117-647: The General Services Administration ( GSA ) is an independent agency of the United States government established in 1949 to help manage and support the basic functioning of federal agencies. GSA supplies products and communications for U.S. government offices, provides transportation and office space to federal employees, and develops government-wide cost-minimizing policies and other management tasks. GSA employs about 12,000 federal workers. It has an annual operating budget of roughly $ 33 billion and oversees $ 66 billion of procurement annually. It contributes to
234-617: A buy-American stance. The U.S. government bought about two-thirds of the Chevrolet Malibu Hybrids sold during the past two years, and almost a third of the Ford Fusion Hybrids , but only 17 Toyota Prius hybrids and five Honda Civic Hybrids . Ground Force One , so designated when transporting the POTUS , is one of two armored buses procured in 2010 for the transportation of dignitaries under protection of
351-498: A price floor that, when breached, constitutes additional discounting that triggers the Price Reduction Clause. The Price Reduction Clause ensures that vendor discounting practices and GSA Schedule prices maintain a fixed relationship. The vendor specifies in its GSA proposal, and during negotiations of GSA Schedule contract prices, the discounts to be given to Basis of Award customer(s). If the vendor then provides
468-427: A "pooled procurement mechanism" would be required. The Chartered Institute of Procurement & Supply (CIPS) promotes a model of "five rights", which it suggests are "a traditional formula expressing the basic objectives of procurement and the general criteria by which procurement performance is measured", namely that goods and services purchased should be of the 'right quality', in the 'right quantity', delivered to
585-659: A Cabinet secretary) and the Executive Office of the President. There is a further distinction between independent executive agencies and independent regulatory agencies, which have been assigned rulemaking responsibilities or authorities by Congress. The Paperwork Reduction Act lists 19 enumerated "independent regulatory agencies", such as the Securities and Exchange Commission , the Federal Reserve ,
702-594: A basis for compliance over the term of the contract. Although not ideal, a compliance system implemented after a contract has been awarded can bring a contract into compliance, although sometimes at the expense of profits. If implementing a system in the middle of a contract period, inaccuracies that turn up should be corrected immediately, and the GSA contracting officer should be made aware of them. Price Reduction Clause compliance systems and procedures can range from simple to complex. A simple, manual system would be appropriate for
819-452: A beneficial outcome include: Ardent Partners published a report in 2011 which presented a comprehensive, industry-wide view into what was happening in the world of procurement at that time by drawing on the experience, performance, and perspective of nearly 250 chief procurement officers (CPOs) and other procurement executives. The report included the main procurement performance and operational benchmarks that procurement leaders use to gauge
936-500: A board that cannot be appointed all at once, and the board can be required to be bipartisan. Presidential attempts to remove independent agency officials have generated most of the important Supreme Court legal opinions in this area. In 1935, the Supreme Court in the case of Humphrey's Executor v. United States decided that although the president had the power to remove officials from agencies that were "an arm or an eye of
1053-487: A corporate travel policy. In many larger organizations the procurement and supply function is led by a board-level or other senior position such as a Director of Supply Chain or a chief procurement officer (CPO). In other cases, procurement is overseen by the chief financial officer (CFO) or Director of Finance, or the growing need for liaison between the CFO and the procurement function has been recognised. A 2006 report by
1170-403: A five-day conference at a Palm Springs, California , resort. An additional investigation led by Inspector General Brian D. Miller found 115 missing Apple iPods meant for an employee rewards program. GSA administrator Martha N. Johnson resigned in the wake of the controversy, after firing Public Buildings Service head Robert Peck and senior advisor Stephen Leeds. Four regional commissioners of
1287-568: A large group of bottom-quartile performers that add limited value to their organizations. CIPS promotes organisational self-assessment using the ROSMA Performance Check, arguing that it enables a procurement department to "measure and explain procurement and supply's value in terms your CFO and CEO will understand, using a common financial standard". Findings in 2020 suggested that "top quartile procurement performers have ROSMA scores two to three times higher than those in
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#17327648377081404-482: A larger discount to a Basis of Award customer than what was agreed upon in the GSA Schedule contract (i.e., if the price floor is breached), then the vendor's GSA price will be reduced proportionately and retroactively. Effective Price Reduction Clause compliance procedures will protect vendors if their discounting practices are fully and accurately disclosed in their original proposals to GSA, and then are used as
1521-442: A member is limited. Established through separate statutes passed by Congress , each respective statutory grant of authority defines the goals the agency must work towards, as well as what substantive areas, if any, over which it may have the power of rulemaking. These agency rules (or regulations), when in force, have the power of federal law. Independent agencies exist outside the federal executive departments (those headed by
1638-415: A model for assessing the performance of a procurement organisation or the procurement function within a wider organisation, known as ROSMA (Return on Supply Management Assets). According to the 2016 ROSMA Performance Check Report, What Good Looks Like , the procurement profession has a top-tier group of standout performers, a middle-tier that is delivering value, but performing well below the top tier, and
1755-417: A more specifically buyer-side focus than many examples of collaborative buyer-seller relationships. Companies may decide to work together for the following reasons: Joint or collaborative procurement is a common practice within public sector procurement . There are central purchasing bodies in many countries which coordinate joint purchasing activities for public sector organisations. A report commissioned by
