tollefson@fws.gov
WASHINGTON, DC -- Today, the U.S. General Services Administration (GSA) announced a new lease agreement for the U.S. Fish and Wildlife Service (Service) headquarters in Virginia, which will consolidate three expiring leases in the region and save taxpayers more than $3.8 million dollars annually for the next fifteen years. The building provides nearly 183,000 square feet of office space for the Service to deliver on its mission to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people.
The new lease offers the Service a much lower rental rate from their current leases and includes three years of free rent. The annual rental rate will decrease by $6 a square foot, which is a 17 percent reduction. Additionally, the new lease reduces the agency’s footprint by 72,233 square feet.
The lease award is the result of an open and competitive procurement. The selected offer met all the minimum requirements of the Request for Lease Proposals and was the lowest priced offer providing the best overall value to the taxpayers.
The agency's headquarters will move from their current location in Ballston to 5275 Leesburg Pike in Falls Church, Virginia in summer of 2014.
The new facility, owned by Vornado-Charles E. Smith, will utilize efficient space planning allowing the Service to minimize its physical footprint. The new facility will also use less energy and water than typical office buildings.
###
About the U.S. General Services Administration The mission of the U.S. General Services Administration (GSA) is to deliver the best value in real estate, acquisition, and technology services to the government and the American people.
About the U.S. Fish and Wildlife Service The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. We are both a leader and trusted partner in fish and wildlife conservation, known for our scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service.
Sunday, July 21, 2013
GSA ASSOCIATE ADMINISTRATOR DR. DAVID MCCLURE'S STATEMENT TO CONGRESSIONAL SUBCOMMITTEE
FROM: GENERAL SERVICES ADMINISTRATION
Data Centers and the Cloud, Part II: The Federal Government's Take on Optimizing New Information Technologies Opportunities to Save Taxpayers Money
Statement of Dr. David McClure
Associate Administrator, Office of Citizen Services and Innovative Technologies
General Services Administration
Before the House Committee on Oversight and Government Reform
Subcommittee on Government Operations
July 24, 2013
Chairman Carper, Ranking Member Coburn, and members of the Committee, thank you for the opportunity to appear before you today.
Today, as budgets tighten, the U.S. General Services Administration (GSA) is uniquely positioned to help federal agencies get better outcomes from their program dollars by leveraging the scope and scale of the federal government to deliver common sense solutions and significant savings. By utilizing GSA solutions, agencies can free up valuable resources that allow them to focus on their core missions. GSA is pursuing a number of common sense initiatives to help agencies reduce their costs, from assisting agencies to shrink their real estate footprints, right size their fleet, or ensure cost effective travel, by utilizing GSA solutions.
The Federal Strategic Sourcing Initiative (FSSI) is an integral part of this effort. This program is a structured and collaborative process of critically analyzing an organization’s spending patterns to better leverage its purchasing power, reduce cost and improve overall performance. By going out to the market as one large buyer, an approach common to the private sector and even state governments, the federal government will enhance buying power, streamline acquisition operations, improve service, and create significant savings.
Current Solutions –
GSA currently has in place four strategic sourcing vehicles:
• Express and Ground Domestic Delivery Services (FSSI DDS2);
• Office Supplies;
• Print Management;
• and Wireless
These initiatives create significant savings by making purchases as if we are a single, unified buyer, rather than purchasing through thousands of small, duplicative contracts. By encouraging agencies to commit to the collective purchase of certain commodities, GSA is able to negotiate better prices and services, while simultaneously reducing wasteful contract duplication across government. For example, by going out to the market as one large buyer for office supplies, GSA has been able to negotiate prices for these supplies that are 13 percent below what we have previously paid. We have also saved agencies the time and money that would otherwise be devoted to their own office supply contracts. To date, GSA has saved agencies more than $330 million since 2010 through these solutions.
Strategic sourcing also enables us work with small businesses across the country. The program not only allows us to access the savings and services they offer, but also provide them with an invaluable opportunity to work with the federal government. In the area of office supplies alone, GSA has increased the total dollars going to small businesses from 67% prior to the strategic sourcing solution to 76% through the solution, representing more than $461 million in sales. Through this initiative, we have been able to save the government $200 million on purchases of common office supplies while also supporting small businesses.
Another benefit of the strategic sourcing program is that these contracts provide greater visibility into pricing, allowing the government to further reduce prices within strategically sourced solutions, as well as other contract vehicles. Contractors are required to report transactional data on all program sales. For the first time, this level of financial information collection provides us with a clear picture of agency spending behavior. Over the last several months, GSA has used this data to show contractors their pricing item by item, compared with their competitors in an anonymous fashion. This has empowered contractors to understand their competitive position, and in many cases offer better deals. For instance, after GSA shared this data with office supply contractors, every one of them sharply reduced prices. As a result, we expect our savings for office supplies to increase to 20 percent heading into the next fiscal year. GSA also found that by creating competition through this strategic sourcing solution, even vendors not participating in it lowered their prices by 10 percent compared to 2010. This improved pricing has resulted in an additional $98 million in savings.
Finally, strategic sourcing also dramatically reduces agency contracting cycle times and duplication, saving additional administrative burden and cost. Strategic sourcing is able to eliminate the significant amount of time and money wasted by putting in place thousands of duplicative contracts across the government, and even within agencies, for similar items and with many of the same vendors. For instance, our work through FSSI identified large pricing and service disparities in agency wireless contracts that is costing the government millions in unnecessary spending. We even found vastly different pricing with the same carrier, for the same plan, in the same agency.
In the case of the just mentioned wireless plans, to assist agencies and eliminate unnecessary duplication, GSA recently awarded a strategically sourced solution for wireless service plans and devices. This new solution provides a single acquisition vehicle for the more than 4,000 wireless agreements and 800 wireless plans that are currently scattered across the agencies. Not only will this contract save agencies $300 million over five years, it will allow agencies to run these plans and services at least as efficiently as your typical family plan. We will now be able to pool minutes, shut down lines with zero usage, and receive an inventory of devices.
This is not isolated to wireless services. We have thousands of duplicative contracts across government for cleaning supplies, power tools and software licenses, all with vastly different prices. In the area of IT and professional services alone, we have 16,000 contracts scattered across agencies with nearly 5,000 vendors. Significant progress is being made by both GSA and other agencies to eliminate this duplication but there is still more we can do to streamline purchasing, improve service and pursue government-wide contracting goals.
Strategic Sourcing Moving Forward –
Over the next two years, in coordination with the Office of Management and Budget (OMB), GSA will create ten new government-wide strategic sourcing contracts for a range of products and services commonly purchased by federal agencies. GSA is working towards establishing strategic sourcing solutions for FY 2013 in the areas of:
• Large Desktop Publisher Software;
• Print Management Phase 2;
• Maintenance, Repair, and Operations Supplies;
• and Janitorial and Sanitation Supplies.
