GSA Promotes 'Share-in-Savings' IT Contracting
November 6, 2003
Contact: Viki Reath (202) 501-1231
Note: The Share-in-Savings program is no longer operational.
Washington, D.C. – The General Services Administration (GSA) today announced it is soliciting federal agencies and industry to join government efforts to advance the use of share-in-savings (SiS) contracting for information technology.
Starting in January, the SiS Program Office will present outreach programs to help agencies and industry partners identify suitable SiS contracting opportunities. E-tools and other SiS information already is available at www.gsa.gov/shareinsavings.
The E-Government Act of 2002 significantly expanded SiS authority, which originated in the Clinger Cohen Act of 1996. The E-Gov Act authorizes agencies to use SiS contracts to leverage limited resources to improve and accelerate mission-related and administrative processes, and at the same time provide better value for taxpayers.
“The E-Gov Act helped remove key barriers to implementing SiS, and we already see significant interest among customer agencies customers,” said GSA’s David Drabkin, Deputy Associate Administrator for Acquisition Policy. “GSA, working closely with the Office of Management and Budget, and encouraged by Congress, is helping agencies establish a performance-based business environment. Share-in-savings is a valuable strategy to help us achieve this Presidential E-Gov goal.”
SiS contracting encourages industry to develop creative technology solutions to meet agency needs and, at the same time, helps Administration efforts to advance the President's Management Agenda to make the federal government a modern, citizen-centric, electronic enterprise. Regulatory guidance on the application of SiS contracting will be incorporated into the Federal Acquisition Regulation.
“We are eager to begin using the Share-In-Savings authority, said Karen Evans, Administrator for Electronic Government and Information Technology, Office of Management and Budget. “Shortly, we will seek comments on our draft policy guidance on the Share-In-Savings authority and look forward to an informed dialogue to ensure the policy is streamlined, flexible and allows for selection of the best IT solutions. This authority will allow industry to propose innovative, transformational and low-cost IT solutions that improve services to citizens.”
Like other performance-based contracts that focus on results, SiS arranges for the contractor to finance the work, then share in the savings and generated revenue with the agency partner. Payments to SiS contractors are based on the amount of savings or revenue generated through improved efficiency and effectiveness.
The SiS Web site provides one-stop access to policy updates, case studies and other information agencies needed to create an effective, fiscally sound SiS contract. The SiS Program Office, which operates in the Office of Acquisition Policy, which is in GSA’s Office of Governmentwide Policy, will continue to refine SiS e-tools.
GSA is a centralized federal procurement and property management agency created by Congress to improve government efficiency and help federal agencies better serve the public. It acquires, on behalf of federal agencies, office space, equipment, telecommunications, information technology, supplies and services. GSA, comprised of 13,000 associates, provides services and solutions for the office operations of over 1 million federal workers located in more than 8,000 government-owned and leased buildings in 2,000 U.S. communities.