1872-413: A new asset or accepts performance of a service, manages the ownership of the asset or the delivery of the service and reaches an end-of-life point where the asset becomes due for replacement or the service contract terminates. At this point the cycle would recommence. The Chartered Institute of Procurement & Supply (CIPS) recommends involvement of procurement staff and skills from an early stage in
1989-521: A percentage of managed spend. Personnel who undertake procurement on behalf of an organization may be referred to as procurement officers, professionals or specialists, buyers or supply managers. The US Federal Acquisition Regulation refers to Contracting Officers . Staff in managerial positions may be referred to as Purchasing Managers or Procurement Managers. The ISM refers to "the supply profession". A Purchasing or Procurement Manager's responsibilities may include: Category management represents
2106-417: A pivotal role in the internal communications linking the various individuals and organisational divisions involved. There are a number of models along the sourcing continuum: basic provider, approved provider, preferred provider, performance-based contracting , managed services model, vested business model, shared services model and equity partnerships. Government procurement or public procurement
2223-551: A result of an executive order signed by President Ronald Reagan . In 1986, GSA headquarters, U.S. General Services Administration Building , located at Eighteenth and F Streets, NW, was listed on the National Register of Historic Places , at the time serving as Interior Department offices. In 2003, the Federal Protective Service , which secures GSA-managed (and other) buildings, was moved to
2340-587: A service contractor with standard labor rates that are not discounted. A complex system would be required for a reseller with thousands of products and discounting policies that differ among product groups. In response to increased mandates and standards required by the Federal Government of its agencies and in a push to plan for federal sustainability, GSA offers online tools to aid in the building and management of government offices that are subject to these requirements. GSA has delegated authority to
2457-437: A single director, administrator, or secretary appointed by the president of the United States , independent agencies (in the narrower sense of being outside presidential control) almost always have a commission, board, or similar collegial body consisting of five to seven members who share power over the agency. (This is why many independent agencies include the word "Commission" or "Board" in their name.) The president appoints
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#17327648377082574-614: A success. GSA completed the renovation in 1952. In 1960, GSA created the Federal Telecommunications System, a government-wide intercity telephone system. In 1962 the Ad Hoc Committee on Federal Office Space created a new building program to address obsolete office buildings in Washington, D.C., resulting in the construction of many of the offices that now line Independence Avenue . In 1970,
2691-413: A system of organising the roles of staff within a procurement team "in such a way as to focus ... on the [external] supply markets of an organisation", rather than being organised according to the organisation's internal departmental structure. Specialist procurement roles include construction buyers and travel buyers. Part of the work of a corporate travel buyer is the formulation and implementation of
2808-427: A total of eight pre-planning meetings, scouting trips, and a "dry run". The report also found excessive spending for event planners, gifts for participants, and lavish meals. The conference had been the most recent in a series of similar lavish conferences organized by regions of GSA's Public Buildings Service (PBS, not to be confused with the public broadcaster of the same name ). In May 2010 GSA treated 120 interns to
2925-474: A way that achieves value for money on a life-cycle basis while addressing equity principles for sustainable development, therefore benefiting societies and the environment across time and geographies. Procurement is often conducted via a tendering or competitive bidding process. The process is used to ensure the buyer receives goods, services or works for the best possible price, when aspects such as quality, quantity, time, and location are compared. Procurement
3042-399: Is a consensus among scholars and marketing managers that buyers utilise various decision processes as appropriate to each buying situation, and some purchasing decisions are especially complex. Some writers treat purchasing decisions as examples of rational behaviour made in the context of a business aim such as profit maximisation and make the assumption that decision-makers have access to
3159-469: Is also referred to as "organizational buying" or "institutional buying", for example in studies of the buying behaviour of staff involved in purchasing decision-making. Procurement activities are also often divided into two distinct categories, direct and indirect spend. Direct spend refers to the production-related procurement that encompasses all items that are part of finished products, such as raw materials , components and parts. Direct procurement, which
3276-590: Is an important part of the procurement function, but this objective is generally seen as value generation rather than cost reduction. CIPS also notes that securing savings is "one measure of purchasing performance", but argues that savings should only be used as a measure of performance where they are "a reflection of the [organisation]'s ... expectations of the purchasing and supply management function". CIPS distinguishes between "savings", which can reduce budgets, and "cost avoidance", which "attempts to thwart price increases and to keep within budget". Examples of savings as
3393-434: Is awarded as a prime contract entered into by the federal government and a vendor that has submitted an acceptable proposal. At the core of the GSA Schedule contract lie two key concepts: 1) Basis of Award customer or group of customers and 2) Price Reduction Clause. The two concepts are applied in concert to achieve the government's pricing objectives for the GSA Schedule program. Namely, the government wants to ensure that when
3510-413: Is based on the idea that governments should direct their society while giving the private sector the freedom to decide the best practices to produce the desired goods and services. One benefit of public procurement is its ability to cultivate innovation and economic growth . The public sector picks the most capable nonprofit or for-profit organizations available to issue the desired good or service to
