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Report to the Committee on Government Reform, House of Representatives,
and the Committee on Governmental Affairs, U.S. Senate:
April 2003:
FEDERAL PROCUREMENT:
Spending and Workforce Trends:
GAO-03-443:
GAO Highlights:
Highlights of GAO-03-443, a report to the Committee on Government
Reform, House of Representatives, and the Committee on Governmental
Affairs, U.S. Senate
Why GAO Did This Study:
The federal government, comprised of more than 60 agencies and nearly
1.7 million civilian workers, acquires most of its goods and services
through contracts. Recent changes in what the government buys, its
contracting approaches and methods, and its acquisition workforce have
combined to create a dynamic acquisition environment. Many of these
recent changes enhance contracting efficiency and offer a number of
benefits, such as reduced administrative burdens. However, GAO’s past
work has found that if these changes are not accompanied by proper
training, guidance, and internal controls, agency procurements may be
at greater risk.
While effectively managing contracts is always a key management
responsibility, this responsibility is more acute in those agencies
that rely heavily on acquisitions to accomplish their missions.
The goal of this report is to identify for Congress, the
administration, and accountability organizations those procurement-
related trends and challenges that may affect federal agencies.
Specifically, GAO analyzed recent federal procurement patterns, the use
of various procurement methods, and changes in the acquisition
workforce.
What GAO Found:
Federal agencies procured more than $235 billion in goods and services
during fiscal year 2001, reflecting an 11 percent increase over the
amount spent 5 years earlier. Further growth in contract spending, at
least in the short term, is likely to increase given the President’s
request for additional funds for defense and homeland security,
agencies’ plans to update their information technology systems, and
other factors. Overall, contracting for goods and services accounted
for about 24 percent of the government’s discretionary resources in
fiscal year 2001. As shown in the figure below, acquisition is central
to the missions of several agencies.
Federal agencies are taking advantage of the streamlined acquisition
processes that were developed in the 1990s, including relying on
contracts awarded by other federal agencies to obtain goods and
services. The increase in the use of this acquisition method is driven
largely by purchases of information technology and by professional,
administrative, and management support services. Similarly, agencies
are increasingly using purchase cards for many of their low dollar
value procurements.
Over the last decade, the federal acquisition workforce has had to
adapt to changes in staffing levels, workloads, and the need for new
skill sets. Procurement reforms have required contracting specialists
to have a greater knowledge of market conditions, industry trends, and
the technical details of the commodities and services they procure. A
priority at most agencies we reviewed was attracting and retaining the
right people with the right skills to successfully address the
increasingly complex actions expected in the future. Many agencies have
made progress with strategic human capital planning efforts.
We reviewed 10 agencies that represent over 90 percent of the federal
government’s acquisition spending. All agencies provided comments on
our report and concurred with our analyses.
www.gao.gov/cgi-bin/getrpt?GAO-03-443.
To view the full report, including the scope
and methodology, click on the link above.
For more information, contact Bill Woods at (202) 512-4841.
[End of section]
Letter:
Results in Brief:
Trends in Federal Procurement Spending Patterns:
Emerging Trends in Procurement Methods and Approaches:
Acquisition Workforce and Workload Trends:
Conclusions:
Agency Comments and Our Evaluation:
Appendixes:
Appendix I: Scope and Methodology:
Appendix II: Section 1–Department of Defense:
Section 2–Department of the Air Force:
Section 3–Department of the Army:
Section 4–Department of the Navy:
Appendix III: Department of Agriculture:
Appendix IV: Department of Energy:
Appendix V: Department of Health and Human Services:
Appendix VI: Department of Justice:
Appendix VII: Department of the Treasury:
Appendix VIII: Department of Transportation:
Appendix IX: Department of Veterans Affairs:
Appendix X: General Services Administration:
Appendix XI: National Aeronautics and Space Administration:
Tables:
Table 1: Agency Use of the Federal Supply Schedule Program:
Table 2: Changes in the Extent Agencies Used FAR Part 12 to Acquire
Commercial Items, Fiscal Years 1997 through 2001:
Table 3: Federal Acquisition Personnel and Workload:
Table 4: Information on Data Elements:
Figures:
Figure 1: Federal Contract Spending, Fiscal Year 2001:
Figure 2: Percent of Contract Dollars Spent on Services in
Fiscal Year 2001:
Figure 3: Acquisition of Goods and Services as a Percent of Agencies'
Discretionary Budget Resources, Fiscal Year 2001:
Figure 4: Amount Spent Using the Federal Supply Schedule,
Fiscal Year 1997 through Fiscal Year 2001:
Figure 5: Governmentwide Use of Purchase Cards:
Figure 6: Purchase Card Use in Fiscal Year 2001:
Figure 7: Performance-Based Service Contracting in Fiscal Year 2001
(by dollar value):
Figure 8: Retirement Eligibility of Current Acquisition Workforce:
Abbreviations:
CPDF: Central Personnel Data File:
DOD: Department of Defense:
DOE: Department of Energy:
DOJ: Department of Justice:
DOT: Department of Transportation:
FAA: Federal Aviation Administration:
FAR: Federal Acquisition Regulation:
FPDC: Federal Procurement Data Center:
FPDS: Federal Procurement Data System:
FSS: Federal Supply Schedule:
GSA: General Services Administration:
GWAC: governmentwide acquisition contract:
HHS: Department of Health and Human Services:
IT: information technology:
NASA: National Aeronautics and Space Administration:
OMB: Office of Management and Budget:
USDA: Department of Agriculture:
VA: Department of Veterans Affairs:
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Letter April 30, 2003:
The Honorable Tom Davis
Chairman
The Honorable Henry A. Waxman
Ranking Minority Member
Committee on Government Reform
House of Representatives:
The Honorable Susan M. Collins
Chairman
The Honorable Joseph I. Lieberman
Ranking Minority Member
Committee on Governmental Affairs
United States Senate:
The federal government, one of the largest and most complex
organizations in the world, is comprised of more than 60 agencies and
about 1.7 million civilian workers. The fiscal year 2002 federal budget
included more than $1 trillion in discretionary budget
resources,[Footnote 1] which can be applied to fund agency operations
including the acquisition of goods and services. Agencies acquire most
of their goods and services through contracts that specify the
government's needs or requirements, the cost or price agreed upon by
the government and the supplier, and other terms and conditions.
Beginning in the early 1990s, a number of factors emerged that created
a dynamic and challenging acquisition environment with ramifications
that are just beginning to be recognized. First, acquisition personnel
increasingly purchase services, such as information technology or
management support. Second, Congress passed several significant pieces
of reform legislation, including the Federal Acquisition Streamlining
Act of 1994[Footnote 2] and the Clinger-Cohen Act of 1996,[Footnote 3]
to provide agency procurement officials with greater flexibility and
tools to acquire goods and services more efficiently. Third, the end of
the Cold War and efforts to reduce the size of government led to
significant acquisition workforce reductions in many agencies, most
notably the Department of Defense (DOD). These reductions, coupled with
procurement reforms, have placed increasing demands on the acquisition
workforce. For example, contracting specialists must have a greater
knowledge of market conditions, industry trends, and the technical
details of the commodities and services they procure.
This report is part of our effort to provide Congress, the
administration, and accountability organizations with insights into how
these factors contribute to the acquisition challenges federal agencies
face. To do so, we analyzed (1) recent federal procurement patterns,
(2) the use of various procurement approaches and methods, and (3)
changes in the acquisition workforce and contracting actions. Our
analysis covers the 5-year period that includes fiscal year 1997
through fiscal year 2001, the latest year for which complete data were
available, and focuses on the 10 federal agencies that spent the most
on contracts during fiscal year 2001.
We compiled this information from various sources, including the
General Services Administration's (GSA) Federal Procurement Data System
(FPDS), which is the government's repository for federal contract
information; the Office of Management and Budget's (OMB) MAX Budget
Information System, which is used to collect, validate, analyze, model,
and publish federal budget information; the Office of Personnel
Management's Central Personnel Data File (CPDF), which is the
government's human resources reporting system; agency officials; and
Inspector General reports. We did not verify these data independently.
Unless otherwise noted, all data in the report are reflected in
constant fiscal year 2001 dollars. More information on our scope and
methodology may be found in appendix I.
This report does not reflect changes in agency missions, organizational
structures, budgets, contracting actions, or personnel resulting from
the creation of the Department of Homeland Security. This department,
established on January 24, 2003, combined 22 federal agencies
specializing in various missions, such as law enforcement, border
security, biological research, computer security, and disaster
mitigation. With an anticipated budget of almost $40 billion and an
estimated 170,000 employees, the department is expected to be the third
largest federal agency, with the potential for some of the government's
most extensive acquisition requirements.
Results in Brief:
Federal agencies procured more than $235 billion in goods and services
during fiscal year 2001, reflecting an 11 percent increase over the
amount spent 5 years earlier. Additionally, federal agencies spent
almost $14 billion using purchase cards in fiscal year 2001. Further
growth in contract spending, at least in the short term, is likely
given the President's request for additional funds for defense and
homeland security, agencies' plans to update their information
technology systems, and other factors. Overall, contracting for goods
and services accounted for about 24 percent of the government's
discretionary resources in fiscal year 2001; however, for the four
agencies that spent the most, contracting accounted for between
34 percent and 73 percent of discretionary resources.
Federal agencies continue to take advantage of streamlined acquisition
processes, relying, for example, on contracts awarded by other federal
agencies to obtain goods and services. The use of one such acquisition
tool, GSA's Federal Supply Schedule, more than tripled from fiscal
years 1997 through 2001 to about $14.4 billion. This growth was driven
largely by purchases of information technology and professional,
administrative, and management support services. Similarly, agencies
are using purchase cards for many of their low dollar value
procurements. Purchase card use increased 160 percent during the 5-year
period we studied, to $13.8 billion in fiscal year 2001. According to
our recent reviews, agencies may have missed opportunities to take full
advantage of the benefits offered by these methods and other
contracting approaches, such as performance-based service contracting,
because of inadequate guidance and training, a weak internal control
environment, limited performance measures, and data that agencies can
use to make informed decisions.
During the last decade, the federal acquisition workforce has had to
adapt to changes in staffing levels, workloads, and the need for new
skill sets. Governmentwide data indicate that the acquisition workforce
has declined by about 5 percent over the 5-year period we
studied,[Footnote 4] and changes in the acquisition workforce have been
accompanied by changes in the types of actions being managed. The total
number of contracting actions processed in fiscal year 2001 decreased 6
percent from fiscal year 1997 levels.[Footnote 5] Our analysis
indicates that while most agencies are processing fewer smaller
actions--those valued under $25,000--most agencies are also managing an
increased number of larger actions.
Addressing human capital issues in acquisition is not just a matter of
the size of the workforce. Agencies must also have the right people
with the right skills to successfully meet the increasingly complex
demands expected in the future. Meeting this human capital challenge
has become a priority at most of the agencies we reviewed, and agencies
have made progress in their strategic planning efforts. The need for
planning is underscored by the fact that all agencies face the prospect
of losing many of their skilled acquisition personnel over the next 5
years--with a significant portion of the government's acquisition
workforce becoming eligible to retire by fiscal year 2008.
Trends in Federal Procurement Spending Patterns:
Federal agencies spent more than $235 billion in fiscal year 2001
to buy goods and services ranging from weapon systems and medical
equipment to information technology services and the operation of
government facilities. This is an 11 percent increase over the amount
spent in 1997. This growth is expected to continue as federal agencies
address emerging threats and acquire enhanced information technology.
The significance of contracting in the federal government is reflected
by the sheer magnitude and the degree to which contracting consumes
agencies' discretionary resources. Overall, contracting for goods and
services accounted for about 24 percent of the government's
discretionary resources in fiscal year 2001. However, contract spending
consumed between 34 percent and 73 percent of the discretionary
resources available to the four largest acquisition spending federal
agencies.
Recent Growth in Federal Procurement:
Federal contracting increased by 11 percent during the 5-year period we
studied, from about $213 billion in fiscal year 1997 to over $235
billion in fiscal year 2001.[Footnote 6] As shown in figure 1, DOD is
the largest agency in terms of contracting dollars spent, accounting
for about two-thirds of the government's total spending on goods and
services. In fiscal year 2001, DOD contracted for more than $152.6
billion of goods and services, or more than twice the amount spent by
the next nine largest federal agencies combined. The three military
departments--the Air Force, Army, and Navy--individually spend more
than the largest civilian agency, the Department of Energy (DOE).
Figure 1: Federal Contract Spending, Fiscal Year 2001:
[See PDF for image]
Note: GAO analysis of data provided by FPDS and FAA.
[End of figure]
From fiscal years 1997 through 2001, purchases of goods increased by
17 percent. This was due in large measure to DOD's increased spending
on weapon systems and other defense-related items. Overall, however,
agencies continued to purchase far more services than goods. Purchases
of services grew by about 11 percent, as agencies modernized their
information systems and obtained various professional, administrative,
and management support services. Nine of the 10 agencies we reviewed
increased their spending on services. The other agency, the National
Aeronautics and Space Administration (NASA), experienced a 4 percent
decrease, reflecting significant reductions in spending for research
and development and for professional, administrative, and management
support services. As shown in figure 2, agencies varied in the degree
to which they contracted for services. For example, DOE spent more than
98 percent of its contract dollars on services in fiscal year 2001,
while the Department of Agriculture's (USDA) spending for services
accounted for only about 30 percent of its acquisition
spending.[Footnote 7]
Figure 2: Percent of Contract Dollars Spent on Services in
Fiscal Year 2001:
[See PDF for image]
Note: GAO analysis of data provided by FPDS and FAA for actions
exceeding $25,000.
[End of figure]
The degree to which individual agencies contract for services
underscores the importance of ensuring that service acquisitions are
managed properly. For example, we noted in May 2001 that some service
procurements were not being conducted efficiently, putting taxpayer
dollars at risk.[Footnote 8] Last year, we reported that leading
commercial companies had taken a strategic approach to acquiring
services, which in turn resulted in significant cost savings and
service improvements.[Footnote 9] Taking a strategic approach involves
a range of activities--from developing a better picture of what the
company is spending on services, to taking an enterprisewide approach
to procuring services, to developing new ways of doing business. Based
in part on our
report, the National Defense Authorization Act For Fiscal Year 2002
required that DOD develop enhanced data collection and management
processes for services acquisitions.[Footnote 10] Additionally, as will
be discussed in greater detail in the next section, Congress and the
administration are encouraging the use of performance-based approaches
to acquiring services as a way of improving the acquisition of
services.
Acquisition Activity Varies by Agency:
Agencies rely to various degrees on private vendors to provide the
goods and services needed to carry out their missions and support their
operations. Overall, contracting for goods and services accounted for
24 percent of the government's discretionary resources in fiscal year
2001. For four agencies included in our review--DOE, NASA, GSA, and
DOD--the acquisition function is central to accomplishing their
mission-related goals. About 76 percent of DOE's funds, for example,
are spent on the management and operation of over 30 government-owned
laboratories and other nuclear facilities. NASA contracts account for
about 72 percent of its discretionary budget resources, and one of
GSA's primary missions is to help federal agencies procure goods and
services. However, spending on contracts accounted for less than 23
percent at each of the other six agencies in our review, as shown in
figure 3.
Figure 3: Acquisition of Goods and Services as a Percent of Agencies'
Discretionary Budget Resources, Fiscal Year 2001:
[See PDF for image]
Note: GAO analysis of data provided by FPDS, OMB, and FAA.
[End of figure]
Further Growth in Contract Spending Is Likely:
Further growth in contract spending, at least in the short term, is
likely given the President's request for additional funds for defense
and homeland security, agencies' plans to update their information
technology systems, and other factors. For example, the President's
fiscal year 2004 budget request reflects steady increases in DOD's
discretionary budget authority, as well as increases in the budgets of
other agencies involved in homeland security. Additionally, the
President's budget request reflects increased investment in information
technology both for new systems and for related support.
Further, the administration's emphasis on competitive sourcing could
increase agencies' reliance on services provided by the private sector.
Competitive sourcing in the federal government is conducted under
guidance provided in OMB Circular A-76, which outlines procedures for
determining whether to perform a commercial activity with government
employees or by contract. Additionally, the circular provides policy
for standardizing how and when an agency competes a commercial activity
with the private sector. OMB's current 2-year goal is to compete 15
percent of the federal government's commercial-type positions. This
effort could result in significant increases in the number of service
contracts, given that in the past the private sector has won over half
of the competitions.
Emerging Trends in Procurement Methods and Approaches:
The past decade has seen the emergence of several procurement trends
that have changed the way the government acquires goods and services,
as Congress and the administration have sought ways to simplify the
acquisition process, shorten procurement times, reduce administrative
burdens and costs, and improve acquisition outcomes. In particular,
federal agencies are increasingly relying on contracts awarded by other
federal agencies to obtain goods and services and have turned to using
government purchase cards for many of their low dollar value
procurements. The growth in these procurement methods has been
dramatic, and is apparent in nearly every agency we reviewed.
Additionally, agencies have begun to increase their use of commercial
contracting methods and performance-based acquisition approaches.
As we have reported previously, taking full advantage of these methods
and approaches requires that agencies have adequate guidance and
training, a strong internal control environment, and data that can be
used by agency management to make informed decisions.[Footnote 11] Our
work at selected agencies has found that these conditions have not
always been present, thereby contributing to agencies missing
opportunities to achieve savings, reduce administrative burdens, and
improve acquisition outcomes.
Agencies' Use of Contracts Awarded by Other Agencies:
Federal agencies are increasingly using contracts and acquisition
services offered by other agencies, a fact that is most notably
demonstrated in the growth of GSA's Federal Supply Schedule and
governmentwide acquisition contracts (GWAC). These interagency
contracts are being used in a variety of situations, from those in
which a single agency provides limited contracting assistance to a more
comprehensive approach in which the provider agency's contracting
officer handles all aspects of the procurement. Agencies charge users
of these contracts a fee to cover administrative expenses. GSA's
schedule program enables federal agencies to quickly acquire goods and
services, thereby helping them to, among other objectives, reduce lead
times and lower administrative costs. GSA does this by awarding
contracts to vendors and making these contracts available for use by
other agencies.[Footnote 12] GWACs are intended to facilitate purchases
of information technology-related products and services, such as
network maintenance and technical support, systems engineering, and
integration services.[Footnote 13]
As shown in figure 4, sales under the schedule program have more than
tripled over the past 5 years, increasing from $4.3 billion in fiscal
year 1997 to about $14.4 billion in fiscal year 2001. Agency officials
at each of the agencies we reviewed reported increases in their use of
the schedules program over the past 5 years, driven largely by
increased purchases of information technology and professional,
administrative, and management support services.
Figure 4: Amount Spent Using the Federal Supply Schedule,
Fiscal Year 1997 through Fiscal Year 2001:
[See PDF for image]
Note: GAO analysis of data provided by FPDS and FAA for actions
exceeding $25,000.
