Breaking Down the GSA Barriers–Creation of FAS

On June 2, 2005, the General Services Administration ("GSA") released a draft plan to combine the Federal Technology Service ("FTS") and the Federal Supply Service ("FSS") in a new operation called the Federal Acquisition Services ("FAS"). The creation of the FAS organization is in response to President Bush’s 2006 budget request and the call to break down the artificial barriers between the FTS and the FSS to increase efficiency, streamline functions, and save money. In addition, the budget specifically recognized that "due to the evolution of how information technology is acquired–buying solutions that are a mix of products and services rather than stand-alone hardware or services–two separate supply and technology organizations are no longer needed."

The GSA envisions organizing FAS along three business portfolios with cross-cutting units to manage customer relationships, acquisition vehicles, and activities with the following goals:

• Strengthen GSA’s capability to meet increasing customer requirements for excellence in the acquisition of information technology and other services;
• Make it easier for industry contractors to understand and use GSA’s acquisition process; and
• Enhance the efficiency of GSA’s administrative support functions by consolidating certain activities that are now performed in separate units.

Barbara L. Shelton was recently named Acting Commissioner of FAS. In that position, she will be responsible for leading the work required to establish the new FAS organization. In addition, Deidre Lee, former Director of Procurement for the Department of Defense, will become the Assistant Commissioner for Integration Technology Services, one of the proposed business portfolios of FAS.

The FAS management team will also consist of Business Portfolio managers at the national program level, a FAS controller and IT director, and members at the regional level. While the full reporting structure remains under discussion, the plan calls for collaboration of the FAS management team in strategic direction setting, planning, and budgeting.

Under the proposed structure, a Customer Relationship Management ("CRM") organization will be formed to assist FAS in understanding customer requirements for Government Contracts, Grants & Trade Federal Forecaster acquisition services. It is envisioned that CRM will "become a strategic partner" in meeting those needs by aligning the CRM organization with FAS’s customer base. The CRM will perform customer account management services and provide customers with information about the range of acquisition vehicles and solutions that FAS offers.

The plan also calls for a Chief Acquisition Officer ("CAO") to establish all GSA acquisition policy and to oversee its implementation. Within FAS, the Acquisition Management organization will be responsible for ensuring compliance with the CAO’s directives and monitoring FAS operating practices and activities. Accordingly, the Acquisition Management organization will work closely with the CAO and the individual FAS business portfolios to ensure that there are clear, consistent, and enforceable processes in place to award and administer contracts.

GSA envisions forming three business portfolios for FAS: (i) Integrated Technology Services; (ii) General Supplies and Services; and (iii) Travel and Personnel Property Disposal Services. The primary responsibility of each portfolio will be to develop and deploy acquisition solutions related to a set of products and/or services consistent with overall policies.

The proposed Integration Technology Services portfolio will combine IT and professional services into a single business line and allow for telecommunications to be its own business line. It will also manage the relevant multipleaward schedules and government-wide acquisition contracts, related assisted acquisition services, and single-agency contracts. This structure recognizes the frequent combination of IT and professional services, and intends to provide customers that purchase these products and services a streamlined acquisition process.

The proposed General Supplies and Services portfolio will be responsible for a broad range of commercial products, and some closely related services, including the specialized logistics-based activities. This portfolio will include the current Global Supply business line, freight transportation, and the management of schedules for non-IT products and related services. The three primary goals in forming this portfolio are to establish more leveraged buys that offer better deals for the government, maintain opportunities for broad competition, and strengthen the government’s ability to take advantage of strategic sourcing opportunities.

The Travel and Personal Property Disposal Services portfolio encompasses GSA business lines including: travel, relocation, vehicle purchasing and leasing, card services, and personal property disposal. Although each of these services operates with its own respective supplier industries, they all share common characteristics, such as heavy reliance on e-tools to interact with customers, national program operations, and the use of cards as a common procurement channel. These common characteristics are expected to provide opportunities for synergy and economies of scale.

The GSA is reviewing comments on the proposed design of FAS and the final organization plan is expected to be released in late July. As seen in the naming of Barbara Shelton, Acting FAS Commissioner, and Deidre Lee, Assistant Commissioner for Integrated Technology Services, the GSA is beginning the process of selecting the management team that will have the responsibility to carry forth the plans for this new, exciting, restructured organization. For current FSS and FTS Schedule holders, as well as those planning on obtaining an FAS Schedule, this new organization should make it easier for industry contractors to understand and use GSA’s acquisition processes.

This article is presented for informational purposes only and is not intended to constitute legal advice.