GSA Schedules US gov’t sales down 19% in last four years, GAO says

The General Services Administration’s multiple-award schedules program is declining, according to a new report from the Government Accountability Office, a congressional agency.

But the news is not all bad for the schedules: the GAO says the schedules’ decline is in sync with the decrease in federal contracting awards overall.

The GSA Schedules, also known as the Federal Supply Schedules, consist of 40 schedules providing access to almost 20,000 vendors of goods and services.

The government obligated $25.7 billion through the GSA schedules program in fiscal 2014, down from $31.8 billion in fiscal 2010, in inflation-adjusted terms, the GAO said in its report.

Those awards included those under Veterans Affairs Department schedules contracts. State and local government obligations were not included.

Overall, GSA Schedule federal awards dropped by 19% during the period.

“This is consistent with overall federal obligations that have declined at roughly the same rate,” the GAO added. The schedules consistently captured about 5% to 6% of federal contract awards during the period.

However, GSA schedule awards for products have fallen by 30% during the four years, while awards for services have fallen 14%.

Services accounted for 73% of obligations in fiscal 2014, up from 69% in fiscal 2010, the GAO report said.

The bulk of the spending was in three broad categories. In fiscal 2014, $9.8 billion, or 38%, was spent on professional, management, and administrative support services; $5.1 billion, or 20%, was spent on information technology and telecommunications services; and $3.1 billion, or 12%, was spent on IT equipment, software, and supplies.

The GAO also examined competition on a sample of 60 schedules orders in fiscal 2013.

The review found that 40% of GSA Schedules’ sales were competitive with three or more quotes; 35% were competitive with one or two quotes; and 25% were noncompetitive.

While examining agencies in depth, the GAO reported that the Health and Human Services Department received only one or two quotes on 51% of its schedule contracts. Under federal guidelines that is a less desirable form of competition than three quotes.

By comparison, the Defense Department had one or two quotes for 35%, and GSA, for 32%.

The GAO concluded that agencies are not paying enough attention to competition to reduce prices.

“Ordering agencies did not consistently seek discounts from schedule prices, even when required by the FAR. In addition, GAO found cases in which officials did not assess prices for certain items, as required, or had insufficient information to assess prices,” the GAO report said.

More information: GAO report http://www.gao.gov/assets/680/671309.pdf .

GSA Schedules US gov’t sales down 19% in last four years, GAO says

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