3627-544: Is centered in GSA's Office of Governmentwide Policy. Policies promulgated by GSA are developed in collaboration with federal agencies and are typically published for public comment in the Federal Register before publication as a Final Rule. The Public Buildings Service provides offices for its customers (I.e., federal agencies) and provides United States courthouses at good economies to the American taxpayer. PBS
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3744-455: Is considered sustainable when organizations broadens this framework by meeting their needs for goods, services, works, and utilities in a way that achieves value for money and promotes positive outcomes not only for the organization itself but for the economy, environment, and society. Electronic procurement is the purchasing of goods by businesses through the internet or other networked computer connection. Electronic data interchange (EDI)
3861-529: Is funded primarily through the Federal Buildings Fund, which is supported by the rent from federal customer agencies. The Office of Property Disposal of the PBS manages the disposal of surplus real property . The Office is responsible for land, office buildings, warehouses, former post offices, farms, family residences, commercial facilities, and airfields located in the United States, Puerto Rico,
3978-481: Is the focus in supply chain management , directly affects the production process of manufacturing firms. In contrast, indirect procurement concerns non-production-related acquisition: a wide variety of goods and services, from standardized items like office supplies and safety equipment to complex and costly products and services like heavy equipment, consulting services, and outsourcing services. The first record of procurement activities dates back to 3,000 BC when
4095-539: Is when a governing body purchases goods, works, and services from an organization for themselves or the taxpayers. In 2019, public procurement accounted for approximately 12% of GDP in OECD countries. In 2021 the World Bank Group estimated that public procurement made up about 15% of global GDP. Therefore, government procurement accounts for a substantial part of the global economy. Public procurement
4212-809: The Commodity Futures Trading Commission , the Federal Deposit Insurance Corporation , and the Consumer Financial Protection Bureau . Generally, the heads of independent regulatory agencies can only be removed for cause, but Cabinet members and heads of independent executive agencies, such as the head of the Environmental Protection Agency , serve "at the pleasure of the president" and can be removed without cause. The degree to which
4329-518: The Egyptians managed materials and labor for the pyramids using scribes . The scribes recorded how much material and how many workers were needed for different tasks. Formalized acquisition of goods and services has its roots in military logistics . The Romans developed a system of supply depots that were located throughout their empire. These depots were stocked with food, weapons, and other supplies that could be quickly distributed to troops in
4446-518: The Energy Independence and Security Act of 2007 ( Public Law 110-140 ). The Department of Energy's Federal Energy Management Program facilitates GSA’s implementation under the Act through project transaction services, applied technology services, and decision support services, deploying renewable energy technologies, and cultivating change to embrace energy efficiency . In 2004, GSA
4563-622: The European Parliament 's Committee on the Internal Market and Consumer Protection (IMCO) has recommended that EU Member States "should consider creating Central Purchasing Bodies (CPBs)" in order to secure "coherent and coordinated procurement". On a trans-national scale, Guyana , Barbados and Rwanda announced "a programme of mutual support for the local manufacturing of vaccines and medicines" in July 2023 for which
4680-639: The Hoover Commission to make recommendations to reorganize the operations of the federal government. One of the commission's recommendations was the establishment of an "Office of the General Services", to combine the responsibilities of the following organizations: GSA became an independent agency on July 1, 1949, after the passage of the Federal Property and Administrative Services Act . General Jess Larson , administrator of
4797-620: The National Audit Office in the UK commented that in the further education sector, where procurement practice was not well developed and college organisations were relatively small, oversight of procurement by the Director of Finance was a typical arrangement. Independent or third party personnel who undertake procurement or negotiate purchases on behalf of an organization may be called purchasing agents or buying agents , although
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4914-720: The Secret Service , at a cost of $ 1.1 million each. The coaches were assembled in Tennessee on frames made in Canada . The Interagency Resources Management Conference (IRMCO) was a federal executive conference of the General Services Administration, hosting about 300 federal and industry leaders each year. The Interagency Resources Management Conference began in 1961 as the ADPCO conference. In 1979,
5031-538: The USAGov platform ( USA.gov , GobiernoUSA.gov ), Data.gov , and Challenge.gov, the U.S. Web Design System, and I.T. Modernization Centers of Excellence. GSA is a member of the Procurement G6 , an informal group leading the use of framework agreements and e-procurement instruments in public procurement . In 1947, President Harry Truman asked former president Herbert Hoover to lead what became known as
5148-761: The United States Department of Homeland Security . In 2005, GSA reorganized to merge the Federal Supply Service (FSS) and Federal Technology Service (FTS) business lines into the Federal Acquisition Service (FAS). On April 3, 2009, President Barack Obama nominated Martha N. Johnson to serve as GSA Administrator. After a nine-month delay, the United States Senate confirmed her nomination on February 4, 2010. On April 2, 2012, Johnson resigned in
5265-631: The War Assets Administration , was named GSA's first administrator. The first job awaiting Administrator Larson and the newly formed GSA was a complete renovation of the White House . The structure had fallen into such a state of disrepair by 1949 that one inspector said it was standing "purely from habit". Larson later explained the total renovation in depth by saying, "In order to make the White House structurally sound, it
