2014 Agency Financial Report

Performance Summary and Highlights

Mission and Goals

GSA Star Mark

The GSA Mission is to deliver the best value real estate, acquisition and technology services to government and the American people.

The scope of the work we do at GSA is vast and varied, but the mission is simple and to the point. We serve the government and the American people. Through implementing our mission, we aspire to achieve three strategic goals:

  • Savings – Provide savings to federal departments and agencies. We will use our purchasing power and expertise to deliver cost-effective real estate, acquisition and technology solutions to federal departments and agencies.
  • Efficiency – Improve the efficiency of operations and service delivery. We will streamline our operations to offer high quality real estate, acquisition, and technology services at a good value to federal departments and agencies.
  • Service – Deliver excellent customer service. We will deliver excellent customer service to federal agencies and departments by making it easier to reliably meet their real estate, acquisition, and technology needs.

GSA Priorities

  1. Delivering Better Value and Savings. Using the purchasing power of the federal government will reduce costs to our customer agencies, enabling them to focus on their core missions. We are going to improve upon this by finding more ways to solve our customers’ problems in the coming year. We will look for new ways to help these agencies make their purchases smarter and more efficient. At the same time, we will look for new and innovative ways to maximize the value of our real estate assets.
  2. Serving Our Partners. Every day the work that we do helps our customer agencies focus on their missions. Partnership on all levels is critical to the success of GSA. Strong partnerships with partner agencies and vendors alike lead to good business decisions that create value and savings for our customers and the American taxpayer. It is our commitment to ensure that doing business with GSA is an easy and reliable experience. We are continuously improving our processes and systems to make them as simple and streamlined as possible.
  3. Expanding Opportunities for Small Businesses. Small businesses are the engines that power the American economy. Contracting with these entrepreneurs is a win-win for both the federal government and the small business community. The government receives great service at great value, while small businesses have a great chance to grow their businesses and create jobs. GSA offers opportunities to small businesses across the country through our contract vehicles and through the contracts we award for other agencies.
  4. Making a More Sustainable Government. Going green saves green. Environmentally friendly practices are good for the environment and for business. GSA is committed to both. As we work toward implementing sustainable practices and making our buildings and our fleet more environmentally-friendly, we will continue to work with vendors to make sustainable products and services readily available and affordable.
  5. Leading with Innovation. GSA is a leader of innovation in public service. Among many firsts, we were the first government agency to move to cloud computing, setting an example for others to follow. In the coming years, we will continue to develop innovative, cost saving solutions that will be shared across the government.
  6. Building a Stronger GSA. We must make sure our own employees at GSA are getting the same high quality support that we give our partner agencies. Offering the very best training and resources to our employees will be the cornerstone of this effort. By doing so, the agency will better serve its employees, while continuing to ensure that our customers are receiving great service. We will guarantee that when we do something, we will do it once and do it well.

The GSA Mission is to deliver the best value real estate, acquisition and technology services to government and the American people.

Cross-Agency Priority Goals

GSA currently contributes to the following Cross-Agency Priority Goals: Cybersecurity, Sustainability, Real Property, Improper Payments, Closing Skill Gaps, Strategic Sourcing, Open Data and Data Center Consolidation. Visit performance.gov for more information on the GSA contributions and progress towards Cross-Agency Priority Goals.

Agency Priority Goals

These goals identify short-term outcomes that are meaningful to the public and demonstrate progress toward achieving the GSA strategic goals. Visit performance.gov for more information on GSA’s performance against these priority goals.

Generate savings through Federal Strategic Sourcing Initiative. By September 30, 2015, GSA will save $255 million ($111 million during Fiscal Year (FY) 2014 and $144 million during FY 2015) through the use of Federal Strategic Sourcing Initiative (FSSI).

GSA expects year end savings for FSSI solutions to fall short of the $111 million goal for FY 2014. Through June (end of 3rd quarter), $79.9 million has been saved through the FSSI solutions in FY 2014. The launch of two new FSSI solutions for Janitorial and Sanitation Supplies and for Maintenance, Repair, and Operations Supplies will result in additional savings to be reported later for year end results.

Reduce the federal footprint. By September 30, 2015, GSA will reduce the aggregate amount of leased space by 5 percent for replacement leases. GSA will also work with agencies to complete a total of 15 client portfolio plans (three new plans each year) to identify opportunities for agencies to optimize their real estate portfolios. GSA met its progress goals for FY 2014. Three new client portfolio plans – Internal Revenue Service, Housing and Urban Development, and GSA – were developed for a total of 12 client portfolio plans. Since the program’s inception, client portfolio plans have resulted in $31 million in annual rent savings and cost avoidance as well as reductions totaling approximately one million square feet.

Agency Performance Goals

This section provides an overview of GSA’s performance against strategic goals. A complete analysis of GSA’s successes and challenges related to FY 2014 performance targets will be included in the Annual Performance Report.

GSA experienced mixed success in meeting FY 2014 performance improvement targets. GSA’s greatest performance improvements were realized in improving operational efficiency, especially in reducing our indirect costs, promoting use of small business, and delivering innovative solutions that promote greater citizen engagement with federal departments and agencies. However, important performance improvement targets were missed, most notably for customer satisfaction and providing greater savings for federal customers. These results are shown and discussed below.

