1) Trimming the General Services Administration

Due to declining revenues, GSA is offering cash buyouts and early retirement packages to more than 400 employees in the Federal Supply Service and the Federal Technology Service by October 1, 2006. This cut is not related to consolidation of the Federal Technology Service, which specializes in buying products and services related to information technology and telecommunications, and the Federal Supply Service, which provides a variety of “off the shelf” products and services. Both organizations are to be merged into a single entity called the Federal Acquisition Service (FAS).

If approved by the Office of Personnel Management and the Office of Management and Budget, the workforce in those two bureaus will be cut by 8 percent. GSA spokespeople have stated that the plan should make it possible for GSA to avoid layoffs.

These cuts are most likely due to the Information Technology Solutions program at FTS losing money for the past 24 months and the Supply service also suffering a decrease in revenue. Some of the General Services Administration’s revenue loss stemmed from the recent discovery of inappropriate contracting activities. Auditors for the GSA Inspector General found numerous questionable activities at FTS, which attracted congressional scrutiny. GSA slowed its procurement process and initiated the Get it Right program. While still a successful, profit-making agency, GSA has been successful with the Get It Right program and in awarding GSA Schedules that comply with the scope of the solicitation; meanwhile, post-award audits have helped GSA to maintain scope. The slow-down has also led to reduced business for GSA, which has stemmed GSA revenues received through the IFF.