[End of figure]
As shown in table 1, DOD and GSA, the largest users of the schedules
program, accounted for about 75 percent of schedule sales in fiscal
year 2001. GSA's increased share is largely attributable to the growth
of GSA's Federal Technology Service, which places orders under the
schedule for information technology services and equipment on behalf of
other federal agencies. However, orders placed by the Federal
Technology Service are counted as spending by GSA, rather than as
spending by the federal agency that will ultimately receive the service
or equipment.
Table 1: Agency Use of the Federal Supply Schedule Program:
Agency: DOD; 1997: $1,853; 2001: $6,489;
Change (percent): 250.
Agency: GSA; 1997: 498; 2001: 4,274; Change
(percent): 758.
Agency: VA[A]; 1997: 783; 2001: 668; Change
(percent): -15.
Agency: DOJ; 1997: 234; 2001: 470; Change
(percent): 101.
Agency: Treasury; 1997: 94; 2001: 324; Change
(percent): 245.
Agency: DOT; 1997: 167; 2001: 242; Change
(percent): 45.
Agency: NASA; 1997: 32; 2001: 179; Change
(percent): 459.
Agency: HHS; 1997: 42; 2001: 159; Change
(percent): 279.
Agency: DOE; 1997: 41; 2001: 136; Change
(percent): 232.
Agency: USDA; 1997: 38; 2001: 129; Change
(percent): 239.
Agency: Governmentwide; 1997: 4,324; 2001:
14,436; Change (percent): 234.
Source: FPDS and FAA.
Notes: GAO analysis of data provided by FPDS and FAA for actions
exceeding $25,000.
Dollars in millions, shown in constant fiscal year 2001 dollars.
[A] VA officials noted that in addition to figures reflected in table
1, VA's prime vendors for pharmaceuticals and medical/surgical supplies
make extensive use of the schedule program to satisfy VA's
requirements.
[End of table]
Agency officials also reported that their use of GWACs increased
considerably over the 5-year period between fiscal years 1997 and 2001.
For example, USDA reported an increase from about $5.1 million to $44
million, and Treasury reported an increase from $92 million to $155
million. Officials at the other eight agencies we reviewed reported
that they also increased their use of GWACs; however, they could not
provide detailed GWAC information because this spending was not an
integral part of their management information systems. While GSA
officials indicated that they have not modified the FPDS to collect
specific information on GWAC spending, several officials at other
agencies stated that they either are collecting or will begin to
collect additional information on their agencies' GWAC use.
While use of these interagency contracting methods can allow agencies
to meet their needs quickly, our past work has shown that agencies are
not adequately adhering to guidelines on competition.[Footnote 14]
Further, recent agency Inspector General reports noted that DOD, VA,
and NASA personnel did not consistently follow procedures intended to
promote competition or ensure fair and reasonable prices when using
these interagency contract methods to acquire information technology
services, medical equipment, or research and development
projects.[Footnote 15]
Purchase Cards:
Purchase card spending has increased significantly governmentwide.
This program provides federal agencies a low-cost and efficient means
for quickly obtaining goods and services directly from vendors.
Under the Federal Acquisition Regulation, the commercial purchase card
is now the preferred method of paying for micropurchases.[Footnote 16]
The purchase card may also be authorized to be used in greater dollar
amounts and may be used to make payments under existing contracts.
As figure 5 shows, governmentwide purchase card use increased
from $5.3 billion in fiscal year 1997 to $13.8 billion in fiscal year
2001--a 160 percent rise. Increases in purchase card use in the
agencies we reviewed ranged from 45 percent to 344 percent.
Figure 5: Governmentwide Use of Purchase Cards:
[See PDF for image]
Note: GAO analysis of FPDS data.
[End of figure]
As figure 6 shows, agencies used purchase cards to varying degrees.
DOD was the largest user of purchase cards, spending about $6.1 billion
in fiscal year 2001. VA was the largest civilian agency user of the
purchase card program, spending about $3.8 billion. VA officials noted
that due to VA's organizational structure[Footnote 17] and its
continuous need for disposable medical and surgical supplies, purchase
cards are one of VA's key procurement techniques and are used
extensively as a payment mechanism.
Figure 6: Purchase Card Use in Fiscal Year 2001:
[See PDF for image]
Note: GAO analysis of data provided by FPDS and FAA.
[End of figure]
During the past 2 years, we found that significant internal control
weaknesses in several agency purchase card programs allowed cardholders
to make fraudulent, improper, abusive, or questionable purchases that
resulted in lost, missing, or misused government property.[Footnote 18]
Agencies are responding to the recommendations that we and others have
made regarding internal control weaknesses. For example, the Navy has
reduced the number of cardholders by more than 50 percent, from 59,000
in June 2001 to 25,000 by March 2002, thus improving the likelihood of
effective program management.[Footnote 19] Additionally, DOD has begun
implementing new training and approval processes. For example, DOD
implemented automated controls during fiscal year 2002 to help with
monitoring credit limits, cardholder reconciliation, and approving
officials' review of monthly statements. Further, OMB requires that
agencies provide quarterly reports on their efforts to improve the
management oversight of government-issued purchase and travel cards.
Use of Streamlined Procedures to Acquire Commercial Items:
In recent years, there has been a significant increase in agencies' use
of streamlined procedures to acquire commercial items. Many procurement
reform advocates have recommended that federal agencies purchase
commercial items to save money and reduce acquisition time, rather than
pay companies to develop unique items for the government's use. The
Federal Acquisition Streamlining Act established a preference for the
acquisition of commercial items.[Footnote 20] Because commercial items
are subject to competitive market forces, they may be acquired using
streamlined solicitation and evaluation procedures generally provided
for under part 12 of the Federal Acquisition Regulation (FAR).[Footnote
21] For example, contracting officers may reduce the time needed
to solicit bids and award contracts by combining certain steps in the
solicitation process, using streamlined evaluation techniques, and
eliminating certain administrative requirements.
In fiscal year 2001, the purchase of commercial items using FAR part 12
procedures accounted for 19 percent of the spending for goods and
services by federal agencies, up from 9 percent 5 years earlier. From
fiscal year 1997 through fiscal year 2001, governmentwide use of part
12 procedures increased by 148 percent. As shown in table 2, 9 of the
10 agencies in our review increased their use of part 12 procedures by
at least 100 percent.
Table 2: Changes in the Extent Agencies Used FAR Part 12 to Acquire
Commercial Items, Fiscal Years 1997 through 2001:
Dollars in millions.
DOE; 1997: $33; 2001: $273; Change
(percent): 727.
VA; 1997: 491; 2001: 2,796; Change
(percent): 469.
Treasury; 1997: 177; 2001: 981; Change
(percent): 454.
DOT; 1997: 297; 2001: 1,595; Change
(percent): 437.
DOJ; 1997: 234; 2001: 1,187; Change
(percent): 407.
HHS; 1997: 85; 2001: 418; Change
(percent): 392.
NASA; 1997: 225; 2001: 794; Change
(percent): 253.
DOD; 1997: 11,597; 2001: 26,378; Change
(percent): 127.
GSA; 1997: 2,121; 2001: 4,301; Change
(percent): 103.
USDA[A]; 1997: 768; 2001: 311; Change
(percent): -60.
Governmentwide; 1997: 16,704; 2001: 41,417;
Change
(percent): 148.
Source: FPDS and FAA.
Note: All dollar figures have been converted to constant 2001 dollars.
[A] USDA officials indicated that this decrease was a result of
reclassifying certain items as noncommercial.
[End of table]
Performance-Based Service Contracting:
Significant growth in service contracts has led Congress and the
administration to encourage greater use of performance-based service
contracting to achieve greater cost savings and better outcomes. Under
performance-based approaches, the contracting agency specifies the
outcome or result it desires and lets the contractor decide how best to
achieve the desired outcome. Performance-based contracts offer
significant benefits, such as encouraging contractors to innovate and
find cost-effective ways of delivering services. In fiscal year 2001,
agencies reported that 24 percent of their eligible service contracts,
by dollar value, were considered performance based.
There was wide variation in the extent to which agencies used
performance-based contracts. As figure 7 shows, 3 of the 10 agencies in
our review fell short of OMB's goal that 10 percent of their eligible
service contracts be performance based in fiscal year 2001.[Footnote
22]
Figure 7: Performance-Based Service Contracting in Fiscal Year 2001
(by dollar value):
[See PDF for image]
Note: GAO analysis of data provided by FPDS for actions over $25,000.
[A] DOE and VA officials stated that their internal data systems report
a higher use of performance-based contracting in fiscal year 2001 than
the data in FPDS. For example, DOE officials believed 77 percent of
their eligible contracts were performance based, while VA officials
believed their agency's figure should be about 11 percent.
[B] Figure reflects data for DOT only; FAA could not provide
performance-based service contracting data because it was not an
integral part of its management information systems.
[End of figure]
We recently found that some agencies achieved only mixed success
in incorporating four basic performance-based attributes into their
contracts.[Footnote 23] These attributes include describing desired
outcomes rather than how the services should be performed, setting
measurable performance standards, describing how the contractor's
performance will be evaluated, and establishing positive and negative
incentives, as appropriate. Our review raised questions as to whether
agencies have an adequate understanding of performance-based
contracting and how to take full advantage of this approach. Agency
officials themselves pointed to the need for better guidance on
performance-based contracting and better criteria for identifying which
contracts should be called "performance based." In response to our
recommendations, the Office of Federal Procurement Policy is developing
new guidance to help agencies improve their use of performance-based
contracting.
Acquisition Workforce and Workload Trends:
Over the last decade, the federal acquisition workforce has had to
adapt to changes in staffing levels, workloads, and the need for new
skill sets. Procurement reforms have placed unprecedented demands on
the acquisition workforce. For example, contracting specialists are
required to have a greater knowledge of market conditions, industry
trends, and the technical details of the commodities and services they
procure. Governmentwide data indicate that in fiscal year 2001 both the
number of acquisition workforce employees[Footnote 24] and the number
of contract actions declined slightly from fiscal year 1997 levels.
However, the extent to which these changes occurred varied from agency
to agency. Ensuring that agencies will have the right people with the
right skills to successfully meet the increasingly complex demands
expected in the future has become a priority at most of the agencies we
reviewed. While agencies still face many hurdles, our recent work has
found that most agencies have taken steps to address their strategic
human capital planning challenges.[Footnote 25]
Current Acquisition Workforce:
As of September 2001, the federal acquisition workforce included about
103,000 individuals, reflecting an overall 5 percent decline from 1997
levels. As shown in table 3, changes in the acquisition workforce
varied by agency; for example, 6 of the 10 agencies we reviewed lost
between 2 percent and 9 percent of their acquisition workforces, while
the other 4 agencies increased their acquisition workforces by between
8 percent and 11 percent. DOD experienced the largest personnel
decrease in its acquisition workforce, declining by 9 percent to just
over 68,500 personnel.
Table 3: Federal Acquisition Personnel and Workload:
Agency: Governmentwide; Acquisition workforce: Total: Sept. 2001:
103,053; Acquisition workforce: Percent: change in workforce since
fiscal year 1997: -5; [Empty]; Changes in contract actions, fiscal
years 1997 through 2001: Change in total contract actions (percent): -
6; Changes in contract actions, fiscal years 1997 through 2001: Change
in contract actions exceeding $25,000 (percent): 26; Changes in
contract actions, fiscal years 1997 through 2001: Change in contract
actions $25,000 or less (percent): -7.
Agency: DOD; Acquisition workforce: Total: Sept. 2001: 68,513;
Acquisition workforce: Percent: change in workforce since fiscal year
1997: -9; [Empty]; Changes in contract actions, fiscal years 1997
through 2001: Change in total contract actions (percent): 5; Changes in
contract actions, fiscal years 1997 through 2001: Change in contract
actions exceeding $25,000 (percent): 27; Changes in contract actions,
fiscal years 1997 through 2001: Change in contract actions $25,000
or less (percent): 4.
Agency: USDA; Acquisition workforce: Total: Sept. 2001: 5,703;
Acquisition workforce: Percent: change in workforce since fiscal year
1997: -6; [Empty]; Changes in contract actions, fiscal years 1997
through 2001: Change in total contract actions (percent): -79; Changes
in contract actions, fiscal years 1997 through 2001: Change in contract
actions exceeding $25,000 (percent): 25; Changes in contract actions,
fiscal years 1997 through 2001: Change in contract actions $25,000
or less (percent): -81.
Agency: DOE; Acquisition workforce: Total: Sept. 2001: 1,449;
Acquisition workforce: Percent: change in workforce since fiscal year
1997: 10; [Empty]; Changes in contract actions, fiscal years 1997
through 2001: Change in total contract actions (percent): 4; Changes in
contract actions, fiscal years 1997 through 2001: Change in contract
actions exceeding $25,000 (percent): 19; Changes in contract actions,
fiscal years 1997 through 2001: Change in contract actions $25,000
or less (percent): -3.
Agency: GSA; Acquisition workforce: Total: Sept. 2001: 2,743;
Acquisition workforce: Percent: change in workforce since fiscal year
1997: 11; [Empty]; Changes in contract actions, fiscal years 1997
through 2001: Change in total contract actions (percent): -75; Changes
in contract actions, fiscal years 1997 through 2001: Change in contract
actions exceeding $25,000 (percent): 68; Changes in contract actions,
fiscal years 1997 through 2001: Change in contract actions $25,000
or less (percent): -82.
Agency: HHS; Acquisition workforce: Total: Sept. 2001: 2,490;
Acquisition workforce: Percent: change in workforce since fiscal year
1997: 9; [Empty]; Changes in contract actions, fiscal years 1997
through 2001: Change in total contract actions (percent): -29; Changes
in contract actions, fiscal years 1997 through 2001: Change in contract
actions exceeding $25,000 (percent): 44; Changes in contract actions,
fiscal years 1997 through 2001: Change in contract actions $25,000
or less (percent): -31.
Agency: DOJ; Acquisition workforce: Total: Sept. 2001: 1,457;
Acquisition workforce: Percent: change in workforce since fiscal year
1997: -2; [Empty]; Changes in contract actions, fiscal years 1997
through 2001: Change in total contract actions (percent): -11; Changes
in contract actions, fiscal years 1997 through 2001: Change in contract
actions exceeding $25,000 (percent): 26; Changes in contract actions,
fiscal years 1997 through 2001: Change in contract actions $25,000
or less (percent): -13.
Agency: NASA; Acquisition workforce: Total: Sept. 2001: 1,246;
Acquisition workforce: Percent: change in workforce since fiscal year
1997: -4; [Empty]; Changes in contract actions, fiscal years 1997
through 2001: Change in total contract actions (percent): -38; Changes
in contract actions, fiscal years 1997 through 2001: Change in contract
actions exceeding $25,000 (percent): -12; Changes in contract actions,
fiscal years 1997 through 2001: Change in contract actions $25,000
or less (percent): -50.
Agency: DOT; Acquisition workforce: Total: Sept. 2001: 1,514;
Acquisition workforce: Percent: change in workforce since fiscal year
1997: -7; [Empty]; Changes in contract actions, fiscal years 1997
through 2001: Change in total contract actions (percent): -37; Changes
in contract actions, fiscal years 1997 through 2001: Change in contract
actions exceeding $25,000 (percent): 27; Changes in contract actions,
fiscal years 1997 through 2001: Change in contract actions $25,000
or less (percent): -48.
Agency: Treasury; Acquisition workforce: Total: Sept. 2001: 2,561;
Acquisition workforce: Percent: change in workforce since fiscal year
1997: 8; [Empty]; Changes in contract actions, fiscal years 1997
through 2001: Change in total contract actions (percent): 12; Changes
in contract actions, fiscal years 1997 through 2001: Change in contract
actions exceeding $25,000 (percent): 15; Changes in contract actions,
fiscal years 1997 through 2001: Change in contract actions $25,000
or less (percent): 11.
Agency: VA; Acquisition workforce: Total: Sept. 2001: 2,562;
Acquisition workforce: Percent: change in workforce since fiscal year
1997: -6; [Empty]; Changes in contract actions, fiscal years 1997
through 2001: Change in total contract actions (percent): 29; Changes
in contract actions, fiscal years 1997 through 2001: Change in contract
actions exceeding $25,000 (percent): -12; Changes in contract actions,
fiscal years 1997 through 2001: Change in contract actions $25,000
or less (percent): 30.
Source: OPM, FPDS, and FAA.
[End of table]
Changes in the acquisition workforce have been accompanied by changes
in the types of actions being managed. The total number of contract
actions processed in fiscal year 2001 decreased 6 percent from fiscal
year 1997 levels. As shown in table 3, our analysis indicates that
while most agencies are processing fewer smaller actions--those valued
at less than $25,000--most agencies are also managing an increased
number of larger actions. Agencies have made far greater use of
purchase cards for making their smaller dollar purchases, which
accounts for the declining rate of smaller dollar actions. While we
have not evaluated how these changes have affected federal agencies as
a whole, the DOD Inspector General noted in 2000 that the increased
contract workload was adversely affecting contract oversight by
creating imbalances and backlogs in closing out completed contracts.
Agencies Showing Progress in Strategic Human Capital Planning Efforts:
The changes in staffing levels and workload come at a time when the
role of the government's acquisition staff is changing considerably.
Federal agency officials expect their acquisition personnel to analyze
business problems and help develop strategies in the early stages of
the acquisition process. Industry and government experts recognize that
a key to making a successful transformation toward a more sophisticated
acquisition environment is having the right people with the right
skills. To accomplish this, leading public organizations in the United
States and abroad have found that strategic human capital management
must be the centerpiece of any serious change management
initiative.[Footnote 26] Strategic management of human capital is a key
governmentwide initiative in the President's Management Agenda.
One aspect of strategic human capital planning is succession planning,
where an agency identifies its future needs in terms of workforce
skills and numbers. Our prior work has shown that when workforce
reductions do not consider future needs--such as a staff reduction at
DOD during the 1990s--the result is a workforce that is not balanced
with regard to experience and skill sets.[Footnote 27] The need for
planning is underscored by the fact that, similar to human capital
challenges across a variety of occupation categories, all agencies face
the prospect of losing many of their skilled acquisition personnel over
the next 5 years. As shown in figure 8, about 38 percent of acquisition
personnel governmentwide are either already eligible to retire or will
be eligible by September 30, 2007. At DOD and DOE--the two largest
contracting agencies in our review--39 percent of the acquisition
workforce will be eligible to retire by fiscal year 2008; at the other
eight agencies, between 30 to 36 percent of their current workforces
will be eligible to retire.
Figure 8: Retirement Eligibility of Current Acquisition Workforce:
[See PDF for image]
Notes: GAO analysis of data from OPM's Central Personnel Data File.
[End of figure]
Percentages do not add to 100 due to rounding.
Our recent reviews of how agencies are addressing their future
acquisition workforce needs found that all of the agencies we reviewed
have made progress.[Footnote 28] For example, the agencies have either
published or drafted human capital strategic plans for their overall
workforces or for their acquisition workforces, and some are revamping
training, recruitment, and retention programs to address future
workforce needs. However, these agencies have encountered challenges,
in part due to shifting priorities, missions, and budgets that make it
difficult to predict with any certainty the specific skills and
competencies their acquisition workforces will need. Further, many
agencies simply lack good data on their workforces, such as size and
location, knowledge and skills, and attrition and retirement rates.
