Working Capital Fund : INTRODUCTION

In support of the President’s Management Agenda (PMA) and government-wide management initiatives, GSA developed the following goals: provide best value for customer agencies and taxpayers, achieve responsible asset management, operate efficiently and effectively, ensure financial accountability, maintain a world-class workforce and world-class workplace, and carry out social, environmental, and other responsibilities as a Federal agency.

These goals support GSA’s mission statement “We help Federal agencies better serve the public by offering, at best value, superior workplaces, expert solutions, acquisition services and management policies.”

The Working Capital Fund (WCF) is a fully reimbursable revolving fund that finances the full range of administrative support services to GSA and select services to other Federal organizations. The agency-level management activities funded through the WCF include the Chief Financial Office, Chief People Office, Chief Information Office, Chief Acquisition Office, the Office of General Counsel, the Office of Small Business Utilization, the Office of Civil Rights, the Office of Performance Improvement, and the Office of Emergency Response and Recovery. The total WCF program level for

Fiscal Year (FY) 2008 is estimated to be $420 million with 1,450 full-time equivalent (FTE) positions.

Centralized Administrative Support

Centralized Administrative Support (CAS) represents the largest portion of the WCF, at approximately 55% of total obligations. The CAS functions are provided to internal GSA customers and include agency-wide functions such as finance, budget and accounting support, information technology, personnel administration, acquisition policy, and legal services. Centralizing administrative support functions has enabled GSA to achieve economies of scale, reducing costs and increasing operational efficiencies, and allowed GSA’s program areas to focus on and accomplish their goals.

Other Reimbursable

Other Reimbursable activities provide services to both GSA and non-GSA clients. Included in Other Reimbursable are Centralized Charges ($67,579 thousand), External Reimbursable ($18,772 thousand), and Enterprise Infrastructure Operations ($71,706 thousand).

Major Equipment Acquisition and Development

Major Equipment Acquisition and Development provides for the acquisition of computer hardware and software needed to implement the Chief Financial Officers Act (Public Law 101-576), and any other laws or regulations. FY 2008 funding will be used to complete a billing/accounts receivable module for the GSA financial system, create a data warehouse, and replace GSA’s time and attendance application.

¹ Includes IG and OCFO Lapsed Balances available for obligation.

Explanation of Estimates:

The FY 2008 total request of $419,779 thousand reflects a net increase of $22,392 thousand from the adjusted FY 2007 operating program level of $397,387 thousand. The net increase of $22,392 thousand resulted from the following actions:

An increase of $27,722 thousand related to:

• $2,675 thousand for annualized pay raise;
• $1,123 thousand for operations and maintenance of equipment;
• $1,777 thousand for rent and DHS security increases;
• $3,978 thousand for Increase costs of goods and services;
• $2,860 thousand for general inflation; and
• $15,309 thousand for implementation of Chief Information Office reorganization.

A decrease of $5,330 thousand related to:

• $2,879 thousand for reduction of one-time costs to programs;
• $1,282 thousand for decrease in Centralized Charges;
• $ 604 thousand for transfer of the Office of Management Services to PBS; and
• $ 565 thousand for decrease in Financial Systems Development.

STRATEGIC ASSESSMENT

The strategic directions presented focus on initiatives for improving services, including technological innovations, to meet the needs of both internal and external customers and achieving the criteria for success under the President’s Management Agenda.

Chief Financial Officer (CFO)

The Office of the GSA Chief Financial Officer (OCFO) serves as a provider of “corporate” shared services and full service financial management for all of GSA and more than 40 external customers. To provide professional financial management services, guidance, and innovative solutions to our customers, our mission directly supports GSA’s mission by providing high quality financial management services including strategic planning; budget, and performance management; labor forecasting and distribution; financial analysis; financial operations (accounts payable, accounts receivable, cost allocation, asset management, and payroll); financial reporting; internal controls; and audit follow-up.