5382-407: The commissioners or board members , subject to Senate confirmation, but they often serve terms that are staggered and longer than a four-year presidential term, meaning that most presidents will not have the opportunity to appoint all the commissioners of a given independent agency. In addition, most independent agencies have a statutory requirement of bipartisan membership on the commission, so
5499-472: The federal executive departments (those headed by a Cabinet secretary) and the Executive Office of the President . In a narrower sense, the term refers only to those independent agencies that, while considered part of the executive branch , have regulatory or rulemaking authority and are insulated from presidential control, usually because the president's power to dismiss the agency head or
5616-425: The $ 276 million office building. When initial excavation disturbed burials, destroying skeletons and artifacts, GSA sent archaeologists to excavate—but hid their findings from the public. Revelation of the discoveries led to 18 months of activism by African-descendant community members, public officials, academics, and concerned citizens. Ultimately, GSA made public amends by funding extensive scientific research under
5733-466: The 'right place' at the 'right time' and obtained at the 'right price'. CIPS has in the past also offered an alternative listing of the five rights as "buy[ing] goods or services of the right quality, in the right quantity, from the right source, at the right time and at the right price. 'Right source' is added as a sixth right in CIPS' 2018 publication, Contract Administration . Delivery on savings goals
5850-606: The African Burial Ground ceased. During President George W. Bush's Administration GSA Administrator, Lurita Doan , was forced to resign after GSA had awarded a sole source contract for $ 20,000 to her friend. Doan appeared to have violated the Hatch Act and was criticized for political activity while on the job. The investigating team recommended she be punished to the fullest extent, and she resigned soon after. In 2012, U.S. representative John Mica , chairman of
5967-663: The Department of Commerce, GSA, and the Office of Management and Budget (OMB) jointly sponsored a conference for Senior Executive Service (SES) officials at Gettysburg, Pennsylvania. At the same time, the National Archives hosted a small records management conference for senior executives, also located in Gettysburg. These two conferences merged with ADPCO and became The Interagency Resources Management Conference. Over
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#17327648377086084-704: The Department of Veterans Affairs (VA) to procure medical supplies under the VA Federal Supply Schedules Program. In 2018, GSA awarded federal government debt collection services to IC System. The Public Buildings Service (PBS) acquires and manages thousands of federal properties. In accordance with Title 40 of the United States Code , GSA is charged with promulgating regulations governing the acquisition, use, and disposal of real property (real estate and land) and personal property (essentially all other property). This activity
6201-472: The GSA Schedule Program, which other agencies can use to buy goods and services. The GSA Schedule can be thought of as a collection of pre-negotiated contracts. Procurement managers from government agencies can view these agreements and make purchases from the GSA Schedule by following the appropriate procedures prescribed by Federal Acquisition Regulation, or FAR, Subpart 8.4. The GSA Schedule
6318-583: The House Transportation and Infrastructure Committee, called for a congressional investigation into the misuse of federal money by GSA. Lawmakers accused GSA of "lavish spending" following the 2010 Western Regions Training Conference at the M Resort in Las Vegas . GSA spent $ 823,000 in taxpayer money toward the October 2010 convention, including $ 100,405.37 spent on employee travel costs for
6435-462: The Login.gov program and allowed it to operate under a hands-off culture. OIG found that because of its failure to exercise management oversight and internal controls over Login.gov, FAS shares responsibility for the misrepresentations to GSA's customers. In response to OIG's report, GSA management agreed with the findings and recommendations. The administrator is a presidential political appointee and
6552-778: The National Institute of Standards and Technology (NIST) Special Publication (SP) 800-63-3, Digital Identity Guidelines. Notwithstanding GSA officials' assertions that Login.gov met SP 800-63-3 Identity Assurance Level 2 (IAL2) requirements, Login.gov has never included a physical or biometric comparison for its customer agencies. Further, GSA continued to mislead customer agencies even after GSA suspended efforts to meet SP 800-63-3. GSA knowingly billed IAL2 customer agencies over $ 10 million for services, including alleged IAL2 services that did not meet IAL2 standards. Furthermore, GSA used misleading language to secure additional funds for Login.gov. Finally, GSA lacked adequate controls over
6669-721: The Nixon administration created the Consumer Product Information Coordinating Center, now part of USAGov . In 1974 the Federal Buildings Fund was initiated, allowing GSA to issue rent bills to federal agencies. In 1972 GSA established the Automated Data and Telecommunications Service, which later became the Office of Information Resources Management. In 1973 GSA created the Office of Federal Management Policy. GSA's Office of Acquisition Policy centralized procurement policy in 1978. GSA
6786-463: The President has the power to use executive orders to set policy for independent executive agencies is disputed. Many orders specifically exempt independent agencies, but some do not. Executive Order 12866 has been a particular matter of controversy; it requires cost-benefit analysis for certain regulatory actions. In a narrower sense, the term independent agency refers only to these independent regulatory agencies that, while considered part of
6903-632: The Public Buildings Service (PBS), as well as several Staff Offices including the Office of Government-wide Policy, the Office of Small Business Utilization, and the Office of Mission Assurance. As part of FAS, GSA's Technology Transformation Services (TTS) helps federal agencies improve the delivery of information and services to the public. Key initiatives include the Presidential Innovation Fellows program, 18F (includes login.gov and cloud.gov), FedRAMP ,