This information is critical to mapping out the current condition of
the workforce and deciding what needs to be done to ensure that each
agency has the right mix of skills and talent for the future.
Conclusions:
Effectively managing federal contracts is essential to ensuring that
the more than $235 billion spent annually through contracts provides
high-quality goods and services that meet the users' needs in a timely
fashion. While managing spending effectively is always a key management
responsibility, the need for effective management is more acute in
agencies that rely heavily on acquiring goods and services to carry out
their missions or support their operations.
Changes in what the government buys, its contracting approaches and
methods, and its acquisition workforce combine to create a dynamic
acquisition environment. The purpose of introducing or expanding
streamlined purchase methods, such as GWACs, purchase cards, and supply
schedules, was to enhance contracting efficiency, reduce administrative
burdens, lower transaction costs, and shorten procurement times.
However, our work has found that the lack of proper training, guidance,
and internal controls can increase an agency's procurement risk and
lead to reduced public confidence. While agencies are taking corrective
actions to address these concerns, many actions remain in the early
stages of implementation.
Agency Comments and Our Evaluation:
We requested comments on a draft of this report from each of the
agencies we reviewed, as well as from the Office of Federal Procurement
Policy. Each agency provided comments, generally via electronic mail.
Agency officials concurred with our analyses and provided technical
comments, which we incorporated as appropriate.
Some agencies noted that their internal data systems contained
procurement data that differed from that contained in the Federal
Procurement Data System or contained workforce data that differed from
that reflected in the Central Personnel Data File. For example, DOE and
VA officials noted that their systems indicated higher use of
performance-based contracting than the data contained in Federal
Procurement Data System. We have noted these differences where
appropriate in the report. Additionally, HHS and DOT officials noted
that their definitions of their acquisition workforces differed from
what we used. Because there is no commonly accepted definition of the
acquisition workforce, we elected to use a consistent definition, as
discussed in our scope and methodology, to better enable cross-agency
comparisons.
We are sending copies of this report to the Director, Office of
Management and Budget; the Administrator, Office of Federal Procurement
Policy; the Secretaries of Agriculture, Defense, Energy, Health and
Human Services, Transportation, Treasury, and Veterans Affairs; the
Administrator of General Services; the Administrator, National
Aeronautics and Space Administration; the Attorney General; and
interested congressional committees. We will also provide copies to
others on request. This report will also be available at no charge on
GAO's Web site at http://www.gao.gov.
Major contributors to this report were Don Bumgardner, Chad Holmes,
Kevin Heinz, Robert L. Ackley, Julia Kennon, Gary Middleton, John W.
Mingus, Jr., John Van Schaik, Greg Wilmoth, and Suzanne Melancon.
If you have any questions about this report, please contact me at
(202) 512-4841 or Timothy J. DiNapoli at (202) 512-3665.
Signed by:
William T. Woods
Director, Acquisition and Sourcing Management:
Signed by William T. Woods:
[End of section]
Appendixes:
Appendix I: Scope and Methodology:
To identify spending, procurement methods, and acquisition workforce
trends, we judgmentally selected 15 data elements. These elements are
not intended to be all-inclusive or exhaustive; rather, they reflect
data relevant to key issues and trends identified in prior GAO reports
or that provide basic information valuable to understanding an agency's
procurement function and approach. We reviewed these elements with
senior procurement officials at each of the agencies we reviewed; these
officials generally agreed that such elements provided useful and
relevant information for gauging their agencies' procurement
activities.
We obtained data on these elements from the General Services
Administration's Federal Procurement Data Center (FPDC), agency
officials, and the Office of Management and Budget (OMB). FPDC
administers the Federal Procurement Data System (FPDS), which is the
federal government's central database on contracting actions. FPDS
contains detailed information on contracting actions over $25,000,
including contract type, amount obligated, the types of goods or
services purchased, and various vendor characteristics. FPDS contains
less detailed information on actions of $25,000 or less. Because FPDC
relies on federal agencies for procurement information, these data are
only as reliable, accurate, and complete as the information reported by
the agencies. We did not independently verify the information contained
in the database. However, in 1998, FPDC conducted an accuracy audit,
which showed that the average rate of accurate reporting in the FPDS
database was 96 percent. GAO used data from FPDS that covered the 5-
year period fiscal year 1997 through fiscal year 2001, the last year
for which complete data were available. We subsequently adjusted the
data provided by DOD to FPDS to correct for a fiscal year 2001
reporting error.
We obtained additional information from agency procurement officials
for certain data elements that were not readily available from FPDS,
such as their agency's use of governmentwide acquisition contracts.
Additionally, we obtained data from the Federal Aviation
Administration, which is not required to submit information to the
FPDC.[Footnote 29] We reflected this data in the governmentwide
analyses, as well as in the Department of Transportation's profile. We
also asked each agency to provide a description of its key procurement
initiatives undertaken during the past 2 years. We did not
independently verify the information provided or assess the degree to
which agency-reported initiatives achieved their objectives.
We collected information on each agency's discretionary resources from
the Office of Management and Budget's MAX Budget Information System,
which is used to collect, validate, analyze, model, and publish federal
budget information. Discretionary budget resources reflect the budget
amount that the agency is appropriated for a current fiscal year plus
the budget authority that the agency carries over from prior fiscal
years.
Unless otherwise noted, all figures were adjusted for inflation and
represent constant fiscal year 2001 dollars.
To determine trends in the acquisition workforce, we analyzed data
obtained from the Office of Personnel Management's Central Personnel
Data File (CPDF), which is the governmentwide human resources reporting
system. The data we used reflect information on permanent employees
reported to the CPDF as of September 30 of the particular year. The
CPDF relies on agencies to ensure that the data are timely, accurate,
complete, and edited in accordance with OPM standards. There is no
standard definition of what constitutes an agency's acquisition
workforce, and agencies have defined their workforces in various ways.
To provide consistency and comparability among agencies, we defined the
acquisition workforce as those individuals serving in the following 14
occupation series:
1. GS-246: Industrial relations:
2. GS-346: Logistics management:
3. GS-511: Auditors:
4. GS-1101: General business:
5. GS-1102: Contracting series:
6. GS-1103: Industrial property manager:
7. GS-1104: Property disposal:
8. GS-1105: Purchasing officer:
9. GS-1106: Procurement clerical support:
10. GS-1150: Industrial specialists:
11. GS-1152: Production control:
12. GS-1910: Quality assurance:
13. GS-2003: Supply management:
14. GS-2010: Inventory management:
Table 4 provides additional information on the data elements we
included in each agency's profile.
Table 4: Information on Data Elements:
Category/Description: Notes/Comments: [Empty].
Category/Description: Acquisition spending;
Figure 1: Procurement's Relationship to
Discretionary Spending, Fiscal Years 1997 through 2001; Notes/Comments:
To determine the extent that the agency's discretionary budget
resources could be accounted for by contracting, we divided the
agency's total contract obligations by the agency's discretionary
resources available for that year. We excluded the amount that the
agency spent through purchase cards because we were unable to account
for the extent that purchase cards were used to make payments on
contracts. Excluding purchase card use provides a conservative estimate
of the agency's total contract spending and reduces the likelihood of
double-counting; Discretionary budget resources reflect the budget
amount that the agency is appropriated for a current fiscal year plus
the budget authority that the agency carries over from prior fiscal
years; These data exclude contract actions of $25,000 or less and
purchase card data.
Category/Description: Acquisition spending;
Figure 2: Spending on Goods and Services, Fiscal
Years 1997 through 2001; Notes/Comments: To determine the total amount
spent on goods and services, we obtained the total amount spent for
contracts over $25,000 on goods and services from fiscal year 1997
through fiscal year 2001. Services consisted of the 21 service
categories identified in FPDS, as well as construction and research and
development. Goods reflected all other FPDS-required reporting
categories; These data exclude contract actions of $25,000 or less
and purchase card data.
Category/Description: Acquisition spending;
Figure 3: Principal Types of Goods and Services
in Fiscal Year 2001; Notes/Comments: To determine the principal types
of goods and services contracted for by each agency, we used FPDS-
reported data that identified how much each agency spent on specific
goods and services in fiscal years 1997 and 2001. We identified the
three types of goods and services that the agencies spent the most on
during fiscal year 2001; These data exclude contract actions of
$25,000 or less and purchase card data.
Category/Description: Acquisition spending;
Figure 4: Vendor Type, Fiscal Year 2001; Notes/
Comments: To determine the contracts awarded to various types of
vendors, we obtained FPDS data for fiscal year 2001 for six groups:; *
Small disadvantaged business; * Other small business; * Large business;
* Javits-Wagner-O'Day (JWOD) and nonprofit organizations. The JWOD
program provides employment opportunities for Americans who are blind
or have other severe disabilities.; * State/local government; * Other,
which includes hospitals, foreign contractors, domestic contractors
working outside the United States, educational institutions, and
historically black colleges and universities and minority
institutions; In addition, we used FPDS data to determine the
percentage of contracts awarded to women-owned businesses; These
data exclude contract actions of $25,000 or less and purchase card
data.
Category/Description: Acquisition spending;
Figure 5: Top Five Vendors, Fiscal Year 2001;
Notes/Comments: Agency officials provided us with data on the five
vendors they contracted with the most, by dollar value, in fiscal year
2001.
Category/Description: Procurement Methods;
Figure 6: Principal Contract Types Employed in
Fiscal Year 2001; Notes/Comments: To determine the contract types used,
we obtained FPDS data for four principal types of contracts used in
fiscal year 2001. These types are: (1) firm fixed-price contracts;
(2) other fixed-price contracts, which include fixed-price
redetermination, fixed-price-economic price adjustment, and fixed-
price incentive; (3) cost-type, which include cost-plus award fee,
cost-no fee, cost sharing, cost-plus fixed fee, and cost-plus incentive
fee; and (4) labor hours/time and materials contracts; Cost-type
contracts provide for payment of allowable incurred costs, to the
extent prescribed in the contract. These contracts establish an
estimate of total cost for the purpose of obligating funds and
establish a ceiling that the contractor may not exceed (except at its
own risk) without the approval of the contracting officer; These
data exclude contract actions of $25,000 or less and purchase card
data.
Category/Description: Procurement Methods;
Figure 7: Competition, Fiscal Year 2001; Notes/
Comments: To determine the extent that agency officials competed their
contracts over $25,000, we used FPDS data for fiscal year 2001. We
graphically illustrated two categories: (a) competed contracts and (b)
contracts that were not competed. The latter category included the
following four groups:; * Contracts that were follow-ons to a competed
action, which are those subsequent actions awarded to a particular
contractor who had previously been awarded the initial contract under
competitive procedures;; * Contracts not available for competition,
which include utilities, contracts authorized or required by statute to
be awarded to a designated source, sole source contracts awarded to
certain small disadvantaged businesses, or actions where the agency has
determined that there is no opportunity for competition, among other
things;; * Other, which includes actions for which data on competition
were missing or not required to be entered, such as contracts awarded
to Federal Prison Industries.; * Contracts that were eligible to be
competed but which the agency chose not to compete; These data
exclude contract actions of $25,000 or less and purchase card data.
Category/Description: Procurement Methods;
Figure 8: Degree of Competition for Competed
Contracts, Fiscal Years 1997 through 2001; Notes/Comments: To determine
the degree of competition for competed contracts, we calculated the
value of contracts for which one offer was received and the value of
contracts for which two or more offers were received; These data
exclude contract actions of $25,000 or less and purchase card data.
Category/Description: Procurement Methods;
Figure 9: Extent the Federal Supply Schedule Is
Used to Purchase Goods and Services, Fiscal Years 1997 through 2001;
Notes/Comments: To determine the extent the federal supply schedule is
used to purchase goods and services, we obtained FPDS data on orders
and modifications under the federal supply schedule; These data
exclude contract actions of $25,000 or less and purchase card data.
Category/Description: Procurement Methods;
Figure 10: Amount Spent Using Purchase Cards,
Fiscal Years 1997 through 2001; Notes/Comments: To determine the amount
spent using purchase cards, we used the summary purchase card data
included in FPDS annual reports. These reports also included data on
the number of cards authorized by each agency.
Category/Description: Procurement Methods;
Figure 11: Commercial Item Purchases Using FAR
Part 12 Procedures, Fiscal Years 1997 through 2001; Notes/Comments: To
determine the extent that agencies used FAR part 12 procedures to
acquire commercial items, we obtained data from FPDS; These data
exclude contract actions of $25,000 or less and purchase card data.
Category/Description: Procurement Methods;
Figure 12: Extent That Eligible Contracts are
Performance Based, Fiscal Year 2001 (by dollar value); Notes/Comments:
To determine the extent that agencies used performance-based
contracting, we obtained fiscal year 2001 data from FPDS regarding
contracts the agencies identified as performance based. We then
compared the reported value of performance-based contracts with the
total value of contracts eligible for performance-based contracting;
According to FAR part 37.102, performance-based methods are to be used
to the maximum extent practicable for all services, except for: (1)
construction, (2) utilities, (3) architect and engineering, or (4)
services that are incidental to supply purchases. Eligible contracts
exclude contracts for the services listed above and reflect contracts
with a value of more than $25,000. Data for performance-based service
contracts were available only for fiscal year 2001; These data
exclude contract actions of $25,000 or less and purchase card data.
Category/Description: Procurement Methods;
Figure 13: Workforce Trends, Fiscal Years 1997
through 2001; Notes/Comments: To determine workforce trends, we
obtained data from OPM's Central Personnel Data File on all civilian
full-time employees for the federal agencies that we reviewed. We used
this data to identify the changes in the size of the total and
acquisition workforces in the 10 agencies we reviewed. We defined the
acquisition workforce using the 14 occupation series described
previously in this section.
Category/Description: Procurement Methods;
Figure 14: Acquisition Workforce by Years of
Federal Service; Notes/Comments: To determine the acquisition workforce
years of federal service, we obtained data as reported to CPDF by
September 2000. This data was displayed in increments of:; * Fewer than
5 years; * 5 to 10 years; * 10 to 20 years; * 20 years or more.
Category/Description: Procurement Methods;
Figure 15: Acquisition Workforce Retirement
Eligibility; Notes/Comments: To determine the acquisition workforce
retirement eligibility, we obtained data as reported to CPDF by
September 2000. This data was displayed in increments of:; * Before
fiscal year 2002; * Fiscal years 2002 through 2007; * Fiscal years 2008
through 2011; * After fiscal year 2011.
Source: GAO.
[End of table]
We reviewed each agency profile with senior agency procurement
officials and incorporated their comments where appropriate.
We conducted this work between September 2002 and March 2003 in
accordance with generally accepted government auditing standards.
[End of section]
Appendix II: Section 1-Department of Defense:
Agency Overview and Highlights:
Mission: To support and defend the Constitution of the United States;
provide for the common defense of the nation, its citizens, and its
allies; and protect and advance U.S. interests around the world.
Significant departments:
The following departments combine for the majority of Department of
Defense's (DOD) fiscal year 2001 total discretionary budget resources:
* The Army accounted for 25 percent.
* The Air Force accounted for 23 percent.
* The Navy accounted for 21 percent.
* Other defense agencies[Footnote 30] account for 31 percent.
Spending:
DOD's discretionary resources increased by 10 percent from fiscal year
1997 through fiscal year 2001 and totaled $446.3 billion in fiscal year
2001. Over the 5-year period, the proportion of DOD's discretionary
resources spent under contracts remained stable at 34 percent.
* DOD's purchases of goods have increased by 23 percent and totaled
$66.1 billion in fiscal year 2001. Purchases of services for contracts
over $25,000 increased by 7 percent over the 5-year period, accounting
for more than 54 percent of DOD's contracts, or about $77.0 billion, in
fiscal year 2001.
* Over the 5-year period, DOD's service spending was driven by
increased spending for information technology (46 percent);
professional, administrative, and management support (21 percent); and
medical services (22 percent).
* Although slightly declining since fiscal year 1997, research and
development contracts accounted for about 28 percent, or $21.5 billion,
of DOD's total service spending in fiscal year 2001.
* Over the 5-year period, spending changed on the following goods:
ships (128 percent) and aircraft (42 percent).
Procurement methods:
DOD spent about $143.1 billion on contracts over $25,000 in fiscal year
2001, with firm fixed-price and other kinds of fixed-price contracts
accounting for over 63 percent of DOD's contract dollars.
* Since fiscal year 1997, the amount of contract dollars awarded under
competitive procedures was about 58 percent of DOD's total contract
dollars over $25,000.
* Purchase card use has increased by 169 percent over the 5-year
period, totaling $6.1 billion in fiscal year 2001. In fiscal year 2001,
DOD authorized the use of 230,646 purchase cards.
* In fiscal year 2001, about 23 percent of DOD's eligible contracts
were performance based.
Workforce:
DOD's total workforce and acquisition workforce have declined by
9 percent since fiscal year 1997, continuing a decade-long decline that
began in the early 1990s. DOD's total workforce decreased to about
629,000 and the acquisition workforce decreased to about 69,000 in
fiscal year 2001.
* Over 90 percent of DOD's acquisition workforce has at least 10 years
of federal service; by fiscal year 2008, 39 percent will be eligible to
retire.
I. Spending:
Figure 1: Procurement's Relationship to Discretionary Budget Resources,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
Goods: 2001; 1997; Change (percent).
Aircraft and airframe structural components; $14,759.8;
$10,368.4; 42.
Ships, small craft, pontoons, and floating docks; 8,296.8;
3,631.8; 128.
Communication and detection equipment; 4,326.8; 4,880.2; -
11.
Other goods; 38,747.6; 34,853.6; 11.
Total goods; $66,131.0; $53,734.0; 23.
Services; 2001; 1997; Change (percent).
Research and development; 21,541.1; 21,665.6; -1.
Professional, administrative, and management support; 11,428.1; Fiscal
year: 9,411.5; 21.
Construction of structures and facilities; 6,656.2;
6,893.8; -3.
Other services; 37,385.1; 34,006.3; 10.
Total services; $77,010.5; $71,977.2; 7.
Total goods and services; $143,141.5; $125,711.2; 14.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: 2 percent of DOD's vendors are women-owned businesses.
Other includes hospitals, foreign contractors, domestic contractors
working outside the United States, and educational institutions,
including historically black colleges and universities and minority
institutions.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in billions.
Vendor; Goods and services provided; Amount awarded.
1. Lockheed Martin; Weapons systems integration and IT; $14.7.
2. Boeing; Aircraft, electronics, and IT; $13.3.
3. Newport News Shipbuilding; Ship building and repair; $5.9.
4. Raytheon Company; Guided missile systems, electronics, and IT; $5.6.
5. Northrop Grumman; Aircraft, electronics, and IT; $5.1.
Source: DOD.
[End of table]
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount spent; Percent of total amount spent.