The Performance Management Process (PMP) institutionalized performance-based budgeting at GSA, thereby enabling leaders to identify Business Line/Program areas requiring performance improvement; develop strategy and action plans, performance goals, and measures to initiate and track the improvement; and execute the strategies at the operational level to achieve desired results. This process has reinforced and strengthened discussion among senior managers throughout the year about planning, budget prioritization, and performance results.

The OCFO has developed a long-term goal to deliver timely and accurate financial and performance management policies and services needed for management decision-making and financial reporting. To accomplish the long-term goal, the following seven key supporting objectives will be emphasized:

1. Provide executive direction for financial systems life cycle analysis, including implementation of e-Travel services application, Cost Allocation module, and Asset Management module; replacement of National Electronic Accounting and Reporting (NEAR) system including accounts receivable, billings and collections; and development of GSA’s financial management data warehouse including Performance Measurement Toot (PMT), and executive and managerial reporting;
2. Provide executive direction for establishing and revising GSA’s financial policies/guidance, in particular, establishing revised policy direction for OMB Circular A-123, “Management’s Responsibilities for Internal Controls;”
3. Refine and identify processes to improve the overall Performance Management Process;
4. Refine human capital strategy for the financial management workforce;
5. Provide strategic direction of management control policies and procedures, including direction to ensure new FAS organization stand-up of management controls policies, procedures, documentation and testing;
6. Provide strategic direction for the E-Gov Financial Management Line of Business (FMLOB) activities; and
7. Provide strategic business and financial advice to advance quality of management decision making and financial analysis and reporting.

Strategies

During FY 2007 and into FY 2008, the OCFO has a variety of initiatives, both financial and systems, to position GSA as a provider of professional financial services, including guidance and innovative solutions for our customers. All of the efforts conducted during FY 2007 will lay the foundation for the FY 2008 activities and improve upon our vision as a shared service provider designated under OMB’s Financial Management Line of Business E-Gov program.

GSA’s OCFO regained a clean opinion for the FY 2006 financial audit. OCFO has initiatives currently underway to improve upon our management and implementation of financial policy compliance and internal controls. OCFO has fully implemented OMB Circular A-123, “Management Responsibilities for Internal Control” and will continue to document, assess, test and report on internal controls over financial reporting. OCFO continues to review and revise financial policies to ensure that we have the appropriate policies in place for the financial and contract staff at GSA. Further, OCFO continues to address improvement in internal control processes and financial analysis.

Financial Management Systems

Over the next two and half years, OCFO will undertake systems upgrades or implementation of new modules in support of the Pegasys systems applications. OCFO continues to refine and revise its financial systems architecture. We anticipate that by FY 2008, we will need another system update to address emerging requirements from OMB and the E-Gov office. In addition, we continue to manage emerging requirements for systems IT security and quality assurance. Financial systems initiatives underway or planned:

• We have integrated the Performance Measurement Tool (PMT) and the Activity Based Costing (ABC) as tools which will accurately assess “actual to targeted” and allocate support costs to assist GSA in achieving the objective of linking performance to budget to ensure GSA achieves the objectives of the President Management Agenda (PMA). We will also migrate all financial reporting to the Business Objects software and establish a single GSA Financial Data Warehouse. This will contain, consolidate and integrate reporting information from legacy, production and feeder financial systems with focus on GSA-wide financial and business reports and financial data and support the CFO’s vision of “good data in the system all the time” by creating a single reporting entity.
• In FY 2008, the OCFO will develop and implement new/update information technology (IT) systems, software and hardware (i.e., cost allocation module, data warehouse, asset management module and replacement of NEAR) that will align GSA and CFO goals.
• During FY 2007, the OCFO implemented a cost allocation module. This subsystem will provide agencies with a tool to distribute centrally charged costs or centrally collected revenues to the objects that benefit from or drive the particular cost or revenue. This distribution process will allow managers to facilitate cost management reporting or for financial management purposes, to transfer costs or revenues to the benefiting entity.
• In FY 2006, OCFO completed business requirements identification and development for an Asset Management Module that will consolidate the accounting for all GSA's funds and client services property, plant, and equipment into one consolidated Asset Accounting Subsystem in Pegasys. OCFO will then develop a business case for asset management investment and determine an implementation strategy. In FY 2007, the OCFO will implement the new asset management module. Replacement of the asset management module is the first step to replacing the NEAR legacy application.
• During FY 2007, OCFO will complete business requirements identification and development for the “NEAR legacy replacement.” This replacement will be a significant and high-risk conversion to a yet to be determined solution for all of GSA’s accounts receivable, billing and collections. The plan is to replace and implement all NEAR applications with modules and sub-applications predicated on business process reengineering. This will provide an efficient and effective way to collect GSA revenues and streamline operations by consolidating, storing, and processing financial data under a single platform.