7020-725: The Service, who had been responsible for planning the conference, were placed on administrative leave. After Joe Biden was called by media outlets as the president-elect of the United States – defeating Donald Trump in the November 2020 election – Emily W. Murphy, the chief executive of the General Services Administration, initially refused to sign a letter authorizing Biden's transition team to begin work and access federal agencies and transition funds , according to The Washington Post . This came as Trump refused to concede Biden's presumptive – but not yet certified – victory and follow
7137-624: The Total Workplace initiative to modernize the workplace of federal agencies and increase efficiency, alongside the Presidential Innovation Fellows and the 18F programs. In 2016, the Acquisition Gateway and Making It Easier programs were launched to assist buyers from federal agencies in acquisitions, and to assist new companies in doing business with the government. Improvements were also made in
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#17327648377087254-532: The U.S. Virgin Islands, and the U.S. Pacific Territories. Surplus property is made available to both government and private bidders and, in some cases, land sold for public purposes (such as parks or welfare) may be discounted by up to 100% of FMV . Twenty four GSA green buildings have earned LEED ratings. Some green offerings include green roofs , underfloor air distribution , use of renewable power from utility companies, and light shelves (located outside of
7371-414: The United States in 2019. Various writers have noted that businesses may reduce the numbers of purchasing staff during a recession along with staff in other business areas, despite a tendency to become more dependent on bought-in goods and services as operations contract. For example, US business executive Steve Collins observed that in one major company the purchasing staffbase "was downsized some 30% during
7488-518: The United States. These regional offices are located in Atlanta , Boston , Chicago , Denver , Fort Worth , Kansas City (Missouri) , New York City , Philadelphia , San Francisco , Seattle ( Auburn ), and Washington, D.C. The Federal Acquisition Service (FAS) provides products and services available to federal agencies across the U.S. government. GSA assists with procurement work for other government agencies. As part of this effort, it maintains
7605-533: The [2010] recession , 'but the expectations for the remaining employees remained unchanged ... The additional workload placed on the remaining employees following the downsizing created a much more challenging environment ' ". In 2021 the Australasian Procurement and Construction Council (APCC) put forward an appeal asking everyone working in the procurement profession in Australia to include
7722-453: The action is done or the condition is met, for example a contract with a principal supplier may include a clause requiring the company to "procure" that its subsidiaries , holding companies and other associated businesses undertake the same commitments as those contractually imposed on the principal. The use of the word "procure" in a joint venture agreement between Nearfield Ltd., Lincoln Nominees Ltd., and other partners, in relation to
7839-603: The auspices of Michael Blakey ; creating a new subagency, the Office of Public Education and Interpretation; truncating the building plan; and funding public reports on the story of the African Burial Ground. The efforts led to the creation of a new unit of the National Park Service , The African Burial Ground National Monument , at the facility. GSA fully funded that portion of the National Park Service until 2010, when GSA's formal involvement with
7956-407: The best possible price when aspects such as quality, quantity, time, and location are compared. Corporations and public bodies often define processes intended to promote fair and open competition for their business while minimizing risks such as exposure to fraud and collusion . Almost all purchasing decisions include factors such as delivery and handling, marginal benefit , and fluctuations in
8073-401: The building that reduce the amount of heat radiating into the building from the sun while increasing the amount of natural light and high ceilings that help direct daylight deep into the work environment). The American Recovery and Reinvestment Act of 2009 made available not less than $ 4.5 billion for measures necessary to convert GSA facilities to High-Performance Green Buildings, as defined in
8190-773: The chief executive of the General Services Administration. On April 12, 2021, President Joe Biden nominated Robin Carnahan to serve as administrator. She was confirmed by the US Senate on June 23, 2021. GSA consists of two major services: the Federal Acquisition Service (FAS), and the Public Buildings Service (PBS). In addition to these two major services, the agency also consists of twelve staff offices and two independent offices. The FAS provides both strategic and operational support for acquisition of goods and services for other federal departments. GSA conducts its business activities through 11 offices (known as GSA regions) throughout
8307-486: The circumstances under which the president can remove commissioners of independent agencies, if the independent agency exercises any executive powers like enforcement, and most of them do, Congress cannot reserve removal power over executive officers to itself. Constitutionally, Congress can only remove officers through impeachment proceedings. Members of Congress cannot serve as commissioners on independent agencies that have executive powers, nor can Congress itself appoint
8424-546: The commissioners – the Appointments Clause of the Constitution vests that power in the president. The Senate does participate, however, in appointments through " advice and consent ", which occurs through confirmation hearings and votes on the president's nominees. These agencies are not represented in the cabinet and are not part of the Executive Office of the president: Although not officially part of
8541-522: The cost of construction and operating and affect the reputations of officers and the profits of owners." Procurement is one component of the broader concept of sourcing and acquisition. Typically procurement is viewed as more tactical in nature (the process of physically buying a product or service) and sourcing and acquisition are viewed as more strategic and encompassing. Multiple sourcing business models and acquisition models exist. The Institute for Supply Management (ISM) defines strategic sourcing as
8658-459: The cycle, noting that such "early procurement involvement" can have a beneficial impact on the nature and timing of any approach to market, the specification and the sourcing strategy and supplier selection approach adopted. Procurement decisions fall along a continuum from simple buying transactions to more complex buyer-supplier collaborations, and the buying behaviour of staff involved in purchasing decision-making has been widely studied. There