Firm fixed-price; $73.1; 51.0.
Other fixed-price; $17.5; 12.2.
Cost-type; $41.3; 28.9.
Labor hours/time and materials; $4.9; 3.4.
Source: FPDS.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
[A] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
[B] Other includes actions for which data on competition were missing
or not required to be entered, such as contracts awarded to Federal
Prison Industries.
[C] Contracts that were follow-on to a competed action are those
subsequent actions awarded to the particular contractor who had
previously been awarded the initial contract under competitive
procedures.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Dollars in billions.
Fiscal year; Amount spent on competed contracts; One offer
(percent); More than one offer (percent).
1997; $70.9; 7.3; 90.1.
1998; $71.9; 8.3; 88.5.
1999; $77.0; 8.9; 89.3.
2000; $80.0; 8.1; 90.1.
2001; $82.7; 10.3; 86.8.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods
and Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: In fiscal year 2001, DOD authorized the use of 230,646 purchase
cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent That Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
III. Workforce:
Figure 13: Workforce Trends, Fiscal Years 1997 through 2001:
Fiscal year; Total workforce; Acquisition workforce; Percent.
1997; 691,931; 74,890; 10.8.
1998; 664,563; 71,949; 10.8.
1999; 645,990; 69,408; 10.7.
2000; 632,523; 68,450; 10.8.
2001; 628,915; 68,513; 10.9.
Source: CPDF.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
[End of figure]
IV. Key Procurement Initiatives as Reported by Agency Officials:
Improve the credibility and effectiveness of the acquisition and
logistics support process.
* Change budgeting, procurement, program management, and logistics
processes and policies to support implementation of evolutionary
acquisition and reduce cycle time.
* Improve logistics responsiveness and supply chain integration to make
DOD's logistics system more efficient.
* Implement reforms to increase efficiency and effectiveness in the
acquisition of services and improve support of socioeconomic programs.
Revitalize the quality and morale of the DOD acquisition workforce.
* Improve training and education by building a new learning environment
designed to empower each DOD acquisition workforce member with more
control over learning needs.
* Establish a life-cycle workforce management approach to the civilian
workforce, including human capital strategic planning.
* Use new outreach and communication strategies to create better
awareness and knowledge of acquisition initiatives.
Improve the health of the defense industrial base.
* Establish a strategic approach to adopt commercial acquisition
processes.
V. Key Procurement Reports:
General Accounting Office:
Sourcing and Acquisition: Challenges Facing the Department of Defense.
GAO-03-574T. Washington, D.C.: March 19, 2003.
Major Management Challenges and Program Risks: Department of Defense.
GAO-03-98. Washington, D.C.: January 2003.
Purchase Cards: Control Weaknesses Leave Army Vulnerable to Fraud,
Waste, and Abuse. GAO-02-732. Washington, D.C.: June 27, 2002.
Acquisition Workforce: Department of Defense's Plans to Address
Workforce Size and Structure Challenges. GAO-02-630. Washington, D.C.:
April 30, 2002.
Contract Management: DOD Needs Better Guidance on Granting Waivers for
Certified Cost or Pricing Data. GAO-02-502. Washington, D.C.: April 22,
2002.
Purchase Cards: Continued Control Weaknesses Leave Two Navy
Units Vulnerable to Fraud and Abuse. GAO-02-506T. Washington, D.C.:
March 13, 2002.
Best Practices: Taking A Strategic Approach Could Improve DOD's
Acquisition of Services. GAO-02-230. Washington, D.C.: January 18,
2002.
DOD Systems Modernization: Continued Investment in the
Standard Procurement System Has Not Been Justified. GAO-01-682.
Washington, D.C.: July 31, 2001.
Contract Management: Not Following Procedures Undermines Best Pricing
Under GSA's Schedule. GAO-01-125. Washington, D.C.: November 28, 2000.
Acquisition Reform: DOD's Guidance on Using Section 845 Agreements
Could Be Improved.
GAO/NSIAD-00-33. Washington, D.C.: April 7, 2000.
Contract Management: Few Competing Proposals for Large DOD Information
Technology Orders.
GAO/NSIAD-00-56. Washington, D.C.: March 20, 2000.
Inspector General:
Report Number D-2002-075--Controls Over the DOD Purchase Card Program,
March 29, 2002.
Report Number D-2000-100--Contracts for Professional, Administrative,
and Management Support Services, March 10, 2000.
Report Number D-2000-088--DOD Acquisition Workforce Reduction Trends
and Impacts, February 29, 2000.
[End of section]
Appendix II: Section 2-Department of the Air Force:
Agency Overview and Highlights:
Spending:
The Air Force's total discretionary budget resources, after declining
between fiscal years 1997 and 1999, increased by 8 percent between
fiscal years 2000 and 2001 and totaled $101.1 billion in fiscal year
2001. Over the 5-year period, the proportion of the Air Force's
discretionary resources spent through contracts increased from
36 percent to about 40 percent.
* Since fiscal year 1997, Air Force spending has been driven by a
16 percent increase in the purchases of goods. In fiscal year 2001,
service contracts remained steady at $20.9 billion, or about 53 percent
of Air Force's contracts over $25,000.
* Research and development contracts decreased by 7 percent during the
5-year period, totaling $8.9 billion in fiscal year 2001.
* The Air Force increased its combined purchases of aircraft components
and related parts by 64 percent--spending about $13.0 billion on these
items in fiscal year 2001. In addition, the Air Force changed its
spending in other categories: information technology services
(94 percent); aircraft engines and related parts (71 percent);
professional, administrative, and management support (15 percent); and
repair of equipment (-41 percent).
Procurement methods:
The Air Force spent about $40 billion through contracts over $25,000 in
fiscal year 2001, with firm fixed-price and other kinds of fixed-price
contracts accounting for about 62 percent of the Air Force's total
contract dollars.
* About 24 percent of the Air Force's eligible service contracts are
performance based.
* Purchase card spending increased by almost 200 percent over the 5-
year period. In fiscal year 2001, the Air Force authorized the use of
79,762 purchase cards.
* The Air Force's significant increase in its use of the federal supply
schedule has been driven by purchases of services.
Workforce:
The Air Force's total workforce and acquisition workforce decreased by
9 percent from fiscal year 1999 through fiscal year 2001.
* By fiscal year 2008, about 38 percent of the current acquisition
workforce will be eligible to retire.
I. Spending:
Figure 1: Procurement's Relationship to Discretionary Budget Resources,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
Goods; 2001; 1997; Change (percent).
Aircraft and airframe structural components; $9,978.5;
$6,259.9; 59.
Aircraft engines and related parts; 2,205.7; 1,292.7; 71.
Aircraft components and accessories; 938.7; 447.1; 110.
Other goods; 5,515.1; 8,068.3; -32.
Total goods; $18,638.0; $16,068.0; 16.
Services:
Research and development; 8,901.4; 9,599.3; -7.
Professional, administrative, and management support; 2,887.8; Fiscal
year: 2,509.5; 15.
Maintenance, repair, and rebuilding of equipment; 1,599.0;
2,709.0; -41.
Other services; 7,532.4; 6,535.8; 15.
Total services; $20,920.6; $21,353.6; -2.
Total goods and services; $39,558.6; $37,421.6; 6.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: 1 percent of the Air Force's vendors are women-owned businesses.
Other includes hospitals, foreign contractors, domestic contractors
working outside the United States, and educational institutions,
including historically black colleges and universities and minority
institutions.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in millions.
Vendor; Goods and services provided; Amount
awarded.
1. Lockheed Martin; Aircraft, space systems, and IT; $9,533.0.
2. Boeing; Aircraft, space systems, and IT; $6,950.0.
3. Northrop Grumman; Aircraft, electronics, and IT; $1,910.5.
4. United Technologies Corporation; Gas turbines and jet engines;
$1,803.3.
5. Raytheon Company; Guided missiles and electronics; $1,767.8.
Source: DOD.
[End of table]
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount
spent; Percent of total amount spent.
Firm fixed-price; $21.2; 53.5.
Other fixed-price; $3.3; 8.3.
Cost-type; $11.4; 28.7.
Labor hours/time and materials; $1.7; 4.2.
Source: FPDS.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
for some data was either missing or not required to be reported.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
[A] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
[B] Other includes actions for which data on competition were missing
or not required to be entered, such as contracts awarded to Federal
Prison Industries.
[C] Contracts that were follow-on to a competed action are those
subsequent actions awarded to the particular contractor who had
previously been awarded the initial contract under competitive
procedures.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Dollars in billions.
Fiscal year; Amount spent on competed contracts; One offer
(percent); More than one
offer (percent).
1997; $18.7; 8.5; 88.0.
1998; $19.4; 8.5; 87.0.
1999; $20.2; 8.4; 90.2.
2000; $20.1; 7.4; 91.6.
2001; $21.1; 7.5; 90.9.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 9: Extent the Federal Supply Schedule Is Used to Purchase Goods
and Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: In fiscal year 2001, the Air Force authorized the use of 79,762
purchase cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent That Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
III. Workforce:
Figure 13: Workforce Trends, Fiscal Years 1997 through 2001:
Fiscal year; Total workforce; Acquisition workforce; Percent.
1997; 159,686; 18,608; 11.7.
1998; 154,379; 17,854; 11.6.
1999; 150,563; 17,480; 11.6.
2000; 145,560; 17,101; 11.8.
2001; 145,197; 16,885; 11.6.
Source: CPDF.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
[End of figure]
[End of section]
Appendix II: Section 3-Department of the Army:
Agency Overview and Highlights:
Spending:
The Army's total discretionary budget resources decreased 4 percent
from fiscal year 1997 to fiscal year 2001 and totaled $113.1 billion in
fiscal year 2001. The amount spent through contracts accounted for more
than one-third of the Army's discretionary resources in fiscal year
2001.
* Spending on goods increased by about 29 percent over fiscal year 1997
levels. In particular, the Army nearly tripled its spending on aircraft
and increased its spending on ground vehicles by 66 percent.
* Spending on services increased by about 15 percent over the 1997
level, driven by a 55 percent increase in spending for professional,
administrative, and management support contracts. Such contracts now
account for 16 percent of the Army's service contract spending, up from
less than 12 percent in fiscal year 1997.
* The Army's spending for research and development increased by about
8 percent over fiscal year 1997 levels.
Procurement methods:
Of the $37 billion the Army spent on contracts over $25,000 in fiscal
year 2001, $21.7 billion, or 59 percent, was spent using firm fixed-
price contracts.
* Between fiscal years 1997 and 2001, purchase card use increased
139 percent, to $2.5 billion in fiscal year 2001. In fiscal year 2001,
the Army authorized the use of 109,446 purchase cards.
* During the 5-year period, about 59 percent of the Army's contract
dollars were spent on competitively awarded contracts.
* In fiscal year 2001, 25 percent of the Army's service contracts were
performance based.
* The Army's use of the federal supply schedule program increased by
more than 190 percent over the 5-year period. This increase was driven
primarily by the increased purchases of services, which rose from about
$604 million in fiscal year 1997 to over $1.7 billion in fiscal year
2001.
Workforce:
From fiscal year 1997 through fiscal year 2001, the Army's total
workforce and acquisition workforce decreased by 6 and 7 percent,
respectively. Throughout this period, the acquisition workforce
accounted for about 8 percent of the total workforce.
* In fiscal year 2001, 61 percent of the acquisition workforce had 20
years or more of federal service, while 4 percent had fewer than 5
years of federal service.
* By fiscal year 2008, 40 percent of the current acquisition workforce
will be eligible to retire.
I. Spending:
Figure 1: Procurement's Relationship to Discretionary Budget Resources,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
[Empty]; Fiscal year; [Empty].
Goods; 2001; 1997; Change (percent).
Ground effect vehicles, motor vehicles, trailers and cycles; $2,923.4;
$1,757.6; 66.
Communication and detection equipment; 1,852.3; 2,091.0; -
11.
Aircraft and airframe structural components; 1,507.0;
549.8; 174.
Other goods; 8,270.3; 6,881.7; 20.
Total goods; $14,553.0; $11,280.1; 29.
Services:
Research, development, test, and evaluation; 5,848.6;
5,417.3; 8.
Professional, administrative, and management support; 3,608.3; Fiscal
year: 2,332.7; 55.
Construction; 3,097.0; 3,426.0; -10.
Other services; 9,924.4; 8,455.3; 17.
Total services; $22,478.3; $19,631.3; 15.
Total goods and services; $37,031.3; $30,911.4; 20.
[End of table]
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: 3 percent of Army's vendors are women-owned businesses.
Other includes hospitals, foreign contractors, domestic contractors
working outside the United States, and educational institutions,
including historically black colleges and universities and minority
institutions.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in millions.
Vendor; Goods and services provided; Amount
awarded.
1. General Dynamics; Combat vehicles and IT; $1,940.9.
2. Lockheed Martin; Weapons systems integration, missiles, and IT;
$1,754.5.
3. Raytheon Company; Guided missiles, electronics, and IT; $1,440.3.
4. Boeing; Aircraft, electronics, and IT; $1,299.2.
5. The Carlyle Group; Combat vehicles and weapons; $943.2.
[End of table]
Source: DOD.
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount spent; Percent of total
amount spent.
Firm fixed-price; $21.7; 58.7.
Other fixed-price; $1.4; 3.8.
Cost-type; $9.1; 24.7.
Labor hours/time and materials; $1.7; 4.6.
Source: FPDS.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
[A] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
[B] Contracts that were follow-on to a competed action are those
subsequent actions awarded to the particular contractor who had
previously been awarded the initial contract under competitive
procedures.
[C] Other includes actions for which data on competition were missing
or not required to be entered, such as contracts awarded to Federal
Prison Industries.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Dollars in billions.
Fiscal year; Dollars in billions: Amount spent on
competed contracts; One offer
(percent); More than one
offer (percent).
1997; Dollars in billions: $18.1; 4.9; 92.8.
1998; Dollars in billions: $18.1; 8.0; 90.1.
1999; Dollars in billions: $19.3; 9.7; 88.8.
2000; Dollars in billions: $21.6; 7.1; 91.3.
2001; Dollars in billions: $21.4; 9.4; 87.7.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 9: Extent the Federal Supply Schedule Is Used to Purchase Goods
and Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: In fiscal year 2001, the Army authorized the use of 109,446
purchase cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent That Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
III. Workforce:
Figure 13: Acquisition Workforce, Fiscal Year 1997 through Fiscal Year
2001:
Fiscal year; Total
workforce; Acquisition
workforce;
Percent.
1997; 226,457; 18,025; 8.0.
1998; 218,601; 17,391; 8.0.
1999; 212,816; 16,780; 8.0.
2000; 211,516; 16,690; 8.0.
2001; 212,046; 16,731; 8.0.
Source: CPDF.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
[End of section]
Appendix II: Section 4-Department of the Navy:
Agency Overview and Highlights:
Spending:
The Navy's total discretionary budget resources increased 12 percent
from fiscal year 1997 to fiscal year 2001 and totaled $95.3 billion in
fiscal year 2001. The proportion of the Navy's discretionary resources
spent through contracts was about 45 percent in fiscal year 2001.
* From fiscal years 1997 through 2001, a 25 percent increase in
spending for goods, coupled with a 6 percent decline in spending on
services, resulted in the Navy spending nearly as much on goods as on
services in fiscal year 2001. The principal causes of this shift were
significant increases in spending on ships (up 133 percent) and
decreased spending on research and development (down 17 percent).
Procurement methods:
The Navy relies on a mix of fixed-price and cost-type contracts to
achieve its mission. For example, in fiscal year 2001, firm fixed and
other kinds of fixed-price contracts accounted for more than 53 percent
of the Navy's total contract dollars, while another 42 percent was
spent under cost-type contracts.
* In fiscal year 2001, more than half of the Navy's contract dollars
were awarded under noncompeted contracts. Further, 16 percent of the
Navy's competitively awarded dollars were made on contracts in
which only 1 offer was received.
* The Navy's use of the federal supply schedule program increased by
more than 227 percent over the 5-year period. This increase was driven
primarily by the increased purchases of services, which rose from
about $132 million in fiscal year 1997 to over $1.1 billion in fiscal
year 2001.
* Purchase card use has increased by 185 percent over the 5-year
period. In fiscal year 2001, the Navy spent about $1.8 billion with
27,926 purchase cards.
* About 15 percent of Navy's eligible service contracts were considered
performance based in fiscal year 2001.
Workforce:
Since fiscal year 1997, both the Navy's total workforce and its
acquisition workforce have declined by about 10 percent, to about
176,000 and 15,000, respectively.
* In fiscal year 2001, more than 60 percent of the Navy's acquisition
workforce had 20 years or more of service; conversely, only 11 percent
had fewer than 10 years of service.
* By fiscal year 2008, about 40 percent of the Navy's acquisition
workforce will be eligible to retire.
I. Spending:
Figure 1: Procurement's Relationship to Discretionary Budget Resources
for Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
: Fiscal year.
Goods; 2001; 1997; Change (percent).
Ships, small craft, pontoons, and floating docks; $8,245.7; Fiscal
year: $3,544.1; 133.
Aircraft and airframe structural components; 3,068.2;
3,415.5; -10.
Guided missiles; 1,357.7; 1,918.9; -29.
Other goods; 7,482.5; 7,254.9; 3.
Total goods; $20,154.1; $16,133.4; 25.
Services:
Research, development, testing, and evaluation; 4,545.6;
5,471.1; -17.
Professional, administrative, and management support; 4,133.9; Fiscal
year: 4,330.1; -5.
Equipment maintenance and repair; 3,187.5; 2,734.3; 17.
Other services; 9,479.4; 10,244.1; -7.
Total services; $21,346.4; $22,779.6; -6.
Total goods and services; $41,500.5; $38,913.0; 7.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: 2 percent of Navy's vendors are women-owned businesses.
Other includes hospitals, foreign contractors, domestic contractors
working outside the United States, and educational institutions,
including historically black colleges and universities and minority
institutions.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in millions.
Vendor; Goods and services
provided.
1. Newport News Shipbuilding; Shipbuilding and repair; Amount
awarded: $5,889.3.
2. Boeing; Aircraft, electronics, and IT; Amount
awarded: $3,617.0.
3. Lockheed Martin; IT and systems integration; Amount
awarded: $3,134.4.
4. General Dynamics; Submarines and ships; Amount
awarded: $2,535.1.
5. Northrop Grumman; Aircraft, electronics, and IT; Amount
awarded: $2,484.3.
Source: DOD.
[End of table]
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount
spent; Percent of total
amount spent.
Firm fixed-price; $15.4; 37.3.
Other fixed-price; $6.6; 15.8.
Cost-type; $17.5; 42.1.
Labor hours/time and materials; $0.9; 2.2.
Source: FPDS.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
[A] Contracts that were follow-on to a competed action are those
subsequent actions awarded to the particular contractor who had
previously been awarded the initial contract under competitive
procedures.
[B] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
[C] Other includes actions for which data on competition were missing
or not required to be entered, such as contracts awarded to Federal
Prison Industries.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Dollars in billions.