Long-Term Outcome Goal:

Deliver timely and accurate financial and performance management policies and services needed for management decision-making and financial reporting.

Performance Goal: Increase the percentage of vendor invoices received electronically by Electronic Data Interchange (EDI) or through the Internet.

Performance Measure: Percent of invoices received electronically.

Financial Management Line of Business

The Office of Management and Budget (OMB) approved GSA to be a provider of financial management services to other Federal agencies. The Financial Management Line of Business (FM LOB) program utilizes Centers of Excellence (COEs) to provide information technology hosting, while leveraging Government-wide standardized business processes. These COEs will consist of a combination of Federal Agencies and/or private sector contractors supporting a FSIO-compliant (Financial Systems Integrity Office) financial management solution. The COE will be engaged in tasks such as project management, system migration, system implementation, change management, training, independent validation and verification, certification & accreditation testing, help desk, and other functions. COEs may offer additional value-added services to agencies, such as core financial operations support, and/or hosting and processing for subsidiary systems such as procurement, fixed asset management, real property, fleet management, and investment management.

The selection by OMB of GSA OCFO to be a FM LOB COE supports the overall GSA mission and OCFO mission to provide both internal and external customers with high quality, best value financial products, services, and support. GSA will serve as the manager of a private/public partnership providing IT hosting of GSA's FSIO-certified core financial system, while adopting and leveraging Government-wide standardized business processes and data. In addition, GSA has the capability to offer additional value-added services to agencies, beyond just core financial operations support, and is developing an agile business model that will meet our Federal customers' needs.

Comprehensive planning and "standing up" a COE within the GSA OCFO occurred during FY 2006 time frame. Concurrent and coordinated with the planning and execution work related to becoming a COE, the GSA OCFO will complete the integration of its core financial system by defining and implementing the solutions for cost allocation, asset management, accounts receivable, as well as robust data warehousing and business intelligence functionality. Since GSA is partnering with the private sector to provide IT hosting and support, time to "scale up” is minimized and significant Government capital costs outlays are avoided. During FY 2007, GSA will continue to implement financial management services for new small agencies and prepare to enter into agreements and begin migration planning with larger client agencies.

Chief Human Capital Officer (CHCO) (formerly Chief People Officer (CPO)

On October 1, 2006, the CPO was officially renamed the Office of the Chief Human Capital Officer (CHCO).

The Office of the Chief Human Capital Officer's (CHCO’s) mission is to contribute to GSA's business success by providing human capital management strategies, policies, advice, information, services, and solutions consistent with merit system principles. In order to remain focused on this mission, the CHCO will continue to lead the implementation of the Strategic Management of Human Capital on the President's Management Agenda (PMA) and the achievement of specific PMA Scorecard objectives, as well as other agency-specific objectives in GSA's Human Capital Strategic Plan (HCSP). During FY 2007, these efforts will include the successful establishment of the Federal Acquisition Service, support to the various initiatives of the President’s Management Agenda, and focus on GSA’s performance culture through continued enhancement of the Associate Performance Plan and Appraisal System (APPAS) and the Associate Performance Recognition System (APRS) for all employees. The CHCO will continue to modernize recruitment programs to help GSA develop/acquire the needed skills identified in organization specific human capital strategies through Business Process Reengineering efforts. In addition, the CHCO will provide placement and outplacement programs for GSA organizations that are undergoing “workforce transitions” as part of reorganization, downsizing, competitive sourcing, or direct outsourcing.

