Financial Results by Major Fund – Acquisition Services Fund
The Acquisition Services Fund (ASF), the primary fund of the Federal Acquisition Service (FAS) is a revolving fund, which operates on the revenue generated from its business lines rather than an appropriation received from Congress. FAS business operations are organized into five business portfolios based on the product or service provided to customer agencies: General Supplies and Services (GSS); Travel, Motor Vehicles, and Card Services (TMVCS); Integrated Technology Services (ITS); Assisted Acquisition Services (AAS); and Integrated Award Environment. FAS consolidates common requirements from multiple federal agencies and uses its expertise to acquire products and services at better prices and terms than agencies could obtain individually.
In FY 2014, ASF realized $8.8 billion in revenues. The majority of revenues were from the five agencies shown in the “ASF Top 5 Federal Customers” table, with over half in sales to Military Departments.
|Revenues ($ in Millions)||% of Total Revenues|
|ASF Top 5 Federal Customers|
|Department of Defense||$5,079||58%|
|Department of Homeland Security||$563||6%|
|Department of Agriculture||$446||5%|
|Department of Health and Human Services||$282||3%|
|Social Security Administration||$260||3%|
ASF Net Revenues from Operations
ASF Net Revenues from Operations represent the amounts remaining after the costs of goods and services sold and FAS operating expenses are subtracted from revenues earned during the year. Net Revenues from Operations are used to invest in the GSA Fleet, information technology systems, other investments to improve FAS service levels, and to comply with regulatory and statutory requirements. ASF reported net revenues of $26 million during FY 2014, $59 million less than FY 2013 net revenue of $85 million. The most significant reduction in net operating results was due to activities related to the discontinuance of operations in the General Supplies and Services portfolio’s Stock Program, where GSA’s two large supply depot warehouse operations were being closed during the fiscal year. GSA incurred one-time costs, while generating greatly reduced revenues during the closure process, resulting in Stock Program expenses exceeding revenues by $66 million. The ASF results also reflect a significant reduction in business volume in the Assisted Acquisition Services portfolio, with a reduction of $455 million in revenues and $436 million in expenses, primarily attributed to the impact of FY 2013 reduced funding availability of the various Federal Departments and agencies that GSA serves, which caused a significant drop in the normal volume of unfilled orders that cross fiscal years.
ASF Obligations, Outlays and Collections
ASF obligations and outlays are primarily driven by contracts awarded to commercial vendors, who provide goods and services to federal agencies. Obligations Incurred increased by $985 million between FY 2014 and FY 2013, mostly due to increases in TMVCS and program acquisitions. Overall, unpaid obligations have also increased, as customer order volume is recovering from the reductions experienced in FY 2013.
|2014||2013||Change ($)||Change (%)|
|ASF Obligations & Outlays ($ in Millions)|
Limitations of Financial Statements
The principal financial statements report the financial position and results of GSA operations, pursuant to the requirements of 31 U.S.C. 3515 (b). While the statements have been prepared from GSA books and records in accordance with GAAP for federal entities and the format prescribed by OMB, the statements are in addition to the financial reports used to monitor and control budgetary resources, which are prepared from the same books and records. The statements should be read with the realization that they are for a component of the U.S. Government.