Fiscal year; Dollars in billions: Amount spent on
competed contracts; One offer
(percent); More than one
offer (percent).
1997; Dollars in billions: $19.3; 10.5; 87.9.
1998; Dollars in billions: $19.0; 9.8; 87.0.
1999; Dollars in billions: $20.7; 12.0; 87.0.
2000; Dollars in billions: $21.3; 13.0; 85.2.
2001; Dollars in billions: $19.4; 16.0; 81.7.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods
and Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997
through 2001:
[See PDF for image]
Notes: In fiscal year 2001, the Navy authorized the use of 27,926
purchase cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent That Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
III. Workforce:
Figure 13: Acquisition Workforce, Fiscal Year 1997 through Fiscal Year
2001:
Fiscal year; Total
workforce; Acquisition
workforce;
Percent.
1997; 195,809; 16,933; 8.6.
1998; 188,251; 16,157; 8.6.
1999; 182,694; 15,542; 8.5.
2000; 177,819; 15,051; 8.5.
2001; 176,242; 15,161; 8.6.
Source: CPDF.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
[End of figure]
[End of section]
Appendix III: Department of Agriculture:
Agency Overview and Highlights:
Mission: To support agriculture production by ensuring a safe,
affordable, nutritious, and accessible food supply; caring for
agricultural, forest, and range lands; supporting sound development of
rural communities; providing economic opportunities for farm and rural
residents; expanding global markets for agricultural and forest
products and services; and working to reduce hunger in America and
throughout the world.
Significant components:
The following components account for the majority of the Department of
Agriculture's (USDA) fiscal year 2001 total discretionary budget
resources:
* The Forest Service manages public lands in national forests and
grasslands. In fiscal year 2001, the Forest Service accounted for
21 percent of USDA's discretionary resources.
* Food and Nutrition Service provides better access to food and a more
healthful diet through its food assistance programs and comprehensive
nutrition education efforts. In fiscal year 2001, the Food and
Nutrition Service accounted for 20 percent of USDA's discretionary
resources.
* Other key components, which combined to account for about 21 percent
of USDA's discretionary resources, include the Farm Service, the Rural
Housing Service, and the Rural Development Service.
Spending:
USDA's discretionary resources increased by 18 percent between fiscal
years 1997 and 2001 and totaled $23.5 billion in fiscal year 2001. Over
the 5-year period, the proportion of USDA's discretionary resources
spent through contracts increased from 14 percent to about 16 percent.
About 70 percent of USDA's contract spending went for purchases of
goods, while about 30 percent was spent on services.
* For contracts valued over $25,000, spending on goods increased by
53 percent from fiscal year 1997 through fiscal year 2001. This
increase was driven by purchases of food-related products and
nonmetallic crude materials, such as cereal grains. Overall, purchases
of food accounted for nearly half of USDA's contract spending.
* Similarly, spending on services increased by 44 percent over the same
period, primarily as a result of increased purchases of services
related to natural resources and conservation and property maintenance
and construction.
* Since fiscal year 1997, USDA's spending has increased significantly
in the following categories: natural resources and conservation
(152 percent), nonmetallic crude materials (145 percent), construction
(43 percent), and food (40 percent).
Procurement methods:
USDA spent about $3.7 billion through contracts in fiscal year 2001,
with firm fixed-price and other kinds of fixed-price contracts
accounting for about 99 percent of USDA's contract dollars.
* Purchase card spending between fiscal years 1997 and 2001 quadrupled,
rising from $140.2 million to $564.2 million. In fiscal year 2001, USDA
authorized the use of 22,865 purchase cards.
* Spending on commercial items using FAR part 12 procedures increased
by about 93 percent from fiscal years 1997 through 1999, but decreased
by 79 percent from fiscal years 1999 through 2001. USDA officials
indicated that this decrease was a result of USDA reclassifying certain
items as noncommercial.
* In fiscal year 2001, 93 percent of USDA's contracts over $25,000 were
competed.
Workforce:
USDA's total workforce in fiscal year 2001 was slightly higher than its
fiscal year 1997 level. Over the same period, its acquisition workforce
decreased by about 6 percent, to about 5,700 personnel.
* By fiscal year 2008, 29 percent of USDA's current acquisition
workforce will be eligible to retire.
I. Spending:
Figure 1: Procurement's Relationship to Discretionary Budget Resources,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
: Fiscal year.
Goods; 2001; 1997; Change (percent).
Food; $1,840.7; $1,317.0; 40.
Nonmetallic crude materials; 464.3; 189.2; 145.
IT equipment; 132.2; 101.5; 30.
Other goods; 148.8; 84.5; 76.
Total goods; $2,586.0; $1,692.2; 53.
Services:
Natural resources and conservation; 267.4; 106.2; 152.
Maintenance, repair, or alteration of real property; 174.2; Fiscal
year: 110.9; 57.
Construction; 147.2; 210.5; -31.
Other services; 509.6; 333.7; 53.
Total services; $1,098.4; $761.3; 44.
Total goods and services; $3,684.4; $2,453.5; 50.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: 4 percent of USDA's vendors are women-owned businesses.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in millions.
Vendor; Goods and services provided; Amount
awarded.
1. Archer Daniels Midland; Grain and flour; $136.5.
2. IBM; IT services and equipment; $112.1.
3. Cal Western Packaging Corp.; Food oils; $104.5.
4. Cargill, Inc.; Grain; $102.9.
5. Kalam Export Co.; Grain; $73.2.
Source: USDA.
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount spent; Percent of total
amount spent.
Firm fixed-price; $3.2; 86.0.
Other fixed-price; $0.5; 13.0.
Cost-type; <$0.1; 0.6.
Labor hours/time and materials; <$0.1; 0.4.
Source: FPDS.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[A] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Dollars in billions.
Fiscal year; Amount spent on competed contracts; One offer (percent);
More than one offer (percent).
1997; $2.3; 3.2; 86.1.
1998; $2.7; 3.4; 82.5.
1999; $3.2; 2.8; 86.1.
2000; $3.1; 2.1; 95.3.
2001; $3.4; 3.5; 93.8.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods
and Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through
2001:
[See PDF for image]
Note: In fiscal year 2001, USDA authorized the use of 22,865 purchase
cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent That Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
III. Workforce:
Figure 13: Workforce Trends, Fiscal Years 1997 through 2001:
Fiscal year; Total
workforce; Acquisition workforce;
Percent.
1997; 87,993; 6,095; 6.9.
1998; 86,260; 5,796; 6.7.
1999; 85,798; 5,690; 6.6.
2000; 85,921; 5,685; 6.6.
2001; 88,897; 5,703; 6.4.
Source: CPDF.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
IV. Key Procurement Initiatives as Reported by Agency Officials:
Purchase Card Oversight: To strengthen its oversight of purchase card
transactions, USDA officials reported that they are:
* scanning the USDA Purchase Card Management System database for
questionable transactions and requesting USDA agencies to justify these
transactions as appropriate;
* issuing revised regulations to tighten card use and oversight
procedures--for example, employees who fail to reconcile their accounts
within 60 days will have their cards deactivated; and:
* forming an interagency working group to define criteria for both
automated alerts and preformatted reports for agency use in identifying
questionable transactions.
Performance-Based Service Contracting: USDA is emphasizing the use of
performance-based service contracting procedures by using a monthly
"report card," which is furnished to senior management in each
contracting activity's headquarters. This report card addresses how
well each USDA agency is doing in meeting established goals. In fiscal
year 2002, USDA reported that more than 20 percent of its eligible
service contracts were performance based, exceeding the governmentwide
goal.
Integrated Acquisition System: USDA is working to deploy its first
corporate procurement automation system to support electronic
requisitioning and contract document generation. The system is expected
to interface with USDA's corporate financial system and help improve
the timeliness and accuracy of USDA's financial statements. The system
is currently undergoing pilot testing in locations within two USDA
agencies.
Workforce: To deal with the potential retirement of a large percentage
of its skilled procurement workforce over the next few years, USDA is
developing new regulations addressing classroom training, on-the-job
experience, and education requirements for its acquisition workforce.
USDA also recently added information on training resources and on-line
classes to its procurement Web site's home page.
V. Key Procurement Reports:
General Accounting Office:
Major Management Challenges and Program Risks: Department of
Agriculture. GAO-03-96. Washington, D.C.: January 2003.
[End of section]
Appendix IV: Department of Energy:
Agency Overview and Highlights:
Mission: To foster a secure and reliable energy system that is
environmentally and economically sustainable; to be a responsible
steward of the nation's nuclear weapons and nuclear materials; to clean
up the department's facilities; to lead in the physical sciences and
advance the biological, environmental, and computational sciences; and
to provide scientific instruments important to the Department of
Energy (DOE).
Significant components:
DOE groups its activities into three areas, which together comprised
more than 90 percent of its fiscal year 2001 total discretionary budget
resources.
* National Nuclear Security Administration (NNSA) maintains and
enhances the safety, reliability, and performance of the U.S. nuclear
weapons stockpile, including the ability to design, produce, and test
weapons, to meet national security requirements. NNSA also engages in
nonproliferation activities and the operation of Navy reactors. In
fiscal year 2001, NNSA accounted for 35 percent of DOE's discretionary
resources.
* Energy Programs include nondefense environmental management,
scientific research and development regarding renewable energy
resources and nuclear energy, the remediation and maintenance of
uranium facilities, and nuclear waste disposal. In fiscal year 2001,
Energy Programs accounted for 31 percent of DOE's discretionary
resources.
* Environmental and other defense activities include defense-related
environmental restoration and waste management, nuclear waste disposal,
facilities closure projects, and environmental management
privatization. In fiscal year 2001, these activities accounted for
29 percent of DOE's discretionary resources.
Spending:
DOE's discretionary resources rose by about 6 percent from fiscal year
1997 through fiscal year 2001 and totaled $25.5 billion in fiscal year
2001. DOE relies heavily on contracting to support its mission. For
example, during the 5-year period, an average of 73 percent of its
discretionary resources were spent on contracts.
* In fiscal year 2001, about 98 percent of DOE's contracts over $25,000
were spent on services, of which three-quarters went to the management
and operation of over 30 government-owned laboratories and nuclear
facilities.
* DOE's spending on natural resources and conservation services rose
from $331.7 million in fiscal year 1997 to $1.35 billion in fiscal year
2001, a 306 percent increase. This increase was mostly driven by three
large contracts for the cleanup, removal, and disposal of hazardous
substances.
* DOE ranks as one of the largest agencies in research and development
contracting, spending almost $1.1 billion in fiscal year 2001.
Procurement methods:
DOE has historically relied on cost-type contracts as its primary
contracting vehicle. In fiscal year 2001, $17.4 billion of the $18.6
billion--or 93 percent--that DOE spent on contracts over $25,000 was
spent on cost-type contracts. Nearly all of DOE's contracts for
managing and operating its laboratories and facilities were cost-type.
* DOE continues to increase the amount awarded under competed
contracts. For example, in fiscal year 2001, 64 percent of DOE's
contracts were competed.
* The use of purchase cards grew by an average of 12 percent annually
from fiscal year 1997 through fiscal year 2001, and totaled
approximately $220 million in fiscal year 2001. In fiscal year 2001,
DOE authorized the use of 6,250 purchase cards.
Workforce:
DOE's total workforce, as well as its acquisition workforce, remained
relatively stable from fiscal year 1997 through fiscal year 2001. In
fiscal year 2001, DOE's total workforce was 15,997, with 1,449, or
9 percent, in the acquisition workforce.
* In fiscal year 2001, 57 percent of the acquisition workforce had 20
years or more of federal service, while 7 percent had fewer than 5
years of federal service.
I. Spending:
Figure 1: Procurement's Relationship to Discretionary Budget Resources,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
: Fiscal year.
Goods; 2001; 1997; Change (percent).
Nuclear reactor-related equipment; $194.8; $275.1; -29.
Containers, packaging, and packing supplies; 18.3; 0; NA.
IT equipment; 14.6; 35.4; -59.
Other goods; 58.8; 52.0; 13.
Total goods; $286.5; $362.5; -21.
Services:
Operation of government-owned facilities; 13,955.4;
13,702.6; 2.
Natural resources and conservation; 1,347.4; 331.7; 306.
Research and development; 1,096.5; 912.8; 20.
Other services; 1,896.1; 1,697.3; 12.
Total services; $18,295.4; $16,644.4; 10.
Total goods and services; $18,581.9; $17,006.9; 9.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: Less than 1 percent of DOE's vendors are women-owned businesses.
Other includes hospitals, foreign contractors, domestic contractors
working outside the United States, and educational institutions,
including historically black colleges and universities and minority
institutions.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in millions.
Vendor; Goods and services provided; Amount
awarded.
1. University of California; Management of national laboratories/
research; $3,916.9.
2. Bechtel; Management of national laboratories and environmental
restoration site/design, construction and decontamination/
decommissioning studies; $2,406.4.
3. Westinghouse; Management of national laboratories and waste
isolation sites/research; $1,727.6.
4. Lockheed Martin; Management of national laboratories/technical and
research support; $1,356.0.
5. Battelle; Management of national laboratories/compliance studies;
$1,105.4.
Source: DOE.
[End of table]
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount spent; Percent of total amount spent.
Firm fixed-price; $0.4; 2.2.
Other fixed-price; $0.5; 2.6.
Cost-type; $17.4; 93.5.
Labor hours/time and materials; $0.3; 1.6.
Source: FPDS.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages may not equal 100 due to rounding.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
[A] Contracts that were follow-on to a competed action are those
subsequent actions awarded to the particular contractor who had
previously been awarded the initial contract under competitive
procedures.
[B] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages may not equal 100 due to rounding.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Dollars in billions.
Fiscal year; Amount spent on
competed contracts; One offer
(percent); More than one
offer (percent).
1997; $9.3; 20.1; 67.6.
1998; $8.9; 19.0; 71.3.
1999; $9.6; 16.6; 70.6.
2000; $10.3; 16.6; 76.8.
2001; $11.9; 22.0; 80.2.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Values for 2001 exceed 100 percent due to an adjustment of $260 million
on existing contracts.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 9: Extent Federal Supply Schedule is Used to Purchase Goods and
Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through
2001:
[See PDF for image]
Note: In fiscal year 2001, DOE authorized the use of 6,250 purchase
cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent that Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
DOE officials noted that their internal procurement data system
reported a significantly higher rate of performance-based contracting
(77 percent) in fiscal year 2000.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
III. Workforce:
Figure 13: Workforce Trends, Fiscal Year 1997 through Fiscal Year 2001:
Fiscal year; Total
workforce; Acquisition
workforce;
Percent.
1997; 16,752; 1,319; 7.9.
1998; 15,826; 1,286; 8.1.
1999; 15,498; 1,315; 8.5.
2000; 15,367; 1,328; 8.6.
2001; 15,997; 1,449; 9.1.
Source: CPDF.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
IV. Key Procurement Initiatives as Reported by Agency Officials:
Contract Management: To address both pre-award and post-award contract
administration issues, a Contract Administration Division was formed to
provide guidance and seek out and resolve contract administration
issues. During fiscal year 2002, the division conducted a review of
over 50 internal DOE directives. As a result of this review, a
significant number of directives will be revised, canceled, or
consolidated in an effort to be more consistent with performance-based
management principles.
Acquisition Career Development Program: To ensure that workforce skills
stay current, DOE adopted the requirement for 80 hours of continuous
learning every two years. As of the first quarter of 2002, 88 percent
of the covered workforce met the certification requirements.
Electronic Procurement: To streamline and eliminate redundant processes
and develop paperless solutions, DOE developed DOE/C-Web, a Web-based
electronic small purchase system, and the Industry Interactive
Procurement System (IIPS), a Web-based system for large contracts (over
$100,000) to issue solicitations, receive proposals, conduct
negotiations, and make awards via the Internet. The systems have
allowed DOE to achieve the following results:
* 100 percent of all synopses and notices requiring posting in
FedBizOpps were posted electronically through IIPS. The number of
solicitations posted on IIPS increased from 88 in fiscal year 1999 to
approximately 900 in fiscal year 2002.
* The number of transactions conducted via DOE/C-Web increased from
approximately 1,800 in fiscal year 1998 to 2,743 in fiscal year 2002.
V. Key Procurement Reports:
General Accounting Office:
Department of Energy: Status of Contract and Project Management
Reforms. GAO-03-570T. Washington, D.C.: March 20, 2003.
Major Management Challenges and Program Risks: Department of Energy.
GAO-03-100. Washington, D.C.: January 2003.
Contract Reform: DOE Has Made Progress, but Actions Needed to Ensure
Initiatives Have Improved Results. GAO-02-798. Washington, D.C.:
September 13, 2002.
Department of Energy: Contractor Litigation Costs. GAO-02-418R.
Washington, D.C.: March 8, 2002.
Inspector General:
IG-0538-Management Challenges at the Department of Energy, December 21,
2001.
IG-0510-Use of Performance-Based Incentives at Selected Departmental
Sites, July 9, 2001.
IG-0509-Integrated Planning, Accountability, and Budgeting System-
Information System, June 28, 2001.
[End of section]
Appendix V: Department of Health and Human Services:
Agency Overview and Highlights:
Mission: The Department of Health and Human Services (HHS) is the
United States government's principal agency for protecting the health
and welfare of all Americans.
Significant bureaus:
The following bureaus account for the majority of HHS' fiscal year 2001
discretionary budget resources:
* National Institutes of Health (NIH) is responsible for conducting
scientific research regarding the nature and behavior of living systems
to extend healthy life and reduce the burdens of illness and
disability. In fiscal year 2001, NIH accounted for 36 percent of HHS'
discretionary resources.
* Administration for Children and Families is responsible for promoting
the economic and social well being of families, children, individuals,
and communities. In fiscal year 2001, the administration accounted for
21 percent of HHS' discretionary resources.
* Other key bureaus: Food and Drug Administration, Centers for Medicare
and Medicaid Services, Centers for Disease Control and Prevention, and
Indian Health Service.
Spending:
HHS' discretionary budget increased by 47 percent from fiscal year 1997
through fiscal year 2001, and totaled $61 billion in fiscal year 2001.
Over the 5-year period, the proportion of HHS' discretionary resources
spent under contracts decreased slightly, dropping from more than
9 percent in fiscal year 1997 to 8 percent in fiscal year 2001.
* HHS relied heavily on services from fiscal years 1997 through 2001.
Although HHS' spending on goods increased 127 percent, from $159
million to $360 million during the 5-year period, spending on services
increased 19 percent, from $3.3 billion to $3.9 billion, between fiscal
years 1997 and 2001.
* HHS spent about $1.1 billion on research and development projects in
fiscal year 2001, or about 27 percent of total contract spending. The
amount spent on these projects remained relatively stable during the
5-year period.
* From fiscal years 1997 through 2001, HHS experienced significant
spending increases in three categories: medical, dental, and veterinary
equipment (363 percent); professional, administrative, and management
support (123 percent); and IT services (115 percent).
