GSA Logo
Performance and Accountability Report Fiscal Year 2007
Introduction
GSA Home | Table of Contents | Management | Performance | Financial | Other

Letter from the Administrator

FY 2007 Performance and Accountability Report

Photo of Lurita Doan, General Services Administration Administrator
Lurita Doan

I am pleased to present the Fiscal Year (FY) 2007 Annual Performance and Accountability Report (PAR) for the U.S. General Services Administration (GSA). This report details the Agency’s accomplishments and challenges in upholding our mission to leverage the buying power of the Federal government to acquire best value for taxpayers and our Federal customers. GSA exercises responsible asset management; delivers superior workplaces, quality acquisition services, and expert business solutions; and develops innovative and effective management policies to better serve other agencies and the American public.

Our new Strategic Plan, published in June 2007, provides an exciting opportunity to envision the future and implement new strategies that will improve partnering with our customer agencies. The Strategic Plan guides us in better meeting agencies’ multiple workplace needs by integrating the offerings of GSA’s two Services—Public Buildings Service (PBS) and Federal Acquisition Service (FAS). Cross-Service collaboration will produce “workplace solutions” that meet the full spectrum of a customer’s space and other office needs. GSA is committed to providing products, services, and solutions to Federal agencies at best value, thereby allowing Federal agencies to focus on their core missions. The cost-effective stewardship of Federal assets provided by GSA to Federal agencies ensures that our obligation to the U.S. taxpayer is met in the most efficient manner possible.

Our innovation in acquisition services and business solutions has led to more effective Federal policies and administrative opera-tions which further allows our Federal customers to accomplish their missions in a successful manner. Our diverse offerings of procurement and policy development, Federal asset management, and acquisition services provide the solutions that achieve results for our Federal customers. Our vision is that agencies doing business with GSA should have one contact that can coordinate within GSA to fulfill all their workplace requirements. The guiding principle behind this effort has been captured as “One GSA—One Voice.” This principle promotes the collaboration and integration of our many diverse offerings, ultimately enhancing our ability to meet the requirements of our Federal agency customers and the American people.

Unqualified “Clean” Opinion

GSA again received an unqualified “clean” opinion in FY 2007 with no material weaknesses from our independent auditors. This accomplishment continues to demonstrate to our customers that we are committed to handling their funding with care and attention to detail. With the attainment of the unqualified “clean” opinion and no material weaknesses, we are moving forward and improving our internal control processes and fulfilling the goals of the President’s Management Agenda (PMA). GSA has educated Agency personnel in the proper closeout of completed projects and is returning unused budgetary authority. These actions have resulted in more efficient use and monitoring of customer budget authority as well as accurate financial accounting and reporting. In addition, these actions also demonstrate our dedication to sound and transparent accounting practices.

GSA Priorities

President Bush has a vision for government reform that is guided by his desire for an effective Federal government that is citizen-centered and results-oriented. Aggressive changes we have made in alignment with the PMA include the development of a new strategic plan that will better enable us to meet our customers’ needs and provide savings to the taxpayers. Under my tenure, GSA’s top priorities have been:

  • Fiscal Discipline
  • Transparency, Integrity, and Accountability
  • Employee Morale
  • Integrating our offerings to accomplish other GSA strategic objectives, including:
    • Meeting agencies’ multiple workplace needs better, by integrating the offerings of Federal Acquisition Service (FAS) and Public Buildings Service (PBS). Greater cross-Service collaboration will produce “workplace solutions” that meet the full spectrum of a customer’s space and other office needs.
    • Reducing duplication of effort in government contracting.
    • Developing alternative price options and tiers of service—from assisted services to fully integrated solutions.
    • Increasing speed and efficiency in the delivery of space, services, and products to our customers at prices that offer the best value.
    • Expanding the acquisition workforce and improving training for contracting professionals.
    • Pioneering lines of business (LoB) that meet the needs of a 21st century workplace and workforce.
  • Presenting “one face to the customer.” Agencies doing business with GSA should have one GSA contact that can coordinate within GSA to fulfill all their workplace requirements; One GSA—One Voice.
  • Helping Federal agencies meet the goal of President Bush’s Executive Order 13423, Strengthening Federal Environmental, Energy, and Transportation Management; and the Energy Policy Act of 2005 by providing green products and services to its customers. GSA offers alternative fuel vehicles (AFV); uses wind, solar, and other innovative renewable energy sources in its buildings; develops alternative workplace arrangements; and offers a wide range of environmentally preferable office products.

