FTS Proclaims FY98 A Banner Year
November 2, 1998
Contact: Bill Bearden (202) 501-1231
FTS CFO Bob Suda (703) 760-7524
WASHINGTON, DC -- Commissioner Dennis Fischer of the U.S. General Services Administration's Federal Technology Service (FTS) today proudly announced that FY1998 was a banner year and that preliminary financial reports show revenues are up 36.5 percent over FY1997 -- to $3.4 billion.
"The FTS Information Technology Solutions business line shows overall growth of 51.5 percent over FY1997, with more than $2.3 billion in revenues this year," Fischer said. "The Federal Systems Integration and Management Center (FEDSIM), and the Federal Acquisitions Services for Technology (FAST) programs were the major contributors to 1998's increase in Information Technology Solutions revenues. Individual programs within the FTS Network Services business line, in particular, the newly issued niche contracts, show significant increases over FY1997 revenues. Network Services grew 10.9 percent to over $1 billion in FY1998."
Bob Suda, the FTS Chief Financial Officer, said that final numbers for FY1998 should be available around the middle of November after the annual review by PricewaterhouseCoopers has been completed. "When the final figures are in, I'm confident that all FTS programs should break even, which is our goal, or show a profit. Some programs may have gotten off to a slow start, but we will look at those, and then begin to work on ways to improve those programs," Suda said.
FEDSIM, which has nearly doubled its revenues every year for the past four years, had over $800 million in revenues for FY1998. FEDSIM uses many innovative approaches to procure information technology services and equipment for agency customers through the use of a multiple award contract known as "9600," directed 8's, and GSA Schedules.
"FEDSIM has fully embraced the acquisition streamlining process," Suda said, "including the use of oral presentations and state-of-the-art automated systems. This has dramatically shortened procurement time for both services and equipment and has enabled FEDSIM to provide the best value to satisfy its clients' requirements, especially large systems integration projects with a value of more than $5 million per year." Suda said that the result is, agencies throughout the Government are now part of FEDSIM's clientele.
The FAST program is a small business oriented acquisition service popular with advocates of the small business community and client agencies seeking to work with small, small disadvantaged, minority and women-owned businesses. FAST conducts procurements of IT commodities and non-complex services for its clients throughout the Federal government. Many downsized Federal agencies are acquiring information solutions to compensate for their people and talent losses. FAST offers access to multiple contracting sources and is a valuable source of acquisition and technical expertise. FAST revenues have grown in every GSA region, and total FAST revenues have increased 74.6 percent over FY1997 levels to almost $1 billion.
"FTS"s remarkable level of growth is a testament to the value-added professional service that FTS offers to the federal community," said Fischer. "Because we offer quality and competitive prices, the federal community and the American citizen benefit. Our growth is directly attributable to the approximately 1,300 dedicated FTS employees who serve their customers."
In recognition of their accomplishments in making FY98 a banner year, Fischer announced that each FTS employee would receive an award of either a day's pay or a day off with pay.
Based on the preliminary numbers, specific FY98 FTS programs and growth rates are listed below:
Business Line/Program % Growth
Information Security 11.1%
Local Service 13.6%
Niche Contracts 1,286%
Total FTS 36.5%