Procurement methods:
HHS spent about $4.3 billion through contracts over $25,000 in fiscal
year 2001. HHS relies on cost-type contracts as its primary contracting
vehicle, accounting for 66 percent of these contract dollars.
* Purchase card spending increased by 258 percent over the 5-year
period, from $95.2 million in fiscal year 1997 to $341.2 million in
fiscal year 2001.
* HHS' significant increase in its use of the federal supply schedule
has been driven by purchases of services, which increased from about $6
million to over $98 million, during the 5-year period.
Workforce:
The total HHS workforce has been increasing, particularly at NIH and
the Food and Drug Administration, due to bio-defense initiatives. This
trend is expected to continue, given the current focus on combating the
threat of biological or chemical terrorism.
* In fiscal year 2002, more than 80 percent of the acquisition
workforce had more than 10 years of federal service; the majority has
20 years or more of service.
* By fiscal year 2008, about 33 percent of the current acquisition
workforce will be eligible to retire.
I. Spending:
[End of figure]
Figure 1: Procurement's Relationship to Discretionary Budget Resources,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
: Fiscal year.
Goods; 2001; 1997; Change
(percent).
IT equipment; $109.0; $81.6; 34.
Medical, dental and veterinary equipment, and supplies; 87.0; Fiscal
year: 18.8; 363.
Instruments and laboratory equipment; 52.0; 13.4; 288.
Other goods; 112.1; 45.2; 148.
Total goods; $360.1; $159.0; 127.
Services:
Research and development; 1,157.5; 1,133.2; 2.
Professional, administrative, and management support; 957.8; Fiscal
year: 428.6; 123.
IT services; 790.1; 366.8; 115.
Other services; 1,027.4; 1,368.0; -25.
Total services; $3,932.7; $3,296.6; 19.
Total goods and services; $4,292.8; $3,455.6; 24.
[End of table]
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: 6 percent of HHS' vendors are women-owned businesses.
Other includes hospitals, foreign contractors, domestic contractors
working outside the United States, and educational institutions,
including historically black colleges and universities and minority
institutions.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in millions.
Vendor; Goods and services Provided; Amount
awarded.
1. SAIC Frederick, Inc.; Operations and technical support services;
$192.9.
2. Westat; Research and development in physical, engineering, and life
sciences; $187.9.
3. McCarthy Construction Company, Inc.; Construction of infectious
disease lab; $106.3.
4. Research Triangle Institute; Research and development in the social
sciences and humanities; $85.7.
5. ACAMBIS; Smallpox vaccine; $2.0.
Source: HHS.
[End of table]
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount spent; Percent of total
amount spent.
Firm fixed-price; $1.2; 28.3.
Other fixed-price; $0.1; 2.2.
Cost-type; $2.8; 65.7.
Labor hours/time and materials; $0.2; 3.5.
Source: FPDS.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages may not add to 100 due to rounding.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
[A] Contracts that were follow-on to a competed action are those
subsequent actions awarded to a particular contractor who had
previously been awarded the initial contract under competitive
procedures.
[B] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Fiscal year; Amount spent on
competed contracts; One offer
(percent); More than one
offer (percent).
1997; $2.2; 25.6; 73.7.
1998; $2.5; 23.1; 74.2.
1999; $3.1; 22.1; 69.4.
2000; $3.1; 20.9; 77.7.
2001; $3.5; 30.3; 66.9.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
[End of table]
Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods
and Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through
2001:
[See PDF for image]
Note: In fiscal year 2001, HHS authorized the use of 7,468 purchase
cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent That Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
III. Workforce:
Figure 13: Workforce Trends, Fiscal Years 1997 through 2001:
Fiscal year; Total
workforce; Acquisition
workforce;
Percent.
1997; 48,817[A]; 2,281; 4.7.
1998; 49,329[A]; 2,248; 4.6.
1999; 50,512[A]; 2,395; 4.8.
2000; 51,443[A]; 2,443; 4.7.
2001; 52,534[A]; 2,490; 4.7.
Source: CPDF.
[A] HHS officials reported a total workforce of over 64,000 in fiscal
year 2001. In part, the difference reflects CPDF's exclusion of more
than 6,000 members of the United States Public Health Service
Commissioned Corps, who provide health expertise in times of national
and international emergencies. HHS did not provide data for fiscal
years 1997 through 2000.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
IV. Key Procurement Initiatives as Reported by Agency Officials:
Reverse auctioning: Reverse auctioning is a process that allows many
sellers to compete for the business of a single buyer. However, unlike
a traditional auction, bid prices go down. HHS claimed cost savings of
more than $1.3 million from fiscal year 2000 through 2001 using reverse
auctioning techniques.
Performance-based service contracting: HHS officials reported
significant increases in their use of performance-based contracting,
including contracts with Medicare intermediaries and carriers.
V. Key Procurement Reports:
General Accounting Office:
Major Management Challenges and Program Risks: Department of Health and
Human Services. GAO-03-101. Washington, D.C.: January 2003.
Medicare: Comments on HHS' Claims Administration Contracting Reform
Proposal. GAO-01-1046R. Washington, D.C.: August 17, 2001.
Medicare Contracting Reform: Opportunities and Challenges in
Contracting for Claims Administration Services. GAO-01-918T.
Washington, D.C.: June 28, 2001.
Medicare: Opportunities and Challenges in Contracting for Program
Safeguards. GAO-01-616. Washington, D.C.: May 18, 2001.
Inspector General:
Inspector General Report Number A-04-99-05561---Audit of Medicare
Administrative Costs Claimed by Blue Cross Blue Shield of Florida for
Fiscal Years 1995 through 1998, July 31, 2002.
[End of section]
Appendix VI: Department of Justice:
Agency Overview and Highlights:
Mission: Enforcing laws in the public interest and protecting the
public from criminal activity.
Significant bureaus:
The following bureaus account for the majority of the Department of
Justice's (DOJ) fiscal year 2001 total discretionary budget resources:
* Office of Justice Programs develops programs that improve law
enforcement's ability to prevent and control crime, improve the
criminal and juvenile justice systems, increase knowledge about crime
and related issues, and assist crime victims. In fiscal year 2001, the
office accounted for 24 percent of DOJ's discretionary resources.
* Federal Bureau of Prisons seeks to provide safe, efficient, and
humane correctional services and programs. In fiscal year 2001, the
bureau accounted for 18 percent of DOJ's discretionary resources.
* Federal Bureau of Investigation (FBI) conducts investigations and
enforces federal laws. In fiscal year 2001, the FBI accounted for
16 percent of DOJ's discretionary resources.
* Other key bureaus: Immigration and Naturalization Service, Drug
Enforcement Administration, and the U.S. Marshals Service.
Spending:
DOJ's discretionary resources increased 16 percent from fiscal year
1997 through fiscal year 2001 and totaled $26.4 billion in fiscal year
2001. Over the 5-year period, the proportion of DOJ's discretionary
resources spent under contracts increased slightly, rising from
15 percent in fiscal year 1997 to 17 percent in fiscal year 2001.
* For contracts valued over $25,000, spending on services increased
64 percent from fiscal year 1997 through fiscal year 2001. This growth
was driven by increases in the following services: professional,
administrative and management support services (128 percent); building
construction (125 percent); information technology services
(64 percent).
Procurement methods:
DOJ spent about $3.9 billion on contracts over $25,000 in fiscal year
2001. DOJ relied on firm fixed-price and other kinds of fixed-price
contracts as the agency's primary contracting vehicles. On average from
fiscal year 1997 through fiscal year 2001, fixed-price contracts
accounted for 85 percent of DOJ's contract dollars.
* DOJ's use of the federal supply schedule and contracts awarded by
other agencies increased considerably during the 5-year period. For
example, DOJ spent $234 million in fiscal year 1997 using the federal
supply schedule; in fiscal year 2001, it had spent $470 million.
* Purchase card spending increased by 179 percent over the 5-year
period, from $190.9 million in fiscal year 1997 to $533.4 million in
fiscal year 2001. In fiscal year 2001, DOJ authorized the use of
16,073 purchase cards.
* DOJ's use of FAR part 12 to purchase commercial items grew more than
400 percent over the last 5 years. This increase was due to DOJ's
increased emphasis on (1) commercial purchases, and (2) more accurate
reporting of data to FPDS.
Workforce:
* From fiscal year 1997 through fiscal year 2001, DOJ's total workforce
increased by 11 percent--growing from about 110,000 to 123,000.
However, DOJ's acquisition workforce remained relatively stable,
decreasing 2 percent over the 5-year period.
* In fiscal year 2002, more than 85 percent of the acquisition
workforce had 10 years or more of federal service.
* By fiscal year 2008, about 30 percent of the current acquisition
workforce will be eligible to retire.
I. Spending:
Figure 1: Procurement's Relationship to Discretionary Budget Resources,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
Fiscal year:
Goods; 2001; 1997; Change
(percent).
IT equipment; $495.0; $390.1; 27.
Furniture; 121.3; 128.4; -6.
Communication and detection equipment; 65.7; 100.3; -34.
Other goods; 337.2; 458.7; -26.
Total goods; $1,019.2; $1,077.5; -5.
Services:
IT services; 723.0; 441.7; 64.
Construction; 568.6; 252.9; 125.
Professional, administrative, and management support; 537.2; Fiscal
year: 235.2; 128.
Other services; 1,066.2; 835.8; 28.
Total services; $2,895.0; $1,765.6; 64.
Total goods and services; $3,914.2; $2,843.1; 38.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: 4 percent of DOJ's vendors are women-owned businesses.
Other includes hospitals, foreign contractors, domestic contractors
working outside the United States, and educational institutions,
including historically black colleges and universities and minority
institutions.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in millions.
Vendor; Goods and services
provided; Amount
awarded.
1. Hensel Phelps Construction; Design and build correction facilities;
$441.8.
2. Akal Security Services; Guard services; $348.4.
3. Wackenhut Corrections; Private jail service, management and
operation; $297.4.
4. SAIC; IT system development, maintenance, and administrative
services; $222.1.
5. Dyncorp; IT administrative support; $179.8.
Source: DOJ.
[End of table]
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount
spent; Percent of total
amount spent.
Firm fixed-price; $2.9; 74.2.
Other fixed-price; $0.4; 11.2.
Cost-type; $0.3; 7.6.
Labor hours/time and materials; $0.3; 6.8.
Source: FPDS.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages may not add to 100 due to rounding.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
[A] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
Note: These figures include only orders and contracts for $25,000 or
more; contracts under $25,000 and purchase cards are excluded.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Fiscal year; Amount spent on
competed contracts; One offer
(percent); More than one
offer (percent).
1997; $2.4; 9.8; 89.1.
1998; $2.5; 8.2; 90.7.
1999; $2.8; 6.9; 92.1.
2000; $2.6; 11.3; 87.6.
2001; $3.4; 8.2; 91.0.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
[End of table]
Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods
and Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997
through 2001:
[See PDF for image]
Notes: In fiscal year 2001, DOJ authorized the use of 16,073 purchase
cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent That Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
III. Workforce:
Figure 13: Workforce Trends, Fiscal Years 1997 through 2001:
Fiscal year; Total
workforce; Acquisition
workforce;
Percent.
1997; 110,448; 1,485; 1.3.
1998; 117,380; 1,529; 1.3.
1999; 120,288; 1,515; 1.3.
2000; 121,272; 1,496; 1.2.
2001; 123,096; 1,457; 1.2.
Source: CPDF.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
IV. Key Procurement Initiatives as Reported by Agency Officials:
Acquisition-related electronic government initiatives: Since October
2000, DOJ has implemented several e-government programs to improve its
procurement processes. These programs include:
* Federal Business Opportunities, which is a GSA-managed Web-based
system that provides for electronic notice of agency requirements and
solicitations for contract opportunities. This system has been deployed
departmentwide, and all DOJ synopses for contracts over $25,000 are now
posted to that site.
* Central Contractor Registration is a Web-based governmentwide
database of vendor information.
DOJ is the administrator for two programs used to track contractor
performance:
* Contractor Past Performance System: an electronic federal report card
collection system that is used to collect and record past performance
information for subsequent use in determining contractor eligibility
and selection.
* Past Performance Information Retrieval System: A Web-enabled
application that allows the retrieval of contractor past performance
information from various databases.
Departmentwide guidelines for evaluating candidates for GS-1102
contract specialist positions: Over the last 5 years, guidelines were
issued to bureau personnel officers for evaluating candidates
for GS-1102 contract specialist positions. Key elements include new
education standards and certification processes.
V. Key Procurement Reports:
General Accounting Office:
Major Management Challenges and Program Risks: Department of Justice.
GAO-03-105. Washington, D.C.: January 2003.
Information Technology: INS Needs to Strengthen Its Investment
Management Capability. GAO-01-146. Washington, D.C.: December 29,
2000.
Border Patrol: Procurement of MD 600N Helicopters Should Be Reassessed.
GGD-00-201. Washington, D.C.: September 29, 2000.
Inspector General:
Report Number 02-32-Federal Bureau of Prisons Management of
Construction Contracts, August 2002.
Report Number 01-16-Justice's Reliance on Private Contractors for
Prison Services, July 31, 2002.
[End of section]
Appendix VII: Department of the Treasury:
Agency Overview and Highlights:
Mission: To promote a stable economy, manage the government's finances,
and safeguard federal financial systems and our nation's leaders.
Significant bureaus:
The following bureaus account for the majority of Treasury's fiscal
year 2001 total discretionary budget resources:
* Internal Revenue Service (IRS)--responsible for determining,
assessing, and collecting tax revenue in the United States. In fiscal
year 2001, the IRS accounted for 51 percent of Treasury's total
discretionary budget resources.
* U.S. Customs Service--responsible for enforcing laws to safeguard
U.S. borders against the illegal entry of goods and of regulating
legitimate commercial activity. In fiscal year 2001, Customs accounted
for 20 percent of Treasury's total discretionary budget resources.
* Other key bureaus--the U.S. Mint, the Secret Service, and the Bureau
of Alcohol, Tobacco, and Firearms.
Spending:
Treasury's total discretionary budget resources increased by 32 percent
from fiscal year 1997 through fiscal year 2001 and totaled $19.7
billion in fiscal year 2001. Over the same period, the amount spent
through contracts increased slightly, both in real terms and as a share
of Treasury's discretionary resources. For example, in fiscal year
1997, contract obligations accounted for about 14 percent of Treasury's
discretionary resources; by fiscal year 2001, contract obligations
accounted for 17 percent.
* For contracts valued over $25,000, spending on services increased by
71 percent from fiscal year 1997 through fiscal year 2001, while
spending on goods increased by 44 percent. Treasury's spending on goods
increased significantly during fiscal year 1999; this was attributed to
(1) the U.S. Mint's development of the "state quarters" program,
(2) the Secret Service's upgrade in hand weapons, and (3) preparation
for Y2K-related incidents.
* Since fiscal year 1997, Treasury experienced significant spending
increases in four categories: information technology (IT) equipment
(181 percent), communication detection equipment (144 percent),
administrative and management support services (138 percent), and IT
services (81 percent).
Procurement methods:
Treasury has changed its procurement approach in several key areas
since fiscal year 1997:
* Treasury's use of contracts awarded or administered by other agencies
has doubled over this period and accounted for about 16 percent of
Treasury's contract obligations in fiscal year 2001.
* After increasing by about 53 percent from fiscal years 1997 through
1999, purchase card use remained relatively stable through fiscal year
2001. In fiscal year 2001, Treasury authorized the use of
16,558 purchase cards.
Workforce:
Treasury's workforce size has remained relatively stable over the 5-
year period. Between fiscal years 1997 through 2001, Treasury's total
workforce grew about 2 percent from about 156,000 employees to almost
159,000. Treasury's acquisition workforce represents about 1.5 percent
of its total workforce.
* In fiscal year 2001, 47 percent of the acquisition workforce had 20
years or more of federal service, while only 4 percent of the workforce
had fewer than 5 years of service.
* By fiscal year 2008, approximately 30 percent of Treasury's
acquisition workforce will be eligible to retire.
I. Spending:
Figure 1: Procurement's Relationship to Discretionary Budget Resources,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
Fiscal year.
Goods; 2001; 1997; Change
(percent).
IT equipment; $619.5; $220.5; 181.
Ores and minerals; 189.5; 363.3; -48.
Communication and detection equipment; 148.2; 60.6; 144.
Other goods; 434.7; 323.4; 34.
Total goods; $1,391.9; $967.8; 44.
Services:
IT & telecommunications; 851.2; 469.2; 81.
Professional, administrative, and management support; 416.5; Fiscal
year: 174.7; 138.
Maintenance, repair, and rebuilding of equipment; 87.4;
137.3; -36.
Other services; 377.5; 234.2; 61.
Total services; $1,732.6; $1,015.4; 71.
Total goods and services; $3,124.4; $1,983.2; 57.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: 5 percent of Treasury's vendors are women-owned businesses.
Other includes hospitals, foreign contractors, domestic contractors
working outside the United States, and educational institutions,
including historically black colleges and universities and minority
institutions.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in millions.
Vendor; Goods and services
provided; Amount
awarded.
1. Computer Sciences Corporation; IT systems development; $217.3.
2. TRW; IT services; $144.3.
3. IBM; IT and telecommunication services; $76.5.
4. Lockheed Martin; Aircraft components and engine services; $72.8.
5. Olin Brass; Non-ferrous metal; $70.5.
Source: Department of the Treasury.
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount
spent; Percent of total
amount spent.
Firm fixed-price; $2.1; 68.5.
Other fixed-price; $0.3; 8.9.
Cost-type; $0.6; 18.2.
Labor hours/time and materials; $0.1; 4.2.
Source: FPDS.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Totals may not add to 100 due to rounding.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
[A] Contracts that were follow-on to a competed action are those
subsequent actions awarded to the particular contractor who had
previously been awarded the initial contract under competitive
procedures.
[B] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Dollars in billions.
Fiscal year; Amount spent on
competed contracts; One offer
(percent); More than one
offer (percent).
1997; $1.5; 3.5; 75.6.
1998; $2.3; 4.1; 62.7.
1999; $2.8; 8.4; 58.1.
2000; $2.4; 6.6; 68.8.
2001; $2.7; 10.8; 74.1.
Source: FPDS.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 9: Extent the Federal Supply Schedule Is Used to Purchase Goods
and Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997
through 2001:
[See PDF for image]
Notes: In fiscal year 2001, Treasury authorized the use of 16,558
purchase cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent That Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
III. Workforce:
Figure 13: Workforce Trends, Fiscal Years 1997 through 2001:
Fiscal year; Total
workforce; Acquisition
workforce;
Percent.
1997; 155,916; 2,374; 1.5.
1998; 153,603; 2,400; 1.6.
1999; 155,137; 2,378; 1.5.
2000; 156,694; 2,412; 1.5.
2001; 158,660; 2,561; 1.6.
Source: CPDF.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
IV. Key Procurement Initiatives as Reported by Agency Officials:
Performance-based Service Contracting (PBSC): To increase its use of
PBSC methods, Treasury developed PBSC training and a handbook,
presented information on PBSC to all bureaus, and worked with bureaus
on individual procurements. Procurement officials at Treasury stated
that these efforts resulted in increasing Treasury's use of
performance-based contracts to 20 percent in fiscal year 2002.