These efforts, similar to the solutions for office supplies and delivery services, will save hundreds of millions in taxpayer dollars and deliver the best value to agency customers. For these solutions, vendors will provide detailed data on pricing and usage that allows us to drive even greater savings for agencies, and also makes it clear to agencies the savings that they are leaving on the table by not using strategic sourcing. We are also able to use the pricing data to negotiate even greater savings from our vendors. GSA estimates the potential savings from strategic sourcing at $1 billion annually when all ten solutions are in place and agencies are fully participating.
A key element to our success is that these solutions are being created by the agencies, with a cross governmental team of acquisition professionals, program officials, and subject matter experts to identify agency needs, requirements, draft the requests for proposals, evaluate the solutions, and manage agency implementation. This team decides what products will go into the solution, what services they may require, and which vendors we will select to provide us with these products and services.
Increasing Utilization –
We are also focused on increasing agency participation in these strategically sourced contract vehicles. In order to help partner agencies achieve greater savings for the taxpayer, I have been meeting with agency Secretaries and Deputy Secretaries to discuss ways in which we can collaborate. Among the topics I have been discussing with them is an analysis of each agency’s use of schedules and opportunities to expand and improve cooperation. We show the agencies that using GSA schedules save time and money over creating their own contracts. We also show them that GSA schedules are an excellent opportunity to increase their small business participation and this is also the case for our strategically sourced solutions.
At the same time, we are working with program and acquisition staff from agencies across government to understand their concerns about using GSA’s services so that we can better tailor the schedules to their needs and show them the vast array of procurement solutions our agency has to offer. GSA offers a wide range of solutions through its strategic sourcing initiatives, schedules, and government-wide acquisitions (GWACs). We are constantly exploring new ways to make our partners more aware of not only the savings that can be achieved through use of these vehicles, but also the cost of replicating existing, available vehicles. Finally, we are developing a continuous reporting framework to provide agency leadership with feedback on agency use of GSA vehicles and the available opportunities to reduce workload and save time in both developing contracts and fulfilling the agency’s need.
Conclusion –
In the months ahead, GSA will continue to drive savings, streamline agency procurement operations, and deliver the best value for our partner agencies and the American people. As part of this broad commitment to savings and efficiency, GSA will continue to take a leadership role in developing and implementing strategic sourcing solutions. In fact, it was an early attempt to leverage the scale and scope of the Federal Government through strategic sourcing that led to the creation of GSA. Our Federal Acquisition Service exists exclusively to aggregate the demand and purchases of the Federal Government to get the best value and price. We are one of the key players in strategic sourcing for the Federal Government.
I appreciate the opportunity to be here today and I am happy to answer any questions you have. Thank you.
Data Centers and the Cloud, Part II: The Federal Government's Take on Optimizing New Information Technologies Opportunities to Save Taxpayers Money
Statement of Dr. David McClure
Associate Administrator, Office of Citizen Services and Innovative Technologies
General Services Administration
Before the House Committee on Oversight and Government Reform
Subcommittee on Government Operations
July 24, 2013
Chairman Carper, Ranking Member Coburn, and members of the Committee, thank you for the opportunity to appear before you today.
Today, as budgets tighten, the U.S. General Services Administration (GSA) is uniquely positioned to help federal agencies get better outcomes from their program dollars by leveraging the scope and scale of the federal government to deliver common sense solutions and significant savings. By utilizing GSA solutions, agencies can free up valuable resources that allow them to focus on their core missions. GSA is pursuing a number of common sense initiatives to help agencies reduce their costs, from assisting agencies to shrink their real estate footprints, right size their fleet, or ensure cost effective travel, by utilizing GSA solutions.
The Federal Strategic Sourcing Initiative (FSSI) is an integral part of this effort. This program is a structured and collaborative process of critically analyzing an organization’s spending patterns to better leverage its purchasing power, reduce cost and improve overall performance. By going out to the market as one large buyer, an approach common to the private sector and even state governments, the federal government will enhance buying power, streamline acquisition operations, improve service, and create significant savings.
Current Solutions –
GSA currently has in place four strategic sourcing vehicles:
• Express and Ground Domestic Delivery Services (FSSI DDS2);
• Office Supplies;
• Print Management;
• and Wireless
These initiatives create significant savings by making purchases as if we are a single, unified buyer, rather than purchasing through thousands of small, duplicative contracts. By encouraging agencies to commit to the collective purchase of certain commodities, GSA is able to negotiate better prices and services, while simultaneously reducing wasteful contract duplication across government. For example, by going out to the market as one large buyer for office supplies, GSA has been able to negotiate prices for these supplies that are 13 percent below what we have previously paid. We have also saved agencies the time and money that would otherwise be devoted to their own office supply contracts. To date, GSA has saved agencies more than $330 million since 2010 through these solutions.
Strategic sourcing also enables us work with small businesses across the country. The program not only allows us to access the savings and services they offer, but also provide them with an invaluable opportunity to work with the federal government. In the area of office supplies alone, GSA has increased the total dollars going to small businesses from 67% prior to the strategic sourcing solution to 76% through the solution, representing more than $461 million in sales. Through this initiative, we have been able to save the government $200 million on purchases of common office supplies while also supporting small businesses.
Another benefit of the strategic sourcing program is that these contracts provide greater visibility into pricing, allowing the government to further reduce prices within strategically sourced solutions, as well as other contract vehicles. Contractors are required to report transactional data on all program sales. For the first time, this level of financial information collection provides us with a clear picture of agency spending behavior. Over the last several months, GSA has used this data to show contractors their pricing item by item, compared with their competitors in an anonymous fashion. This has empowered contractors to understand their competitive position, and in many cases offer better deals. For instance, after GSA shared this data with office supply contractors, every one of them sharply reduced prices. As a result, we expect our savings for office supplies to increase to 20 percent heading into the next fiscal year. GSA also found that by creating competition through this strategic sourcing solution, even vendors not participating in it lowered their prices by 10 percent compared to 2010. This improved pricing has resulted in an additional $98 million in savings.
Finally, strategic sourcing also dramatically reduces agency contracting cycle times and duplication, saving additional administrative burden and cost. Strategic sourcing is able to eliminate the significant amount of time and money wasted by putting in place thousands of duplicative contracts across the government, and even within agencies, for similar items and with many of the same vendors. For instance, our work through FSSI identified large pricing and service disparities in agency wireless contracts that is costing the government millions in unnecessary spending. We even found vastly different pricing with the same carrier, for the same plan, in the same agency.
