Acquisition Services Fund
Financial Results By Major Fund — Acquisition Services Fund
The ASF is a revolving fund that operates from the reimbursable revenue generated by its business portfolios rather than from an appropriation received from Congress. The operations of the ASF are organized into seven business portfolios: General Supplies and Services; Transportation Travel and Logistics (TTL); Information Technology (IT); AAS; Professional Services and Human Capital; Office of Systems Management; and Technology Transformation Services (TTS). By leveraging the buying power of the Federal Government, the Federal Acquisition Service (FAS) consolidates requirements across multiple agencies and uses its acquisition expertise to acquire goods and services at the best available prices.
In FY 2020, the ASF realized $17.0 billion in revenues with 82 percent of the revenue generated from five Federal customer agencies as shown in the table below:
|Customers||Revenues ($ in Millions)||% of Total Revenues|
|U.S. Department of Defense||$11,462||67.5%|
|U.S. Department of Homeland Security||$1,295||7.6%|
|U.S. Department of Justice||$443||2.6%|
|U.S. Department of Health and Human Services||$392||2.3%|
|U.S. Department of Agriculture||$370||2.2%|
ASF Net Revenues from Operations
ASF Net Revenue from Operations represents the revenue remaining after deducting the costs of goods and services sold and the cost of operations. Net Revenues from Operations are invested in the GSA Fleet, IT systems, other programs to improve FAS service levels, and to comply with regulatory and statutory requirements. In FY 2020, the ASF reported improved financial results across business portfolios, producing net results of $252 million compared to net results of $220 million in FY 2019. AAS programs have continued to experience significantly increased revenue of 24 percent in the past fiscal year, earning $11.4 billion in FY 2020, as both the volume and dollar magnitude of individual customer orders continues to increase from year-to-year. This increased business volume outpaced the costs necessary to support that business volume and resulted in an increase of $38 million in net operating results compared to FY 2019. Both the Federal Systems Integration and Management Center (FEDSIM) and regional AAS programs experienced substantial growth in business volume during the fiscal year, with FEDSIM’s increase responsible for just over half of the AAS growth. In the TTL business portfolio, revenues and expenses, as well as net operating results, have decreased somewhat, primarily due to reduced mileage and use of vehicles in the Fleet Leasing program and delays in the vehicle acquisition and disposal cycle that reduced the volume of vehicle sales. The TTL programs still provided a solid $205 million in the bottom line net results for the fund in FY 2020. Another significant improvement is seen in the IT Category, which improved net results by $48 million compared to FY 2019, reflecting reduced spending on initiatives funded by business reserves in telecommunications programs and increased revenues impacting the bottom line of the IT Services program. Activities categorized as Other Programs of the ASF continued to report losses in FY 2020, particularly driven by investment of resources funded by reserves rather than current revenues in the Integrated Award Environment (IAE) and TTS programs. These Other Programs produced a net loss of $108 million in FY 2020, compared to a loss of $65 million in FY 2019.
ASF Obligations and Outlays
ASF obligations and outlays are primarily driven by contracts awarded to commercial vendors providing goods and services in support of the ASF portfolios. New Obligations and Upward Adjustments increased by almost $3 billion between FY 2020 and FY 2019, due to the large increase in ASF business volumes. Consequently in FY 2020, Gross Outlays from disbursements grew by $2.6 billion and collections from sales increased $2.4 billion, compared to FY 2019. While the disbursements rose somewhat higher than collections, as reflected below in the change in Net Outlays for the year, the total amount of collections continued to exceed Gross Outlays for the fiscal year.
|Customers||2020||2019||Change ($)||Change (%)|
|New Obligations and Upward Adjustments||$20,516||$17,518||$2,998||17.1%|
|Net Outlays from Operating Activity||($134)||($304)||$170||(55.9)%|