Improving procurement system reviews: Treasury developed the
Acquisition Management Assistance Review program to assess three key
areas (people, process, and tools) to determine the health of
Treasury's procurement systems.
Procurement Intern Program: Because its acquisition workforce is aging,
Treasury developed a procurement intern program to identify and develop
new talent for the bureaus.
V. Key Procurement Reports:
General Accounting Office:
Major Management Challenges and Program Risks: Department of the
Treasury. GAO-03-109. Washington, D.C.: January 2003.
Acquisition Workforce: Status of Agency Efforts to Address Future
Needs. GAO-03-55. Washington, D.C.: December 18, 2002.
IRS Contracting: New Procedure Adds Price or Cost as a Selection Factor
for Task Order Awards. GAO-03-218. Washington, D.C.: December 10, 2002.
Business Systems Modernization: IRS Needs to Better Balance Management
Capacity with System Acquisition Workload. GAO-02-356. Washington,
D.C.: February 28, 2002.
Inspector General:
OIG-02-074--General Management: The Mint Leased Excessive Space For Its
Headquarters Operation, March 29, 2002.
[End of section]
Appendix VIII: Department of Transportation:
Agency Overview and Highlights:
Mission: To ensure a fast, safe, efficient, accessible, and convenient
transportation system that meets our vital national interests and
enhances the quality of life of the American people, today and into the
future.
Significant administrations:
Two administrations account for the majority of the Department of
Transportation's (DOT) fiscal year 2001 total discretionary
budget resources:
* The Federal Aviation Administration (FAA) regulates civil aviation to
promote safety and fulfill the requirements of national defense;
encourages and develops civil aeronautics, including new aviation
technology; operates a common system of air traffic control and
navigation for both civil and military aircraft; implements programs to
control aircraft noise and other environmental effects of civil
aviation; and regulates U.S. commercial space transportation. In fiscal
year 2001, the FAA accounted for 41 percent of DOT's total
discretionary budget resources.
* The United States Coast Guard (USCG) is responsible for maritime
search and rescue, recreational boating safety, vessel traffic
management, at-sea enforcement of living marine resource laws and
treaty obligations, at-sea drug and illegal migrant interdiction, and
port security. In fiscal year 2001, the USCG accounted for 15 percent
of DOT's total discretionary budget resources.
* Other key organizations: Federal Transit Administration and Federal
Highway Administration.
Spending:
DOT's discretionary resources decreased 28 percent from $51.8 billion
in fiscal year 1997 to $37.3 billion in fiscal year 2001. This was due
largely to changes brought about by the Transportation Equity Act for
the 21st Century (TEA-21).[Footnote 31] TEA-21, which was enacted in
June 1998, shifted a significant amount of discretionary funds to
mandatory spending categories. While discretionary resources decreased
during the 5-year period, the amount spent through contracts increased
by 26 percent. In fiscal year 2001, the DOT spent almost $5.6 billion,
or 15 percent of its discretionary resources, through contracting.
* Spending on goods decreased by 29 percent from fiscal year 1997 to
fiscal year 2001, while spending on services increased 49 percent. In
fiscal year 2001, 85 percent of the amount spent through contracts over
$25,000 was for services.
Procurement methods:
DOT relies on a mix of contract types to achieve its mission; slightly
more than half of DOT's fiscal year 2001 contracts were fixed-price,
while more than a quarter were cost-type. Another 14 percent were labor
hours or time and materials contracts.
* In fiscal year 2001, 19 percent of DOT's service contracts were
performance based.
* In fiscal year 2001, DOT authorized the use of 21,728 purchase cards.
* The amount spent using FAR part 12 procedures increased from $297
million in fiscal year 1997 to $1.6 billion in fiscal year 2001, a 437
percent increase.
Workforce:
In fiscal year 2001, DOT's total workforce was 64,509, a 2 percent
increase from fiscal year 1997. About 2 percent of the total workforce
was made up of the acquisition workforce, which decreased by 7 percent
during the 5-year period, from 1,634 in fiscal year 1997 to 1,514 in
fiscal year 2001.
* In fiscal year 2001, 56 percent of the acquisition workforce had 20
years or more of federal service, while 5 percent had fewer than
5 years of service.
* By fiscal year 2008, approximately 36 percent of DOT's acquisition
workforce will be eligible to retire.
I. Spending:
Figure 1: Procurement's Relationship to Discretionary Budget Resources,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997
through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
: Fiscal year.
Goods; 2001; 1997; Change
(percent).
Ships, small craft, pontoons, and floating docks; $183.9;
$214.4; -14.
Communication and detection equipment; 97.6; 203.0; -52.
IT equipment; 69.3; 355.0; -80.
Other goods; 438.8; 332.4; 32.
Total goods; $789.6; $1,104.8; -29.
Services:
Professional, administrative, and management support; 1,093.8; Fiscal
year: 1,004.9; 9.
IT Services; 597.7; 455.1; 31.
Construction of structures and facilities; 490.1; 330.9;
48.
Other services; 2,285.8; 1,213.0; 88.
Total services; $4,467.4; $3,003.9; 49.
Total goods and services; $5,257.0; $4,108.7; 28.
Source: FPDS and FAA.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: 5 percent of DOT's vendors are women-owned businesses.
Other includes hospitals, foreign contractors, domestic contractors
working outside the United States, and educational institutions,
including historically black colleges and universities and minority
institutions.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in millions.
Vendor; Goods and services
provided; Amount
awarded.
1. Lockheed Martin; Planning and integration of air traffic control
systems and IT support services; $472.6.
2. Raytheon; Air traffic management systems; $299.4.
3. Invision Technologies; Explosives detection systems; $240.0.
4. Huntleigh USA Corp.; Airport security and screening services;
$158.0.
5. Globe Aviation Services Corp.; Aviation, security, terminal and
ground-support functions; $151.9.
Source: DOT and FAA.
[End of table]
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount
spent; Percent of total
amount spent.
Firm fixed-price; $2.8; 53.3.
Other fixed-price; $0.3; 4.9.
Cost-type; $1.4; 26.6.
Labor hours/time and materials; $0.7; 13.7.
Source: FPDS and FAA.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
[A] Contracts that were follow-on to a competed action are those
subsequent actions awarded to the particular contractor who had
previously been awarded the initial contract under competitive
procedures.
[B] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Dollars in billions.
Fiscal year; Amount spent on
competed contracts; One offer
(percent); More than one
offer (percent).
1997; $1.5; 8.9; 84.4.
1998; $1.5; 5.8; 92.3.
1999; $1.4; 5.6; 92.4.
2000; $1.5; 4.7; 93.0.
2001; $1.8; 8.6; 88.6.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
FAA could not provide data for the number of offers on competed
contracts and is not represented in this chart.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 9: Extent the Federal Supply Schedule is Used for Purchases of
Goods and Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997
through 2001:
[See PDF for image]
Notes: In fiscal year 2001, DOT authorized the use of 21,728 purchase
cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent That Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
FAA could not provide the amount spent on performance-based service
contracting because this data was not an integral part of its
management information systems.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
III. Workforce:
Figure 13: Workforce Trends, Fiscal Years 1997 through 2001:
Fiscal year; Total
workforce; Acquisition
workforce;
Percent.
1997; 63,110; 1,634; 2.6.
1998; 63,745; 1,572; 2.5.
1999; 63,051; 1,470; 2.3.
2000; 62,520; 1,458; 2.3.
2001; 64,509; 1,514; 2.3.
Source: CPDF.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
IV. Key Procurement Initiatives as Reported by Agency Officials:
Security: To support the current security crisis within our country
after September 11, 2001, DOT: (1) helped stand up the Transportation
Security Administration (TSA) by assisting in creating a TSA
Acquisition Management System, developing a standard set of TSA
contract provisions and clauses, and providing operational support in
the solicitation and award of TSA contracts; and (2) continues to
address security issues relating to controlling access to sensitive
information and background checks on contractor personnel in positions
where sensitive information or national security interests are present.
Procurement Performance Management System: DOT continues its major
initiative to improve procurement performance by implementing DOT's
procurement performance management program. This program assists
managers in targeting areas for improvement based on the results of
specified metrics chosen for their importance to the administration,
DOT management, or DOT customers.
V. Key Procurement Reports:
General Accounting Office:
Major Management Challenges and Program Risks: Department of
Transportation. GAO-03-108. Washington, D.C.: January 2003.
National Airspace System: Status of FAA's Standard Terminal Automation
Replacement System. GAO-02-1071. Washington, D.C.: September 17, 2002.
National Airspace System: FAA's Approach to Its New Communications
System Appears Prudent, but Challenges Remain. GAO-02-710. Washington,
D.C.: July 15, 2002.
FAA Alaska: Weak Controls Resulted in Improper and Wasteful Purchases.
GAO-02-606. Washington, D.C.: May 30, 2002.
Coast Guard: Budget and Management Challenges for 2003 and Beyond. GAO-
02-538T. Washington, D.C.: March 19, 2002.
Coast Guard: Progress Being Made on Deepwater Project, but Risks
Remain. GAO-01-564. Washington, D.C.: May 2, 2001.
National Airspace System: Persistent Problems in FAA's New
Navigation System Highlight Need for Periodic Re-evaluation. GAO/RCED/
AIMD-00-130. Washington, D.C.: June 12, 2000.
Inspector General:
FI-2002-092-FAA Oversight of Cost Reimbursable Contracts, May 8, 2002.
FI-2002-089-DOT's Information Technology Omnibus Procurement Program
(ITOP), April 15, 2002.
FI-2001-057-FRA E-Mail System Replacement Contracts, May 3, 2001.
FI-2000-125-Inactive Obligations on Contracts, September 25, 2000.
AV-2000-127-Technical Support Services Contract: Better Management
Oversight and Sound Business Practices Are Needed, September 28, 2000.
[End of section]
Appendix IX: Department of Veterans Affairs:
Agency Overview and Highlights:
Mission: To restore the capability of those who suffered harm during
their military service; to ensure a smooth transition as veterans
return to civilian life in their communities; to honor and serve all
veterans for the sacrifices they made on behalf of the nation; to
contribute to the public health, socioeconomic well being, and history
of the nation.
Significant administrations:
The following administrations account for nearly all of the Department
of Veterans Affairs' (VA) fiscal year 2001 total discretionary budget
resources.
* Veterans Health Administration is responsible for medical care,
education, and research, and serves as medical backup to the Department
of Defense. In fiscal year 2001, VHA accounted for 89 percent of VA's
discretionary resources.
* Veterans Benefits Administration provides benefits and services to
veterans and their dependents, including compensation and pensions,
education benefits, loan guarantees, and insurance.
* National Cemetery Administration provides burial benefits to veterans
and eligible dependents and Presidential Memorial Certificates to
deceased veterans' next of kin.
Spending:
VA's discretionary resources rose by about 20 percent from fiscal years
1997 through fiscal year 2001 and totaled $26.5 billion in fiscal year
2001. In fiscal year 2001, contract obligations accounted for
22 percent, or $5.9 billion, of VA's discretionary resources.
* VA spends almost half of its contract dollars on medical and dental
equipment and supplies. Since fiscal year 1997, spending for these
supplies has grown by 92 percent due in large part to an increase in
patient workload.
* Spending on services grew by about 14 percent, largely driven by
increased spending for information technology (226 percent) and medical
services (24 percent).
Procurement methods:
VA relies heavily on firm fixed-price contracts. In fiscal year 2001,
$3.9 billion--or 91 percent--of the $4.3 billion that VA obligated for
contracts over $25,000 was obligated on firm fixed-price contracts.
* Purchase card spending increased from $855 million in fiscal year
1997 to $3.8 billion in fiscal year 2001, a 344 percent increase. In
fiscal year 2001, VA authorized the use of 34,090 purchase cards.
* VA spent $3.4 billion, 79 percent of total contracting dollars, on
competed contracts in fiscal year 2001. VA typically received two or
more offers on more than 90 percent of its competed contracts.
Workforce:
At 202,414 personnel in fiscal year 2001, VA's total workforce was
about the same level as fiscal year 1997. VA's acquisition workforce
decreased by 6 percent from its fiscal year 1997 level and totaled
about 2,562 personnel in fiscal year 2001.
* In fiscal year 2001, 52 percent of the acquisition workforce had 20
years or more of federal service, while 5 percent had fewer than 5
years of federal service.
I. Spending:
Figure 1: Procurement's Relationship to Discretionary Budget Resources,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
: Fiscal year.
Goods; 2001; 1997; Change
(percent).
Medical, dental and veterinary equipment, and supplies; $2,130.8;
$1,109.9; 92.
IT equipment; 185.8; 245.0; -24.
Food; 18.1; 17.9; 1.
Other goods; 132.7; 191.8; -31.
Total goods; $2,467.4; $1,564.6; 58.
Services:
Medical services; 522.7; 420.3; 24.
IT services; 326.6; 100.1; 226.
Utilities and housekeeping services; 271.5; 250.7; 8.
Other services; 707.7; 830.4; -15.
Total services; $1,828.5; $1,601.5; 14.
Total goods and services; $4,295.9; $3,166.0; 36.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: 5 percent of VA's vendors are women-owned businesses.
Other includes hospitals, foreign contractors, domestic contractors
working outside the United States, and educational institutions,
including historically black colleges and universities and minority
institutions.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in millions.
Vendor; Goods and services provided; Amount awarded.
1. Amerisource Corp.; Health care products; $1,600.0.
2. Datatrack Information Services; IT services; $68.1.
3. General Electric Co.; Health care equipment; $49.8.
4. Integic Corp.; IT services; $46.1.
5. GRC International, Inc.; IT services; $31.9.
Source: Department of Veterans Affairs.
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount
spent; Percent of total
amount spent.
Firm fixed-price; $3.9; 90.7.
Other fixed-price; $0.4; 9.1.
Cost-type; <$0.1; 0.1.
Labor hours/time and materials; <$0.1; 0.1.
Source: FPDS.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[A] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Dollars in billions.
Fiscal Year; Amount spent on
competed contracts; One offer
(percent); More than one
offer (percent).
1997; $2.3; 7.6; 91.1.
1998; $2.1; 5.9; 92.2.
1999; $2.0; 4.7; 93.8.
2000; $3.1; 7.0; 91.7.
2001; $3.4; 5.3; 93.1.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods
and Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997
through 2001:
[See PDF for image]
Notes: in fiscal year 2001, VA authorized the use of 34,090 purchase
cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent That Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
VA officials stated that their internal data system reported a higher
use of performance-based contracting in fiscal year 2001. These
officials believed their agency's figure should be about 11 percent.
III. Workforce:
Figure 13: Workforce Trends, Fiscal Years 1997 through 2001:
Fiscal year; Total workforce; Acquisition workforce; Percent.
1997; 202,414; 2,737; 1.4.
1998; 198,890; 2,610; 1.3.
1999; 195,847; 2,574; 1.3.
2000; 196,643; 2,488; 1.3.
2001; 202,041; 2,562; 1.3.
Source: CPDF.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
[End of figure]
IV. Key Procurement Initiatives as Reported by Agency Officials:
Computer, hardware and software procurement: VA requires that computer
hardware and software vendors offer products to VA at a cost equal to
or lower than those offered any other customers. Prices that are found
to be too high are required to be lowered before they are accepted.
According to VA officials, this initiative resulted in savings of $33
million in the period of June through October 2002. The prices paid by
VA over this time period average 21.6 percent below the vendors' GSA
Federal Supply Schedule prices for the same items.
Vocational rehabilitation and employment service national acquisition
strategy: To address concerns related to contracting for services in
the field, a task force developed the National Acquisition Strategy to
provide uniform prices and services at the 58 Veterans Benefit
Administration regional offices. In September 2002 VA awarded 249
performance-based service contracts using a uniform format. According
to VA officials, over 95 percent of the awards went to small
businesses, veteran-owned businesses, and service-disabled, veteran-
owned businesses.
Joint contracting between VA and DOD: In March 2001 VA had 34 joint
contracts for pharmaceuticals between VA and DOD. In November 2002,
that number more than doubled, to 76. In addition, there are 18 pending
joint contracts for pharmaceuticals, vital sign monitors, and radiation
therapy equipment.
VA Federal Supply Schedule Program: The VA Federal Supply Schedule
Program was expanded in late 2000, to include professional health care
services. This schedule is open to all federal agencies and provides
for temporary contract services of surgeons, specialists, nurses,
radiologists, pharmacists, and dentists. Recently, allied health
services (nursing assistants, pharmacy technicians, and dental
assistants) were added to this schedule.
V. Key Procurement Reports:
General Accounting Office:
Major Management Challenges and Program Risks: Department of Veterans
Affairs. GAO-03-110. Washington, D.C.: January 2003.
VA and DOD Health Care: Factors Contributing to Reduced Pharmacy Costs
and Continuing Challenges. GAO-02-969T. Washington, D.C.: July 22,
2002.
VA and Defense Health Care: Potential Exists for Savings through Joint
Purchasing of Medical and Surgical Supplies. GAO-02-872T. Washington,
D.C.: June 26, 2002.
DOD and VA Pharmacy: Progress and Remaining Challenges in Jointly
Buying and Mailing Out Drugs. GAO-01-588. Washington, D.C.: May 25,
2001.
VA Laundry Service: Consolidations and Competitive Sourcing Could Save
Millions. GAO-01-61. Washington, D.C.: November 30, 2000.
Inspector General:
01-00504-9-Summary Report-Combined Assessment Program Reviews at
Veterans Health Administration Medical Facilities (January 1999-March
2001), October 10, 2001.
01-01855-75-Evaluation of the Department of Veterans Affairs Purchasing
Practices, May 15, 2001.
9R3-E99-037-Audit Of The Department Of Veterans Affairs Purchase Card
Program, February 12, 1999.
8D2-E01-002-Audit of VA Procurement Initiatives For Computer Hardware,
Software, and Services
(PCHS/PAIRS) and Selected Information Technology Investments,
January 22, 1998.
[End of section]
Appendix X: General Services Administration:
Agency Overview and Highlights:
Mission: To provide policy leadership and expertly managed space,
products, services, and solutions, at the best value, to enable federal
agencies to accomplish their missions.
Significant services:
The following services account for the majority of the General Services
Administration's (GSA) fiscal year 2001 total discretionary budget
resources.
* Federal Technology Service (FTS) provides information technology
solutions and network services to support federal agencies. In fiscal
year 2001, FTS accounted for 46 percent of GSA's total discretionary
budget resources.
* The Public Building Service (PBS) oversees the construction,
development, and maintenance of federal buildings and manages the
leasing of commercial office space. In fiscal year 2001, PBS accounted
for 51 percent of GSA's total discretionary budget resources.