In the case of the just mentioned wireless plans, to assist agencies and eliminate unnecessary duplication, GSA recently awarded a strategically sourced solution for wireless service plans and devices. This new solution provides a single acquisition vehicle for the more than 4,000 wireless agreements and 800 wireless plans that are currently scattered across the agencies. Not only will this contract save agencies $300 million over five years, it will allow agencies to run these plans and services at least as efficiently as your typical family plan. We will now be able to pool minutes, shut down lines with zero usage, and receive an inventory of devices.
This is not isolated to wireless services. We have thousands of duplicative contracts across government for cleaning supplies, power tools and software licenses, all with vastly different prices. In the area of IT and professional services alone, we have 16,000 contracts scattered across agencies with nearly 5,000 vendors. Significant progress is being made by both GSA and other agencies to eliminate this duplication but there is still more we can do to streamline purchasing, improve service and pursue government-wide contracting goals.
Strategic Sourcing Moving Forward –
Over the next two years, in coordination with the Office of Management and Budget (OMB), GSA will create ten new government-wide strategic sourcing contracts for a range of products and services commonly purchased by federal agencies. GSA is working towards establishing strategic sourcing solutions for FY 2013 in the areas of:
• Large Desktop Publisher Software;
• Print Management Phase 2;
• Maintenance, Repair, and Operations Supplies;
• and Janitorial and Sanitation Supplies.
These efforts, similar to the solutions for office supplies and delivery services, will save hundreds of millions in taxpayer dollars and deliver the best value to agency customers. For these solutions, vendors will provide detailed data on pricing and usage that allows us to drive even greater savings for agencies, and also makes it clear to agencies the savings that they are leaving on the table by not using strategic sourcing. We are also able to use the pricing data to negotiate even greater savings from our vendors. GSA estimates the potential savings from strategic sourcing at $1 billion annually when all ten solutions are in place and agencies are fully participating.
A key element to our success is that these solutions are being created by the agencies, with a cross governmental team of acquisition professionals, program officials, and subject matter experts to identify agency needs, requirements, draft the requests for proposals, evaluate the solutions, and manage agency implementation. This team decides what products will go into the solution, what services they may require, and which vendors we will select to provide us with these products and services.
Increasing Utilization –
We are also focused on increasing agency participation in these strategically sourced contract vehicles. In order to help partner agencies achieve greater savings for the taxpayer, I have been meeting with agency Secretaries and Deputy Secretaries to discuss ways in which we can collaborate. Among the topics I have been discussing with them is an analysis of each agency’s use of schedules and opportunities to expand and improve cooperation. We show the agencies that using GSA schedules save time and money over creating their own contracts. We also show them that GSA schedules are an excellent opportunity to increase their small business participation and this is also the case for our strategically sourced solutions.
At the same time, we are working with program and acquisition staff from agencies across government to understand their concerns about using GSA’s services so that we can better tailor the schedules to their needs and show them the vast array of procurement solutions our agency has to offer. GSA offers a wide range of solutions through its strategic sourcing initiatives, schedules, and government-wide acquisitions (GWACs). We are constantly exploring new ways to make our partners more aware of not only the savings that can be achieved through use of these vehicles, but also the cost of replicating existing, available vehicles. Finally, we are developing a continuous reporting framework to provide agency leadership with feedback on agency use of GSA vehicles and the available opportunities to reduce workload and save time in both developing contracts and fulfilling the agency’s need.
Conclusion –
In the months ahead, GSA will continue to drive savings, streamline agency procurement operations, and deliver the best value for our partner agencies and the American people. As part of this broad commitment to savings and efficiency, GSA will continue to take a leadership role in developing and implementing strategic sourcing solutions. In fact, it was an early attempt to leverage the scale and scope of the Federal Government through strategic sourcing that led to the creation of GSA. Our Federal Acquisition Service exists exclusively to aggregate the demand and purchases of the Federal Government to get the best value and price. We are one of the key players in strategic sourcing for the Federal Government.
I appreciate the opportunity to be here today and I am happy to answer any questions you have. Thank you.
Wednesday, July 17, 2013
TESTIMONY OF GSA ADMINISTRATOR TANGHERLINI BEFORE SENATE COMMITTEE
FROM: U.S. GENERAL SERVICES ADMINISTRATION
Strategic Sourcing: Leveraging the Government's Buying Power
STATEMENT OF THE HONORABLE DANIEL M. TANGHERLINI
ADMINISTRATOR FOR GENERAL SERVICES ADMINISTRATION
BEFORE THE COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
July 15, 2013
Chairman Carper, Ranking Member Coburn, and members of the Committee, thank you for the opportunity to appear before you today.
Today, as budgets tighten, the U.S. General Services Administration (GSA) is uniquely positioned to help federal agencies get better outcomes from their program dollars by leveraging the scope and scale of the federal government to deliver common sense solutions and significant savings. By utilizing GSA solutions, agencies can free up valuable resources that allow them to focus on their core missions. GSA is pursuing a number of common sense initiatives to help agencies reduce their costs, from assisting agencies to shrink their real estate footprints, right size their fleet, or ensure cost effective travel, by utilizing GSA solutions.
The Federal Strategic Sourcing Initiative (FSSI) is an integral part of this effort. This program is a structured and collaborative process of critically analyzing an organization’s spending patterns to better leverage its purchasing power, reduce cost and improve overall performance. By going out to the market as one large buyer, an approach common to the private sector and even state governments, the federal government will enhance buying power, streamline acquisition operations, improve service, and create significant savings.
Current Solutions –
GSA currently has in place four strategic sourcing vehicles:
• Express and Ground Domestic Delivery Services (FSSI DDS2);
• Office Supplies;
• Print Management;
• and Wireless
These initiatives create significant savings by making purchases as if we are a single, unified buyer, rather than purchasing through thousands of small, duplicative contracts. By encouraging agencies to commit to the collective purchase of certain commodities, GSA is able to negotiate better prices and services, while simultaneously reducing wasteful contract duplication across govvernment. For example, by going out to the market as one large buyer for office supplies, GSA has been able to negotiate prices for these supplies that are 13 percent below what we have previously paid. We have also saved agencies the time and money that would otherwise be devoted to their own office supply contracts. To date, GSA has saved agencies more than $330 million since 2010 through these solutions.
Strategic sourcing also enables us work with small businesses across the country. The program not only allows us to access the savings and services they offer, but also provide them with an invaluable opportunity to work with the federal government. In the area of office supplies alone, GSA has increased the total dollars going to small businesses from 67% prior to the strategic sourcing solution to 76% through the solution, representing more than $461 million in sales. Through this initiative, we have been able to save the government $200 million on purchases of common office supplies while also supporting small businesses.
