GSA revenues fall, FAS misses several 2006 goals

The General Services Administration’s Federal Acquisition Service hit a financial slump in fiscal 2006, according to a new report on GSA revenue.

FAS’ overall revenue dropped, and GSA fell short of reaching several financial goals, according to GSA’s “Fiscal 2006 Annual Performance and Accountability Report.” But in some financial areas, GSA exceeded its expectations.

FAS’ network services revenue dropped $37 million to $1.21 billion in fiscal 2006, and the agency's Information Technology Fund’s net revenue decreased by $100 million compared with IT Fund revenue a year ago. The fund’s business volume also declined as GSA’s larger customers went elsewhere for their business needs.

GSA reported other declines. The agency's governmentwide acquisition contract task orders totaled $2.4 billion in fiscal 2006, down $1 billion from a year ago. The agency cited problems with the use of the contract vehicles and delays in awarding orders as reasons for the lower net sales.

Revenue is not FAS’ only measure of success, however. GSA's network services organization gauges how much money its customers save by using its services. In 2006, that organization exceeded its goal by saving customers $620 million, according to the report. However, GSA lowered its benchmark to $550 million in fiscal 2006.  In 2005, the now-defunct Federal Technology Service saved customers $633 million, which was about $147 million short of its goal that year.

GSA's fiscal 2006 savings metrics reflect customers’ greater-than-expected use of commodity telecommunications services. In 2005, agencies were buying a greater volume of customized services in lieu of managed network solutions. GSA defines savings as the cost the government would pay commercially to offer the same services that the agency offers through FAS.

The new report also shows figures that reflect GSA's efficiency in awarding contracts. On that measure, FAS’ National IT Solutions organization scored 89 percent, or 2 percent higher than a year ago. But the agency fell short of its goal of meeting or exceeding 95 percent of its target dates for awarding contracts. GSA has focused on training and certification in project management and acquisition to raise that efficiency score.

GSA's e-Buy program scored significant gains as measured by increased task orders. In fiscal 2006, the agency's IT Solutions’ professional services organization exceed by 3 percent its goal of having 90 percent of task orders solicited using e-Buy. In fiscal 2005, the IT Solutions organization solicited only 78 percent of task orders under e-Buy. That program lets all vendors review requests for quotes or proposals and then respond to them, which keeps the bidding process open to more contractors.

In another area, GSA's regional telecommunications business through FAS increased from 72 percent to 89 percent as a measure of service orders awarded with performance-based statements of work.

GSA's efforts to follow industry best practices also paid off with better-than-expected percentages, the report states.

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