Federal Acquisition Service

FAS was officially established in FY 2007. The new organization combines the Federal Technology Service (FTS) and the Federal Supply Service (FSS) and represents a historic milestone for GSA. The new Service is providing greater standardization and innovative techniques, offering developing technology, and leveraging government buying power to remain competitive in selling goods and services to agencies.

In merging our supply and technology offerings, we have already seen results in superior, faster service to our customers. The process of rethinking previously separate functions and searching for new solutions has energized FAS and is benefiting our customers. One example of this new entrepreneurial energy from GSA employees was the launch of the new Multiple Award Schedule (MAS) Express Program. The program was launched this year to speed the processing period between application and award for Federal MAS contracts. GSA now awards MAS contracts to eligible vendors within 30 days, instead of the previous average of 157 days. This program improves customer service and increases efficiencies by reducing time to award contracts, which benefits small businesses and the American taxpayer.

This year, FAS also awarded the highly anticipated Networx Universal and Networx Enterprises contracts to telecommunication vendors for implementation. These two contracts will transform the current Federal telecommunications system to a modern network. It will offer customers an expanded portfolio of quality voice, data, video communication solutions, and emerging network services. By awarding these two contracts, FAS is on the right path to improve our business and help GSA remain the government’s premier acquisition agency.

In December 2006, the Department of Defense (DoD) and GSA signed a Memorandum of Agreement (MOA) to better define the relationship between the two agencies. GSA worked intensively to implement all 24 objectives in the MOA; 13 action items have already been completed. GSA accomplishments include specifying key roles to increase oversight, providing online and video training for all GSA contract specialists to enhance training in interagency acquisition, standardizing policy guidance and collaboration, increasing communication, and improving financial data reporting. The 11 remaining action items are ongoing and do not have scheduled completion dates. Agency officials will continue to review progress weekly to ensure GSA addresses and prevents potential problems. These accomplishments will restore the confidence of our largest customer and improve business.

DoD has also committed to using the GSA Veterans Technology Services (VETS) Government Wide Acquisition Contract (GWAC), for service-disabled veteran owned businesses, wherever possible for information technology (IT) services. This commitment from DoD also signals a new level of collaboration between GSA and DoD on IT procurements.

In keeping with GSA’s focus on fiscal responsibility and results, I announced in September that GSA was putting in place the structure to ensure that the FAS Assisted Acquisition Services (AAS) Program is on a sustainable path of progress, including the reorganization of certain divisions to build a more economically viable business line that will break even by 2008. GSA’s decision to move AAS into a break even status will not mean job losses. The Agency is placing AAS personnel within other parts of GSA where there is greater need for their skills.

I see a bright future for GSA’s AAS. Information technology is becoming more complex, creating a greater need in the government for assistance in writing statements of work, managing projects, and guiding customers.

Public Buildings Service

PBS is setting the example for the government and the private sector in incorporating principles of sustainable design and energy efficiency into all of its building projects. In FY 2007, PBS celebrated the official opening of the National Oceanic and Atmospheric Administration (NOAA) Satellite Operations Facility in Suitland, MD. The new workplace was designed under guidelines of GSA’s Design Excellence Program and the U.S. Green Building Council. PBS is dedicated and committed to helping client agencies meet their environmental obligations by providing responsible choices and innovative construction.

As a means of evaluating and measuring green building achievements, PBS requires all new construction projects and major renovations to be certified through the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system. We recognize that buildings consume about 40 percent of the total energy used in the United States and as much as 70 percent of the electricity. GSA has always made significant investments in energy saving solutions. In fact, between 1985 and 2005, GSA achieved a 30 percent reduction in energy consumption. The President has challenged all Federal agencies to reduce their energy consumption, to increase the use of renewable energy, and continue to find new technologies. We continue to take energy reduction measures, but we are also researching new technologies that can help us reduce energy consumption even more and reduce overall costs to the government.