Another benefit of the strategic sourcing program is that these contracts provide greater visibility into pricing, allowing the government to further reduce prices within strategically sourced solutions, as well as other contract vehicles. Contractors are required to report transactional data on all program sales. For the first time, this level of financial information collection provides us with a clear picture of agency spending behavior. Over the last several months, GSA has used this data to show contractors their pricing item by item, compared with their competitors in an anonymous fashion. This has empowered contractors to understand their competitive position, and in many cases offer better deals. For instance, after GSA shared this data with office supply contractors, every one of them sharply reduced prices. As a result, we expect our savings for office supplies to increase to 20 percent heading into the next fiscal year. GSA also found that by creating competition through this strategic sourcing solution, even vendors not participating in it lowered their prices by 10 percent compared to 2010. This improved pricing has resulted in an additional $98 million in savings.
Finally, strategic sourcing also dramatically reduces agency contracting cycle times and duplication, saving additional administrative burden and cost. Strategic sourcing is able to eliminate the significant amount of time and money wasted by putting in place thousands of duplicative contracts across the government, and even within agencies, for similar items and with many of the same vendors. For instance, our work through FSSI identified large pricing and service disparities in agency wireless contracts that is costing the government millions in unnecessary spending. We even found vastly different pricing with the same carrier, for the same plan, in the same agency.
In the case of the just mentioned wireless plans, to assist agencies and eliminate unnecessary duplication, GSA recently awarded a strategically sourced solution for wireless service plans and devices. This new solution provides a single acquisition vehicle for the more than 4,000 wireless agreements and 800 wireless plans that are currently scattered across the agencies. Not only will this contract save agencies $300 million over five years, it will allow agencies to run these plans and services at least as efficiently as your typical family plan. We will now be able to pool minutes, shut down lines with zero usage, and receive an inventory of devices.
This is not isolated to wireless services. We have thousands of duplicative contracts across government for cleaning supplies, power tools and software licenses, all with vastly different prices. In the area of IT and professional services alone, we have 16,000 contracts scattered across agencies with nearly 5,000 vendors. Significant progress is being made by both GSA and other agencies to eliminate this duplication but there is still more we can do to streamline purchasing, improve service and pursue government-wide contracting goals.
Strategic Sourcing Moving Forward –
Over the next two years, in coordination with the Office of Management and Budget (OMB), GSA will create ten new government-wide strategic sourcing contracts for a range of products and services commonly purchased by federal agencies. GSA is working towards establishing strategic sourcing solutions for FY 2013 in the areas of:
• Large Desktop Publisher Software;
• Print Management Phase 2;
• Maintenance, Repair, and Operations Supplies;
• and Janitorial and Sanitation Supplies.
These efforts, similar to the solutions for office supplies and delivery services, will save hundreds of millions in taxpayer dollars and deliver the best value to agency customers. For these solutions, vendors will provide detailed data on pricing and usage that allows us to drive even greater savings for agencies, and also makes it clear to agencies the savings that they are leaving on the table by not using strategic sourcing. We are also able to use the pricing data to negotiate even greater savings from our vendors. GSA estimates the potential savings from strategic sourcing at $1 billion annually when all ten solutions are in place and agencies are fully participating.
A key element to our success is that these solutions are being created by the agencies, with a cross governmental team of acquisition professionals, program officials, and subject matter experts to identify agency needs, requirements, draft the requests for proposals, evaluate the solutions, and manage agency implementation. This team decides what products will go into the solution, what services they may require, and which vendors we will select to provide us with these products and services.
Increasing Utilization –
We are also focused on increasing agency participation in these strategically sourced contract vehicles. In order to help partner agencies achieve greater savings for the taxpayer, I have been meeting with agency Secretaries and Deputy Secretaries to discuss ways in which we can collaborate. Among the topics I have been discussing with them is an analysis of each agency’s use of schedules and opportunities to expand and improve cooperation. We show the agencies that using GSA schedules save time and money over creating their own contracts. We also show them that GSA schedules are an excellent opportunity to increase their small business participation and this is also the case for our strategically sourced solutions.
At the same time, we are working with program and acquisition staff from agencies across government to understand their concerns about using GSA’s services so that we can better tailor the schedules to their needs and show them the vast array of procurement solutions our agency has to offer. GSA offers a wide range of solutions through its strategic sourcing initiatives, schedules, and government-wide acquisitions (GWACs). We are constantly exploring new ways to make our partners more aware of not only the savings that can be achieved through use of these vehicles, but also the cost of replicating existing, available vehicles. Finally, we are developing a continuous reporting framework to provide agency leadership with feedback on agency use of GSA vehicles and the available opportunities to reduce workload and save time in both developing contracts and fulfilling the agency’s need.
Conclusion –
In the months ahead, GSA will continue to drive savings, streamline agency procurement operations, and deliver the best value for our partner agencies and the American people. As part of this broad commitment to savings and efficiency, GSA will continue to take a leadership role in developing and implementing strategic sourcing solutions. In fact, it was an early attempt to leverage the scale and scope of the Federal Government through strategic sourcing that led to the creation of GSA. Our Federal Acquisition Service exists exclusively to aggregate the demand and purchases of the Federal Government to get the best value and price. We are one of the key players in strategic sourcing for the Federal Government.
I appreciate the opportunity to be here today and I am happy to answer any questions you have. Thank you.
Strategic Sourcing: Leveraging the Government's Buying Power
STATEMENT OF THE HONORABLE DANIEL M. TANGHERLINI
ADMINISTRATOR FOR GENERAL SERVICES ADMINISTRATION
BEFORE THE COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
July 15, 2013
Chairman Carper, Ranking Member Coburn, and members of the Committee, thank you for the opportunity to appear before you today.
Today, as budgets tighten, the U.S. General Services Administration (GSA) is uniquely positioned to help federal agencies get better outcomes from their program dollars by leveraging the scope and scale of the federal government to deliver common sense solutions and significant savings. By utilizing GSA solutions, agencies can free up valuable resources that allow them to focus on their core missions. GSA is pursuing a number of common sense initiatives to help agencies reduce their costs, from assisting agencies to shrink their real estate footprints, right size their fleet, or ensure cost effective travel, by utilizing GSA solutions.
The Federal Strategic Sourcing Initiative (FSSI) is an integral part of this effort. This program is a structured and collaborative process of critically analyzing an organization’s spending patterns to better leverage its purchasing power, reduce cost and improve overall performance. By going out to the market as one large buyer, an approach common to the private sector and even state governments, the federal government will enhance buying power, streamline acquisition operations, improve service, and create significant savings.