8775-641: The deliverance of digital government services with the creation of the Technology Transformation Services. In July 1991, GSA contractors began the excavation of what is now the Ted Weiss Federal Building in New York City . The planning for that building did not take into account the possibility of encountering the historic cemetery for colonial-era African New Yorkers located beneath the footprint of
8892-508: The event. Beginning with the Federal Citizen Information Center in 1970, GSA has had a long history of connecting the public to government information and services. In 2009, a new Office of Citizen Services and Innovative Technologies (now the Office of Products and Programs) was created to expand the effort to serve the public through technology. GSA began managing the Presidential Innovation Fellows program
9009-435: The executive branch, have rulemaking authority and are insulated from presidential control, usually because the president's power to dismiss the agency head or a member is limited. Independent agencies can be distinguished from the federal executive departments and other executive agencies by their structural and functional characteristics. Their officers can be protected from removal by the president, they can be controlled by
9126-571: The executive branch, these agencies are required by federal statute to release certain information about their programs and activities into the Federal Register , the daily journal of government activities: [REDACTED] This article incorporates public domain material from Independent Agencies . USA.gov . Procurement Procurement is the process of locating and agreeing to terms and purchasing goods , services , or other works from an external source, often with
9243-618: The executive", it upheld statutory limitations on the president's power to remove officers of administrative bodies that performed quasi-legislative or quasi-judicial functions, such as the Federal Trade Commission. Presidents normally do have the authority to remove regular executive agency heads at will , but they must meet the statutory requirements for removal of commissioners of independent agencies, such as demonstrating incapacity, neglect of duty , malfeasance , or other good cause . While most executive agencies have
9360-534: The federal fleet. President Barack Obama announced that GSA was to support the U.S. auto industry with orders for about 17,600 new fuel-efficient vehicles by June 1, 2009, on an accelerated schedule, with money from the American Recovery and Reinvestment Act. GSA was to pay $ 285 million to General Motors Corporation , Chrysler LLC , and Ford Motor Company . It was to include 2,500 hybrid sedans —the largest one-time purchase yet of hybrid vehicles for
9477-540: The federal government—and each new vehicle was claimed to yield at least a 10% fuel economy improvement over its predecessor. GSA was to spend $ 15 million more that year on a pilot fleet of advanced-technology vehicles , including all-electric vehicles and hybrid buses . Hybrids accounted for about 10 percent of the 145,473 vehicles the U.S. General Services Administration bought during the fiscal years 2009 and 2010, after making up less than 1 percent of government vehicle purchases in 2008. As for specific models, Obama took
9594-456: The field. This system helped to ensure that the Roman army was always well-supplied, even when it was fighting far from home. The first record of what would be recognized now as the purchasing department of an industrial operation relates to the railway companies of the 19th century: "The intelligence and fidelity exercised in the purchase, care and use of railway supplies influences directly
9711-463: The government. Originally, industry participation was managed by a division of The Washington Post , Post-Newsweek Tech Media, and from 1999 to 2008, Post-Newsweek, with the assistance of a small, woman-owned business, Hosky Communications Inc., developed a strong following from the SES community for the event, on average generating 300–400 attendees with a 3:1 government to industry ratio. In 2008, Hosky
9828-479: The importance of social or "soft" skills within the skill sets of professional procurement staff. Some writers have observed that there is limited opportunity for women to enter procurement because of stereotypes viewing some roles as not appropriate for women. Management consultant Oliver Wyman reported in 2019 that, based on a survey of over 300 CPOs in Europe, US, and Asia working across 14 industries, 38% of
9945-421: The information they need for their decision. Feldman and Cordozo questioned this approach in a 1969 article, suggesting that industrial buyer decision-making had similarities with consumer buying behaviour. David T. Wilson suggested in a 1971 article that an individual buyer's personality should be considered in understanding buyers' decision processes. Three distinct personality traits have been described in
10062-479: The literature on this subject: Wilson found that there was some correlation between personality traits and decision-making styles among the Canadian buyers who participated in his research study. Jagdish Sheth published A Model of Industrial Buyer Behaviour in 1983, which drew from a large volume of empirical study of buyer behaviour and emphasised how the "psychological world of the decision-makers" impacted on
10179-440: The majority of the project, for example where there are extensive lead times . Such cases may be referred to as "advance procurement". Many writers also refer to procurement as a cyclical process, which commences with a definition of business needs and develops a specification, identifies suppliers and adopted appropriate methods for consulting with them, inviting and evaluating proposals, secures on contract and takes delivery of
10296-610: The management of about $ 500 billion in U.S. federal property, divided chiefly among 8,700 owned and leased buildings and a 215,000 vehicle motor pool . Among the real estate assets it manages are the Ronald Reagan Building and International Trade Center in Washington, D.C. , which is the largest U.S. federal building after the Pentagon . GSA's business lines include the Federal Acquisition Service (FAS) and
10413-558: The middle two quartiles". A.T. Kearney's report suggests a close match between the self-reported performance of CPOs in the best performing departments and the view of procurement held by the CFO and the organisation more widely, and also notes that weaker performers or "inconsequentials" share a distinct profile marked by lack of "identifiable leadership accountable for procurement's performance. Spend under management also contributes to an additional measure of procurement performance or procurement efficiency: procurement operating expense as