Savings – Provide savings to federal departments and agencies. GSA uses our purchasing power and expertise to deliver cost-effective real estate, acquisition and technology solutions to federal departments and agencies. By completing Customer Portfolio Plans, GSA and our federal customers have identified opportunities to improve space utilization and reduce costs. GSA did not meet its Global Supply blended markup metric in 2014. This was the result of a longer than expected transition from a traditional warehousing business model to a direct vendor delivery model. The direct vendor delivery model will significantly reduce GSA’s operating costs, allowing for a lowering of the markup on goods, and increased savings for customers.

Performance Indicator 2012 Actual 2013 Actual 2014 Target 2014 Preliminary Actual Results Status
Global Supply blended markup 28.1% 24.7% 22.5% 29.9% Target not met
Cost of lease space relative to market rates (11.5%) (10.1%) (9.5%) (8.4%) Target not met
Integrated Technology Service cost savings in billions $1.36 $1.37 $0.99 $0.871 Project meeting target
Agencies with completed Customer Portfolio Plans 6 9 12 12 Target met
Percent of vacant space in inventory 3.0% 3.8% 3.2% 4.2% Target not met
Percent green business volume 6.9% 4.7% 6.0% 12.0% Project meeting target
Percent alternative fuel vehicles purchased 75.4% 82.1% 80.0% 80.93%2 Project meeting target

Efficiency – Improve the efficiency of operations and service delivery. GSA has streamlined its operations to provide high quality real estate, acquisition, and technology services at the best value to federal departments and agencies. GSA anticipates savings to the American Taxpayer of $200 million over the next ten years through improved efficiency in information technology, human resources, administrative and financial functions.

As the real estate expert for the federal government, GSA excels in project management, delivering 100 percent of our construction projects on schedule to meet our customers’ needs. GSA leverages its buying power to obtain cleaning and maintenance services within five percent of the private sector average. GSA continues to improve the timeliness and accuracy of its rent billing, more effectively manage expenses, backfill vacant space, and dispose of underperforming assets.

GSA exceeded its reduction in total indirect costs from the FY 2010 baseline target by $11 million. During FY 2014 GSA continued to consolidate resources and operate more efficiently in order to provide internal support services at a reduced cost. Although GSA achieved significant cost reductions, the level of goods and services were less than estimated resulting in GSA not meeting the total operating costs as a percentage of goods and services target.

GSA continues to drive efficient management of the Federal Acquisition Institute (FAI), which is charged with facilitating and promoting career development and strategic human capital management for the civilian acquisition workforce. In FY 2014, FAI was recognized for leveraging distancing learning technologies to boost performance and efficiency, receiving the Federal Government Distance Learning Associations 5 star award and the Human Capital Management Government Award for Best Implementation of an Enterprise Technology System.

Notes: 

1Results as of 3rd Quarter FY 2014, year-end results are projected to meet or exceed target
2Results as of 3rd Quarter FY 2014, year-end results are projected to meet or exceed target

 

Performance Indicator 2012 Actual 2013 Actual 2014 Target 2014 Preliminary Actual Results Status
New construction projects on schedule 93.4% 100% 90% 100% Target met
Cost of cleaning and maintaining space against private sector benchmarks 3.7% 3.1% +/-5% 3.7% Target met
Total operating costs as a percentage of total goods and services provided 10.03% 9.60% 9.40% 9.91% Target not met
Reduction in total GSA indirect costs from the FY 2010 baseline $115M $130M $155M $190M Target met

 

Service – Deliver excellent customer service. GSA strives to deliver excellent customer service to federal agencies and departments by making it easier for them to meet their real estate, acquisition, and technology needs.

GSA did not meet its performance targets for its satisfaction surveys for tenant satisfaction with building services, customer loyalty for acquisition services, and suppliers. GSA continues to meet other customer service targets by providing innovative tools to other agencies and creating greater citizen engagement with the federal government.

New innovations included websites for agencies use to manage and develop their own websites (sites.usa.gov), more easily create on-line enterprise data inventories (inventory.data.gov), and invite the public to submit ideas and solutions to specific problems (challenge.gov ideation platform). GSA also developed an application in USA.gov to allow the public to search for unclaimed money through a single website. GSA also provided agency decision makers with cost and quality data on core-mission support functions including: Acquisition, Financial Management, Human Capital, Information Technology (IT) Management, and Real Property. Agencies are using the benchmarks as a tool to jumpstart data-driven discussions with bureaus, measure performance against peer agencies and bureaus, and improve visibility into shared services, among other uses.

Performance Indicator 2012 Actual 2013 Actual 2014 Target 2014 Preliminary Actual Results Status
Tenant satisfaction with government-owned and leased space 73% 63% 75% 59%3 Target not met
Customer loyalty 7.6 7.6 7.8 7.4 Target not met
Supplier satisfaction 3.00 3.05 3.10 3.04 Target not met
Percent of MAS business volume coming from small businesses 34.0% 34.7% 33.0% 37.1%4 Project meeting target
Number of innovative solutions 5 5 5 5 Target met
Citizen touch points in millions 539 1,018 674 1,206 Target met

3Change from paper to web-based survey administration is a contributing factor to lower reported satisfaction in FY 2014. Negative trend in tenant satisfaction (2012-2014) mirrors similar trend in federal employees’ satisfaction as shown in government-wide Federal Employee Viewpoint Survey.
4Results as of 3rd Quarter FY 2014, year-end results are projected to meet or exceed target

Last Reviewed 2015-10-26