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.[6]
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 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 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.[7] Key initiatives include the Presidential Innovation Fellows program, 18F (includes login.gov and cloud.gov), FedRAMP, 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 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:[citation needed]
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 the War Assets Administration, was named GSA's first administrator.[citation needed]
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 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 a success. GSA completed the renovation in 1952.[8]
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.[9]
In 1970, 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 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.[9]
In 1984, GSA introduced the federal government to the use of charge cards, known as the GSA SmartPay system.[10] 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 a result of an executive order signed by President Ronald Reagan.[9]
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.[11]
In 2003, the Federal Protective Service, which secures GSA-managed (and other) buildings, was moved to 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).[12]
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 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.[13]
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 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 the deliverance of digital government services with the creation of the Technology Transformation Services.[14]
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 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 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[15] until 2010, when GSA's formal involvement with the African Burial Ground ceased.[16]
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.[17]
In 2012, U.S. representative John Mica, chairman of the House Transportation and Infrastructure Committee, called for a congressional investigation into the misuse of federal money by GSA.[13] Lawmakers accused GSA of "lavish spending" following the 2010 Western Regions Training Conference at the M Resort in Las Vegas.[18][19][20]
GSA spent $823,000 in taxpayer money toward the October 2010 convention, including $100,405.37 spent on employee travel costs for 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.[21]
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 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.[citation needed]
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 the Service, who had been responsible for planning the conference, were placed on administrative leave.[22]
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 the norm of facilitating a peaceful transition of power to the presumptive winner.[23] 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.[24] On November 23, 2020, Murphy issued the letter of ascertainment that meant the Trump administration was ready to begin the formal transition.[25]
In April 2022, the Office of Inspector General (OIG), Office of Inspections, initiated an evaluation of the GSA's Login.gov services.[26] 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 the National Institute of Standards and Technology (NIST) Special Publication (SP) 800-63-3, Digital Identity Guidelines.[27]
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 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 the chief executive of the General Services Administration.[28] On April 12, 2021, President Joe Biden nominated Robin Carnahan to serve as administrator.[29] She was confirmed by the US Senate on June 23, 2021.[30]
GSA consists of two major services: the Federal Acquisition Service (FAS), and the Public Buildings Service (PBS).[4] In addition to these two major services, the agency also consists of twelve staff offices and two independent offices. The FAS provides both strategic[31] and operational support[32] for acquisition of goods and services for other federal departments.
GSA conducts its business activities through 11 offices (known as GSA regions) throughout 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.[36] GSA assists with procurement work for other government agencies. As part of this effort, it maintains 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.[37] 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 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 the vendor experiences competitive pressures to reduce its pricing, then the government can benefit from these and be extended reduced pricing as well.[38]
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 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 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.[39]
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 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 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