Internally, the CHCO will continue to transform its business processes across Central Office and Regional HR offices to improve internal efficiency and service to customers. The CHCO will continue to refocus/re-skill its own workforce to provide human capital solutions to meet customer needs by implementing its own human capital strategy.

Depending on the availability of funds, the CHCO will implement the information technology strategy and priorities established in previous years, and make adjustments based upon changes in customer needs, the external environment, and the Federal HR Line of Business (LOB) environment. Some e-HR initiatives (E-Payroll, GoLearn, Recruitment One Stop, and e-Clearance) have fairly clear project plans and are already in the implementation stage.

Strategies

The goal of the CHCO is to move from a reactive organization to one that is more focused on providing human capital solutions to ensure GSA business success. The CHCO Business Model includes understanding its customer’s business, determining workforce needs based on business requirements, conducting workforce analyses, developing organization-specific and corporate human capital solutions, and ensuring that GSA has the talent to successfully accomplish its mission. Much of the day-to-day transaction work will be accomplished through improved business processes and technology solutions.

Through the continued implementation and refinement of its own human capital strategies, the CHCO will continue to refocus its workforce to provide human capital solutions to meet customers’ needs. The CHCO will continue to enhance its training, recruitment, placement, and outplacement programs to help GSA acquire and develop the needed skills and talent identified in human capital programs. Also, the CHCO will determine best value solutions for GSA on human capital information management systems. The CHCO will continue to transform business processes across all Central Office and Regional Human Resources Offices to improve internal efficiency and services to customers and, at the same time, continue to improve the accuracy and availability of information needed in the strategic management of human capital.

Long-Term Outcome Goal:

Develop and deliver human capital programs, policies and services that promote GSA’s strategic management of human capital, in order to enhance GSA’s capability to achieve its mission, strategic goals, and performance outcomes.

Performance Goal: Enhance ability to attract talent to GSA.

Performance Measure: Number of days to fill a vacancy.

*Note: This target is set by Office of Personnel Management and is subject to change in FY 2008 and beyond.

Performance Goal: Enhance performance culture by the successful implementation for all employees of associate performance plans that are linked to the Performance Management Process.

Performance Measure: Percentage of employees that have individual performance plans and receive ratings at end of rating cycle.

Chief Information Officer (CIO)

The mission of the Office of the Chief Information Officer (OCIO) is to provide high quality, enterprise IT services and solutions at best value by leveraging IT resources to support GSA business needs and electronic government. OCIO provides six major services to GSA and its external customers. They are: 1) Enterprise-wide IT infrastructure services, 2) IT portfolio management (Capital Planning and Investment Control), 3) Management of IT security programs, 4) Enterprise architecture linking business to IT, 5) IT leadership, and 6) Integration and Alignment of E-Gov and Line of Business initiatives. These services are provided through two major business lines: IT Direction and Management, and Enterprise Infrastructure Operations (EIO).

The Office of the Chief Information Officer (OCIO) developed a GSA IT Strategic Plan to guide the agency’s IT effort over the next five years. OCIO is focused on maintaining the One-GSA Enterprise Architecture and developing a configuration management system to capitalize on prior fiscal year investments. The OCIO needs to improve the execution of information technology portfolio management to ensure that it continually meets the standards for Earned Value Management Systems.

Strategies

IT Direction and Management Support

GSA has established the initial One GSA Enterprise Architecture (EA) as a strategic asset in support of capital planning and investment control, business performance planning and monitoring, and systems engineering and integration across the GSA enterprise. The EA will define the business activities supporting GSA’s mission, the information necessary to perform these activities, and the technologies that support them. Near term focus is on adding performance measures and security to the architecture. The long-term outcome goal of EA is to develop, maintain, and manage the execution of the “Business Modernization Blueprint” to capture the full project lifecycle.