Current Solutions –
GSA currently has in place four strategic sourcing vehicles:
• Express and Ground Domestic Delivery Services (FSSI DDS2);
• Office Supplies;
• Print Management;
• and Wireless
These initiatives create significant savings by making purchases as if we are a single, unified buyer, rather than purchasing through thousands of small, duplicative contracts. By encouraging agencies to commit to the collective purchase of certain commodities, GSA is able to negotiate better prices and services, while simultaneously reducing wasteful contract duplication across govvernment. For example, by going out to the market as one large buyer for office supplies, GSA has been able to negotiate prices for these supplies that are 13 percent below what we have previously paid. We have also saved agencies the time and money that would otherwise be devoted to their own office supply contracts. To date, GSA has saved agencies more than $330 million since 2010 through these solutions.
Strategic sourcing also enables us work with small businesses across the country. The program not only allows us to access the savings and services they offer, but also provide them with an invaluable opportunity to work with the federal government. In the area of office supplies alone, GSA has increased the total dollars going to small businesses from 67% prior to the strategic sourcing solution to 76% through the solution, representing more than $461 million in sales. Through this initiative, we have been able to save the government $200 million on purchases of common office supplies while also supporting small businesses.
Another benefit of the strategic sourcing program is that these contracts provide greater visibility into pricing, allowing the government to further reduce prices within strategically sourced solutions, as well as other contract vehicles. Contractors are required to report transactional data on all program sales. For the first time, this level of financial information collection provides us with a clear picture of agency spending behavior. Over the last several months, GSA has used this data to show contractors their pricing item by item, compared with their competitors in an anonymous fashion. This has empowered contractors to understand their competitive position, and in many cases offer better deals. For instance, after GSA shared this data with office supply contractors, every one of them sharply reduced prices. As a result, we expect our savings for office supplies to increase to 20 percent heading into the next fiscal year. GSA also found that by creating competition through this strategic sourcing solution, even vendors not participating in it lowered their prices by 10 percent compared to 2010. This improved pricing has resulted in an additional $98 million in savings.
Finally, strategic sourcing also dramatically reduces agency contracting cycle times and duplication, saving additional administrative burden and cost. Strategic sourcing is able to eliminate the significant amount of time and money wasted by putting in place thousands of duplicative contracts across the government, and even within agencies, for similar items and with many of the same vendors. For instance, our work through FSSI identified large pricing and service disparities in agency wireless contracts that is costing the government millions in unnecessary spending. We even found vastly different pricing with the same carrier, for the same plan, in the same agency.
In the case of the just mentioned wireless plans, to assist agencies and eliminate unnecessary duplication, GSA recently awarded a strategically sourced solution for wireless service plans and devices. This new solution provides a single acquisition vehicle for the more than 4,000 wireless agreements and 800 wireless plans that are currently scattered across the agencies. Not only will this contract save agencies $300 million over five years, it will allow agencies to run these plans and services at least as efficiently as your typical family plan. We will now be able to pool minutes, shut down lines with zero usage, and receive an inventory of devices.
This is not isolated to wireless services. We have thousands of duplicative contracts across government for cleaning supplies, power tools and software licenses, all with vastly different prices. In the area of IT and professional services alone, we have 16,000 contracts scattered across agencies with nearly 5,000 vendors. Significant progress is being made by both GSA and other agencies to eliminate this duplication but there is still more we can do to streamline purchasing, improve service and pursue government-wide contracting goals.
Strategic Sourcing Moving Forward –
Over the next two years, in coordination with the Office of Management and Budget (OMB), GSA will create ten new government-wide strategic sourcing contracts for a range of products and services commonly purchased by federal agencies. GSA is working towards establishing strategic sourcing solutions for FY 2013 in the areas of:
• Large Desktop Publisher Software;
• Print Management Phase 2;
• Maintenance, Repair, and Operations Supplies;
• and Janitorial and Sanitation Supplies.
These efforts, similar to the solutions for office supplies and delivery services, will save hundreds of millions in taxpayer dollars and deliver the best value to agency customers. For these solutions, vendors will provide detailed data on pricing and usage that allows us to drive even greater savings for agencies, and also makes it clear to agencies the savings that they are leaving on the table by not using strategic sourcing. We are also able to use the pricing data to negotiate even greater savings from our vendors. GSA estimates the potential savings from strategic sourcing at $1 billion annually when all ten solutions are in place and agencies are fully participating.
A key element to our success is that these solutions are being created by the agencies, with a cross governmental team of acquisition professionals, program officials, and subject matter experts to identify agency needs, requirements, draft the requests for proposals, evaluate the solutions, and manage agency implementation. This team decides what products will go into the solution, what services they may require, and which vendors we will select to provide us with these products and services.
Increasing Utilization –
We are also focused on increasing agency participation in these strategically sourced contract vehicles. In order to help partner agencies achieve greater savings for the taxpayer, I have been meeting with agency Secretaries and Deputy Secretaries to discuss ways in which we can collaborate. Among the topics I have been discussing with them is an analysis of each agency’s use of schedules and opportunities to expand and improve cooperation. We show the agencies that using GSA schedules save time and money over creating their own contracts. We also show them that GSA schedules are an excellent opportunity to increase their small business participation and this is also the case for our strategically sourced solutions.
At the same time, we are working with program and acquisition staff from agencies across government to understand their concerns about using GSA’s services so that we can better tailor the schedules to their needs and show them the vast array of procurement solutions our agency has to offer. GSA offers a wide range of solutions through its strategic sourcing initiatives, schedules, and government-wide acquisitions (GWACs). We are constantly exploring new ways to make our partners more aware of not only the savings that can be achieved through use of these vehicles, but also the cost of replicating existing, available vehicles. Finally, we are developing a continuous reporting framework to provide agency leadership with feedback on agency use of GSA vehicles and the available opportunities to reduce workload and save time in both developing contracts and fulfilling the agency’s need.
Conclusion –
In the months ahead, GSA will continue to drive savings, streamline agency procurement operations, and deliver the best value for our partner agencies and the American people. As part of this broad commitment to savings and efficiency, GSA will continue to take a leadership role in developing and implementing strategic sourcing solutions. In fact, it was an early attempt to leverage the scale and scope of the Federal Government through strategic sourcing that led to the creation of GSA. Our Federal Acquisition Service exists exclusively to aggregate the demand and purchases of the Federal Government to get the best value and price. We are one of the key players in strategic sourcing for the Federal Government.
I appreciate the opportunity to be here today and I am happy to answer any questions you have. Thank you.