PBS continues to improve customer service and to achieve savings for Federal agencies in our real estate leasing program. Our most significant effort involves the National Broker Contract. This contract has been in place for about two years and we are seeing results. Last year, projects with our brokers were more than 13 percent below the market midpoint and that far exceeds our overall goal of 8.75 percent. In addition, because of increased efficiency, beginning October 2007, our leasing fee to customer agencies will decline from eight to seven percent.

PBS is achieving significant milestones towards strengthening credibility with customers and meeting their expectations. On June 18, 2007, GSA went live with a nationally standardized process for rent billing. This process helps us meet our goals of accurate billing supported by source documentation, notifying customers prior to bill change, and reflecting changes to the bill within one billing cycle.

President’s Management Agenda

The PMA Scorecard for the fourth quarter of FY 2007 shows steady progress, with four GSA initiatives achieving a Green-Green rating for status and progress. The four areas that achieved this high rating were Human Capital, Performance Improvement, Real Property, and Financial Performance. This is the second consecutive year GSA earned a Green rating in both categories on the Performance Improvement and Real Property Scorecards. A successful audit kept the Financial Performance rating as Green-Green. Human Capital improved from last year by moving into a Green-Green rating. GSA is rated Yellow for status and progress for Competitive Sourcing and Yellow and Red for E-Gov. Transportation Management, Environmental Stewardship, and Energy Management are three new initiatives for this year. Transportation Management scored Red for status and Green for progress. Environmental Stewardship has a rating of Yellow for both status and progress and Energy Management scored Green for status and Yellow for progress. The results indicate solid commitment by GSA’s employees to improving government performance and providing better service to our customers.

Financial Performance and Program Data

As outlined in the Management Assurance section of this report, GSA conducted its assessment of the effectiveness of internal control over financial reporting. GSA can provide reasonable assurance that its internal control over financial reporting is operating effectively and no material weaknesses were found. We are extremely proud of this accomplishment, but more work needs to be done. GSA is aggressively making continued improvements to its financial systems and operations. Throughout the year, our senior managers assessed the efficiency and effectiveness of their organizations by analyzing financial and performance data. Management relies on this data to identify material inadequacies in financial and program performance areas and to identify corrective actions needed to resolve them.

As required by the Reports Consolidation Act of 2000, I have assessed the financial and performance data used in this report, and believe it to be complete and reliable.

Management Challenges

To uphold our mission of leveraging the buying power of the Federal government to acquire best value for taxpayers and our Federal customers, GSA faces the following challenges:

  • Assisting other Federal agencies in complying with the President’s Environmental Executive Order 13423, Strengthening Federal Environmental, Energy, and Transportation Management. GSA is helping its client agencies meet their environmental obligations by providing responsible choices in our services and offerings.
  • Continuing to improve GSA’s real property capital project planning, and delivery. Costs for materials and labor continue to increase and fluctuations in commodities like petroleum and petroleum-based products are adding volatility in pricing. GSA must ramp up oversight and consistency in project delivery with new tools and procedures in place so that we know when a project schedule or budget has slipped before it becomes a crisis.
  • Developing a new strategy to change the way customer agencies do business. Launching new programs is always a challenge; however, we must have the courage and willingness to modify programs that are not performing successfully or not meeting expectations.
  • Increasing the percentage of employees who can telework in accordance with Public Law 106-346, § 359. I have challenged GSA managers to develop plans to enable 50 percent of eligible employees to telework one or more days per week by 2010. Telework benefits include reduced energy use, such as fewer greenhouse gas emissions, less traffic, less U.S. dependence on foreign oil, increased worker productivity, and savings for American taxpayers. Telework is an important component in every successful Continuity of Operations Plan (COOP). It is also an important recruiting and retention tool that will help attract and keep talented individuals in public service.

GSA is a dynamic organization that is energized and delivering tangible benefits for our country. All of us who work at GSA care deeply about this organization and are committed to its goals and principles. Teamwork is critical to achieving our strategic goals, meeting the requirements of our customer agencies, and fully realizing our vision of One GSA—One Voice.

Cordially,

Signature of Lurita Doan, General Services Administration Administrator

Lurita Doan
Administrator
November 9, 2007

 

< Previous Page | Next Page >