Investment evaluation and control will consist of systematic management of the Agency’s IT investment portfolio. It will be founded upon the use of an Earned Value Management System for all development, modernization, or enhancement, and the use of an operational analysis for all steady state projects.

The OCIO currently provides program management support for GSA’s E-Government initiatives approved by the President’s Management Council. OCIO, in conjunction with OMB, has developed an E-Gov implementation plan to ensure that GSA investments properly align with the appropriate eGov initiatives. Future activity will focus on the execution of the approved E-Gov implementation plan.

Long-Term Outcome Goal:

Ensure that GSA’s information technology investments increase Federal productivity, customer satisfaction, and legal compliance.

Performance Goal: Provide a secure IT environment

Performance Measure: Percentage of IT systems that have a current certification and accreditation.

Performance Goal: Obtain a high rating of major IT initiatives by OMB for Enterprise Architecture – FY 05 Exhibit 300 Submission.

Performance Measure: Percentage of major IT initiatives rated highly by OMB for Enterprise Architecture – FY 05 Exhibit 300 Submission.

Enterprise Infrastructure Operations (EIO)

EIO, which is funded under the “Other Reimbursable” activity ($71,706 thousand), is critical to the efficient operation of all GSA systems and, in some instances, is vital to interfacing individual programs/projects with GSA's enterprise systems. EIO is an Agency-wide utility supporting the business lines. It comprises the telecommunications foundation of the Agency, supporting local area networks, client facilities and the public Internet. It holds a unique place in service to Agency missions because it is the "glue" which unifies all IT communications and processing related to GSA and customer business lines. The management, operation and maintenance of EIO is a critical component in the achievement of the OCIO long-term outcome goal. Continued emphasis will be in the areas of standards compliance, improved IT security posture, and increased associate productivity. Key initiatives targeted for FY 2008 are:

• Make the GSA IT Infrastructure IPv6 capable.
• Implement Voice over Internet Protocol (VoIP).
• Continue to use commercially benchmarked metrics GSA-wide.
• Continue to manage and maintain the GSA Directory Services Program.
• Continue to manage the GSA IT Infrastructure in a shared services fashion.
• Begin targeted server and storage consolidations.

Operational efficiencies will be gained through targeted consolidations and by adopting the tenets of service level management. EIO will become a more customer centric, shared services entity.

Coordination is paramount between OCIO and all Services, Staff Offices, and Regions to ensure that information technology requirements are collected and acted upon in a coordinated, consolidated fashion for the effective and efficient delivery of IT services to GSA.

EIO will be required to contract for additional subject matter experts, operations, testing and implementation resources, to work in conjunction with the OCIO staff on this strategic investment initiative. In addition, there will be a need for new hardware and software acquisitions. Contractor support is needed to accomplish these actions.

Other Centralized Administrative Support Offices

The Office of General Counsel (OGC) provides sound and timely legal support to GSA's programs in areas such as contracting, information technology, travel and transportation, E-Government initiatives, disposal of government property, bankruptcy, real estate, construction, historic preservation, leasing, environmental issues, telecommunications, litigation, personnel and labor relations, equal employment opportunity (EEO), appropriations, finance, the Freedom of Information Act, the Privacy Act, and the Federal Advisory Committee Act. OGC also supports GSA's responses to Congressional inquiries, develops and manages GSA's ethics program and supports the agency's alternative dispute resolution efforts.

The Office of Small Business Utilization (OSBU) has nationwide responsibility for GSA’s small business programs. OSBU focuses on programs, policy and outreach to the small business community and is GSA’s advocate for small business. The mission of the OSBU is to promote and facilitate programs and activities that provide “Access to Opportunity” to small, small disadvantaged, women-owned, HUBZone certified, and service-disabled veteran-owned businesses in GSA contracting nationwide. The OSBU is the lead office for a nationwide network of regional Small Business Utilization Centers (SBUC). The SBUCs provide information, assistance, and counseling to private sector concerns seeking to do business with the Government.