Wednesday, July 10, 2013
GSA TOUTS NEW TOOL TO SAVE MONEY AND PROVIDE OPPORTUNITIES FOR SMALL BUSINESSES
FROM: U.S. GENERAL SERVICES ADMINISTRATION
GSA Launches Reverse Auction Platform for Use by Government Agencies
Innovative tool provides savings and opportunities for small businesses
July 9, 2013
WASHINGTON -- The U.S. General Services Administration (GSA) today announced the launch of a government-managed reverse auction platform— reverseauctions.gsa.gov— available through the National Information Technology Commodity Program (NITCP) of GSA’s Federal Acquisition Service (FAS). GSA expects the platform to deliver increased savings for federal agencies on the most commonly purchased office products, equipment and services, while also making it easier for small businesses to compete for the government’s business.
In a reverse auction, sellers compete to win business from agencies; prices will typically decrease as the competitive auction progresses. GSA’s new reverse auction platform reduces federal agencies’ acquisition processing time and costs, drives prices and costs down, improves transparency and collection of data, and allows for small business set-asides.
“Using a government-run reverse auctions tool is a fantastic innovation for GSA’s customers, and we expect that it will drive even more savings and speed into the acquisition process,” said FAS Commissioner Thomas A. Sharpe, Jr. “This approach to government procurement can be used with a good portion of GSA’s Multiple Award Schedules as an efficient and cost-effective process for purchasing commonly used products and simple services. Reverse auctions can drive down prices paid, reduce the total cost of acquisitions, and save time and precious acquisition resources for both government and industry.”
Federal agencies now may use the GSA platform to conduct reverse auctions through select GSA’s Multiple Award Schedules and established select blanket purchase agreements (BPAs) for commodities like office supplies, laptops, tablets and monitors, as well as for simple services like warranty, training and installation. Additionally, the platform will allow federal customers to set aside auctions for small business, increasing opportunities for small and disadvantaged companies to bid easily for government business.
"GSA is doing a lot of exciting and positive things to improve acquisition efficiencies and drive competition, but the new reverse auction platform hits the ball out of the park," said U.S. Department of the Navy strategic program manager Jamey Halke. Navy is the first agency to use the platform and is already engaged in a partnership with GSA to add the Navy's BPAs to the platform.
Historically, GSA’s customers have saved as much as 17 percent through use of reverse auctions. With GSA offering front-loaded discounted pricing as a starting point through its BPAs, the reverse auction approach will provide additional savings to the government.
Reverse auctions also provide greater transparency into prices paid which improves the government’s ability to negotiate with vendors to receive best pricing possible. The reverse auction platform also captures line-item data by agency bureau, which will aid agencies in performing prices paid analysis and provide insights into purchasing behavior for strategic sourcing opportunities.
GSA Launches Reverse Auction Platform for Use by Government Agencies
Innovative tool provides savings and opportunities for small businesses
July 9, 2013
WASHINGTON -- The U.S. General Services Administration (GSA) today announced the launch of a government-managed reverse auction platform— reverseauctions.gsa.gov— available through the National Information Technology Commodity Program (NITCP) of GSA’s Federal Acquisition Service (FAS). GSA expects the platform to deliver increased savings for federal agencies on the most commonly purchased office products, equipment and services, while also making it easier for small businesses to compete for the government’s business.
In a reverse auction, sellers compete to win business from agencies; prices will typically decrease as the competitive auction progresses. GSA’s new reverse auction platform reduces federal agencies’ acquisition processing time and costs, drives prices and costs down, improves transparency and collection of data, and allows for small business set-asides.
“Using a government-run reverse auctions tool is a fantastic innovation for GSA’s customers, and we expect that it will drive even more savings and speed into the acquisition process,” said FAS Commissioner Thomas A. Sharpe, Jr. “This approach to government procurement can be used with a good portion of GSA’s Multiple Award Schedules as an efficient and cost-effective process for purchasing commonly used products and simple services. Reverse auctions can drive down prices paid, reduce the total cost of acquisitions, and save time and precious acquisition resources for both government and industry.”
Federal agencies now may use the GSA platform to conduct reverse auctions through select GSA’s Multiple Award Schedules and established select blanket purchase agreements (BPAs) for commodities like office supplies, laptops, tablets and monitors, as well as for simple services like warranty, training and installation. Additionally, the platform will allow federal customers to set aside auctions for small business, increasing opportunities for small and disadvantaged companies to bid easily for government business.
"GSA is doing a lot of exciting and positive things to improve acquisition efficiencies and drive competition, but the new reverse auction platform hits the ball out of the park," said U.S. Department of the Navy strategic program manager Jamey Halke. Navy is the first agency to use the platform and is already engaged in a partnership with GSA to add the Navy's BPAs to the platform.
Historically, GSA’s customers have saved as much as 17 percent through use of reverse auctions. With GSA offering front-loaded discounted pricing as a starting point through its BPAs, the reverse auction approach will provide additional savings to the government.
Reverse auctions also provide greater transparency into prices paid which improves the government’s ability to negotiate with vendors to receive best pricing possible. The reverse auction platform also captures line-item data by agency bureau, which will aid agencies in performing prices paid analysis and provide insights into purchasing behavior for strategic sourcing opportunities.
Saturday, June 22, 2013
GENERAL SERVICES ADMINISTRATION SAVES MONEY, PROVIDES OPPORTUNITIES
FROM: U.S. GENERAL SERVICES ADMINISTRATION
GSA Saves $200 Million While Providing Opportunities for Small Businesses
Strategic Sourcing Program for Office Supplies Continues to Deliver Savings
June 21, 2013
WASHINGTON -- The U.S. General Services Administration’s (GSA) Strategic Sourcing program continues to lead the way in delivering value to GSA’s small business partners and the American taxpayer. At the Small Business Administration’s National Small Business Week Phoenix and Procurement Awards ceremony in Washington, DC, GSA’s Chief Acquisition Officer, Anne Rung announced that as of today, GSA’s Office Supplies Second Generation (OS2) program reached a significant milestone of saving the government $200 million on purchases of common office supplies while also supporting small businesses.
"GSA is firmly committed to providing the government with solutions that deliver significant savings and increase small business participation in the federal market," said Rung. "The OS2 solution is a great example of how the government can buy smarter to save money while at the same time ensuring that we are maximizing small business opportunities to the fullest extent possible."
Through the Federal Strategic Sourcing Initiative, GSA has awarded fifteen Blanket Purchase Agreements (BPA) for OS2. Thirteen of the 15 BPAs were awarded to small business entities, providing federal agencies with a purchasing option that meets socioeconomic goals and saves budget dollars. The small-business OS2 suppliers received more than $461 million in sales with 76 percent of the OS2 business.