10530-457: The norm of facilitating a peaceful transition of power to the presumptive winner. There are no firm rules on how the GSA determines the president-elect. Typically, the GSA chief might make the decision after reliable news organizations have declared the winner or following a concession by the loser. On November 23, 2020, Murphy issued the letter of ascertainment that meant the Trump administration
10647-446: The opportunity to fill enough vacancies to constitute a voting majority on each independent agency commission within the first two years of the first term as president. In some famous instances, presidents have found the independent agencies more loyal and in lockstep with the president's wishes and policy objectives than some dissenters among the executive agency political appointments . Although Congress can pass statutes limiting
10764-428: The outcomes of the whole process. There is a great amount of competition over public procurements because of the massive amount of money that flows through these systems; It is estimated that approximately eleven trillion USD is spent on public procurement worldwide every year. Sustainable procurement or green procurement is a process whereby organizations meet their needs for goods, services, works and utilities in
10881-559: The percentage of addressable spend which is influenced by procurement, "addressable spend" being the expenditure which could potentially be influenced. The average procurement department also achieved an annual saving of 6.7% in the last reporting cycle, sourced 52.6% of its addressable spend, and has a contract compliance rate of 62.6%. A more restrictive definition of "spend under management" includes only expenditure which makes use of preferred supplier contracts and negotiated payment rates and terms. Consultants A.T. Kearney have developed
10998-440: The president cannot simply fill vacancies with members of his own political party. The president can normally designate which commissioner will serve as the chairperson. Congress can designate certain agencies explicitly as "independent" in the governing statute, but the functional differences have more legal significance. In reality, the high turnover rate among these commissioners or board members means that most presidents have
11115-744: The prices of goods. Organisations which have adopted a corporate social responsibility perspective are also likely to require their purchasing activity to take wider societal and ethical considerations into account. On the other hand, the introduction of external regulations concerning accounting practices can affect ongoing buyer-supplier relations in unforeseen manners. The Institute for Supply Management (ISM) defines procurement as an organizational function that includes specification development, value analysis, supplier market research, negotiation, buying activities, contract administration, inventory control , traffic, receiving and stores. Federal US legislation defines procurement as including all stages of
11232-464: The process of acquiring property or services, beginning with the process for determining a need for property or services and ending with contract completion and closeout. A company's procurement function, specifically its spending on suppliers, typically accounts for more than half of the company's total budget. Purchasing is a subset of procurement that specifically deals with the ordering and payment of goods and services. Organizational procurement
11349-446: The process of identifying sources that could provide needed products or services for the acquiring organization. The term procurement is used to reflect the entire purchasing process or cycle, and not just the tactical components. Procurement software (often labeled as e-procurement software) manages purchasing processes electronically or via cloud computing . Some aspects of a procurement process may need to be initiated ahead of
11466-446: The processes and outcomes of purchasing decision-making. There are wide variations in the involvement of procurement staff in purchasing decisions across types of organisation and across varying purchasing situations. Some purchasing decisions are made by individuals or groups of individuals referred to as a " buying center " or "decision-making unit", where procurement personnel may in some cases be central, in other cases peripheral, to
11583-582: The purchasing decision. From a marketing perspective, buying center research has looked at which individuals and organisational divisions become part of the decision-making group, how they interact, and the internal and external factors which influence purchasing outcomes. Wesley Johnson and Thomas Bonoma, in a 1981 research paper, found situations where "the purchasing manager's centrality is likely to be high", and equally situations where their centrality "is likely to be low", recommending that "purchasing managers desiring to increase their influence" should aim to play
11700-535: The same year it launched 18F with a team focused on improving the federal government's digital services. The Centers of Excellence, introduced in October 2017, are working to accelerate the modernization of IT infrastructure and reduce legacy IT spending across the government. Independent agencies of the United States government [REDACTED] [REDACTED] In the United States government , independent agencies are agencies that exist outside
11817-522: The staff in the procurement organizations surveyed were women: 60% of CPOs stated that there were more women in their organization than three years previously, while 6% said that the number of women had decreased. The effect of this growing involvement of women in procurement was recognised in the form of "more creativity and innovation", acknowledged by 76% of the CPO's surveyed. A contractual obligation to procure refers to an absolute obligation to ensure that
11934-399: The success of their organizations. This report found that the average procurement department manages 60.6% of total enterprise spend. This measure, commonly called "spend under management" or "managed spend", refers to the percentage of total enterprise spend (which includes all direct and indirect spend) that a procurement organization manages or influences. Alternatively, the term may refer to