In FY 2005, GSA’s contracts with small businesses totaled more than $4.3 billion including $269 million for women-owned small businesses, $468.7 million for minority-owned small businesses, $176.4 million for HUBZone small businesses, and $52.2 million for Service-Disabled Veteran-Owned small businesses.

The Office of Civil Rights (OCR) and regional counterparts are responsible for implementing both the internal and external Civil Rights Programs at GSA. The internal civil rights program ensures equal employment opportunity for all GSA associates and applicants for employment on the basis of sex, race, color, national origin, religion, disability, age (40 and over), and retaliation for protected EEO activity. The internal civil rights program processes EEO complaints of discrimination pursuant to 29 C.F.R. Part 1614. The external civil rights program ensures nondiscrimination on the basis of race, color, sex, age (40 and over), national origin, and disability by recipients of GSA’s Federal Financial Assistance and Federally Conducted Programs. Both the internal and external civil rights programs have enforcement and prevention as the cornerstones of their programs.

The Office of Performance Improvement (OPI) tracks and analyzes GSA agency-wide performance by monitoring Service and Staff Office performance measures and also identifies and directs GSA’s performance improvement planning initiatives by ensuring that there is a robust and rigorous process in place to identify, develop, and execute changes necessary to achieve performance improvements. OPI directs and oversees the competitive sourcing process. Also, OPI is responsible for facilitating the successful implementation of the six management agenda items included in the President's Management Agenda (PMA) and ensures PMA goals and milestones are met by providing technical and analytical performance measurement advice and counsel to GSA's decision makers.

The Office of Emergency Response and Recovery (OERR) is responsible for the GSA Nationwide Continuity of Operations Program (COOP) and the GSA Interagency Emergency Response Program. OERR sets nationwide GSA Emergency Management policies, procedures, and guidance for COOP and Emergency Response activities. These policies and procedures guide GSA’s role in implementing Emergency Support Function #7 of the National Response Plan and GSA’s provision of COOP Training to other Government Agencies. OERR is funded from Policy and Operations as well as the Working Capital Fund.

In addition to its government-wide policy role discussed under the Policy and Operations account, the Office of the Chief Acquisition Officer (OCAO) has agency-wide responsibility for planning, directing, and controlling functions that affect all GSA contracting activities. It is responsible for establishing and maintaining GSA’s acquisition policies, regulations, guidance and procedures through issuance of the General Services Acquisition Manual and other policy documents. It establishes and monitors GSA’s contracting activities to ensure compliance with applicable statutes, regulations and directives; and performance measures for GSA’s acquisition system. It conducts procurement management reviews of buying activities, and also determines non-Federal entities’ eligibility to use GSA sources of supply. It performs the debarment and suspension functions, the agency protest function, the agency ombudsmen function and serves as the Head of Contracting Activity for GSA. OCAO conducts annual Procurement Management Reviews to monitor and review GSA’s Regional Office contractual and other procurement activities to ensure compliance with applicable procurement statutes, regulations and directives.

In addition to its acquisition policy mission, OCAO has both government-wide and GSA-wide responsibility for ensuring that the Acquisition Workforce is adequately trained, and meets educational qualification standards. OCAO manages the Federal Acquisition Institute and the GSA Acquisition Workforce Development programs, and establishes and administers programs such as the Contracting Officer Warrant Program and 1102 Occupational Certification Program to support this important mission.

GSA's Regional Acquisition Management (RAM) staffsare located in the GSA Regional Offices and are responsible for monitoring and reviewing GSA Regional Office contractual and other procurement activities to ensure compliance with applicable procurement statutes, regulations and directives in conjunction with the Office of the Chief Acquisition Officer.