"In this critical time of reduced budgets, this strategic sourcing initiative helps the government to leverage data, dollars and good business sense in meeting its goals," said Rung. "Under the OS2 program, discounts increase as the collective purchases grow across the federal government. Through this pricing structure, the vehicle truly leverages the government’s buying power."
As another benefit to small business, GSA recently developed a Dynamic Market Pricing Model to help the OS2 small businesses negotiate better pricing with their own suppliers in order to pass those savings back to the government. This pricing model, which is based on transactional data provided to the vendors, will result in more than $12 million in incremental direct savings.
GSA is facilitating the development and launch of 10 new strategic sourcing solutions for launch by the end of FY2014. Through the Federal Strategic Sourcing Initiative (FSSI), agencies pool their purchases to collectively achieve greater cost savings through data-driven purchasing that leverages the scale of the government. The FSSI program now includes more than 20 agencies (military and civilian) that have collaborated to develop government-wide common procurement vehicles that offer greater discounts, provide improved management, support small business and represent best practices.
GSA Saves $200 Million While Providing Opportunities for Small Businesses
Strategic Sourcing Program for Office Supplies Continues to Deliver Savings
June 21, 2013
WASHINGTON -- The U.S. General Services Administration’s (GSA) Strategic Sourcing program continues to lead the way in delivering value to GSA’s small business partners and the American taxpayer. At the Small Business Administration’s National Small Business Week Phoenix and Procurement Awards ceremony in Washington, DC, GSA’s Chief Acquisition Officer, Anne Rung announced that as of today, GSA’s Office Supplies Second Generation (OS2) program reached a significant milestone of saving the government $200 million on purchases of common office supplies while also supporting small businesses.
"GSA is firmly committed to providing the government with solutions that deliver significant savings and increase small business participation in the federal market," said Rung. "The OS2 solution is a great example of how the government can buy smarter to save money while at the same time ensuring that we are maximizing small business opportunities to the fullest extent possible."
Through the Federal Strategic Sourcing Initiative, GSA has awarded fifteen Blanket Purchase Agreements (BPA) for OS2. Thirteen of the 15 BPAs were awarded to small business entities, providing federal agencies with a purchasing option that meets socioeconomic goals and saves budget dollars. The small-business OS2 suppliers received more than $461 million in sales with 76 percent of the OS2 business.
"In this critical time of reduced budgets, this strategic sourcing initiative helps the government to leverage data, dollars and good business sense in meeting its goals," said Rung. "Under the OS2 program, discounts increase as the collective purchases grow across the federal government. Through this pricing structure, the vehicle truly leverages the government’s buying power."
As another benefit to small business, GSA recently developed a Dynamic Market Pricing Model to help the OS2 small businesses negotiate better pricing with their own suppliers in order to pass those savings back to the government. This pricing model, which is based on transactional data provided to the vendors, will result in more than $12 million in incremental direct savings.
GSA is facilitating the development and launch of 10 new strategic sourcing solutions for launch by the end of FY2014. Through the Federal Strategic Sourcing Initiative (FSSI), agencies pool their purchases to collectively achieve greater cost savings through data-driven purchasing that leverages the scale of the government. The FSSI program now includes more than 20 agencies (military and civilian) that have collaborated to develop government-wide common procurement vehicles that offer greater discounts, provide improved management, support small business and represent best practices.
Thursday, December 6, 2012
GSA TRIES TO CONSOLIDATE FBI HEADQUARTERS
FROM: U.S. GENERAL SERVICES ADMINISTRATION
GSA Seeks to Develop Federal Triangle South Area and Consolidate FBI Headquarters
Dec. 3, 2012
WASHINGTON -- Today, the U.S. General Services Administration (GSA) issued two Requests for Information (RFIs) for development projects in the Washington, DC area. GSA is seeking ideas from the commercial real estate industry and other interested parties to redevelop one of the largest clusters of federal buildings in Southwest Washington near L’Enfant Plaza, known as Federal Triangle South. A second RFI seeks responses from the development community on exchanging the old Federal Bureau of Investigation (FBI) headquarters for a new, consolidated headquarters. This action supports President Obama’s directive to shrink the federal real estate footprint.
"GSA is aggressively working to find new and innovative ways to save money and increase efficiency," said GSA Acting Administrator Dan Tangherlini. "An exchange of the FBI headquarters not only saves money, but it also promotes efficiency by consolidating staff into a single state-of-the-art facility, shrinking the federal real estate footprint and eliminating multiple leases. With Federal Triangle South, we will contribute to a more sustainable neighborhood by creating opportunities for development, while at the same time saving taxpayer dollars by redeveloping outdated and underutilized properties."
The FBI RFI is an innovative approach to property disposal that has been championed by GSA Acting Administrator Tangherlini in order to make more efficient use of the government's real estate assets while also disposing of excess properties. The exchange would replace the outdated and overcrowded J. Edgar Hoover building, a 2.4-million-square-foot facility, located on Pennsylvania Avenue, NW in Washington, DC, for the construction of a new and consolidated FBI headquarters. The full National Capital Region, which includes the District of Columbia, Maryland, and Virginia, is under consideration for the potential new FBI headquarters.
GSA is aligning its vision for Federal Triangle South with the National Capital Planning Commission’s Southwest EcoDistrict -- a sustainable community stretching from the National Mall to the Southwest Waterfront. The project would include a number of federal buildings and seeks to reduce costs by overhauling these outdated and underutilized assets, developing state-of-the-art green facilities; and encouraging mixed-use and improved infrastructure.
GSA Seeks to Develop Federal Triangle South Area and Consolidate FBI Headquarters
Dec. 3, 2012
WASHINGTON -- Today, the U.S. General Services Administration (GSA) issued two Requests for Information (RFIs) for development projects in the Washington, DC area. GSA is seeking ideas from the commercial real estate industry and other interested parties to redevelop one of the largest clusters of federal buildings in Southwest Washington near L’Enfant Plaza, known as Federal Triangle South. A second RFI seeks responses from the development community on exchanging the old Federal Bureau of Investigation (FBI) headquarters for a new, consolidated headquarters. This action supports President Obama’s directive to shrink the federal real estate footprint.
"GSA is aggressively working to find new and innovative ways to save money and increase efficiency," said GSA Acting Administrator Dan Tangherlini. "An exchange of the FBI headquarters not only saves money, but it also promotes efficiency by consolidating staff into a single state-of-the-art facility, shrinking the federal real estate footprint and eliminating multiple leases. With Federal Triangle South, we will contribute to a more sustainable neighborhood by creating opportunities for development, while at the same time saving taxpayer dollars by redeveloping outdated and underutilized properties."
