General Services Administration: Increased Direct Delivery of Supplies Could Save Millions
GGD-93-32
Published: Dec 28, 1992. Publicly Released: Dec 28, 1992.
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Highlights
Pursuant to a congressional request, GAO reviewed the General Services Administration's (GSA) depot-based supply distribution system to determine if shipping directly from suppliers to customer agencies would reduce costs.
Recommendations
Recommendations for Executive Action
Agency Affected | Recommendation | Status |
---|---|---|
General Services Administration | The Administrator of General Services should develop a plan with timetables to maximize the use of direct delivery, which would reduce existing depot operations. |
Closed – Implemented
GSA developed an approach to test in the marketplace the report's recommendations for increasing direct delivery. GSA conducted a direct delivery test involving eight test solicitations and found that several of the solicitations appeared to support GAO's finding that increased use of direct delivery would save money with no significant impact on customer service. As a result, based on potential savings FSS is increasing the use of direct deliverables.
|
General Services Administration | The Administrator of General Services should establish effective networks between GSA and customer agencies to develop the most cost-effective supply system, which may include the elimination of GSA distribution operations. |
Closed – Implemented
In May 1993, GSA established the Interagency Committee on Supply Management. The Committee considers improvements in governmentwide supply operations and makes recommendations to the GSA Administrator. GSA adopted a strategy that is expected to prepare the federal logistics system for the 21st century. It has added supply systems features like ordering from GSA direct delivery products over the Internet, lower direct delivery thresholds for items that have limited shelf lives, and adding a supplies contract that promotes the use of a contractor to supply agencies directly.
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General Services Administration | The Administrator of General Services should identify and explore cost-effective supply sources to fill those orders that do not meet direct delivery requirements, such as orders that are uneconomical to supply and those orders for products manufactured to specifications and purchased from mandatory source suppliers. |
Closed – Implemented
On July 9, 1999, GSA announced it will close its eight warehouses over the next 18 months and move to a system where most supplies will be delivered directly from vendors to agencies. As GSA finalizes closures, GAO will prepare accomplishment reports.
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General Services Administration | The Administrator of General Services should monitor and assess agencies' use of priority designations and consider charging them for these extra services. |
Closed – Implemented
On July 9, 1999, GSA announced it will close its eight warehouses over the next 18 months and move to a system where most supplies will be delivered directly from vendors to agencies. As GSA finalizes closures, GAO will prepare accomplishment reports.
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General Services Administration | The Administrator of General Services should reduce its operational role and become more of a central management supply agency that develops effective partnerships between customers and suppliers and works with them to develop the most cost-effective supply system. |
Closed – Implemented
On July 9, 1999, GSA announced it will close its eight warehouses over the next 18 months and move to a system where most supplies will be delivered directly from vendors to agencies. As GSA finalizes closures, GAO will prepare accomplishment reports.
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Topics
Cost analysisCost controlFederal property managementFederal supply systemsFreight transportationInteragency relationsInventory control systemsTransportation costsTransportation terminalsFederal agencies