12051-401: The taxpayers. This produces competition within the private sector to gain these contracts that then reward the organizations that can supply more cost-effective and quality goods and services. Some contracts also have specific clauses to promote working with minority-led, women-owned businesses and/or state-owned enterprises . Competition is a key component of public procurement which affects
12168-555: The term "purchasing agent" has a longer and broader history: the Institute for Supply Management in the United States was originally called the National Association of Purchasing Agents from its formation in 1915. A commercial agent may both purchase and sell on behalf of a third party. US Bureau of Labor Statistics research found that there were 526,200 purchasing manager, buyer and purchasing agent positions in
12285-442: The term in their occupational title when completing their August 2021 census return. The European Commission issued a recommendation in October 2017 directed towards the "professionalisation of public procurement" so that Member States could "attract, develop and retain" staff in public purchasing roles, focus on performance and "make the most out of the available tools and techniques". Research undertaken in 2020 highlighted
12402-429: The use of a tendering or competitive bidding process. The term may also refer to a contractual obligation to "procure", i.e. to "ensure" that something is done. When a government agency buys goods or services through this practice, it is referred to as government procurement or public procurement. Procurement as an organizational process is intended to ensure that the buyer receives goods, services, or works at
12519-414: The utilisation of a bank loan, gave rise to a dispute between the parties regarding the meaning of the word "procure", which was resolved in 2006 by the judge, Peter Smith , confirming that the "normal meaning of the word" is clear and well understood:"I do not see that procure means anything other than as Nearfield [the claimant] puts it 'see to it'". In this case, the obligation to "procure the payment" of
12636-441: The vendor experiences competitive pressures to reduce its pricing, then the government can benefit from these and be extended reduced pricing as well. The Basis of Award customer or group of customers represents the customer or group of customers whose sales are affected on the same terms and conditions as those with GSA, and whose pricing is used: 1) as the baseline during negotiations to establish discounts offered to GSA, and 2) as
12753-489: The wake of a management-deficiency report that detailed improper payments for a 2010 "Western Regions" training conference held by the Public Buildings Service in Las Vegas . In 2013, a result of the Open Government Initiative's instruction for federal agencies to open their activities to the public, GSA developed Data.gov to foster transparency and information sharing. That same year GSA also launched
12870-439: The years, the conference has evolved its focus from highly specialized to integrated. In 1996, when U.S. Congress mandated the role of chief information officer (CIO), these new federal executives were invited to attend The Interagency Resources Management Conference. The Interagency Resources Management Conference was the government's primary senior executive conference when it was held as an offsite retreat for leaders from across
12987-619: Was a forerunner to electronic procurement, this consisted of standardized transmission of data such as inventories and good required electronically. Schoenherr argues that EDI developed from standardized manifests for deliveries to Berlin during the Berlin Airlift which were applied by DuPont in the 1960s and argues that Material requirements planning and Enterprise resource planning were both forerunners to electronic procurement. Joint procurement takes place when two or more organisations share purchasing activities, and therefore has
13104-455: Was awarded a competitive contract to continue to manage and develop the forum. From 2008 to 2010, IRMCO drew attendees from about 65 federal agencies and diverse disciplines, including information technology, human resources, acquisition, management, and finance. Once travel restrictions and budget concerns surfaced in late 2010, IRMCO was moved to a local venue under the management services of A-S-K Associates, where primary attendance by industry
13221-483: Was established as a means to inform commercial firms on GSA policies. IRMCO 2011 was held in Washington, D.C., at the Kellogg Conference Center and Hotel on the campus of Gallaudet University . Shortly after IRMCO 2011, GSA's Associate Administrator for Governmentwide Policy, Kathleen Turco, announced to the media that she and other GSA officials felt that IRMCO had lost its spark and retired from
13338-612: Was initially responsible for emergency preparedness and stockpiling strategic materials to be used in wartime until those functions were transferred to the newly created Federal Emergency Management Agency in 1979. In 1984, GSA introduced the federal government to the use of charge cards , known as the GSA SmartPay system. The National Archives and Records Administration was spun off into an independent agency in 1985. The same year, GSA began providing government-wide policy oversight and guidance for federal real property management as
13455-403: Was necessary to completely dismantle, and I mean completely dismantle, everything from the White House except the four walls, which were constructed of stone. Everything, except the four walls without a roof, was finally stripped down, and that's where the work started." GSA worked closely with President Truman and First Lady Bess Truman to ensure that the new agency's first major project would be
13572-608: Was presented with the Honor Award from the National Building Museum for "success in creating and maintaining innovative environments for the federal community as well as providing a positive federal presence for the public". GSA contributes to the management of U.S. Federal property, including a 215,000 vehicle motor pool . The American Recovery and Reinvestment Act of 2009 (stimulus bill) included $ 300 million to acquire energy-efficient motor vehicles for
13689-566: Was ready to begin the formal transition. In April 2022, the Office of Inspector General (OIG), Office of Inspections, initiated an evaluation of the GSA's Login.gov services. OIG initiated this evaluation based on a notification received from GSA's Office of General Counsel identifying potential misconduct within Login.gov, a component of GSA's Technology Transformation Services (TTS) under the Federal Acquisition Service (FAS). OIG's evaluation found that GSA misled their customer agencies when GSA failed to communicate Login.gov's known noncompliance with
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