The FBI RFI is an innovative approach to property disposal that has been championed by GSA Acting Administrator Tangherlini in order to make more efficient use of the government's real estate assets while also disposing of excess properties. The exchange would replace the outdated and overcrowded J. Edgar Hoover building, a 2.4-million-square-foot facility, located on Pennsylvania Avenue, NW in Washington, DC, for the construction of a new and consolidated FBI headquarters. The full National Capital Region, which includes the District of Columbia, Maryland, and Virginia, is under consideration for the potential new FBI headquarters.
GSA is aligning its vision for Federal Triangle South with the National Capital Planning Commission’s Southwest EcoDistrict -- a sustainable community stretching from the National Mall to the Southwest Waterfront. The project would include a number of federal buildings and seeks to reduce costs by overhauling these outdated and underutilized assets, developing state-of-the-art green facilities; and encouraging mixed-use and improved infrastructure.
Tuesday, April 17, 2012
GSA HEAD DISCUSSES GSA WASTEFUL SPENDING
FROM: GENERAL SERVICES ADMINISTRATION
Hearing on “Addressing GSA's Culture of Wasteful Spending”
DANIEL TANGHERLINI
ACTING ADMINISTRATOR
U.S. GENERAL SERVICES ADMINISTRATION
BEFORE THE COMMITTEE ON
OVERSIGHT AND GOVERNMENT REFORM
"ADDRESSING GSA'S CULTURE OF WASTEFUL SPENDING"
April 16, 2012
Good afternoon Chairman Issa, Ranking Member Cummings, and Members of the Committee. My name is Daniel Tangherlini, and I am the Acting Administrator of the U.S. General Services Administration (GSA).
I appreciate the opportunity to come before the committee today. First and foremost, I want to state my agreement with the President that the waste and abuse outlined in the Inspector General’s (IG) report is an outrage and completely antithetical to the goals and directives of this Administration. We have taken strong action against those officials who are responsible and will continue to do so where appropriate. We are taking steps to improve internal controls and oversight to ensure this never happens again. I look forward to working in partnership with this Committee to ensure there is full accountability for these activities so that we can begin to restore the trust of the American people.
At the same time I am committed to renewing GSA’s focus on its core mission: saving taxpayers’ money by efficiently procuring supplies, services, and real estate, and effectively disposing of unneeded government property. There is a powerful value proposition to a single agency dedicated to this work, especially in these fiscal times, and we need to ensure we get back to basics and conduct this work better than ever.
Promoting Efficiency and Reducing Costs –
The shocking activities and violations outlined in the IG report run counter to every goal of this Administration. The Administration makes cutting costs and improving the efficiency of the Federal government a top priority. On June 13, 2011, the President issued Executive Order (E.O.) 13576, “Delivering an Efficient, Effective, and Accountable Government.” This EO emphasized the importance of eliminating waste and improving efficiency, establishing the Government Accountability and Transparency Board to enhance transparency of Federal spending and advance efforts to detect and remediate fraud, waste, and abuse.
The President further established the goals of this Administration in E.O. 13589, “Promoting Efficient Spending,” which set clear reduction targets for travel, employee information technology devices, printing, executive fleets, promotional items, and other areas. The President’s FY 2013 budget request for GSA would achieve $49 million in savings under this EO, including $9.7 million in travel.
Holding Officials Responsible –
It is important that those responsible for the abuses outlined in the IG’s report be held accountable. We are taking aggressive action to address this issue and to ensure that such egregious actions will never occur again. We have taken a series of personnel actions, including the removal of two senior political appointees. We have also placed ten career employees on administrative leave, including five senior officials.
I intend to uphold the highest ethical standards at this agency and take any action that is necessary and appropriate. If we find any irregularities, I will immediately engage the Inspector General. As I indicated in my joint letter with GSA’s Inspector General, I intend to set a standard that complacency will not be tolerated, and waste, fraud, or abuse must be reported.
I believe this commitment is critical, not only because we owe it to the American taxpayers, but also because we owe it to the many GSA employees who conform to the highest ethical standards and deserve to be proud of the agency for which they work.
Taking Action –
I have taken a number of steps since I began my tenure on April 3, 2012 to ensure this never happens again. GSA has consolidated conference oversight in the new Office of
Administrative Services, which is now responsible for:
Oversight of contracting for conference space, related activities, and amenities;
Review and approval of proposed conferences for relation to GSA mission;
Review and approval of any awards ceremonies where food is provided by the Federal government;
Review and approval of conference budgets as well as changes to those budgets;
Oversight and coordination with GSA conference/event planners and contracting officers on conference planning;
Review of travel and accommodations related to conference planning and execution;
Handling of procurement for all internal GSA conferences; and
Development of mandatory annual training for all employees regarding conference planning and attendance.
Additionally, we have cancelled the 2012 Western Regions Conference as well as a number of other conferences that only or primarily involved internal staff. To date, I have cancelled 35 conferences,1 saving taxpayers $995,686. As we put in place greater controls and oversight, we are reviewing each event to make sure that any travel is justified by a mission requirement.
We have also begun review of employee relocations at government expense, and will require all future relocations to be approved centrally by both the Chief People Officer and the Chief Financial Officer.
To strengthen internal controls, we are bringing in all Public Buildings Service regional budgets under the direct authority of GSA’s Chief Financial Officer. The autonomy of regional budget allocations is, in part, what led to this gross misuse of taxpayer funds on both the regional conference and the employee rewards program known as “Hats Off.” The additional approvals and centralized oversight are intended to mitigate the risk of these problems.
In response to concerns over spending on employee rewards programs, I have eliminated the “Hats Off” store that was operating in the Pacific Rim Region, as well as all similar GSA programs.
I am moving aggressively to recapture wasted taxpayer funds. As a first step, on April 13th, I directed that letters be sent to Bob Peck, Jeff Neely, and Robert Shepard demanding reimbursement for private, in-room receptions at the Western Regions Conference. I will pursue other fund recovery opportunities.
I am engaged in a top to bottom review of this agency. I will continue to pursue every initiative necessary to ensure this never happens again and to restore the trust of American taxpayers.
Conclusion –
The unacceptable and inappropriate activities at the Western Regions Conference stand in direct contradiction to the express goals of this agency and the Administration, and I am committed to ensuring that we take whatever steps are necessary to hold those responsible accountable and to make sure that this never happens again. At the same time, I believe that the need for a high quality GSA is more acute today than in any time in its history. We need to refocus this agency and get back to the basics: streamlining the administrative work of the Federal government to save taxpayers money.
I look forward to working with this Committee moving forward and I welcome the opportunity to answer any questions. Thank you.
_______________________________________
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