* Federal Supply Service (FSS) provides agencies with numerous supplies
and services, including commercial products, professional services,
vehicle acquisition and leasing, and travel and transportation
services. FSS manages the Federal Supply Schedule program, which
provides federal agencies with access to more than 4 million products
and services and coordinates the governmentwide travel and purchase
card programs. The FSS accounts for none of GSA's discretionary
resources, because the service is financed by a revolving fund. With a
revolving fund, the FSS obtains most of its funding from the fees paid
by other agencies to buy from the FSS program.
Spending:
GSA's discretionary resources increased by 38 percent from fiscal year
1997 through fiscal year 2001 and totaled $19.3 billion in fiscal year
2001. Over the 5-year period, the proportion of GSA's discretionary
resources spent under contracts increased from 59 percent to about
64 percent. GSA relies heavily on service contracts, which accounted
for more than 80 percent of all contracts over $25,000 in fiscal year
2001.
* For contracts valued over $25,000, spending on services increased by
75 percent from fiscal year 1997 through fiscal year 2001. Spending on
goods increased by 13 percent.
* The increase in service spending was driven by increased purchases of
IT services, which grew from $594.0 million in fiscal year 1997 to $4.7
billion in fiscal year 2001. GSA's increased share is largely
attributable to the growth of GSA's Federal Technology Service.
However, orders placed by the Federal Technology Service are counted as
spending by GSA, rather than spending by the federal agency that will
ultimately receive the service or equipment.
* Since fiscal year 1997, GSA's spending has undergone significant
increases in the following categories: IT and telecommunication
services (691 percent), motor vehicles (24 percent), IT equipment
(19 percent), and lease of facilities (17 percent).
Procurement methods:
GSA spent about $11.7 billion through contracts in fiscal year 2001,
with firm fixed-price and other kinds of fixed-price contracts
accounting for over 90 percent of GSA's contract dollars.
* Purchase card spending doubled since fiscal year 1997, and totaled
nearly $160 million in fiscal year 2001. In fiscal year 2001, GSA
authorized the use of 3,776 purchase cards.
Workforce:
GSA's total workforce has remained relatively stable over the 5-year
period, at about 14,100. Over this same period, its acquisition
workforce has increased by more than 10 percent.
* More than 91 percent of GSA's acquisition workforce has more than 10
years of federal service; by fiscal year 2008, 34 percent will be
eligible to retire.
I. Spending:
Figure 1: Procurement's Relationship to Discretionary Budget Resources,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
Goods; 2001; 1997; Change (percent).
IT equipment; $876.6; $734.3; 19.
Motor vehicles; 850.0; 688.2; 24.
Furniture; 206.7; 182.1; 14.
Other goods; 372.8; 441.4; -16.
Total goods; $2,306.1; $2,046.0; 13.
Services:
IT & telecommunications; 4,697.4; 594.0; 691.
Lease of facilities; 2,199.4; 1,873.4; 17.
Utilities and housekeeping; 816.5; 1,218.3; -33.
Other services; 1,633.1; 1,649.6; -1.
Total services; $9,346.4; $5,335.3; 75.
Total goods and services; $11,652.5; $7,381.3; 58.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: 4 percent of GSA's vendors are women-owned businesses.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in millions.
Vendor; Goods and services provided; Amount
awarded.
1. American Management Systems; IT and management services; $1,479.8.
2. Leers Weinzapfel Associated; Architectural design; $690.2.
3. SAIC; IT; $326.3.
4. DaimlerChrysler Corporation; Automobiles and parts/supplies;
$320.7.
5. Ben Fitzgerald Real Estate; Rental estate services; $204.0.
Source: GSA.
[End of table]
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount spent; Percent of total
amount spent.
Firm fixed-price; $7.4; 63.7.
Other fixed-price; $3.2; 27.1.
Cost-type; $0.5; 3.4.
Labor hours/time and materials; $0.7; 5.7.
Source: FPDS.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages may not add to 100 due to rounding.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
[A] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
Note: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Fiscal year; Amount spent on
competed contracts; One offer
(percent); More than one
offer (percent).
1997; $6.3; 27.2; 71.4.
1998; $6.9; 28.9; 70.0.
1999; $6.5; 25.7; 72.1.
2000; $8.8; 4.5; 94.1.
2001; $10.6; 2.8; 95.5.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 9: Extent the Federal Supply Schedule Is Used to Purchase Goods
and Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: In fiscal year 2001, GSA authorized the use of 3,776 purchase
cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent That Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
III. Workforce:
Figure 13: Workforce Trends, Fiscal Years 1997 through 2001:
Fiscal year; Total
workforce; Acquisition
workforce;
Percent.
1997; 14,148; 2,475; 17.5.
1998; 14,064; 2,489; 17.7.
1999; 14,021; 2,631; 18.8.
2000; 14,081; 2,732; 19.4.
2001; 14,102; 2,743; 19.5.
Source: CPDF.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
IV. Key Procurement Initiatives as Reported by Agency Officials:
Construction Brain Trust. The Construction Brain Trust was implemented
in fiscal year 2001 to reduce the time, cost and complexity of the
construction contracting process. The membership consists of
representatives from GSA policy offices, GSA regions, and construction-
related associations, surety companies, and law firms.
Agency-wide performance-based contracting program. To improve GSA's use
of performance-based contracts, it established a Web site and developed
additional training materials, such as the Seven Steps to Performance-
based Service Acquisition Guide, for use by its acquisition personnel.
Applied Learning Center. This initiative was implemented in 2001. The
long-term goal of the center is to assist acquisition professionals
perform their jobs, identify skill gaps, and broaden the knowledge base
of acquisition professionals into areas such as budget, finance, and
program management.
V. Key Procurement Reports:
General Accounting Office:
Contract Management: Government Faces Challenges in Gathering
Socioeconomic Data on Purchase Card Merchants. GAO-03-56. Washington,
D.C.: December 13, 2002.
Acquisition Workforce: Status of Agency Efforts to Address Future
Needs. GAO-03-55. Washington, D.C.: December 18, 2002.
Acquisition Workforce: Agencies Need to Better Define and Track
the Training of Their Employees. GAO-02-737. Washington, D.C.:
July 29, 2002.
Contract Management: Interagency Contract Program Fees Need More
Oversight. GAO-02-734. Washington, D.C.: July 25, 2002.
Contract Management: Roles and Responsibilities of the Federal Supply
Service and Federal Technology Service. GAO-02-821R. Washington, D.C.:
June 7, 2002.
Telecommunications: GSA Action Needed to Realize Benefits of
Metropolitan Area Acquisition Program. GAO-02-325. Washington, D.C.:
April 4, 2002.
Contract Management: Not Following Procedures Undermines Best Pricing
Under GSA's Schedule. GAO-01-125. Washington, D.C.: November 28, 2000.
Inspector General:
Special Report on FSS's Multiple Award Schedule Pricing
Practices, August 24, 2001.
Report Number A995288-Audit of Federal Technology Service's Use of
Multiple Award Indefinite Delivery Indefinite Quantity Contracts,
September 19, 2000.
Report Number A995175-Audit of the Federal Protective Service's
Contract Guard Program, March 28, 2000.
[End of section]
Appendix XI: National Aeronautics and Space Administration:
Agency Overview and Highlights:
Mission: To develop human exploration of space, advance and communicate
scientific knowledge, and research and develop aeronautics and space
technologies.
Significant components:
Two accounts account for the majority of the National Aeronautics and
Space Administration's (NASA) fiscal year 2001 total discretionary
budget resources:
* Science, Aeronautics and Technology (SAT) provides funds for research
and development in the offices of Space Science, Earth Science,
Biological and Physical Research, and Aerospace Technology,
respectively. SAT also funds academic programs that NASA has
established in elementary and secondary schools, as well as research
conducted at more than 100 universities in the United States. In fiscal
year 2001, SAT accounted for 44 percent of NASA's discretionary
resources.
* Human Space Flight (HSF) primarily provides funds for the
construction and operation of the international space station and the
operation of the space shuttle program. Other programs include
developing expendable launch vehicles, improving space communications
and data systems, and providing safety and mission support. HSF also
provides for the design, repair, rehabilitation, and modification of
facilities and construction of new facilities. In fiscal year 2001, HSF
accounted for 45 percent of NASA's discretionary resources.
Spending:
NASA's discretionary resources decreased by about 6 percent from fiscal
year 1997 through fiscal year 2001, totaling $15.8 billion in fiscal
year 2001. The amount spent through contracts decreased slightly, both
in real terms and as a share of NASA's discretionary resources.
Nevertheless, NASA relies on contracts to achieve its mission to a
greater extent than most federal agencies.
* NASA contracts primarily for services. Of NASA's $11 billion spent on
contracts over $25,000 in fiscal year 2001, about $9.6 billion--or
86 percent--were for services, including operating various government-
owned facilities, providing professional and administrative support,
and conducting research and development activities. Overall, NASA's
spending for services declined by 7 percent between fiscal years 1997
and 2001, though there were significant variations in individual
service categories.
Procurement methods:
NASA uses a variety of methods in carrying out its procurement
functions.
* Due to the nature of the items and services needed to carry out its
mission, NASA relies heavily on cost-type contracts; 83 percent of
contract obligations over $25,000 for fiscal year 2001 were made
under cost-type contracts.
* NASA spent slightly more than half of its contracts over $25,000 on
competed contracts, a relatively lower percentage than other federal
agencies. For those contracts it competes, NASA receives two or more
bids nearly 90 percent of the time.
* NASA reports that 64 percent of eligible service contracts were
performance based in fiscal year 2001.
* NASA's use of purchase cards grew since fiscal year 1997, but
accounts for a small percentage of its budget resources.
* While NASA generally acquires government-unique items, it increased
its purchases using FAR part 12 procedures from $225 million in fiscal
year 1997 to about $794 million in fiscal year 2001.
Workforce:
The size of NASA's workforce remained relatively stable from fiscal
year 1997 through fiscal year 2001, decreasing by about 4 percent.
NASA's acquisition workforce, which represented about 7 percent of its
total workforce, experienced a similar trend.
* In fiscal year 2001, 56 percent of the acquisition workforce had 20
years or more of federal service, while only 3 percent had fewer than 5
years of service.
* By fiscal year 2008, approximately 33 percent of NASA's acquisition
workforce will be eligible to retire.
I. Spending:
[End of figure]
Figure 1: Procurement's Relationship to Discretionary Budget Resources,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
Total contract obligations exclude purchase card use.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 2: Spending on Goods and Services, Fiscal Years 1997 through
2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 3: Principal Types of Goods and Services in Fiscal Year 2001:
Dollars in millions.
: Fiscal year.
Goods; 2001; 1997; Change
(percent).
Space vehicles; $1,158.6; $1,080.6; 7.
IT equipment; 110.0; 245.8; -55.
Engines, turbines, and components; 43.0; 81.7; -47.
Other goods; 223.7; 516.9; -57.
Total goods; $1,535.3; $1,925.0; -20.
Services:
Research, development, testing, and evaluation; 2,738.0;
3,669.0; -25.
Professional, administrative, and management support; 2,716.1; Fiscal
year: 3,157.8; -14.
Operation of government-owned facilities; 1,989.2;
1,432.9; 39.
Other services; 2,182.5; 1,811.4; 20.
Total services; $9,625.8; $10,071.1; -4.
Total goods and services; $11,161.0; Fiscal year: $11,996.1; -7.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Totals may not add due to rounding.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 4: Vendor Type, Fiscal Year 2001:
[See PDF for image]
Notes: 3 percent of NASA's vendors are women-owned businesses.
Other includes hospitals, foreign contractors, domestic contractors
working outside the United States, and educational institutions,
including historically black colleges and universities and minority
institutions.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 5: Top Five Vendors, Fiscal Year 2001:
Dollars in millions.
Vendor; Goods and services provided; Amount
awarded.
1. United Space Alliance; Operation and maintenance of multi-purpose
space systems; $1,658.6.
2. Boeing; Space shuttle orbiter production, modification and
operation; $951.7.
3. Lockheed Martin; Aeronautics, space systems, systems integration and
technology services; $608.3.
4. Lockheed Martin Space Operations; Space-related support services
including project management, systems engineering and integration, and
IT; $493.6.
5. Thiokol Corp.; Propulsion motors; $377.7.
Source: NASA.
[End of table]
II. Procurement Methods:
Figure 6: Principal Contract Types Employed in Fiscal Year 2001:
Dollars in billions.
Contract type; Amount
spent; Percent of total
amount spent.
Firm fixed-price; $1.6; 14.6.
Other fixed-price; $0.3; 2.6.
Cost-type; $9.2; 82.6.
Labor hours/time and materials; <$0.1; 0.2.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[End of table]
Figure 7: Competition, Fiscal Year 2001:
[See PDF for image]
[A] Contracts not available for competition are for utilities,
contracts authorized or required by statute to be awarded to a
designated source, sole source contracts awarded to certain small
disadvantaged businesses, or actions where the agency has determined
that there is no opportunity for competition, among other things.
[B] Contracts that were follow-on to a competed action are those
subsequent actions awarded to the particular contractor who had
previously been awarded the initial contract under competitive
procedures.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
[End of figure]
Figure 8: Degree of Competition for Competed Contracts, Fiscal Years
1997 through 2001:
Dollars in billions.
Fiscal year; Amount spent on competed contracts; One offer
(percent); More than one offer (percent).
1997; $5.7; 10.5; 84.3.
1998; $5.4; 10.0; 85.6.
1999; $5.6; 8.0; 90.0.
2000; $5.4; 7.2; 90.5.
2001; $5.6; 8.2; 89.4.
Source: FPDS.
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
Percentages do not add to 100 as information on the number of offers
was either missing or not required to be reported.
All dollar figures have been converted to constant 2001 dollars.
[End of table]
Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods
and Services, Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997
through 2001:
[See PDF for image]
Notes: In fiscal year 2001, NASA authorized the use of 4,258 purchase
cards.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures,
Fiscal Years 1997 through 2001:
[See PDF for image]
Notes: These figures include only orders and contracts for more than
$25,000; contracts for $25,000 or less and purchase cards are excluded.
All dollar figures have been converted to constant 2001 dollars.
[End of figure]
Figure 12: Extent That Eligible Contracts Are Performance Based,
Fiscal Year 2001 (by dollar value):
[See PDF for image]
Notes: Based on FAR 37.102, performance-based methods should be used to
the maximum extent practicable for all services, except for
construction, utilities, architect and engineering, or services that
are incidental to supply purchases.
These figures include only orders and contracts for more than $25,000;
contracts for $25,000 or less and purchase cards are excluded.
III. Workforce:
Figure 13: Workforce Trends, Fiscal Years 1997 through 2001:
Fiscal year; Total
workforce; Acquisition
workforce;
Percent.
1997; 19,614; 1,293; 6.6.
1998; 18,505; 1,228; 6.6.
1999; 18,055; 1,177; 6.5.
2000; 18,670; 1,241; 6.6.
2001; 18,879; 1,246; 6.6.
Source: CPDF.
[End of table]
Figure 14: Acquisition Workforce by Years of Federal Service:
[See PDF for image]
[End of figure]
Figure 15: Acquisition Workforce Retirement Eligibility:
[See PDF for image]
IV. Key Procurement Initiatives as Reported by Agency Officials:
Risk-based acquisition management: To reduce the incidence and severity
of impacts arising from unforeseen programmatic events, NASA recently
developed this process to integrate risk principles when developing the
acquisition strategy, selecting sources, choosing contract type,
structuring fee incentives, and conducting contractor surveillance.
Award term contracting: NASA is using this approach to reward
contractor performance by enabling contract extension for excellent
performance and reduced costs. In addition to profit, a continuing
relationship becomes a prime motivator for the contractor.
Evaluate and Improve Performance-Based Service Contracting: NASA has
initiated an agencywide awareness program and training sessions for
government and contractor employees relating to performance-based
service contracting.
V. Key Procurement Reports:
General Accounting Office:
Major Management Challenges and Program Risks: National Aeronautics and
Space Administration. GAO-03-114. Washington, D.C.: January 2003.
Space Station: Actions Under Way to Manage Cost, but Significant
Challenges Remain. GAO-02-735. Washington, D.C.: July 17, 2002.
NASA: Compliance With Cost Limits Cannot Be Verified. GAO-02-504R.
Washington, D.C.: April 10, 2002.
Inspector General:
IG-03-003-NASA Contracts for Professional, Administrative, and
Management Support Services, October 16, 2002.
IG-02-027-NASA's Contract Audit Follow-up System, September 30, 2002.
IG-02-011-Review of Performance-Based Service Contract Quality
Assurance Surveillance Plans, June 24, 2002.
IG-02-011-International Space Station Spare Parts Costs, March 22,
2002.
IG-02-002-Restructuring of the International Space Station Contract,
November 8, 2001.
IG-01-027-Acquisition of the Space Station Propulsion Module, May 21,
2001.
(120150):
:
FOOTNOTES
[1] Discretionary budget resources reflect the budget amount that an
agency is appropriated for a current fiscal year plus the budget
authority that the agency carries over from prior fiscal years.
[2] P.L. 103-355, Oct. 13, 1994. The Federal Acquisition Streamlining
Act of 1994 authorized, among other things, federal agencies to enter
into multiple award, task-and delivery-order contracts for goods and
services. These contracts provide agencies with a great deal of
flexibility in buying goods or services while minimizing the burden on
government contracting personnel to negotiate and administer contracts.
[3] P.L. 104-106, Feb. 10, 1996. The Clinger-Cohen Act of 1996
authorized, among other things, the use of multiagency contracts and
governmentwide acquisition contracts to facilitate purchases of
information technology-related products and services such as network
maintenance and technical support, systems engineering, and integration
services.
[4] This decline continues a trend beginning in the early 1990s.
Overall, the acquisition workforce declined 22 percent from 1991 to
2001.
[5] A contract action is defined as any action to obtain supplies or
services from sources outside the federal government that obligates or
de-obligates funds, including the award of the contract; an order
against an existing indefinite-delivery contract, basic ordering
agreement, or federal schedule contract; or a modification of a
contract or order such as a funding action, a change order, a
termination, or a cancellation.
[6] Federal agencies spent about $140 billion on services and about $81
billion on goods for contracts valued at more than $25,000. FPDS does
not provide similar information for contracts valued at $25,000 or
less.
[7] These figures represent total contracting actions over $25,000.
[8] Contract Management: Trends and Challenges in Acquiring Services,
GAO-01-753T (Washington, D.C.: May 22, 2001).
[9] Best Practices: Taking a Strategic Approach Could Improve DOD's
Acquisition of Services, GAO-02-230 (Washington, D.C.: Jan. 18, 2002).
[10] P.L. 107-107, section 801, Dec. 28, 2001.
[11] Reports discussing challenges faced by individual agencies can be
found in section V of appendixes II through XI. Procurement reports
specific to purchase cards and the use of the federal supply schedule
can be found in section V of appendix X (GSA).
[12] GSA does not require contractors to compete against one another
to receive schedule contracts. Rather, GSA negotiates contracts,
including pricing and other terms, with all contractors who meet the
qualification standards for the schedule. Generally, contracting
officers may place orders for products against the schedule without
having to solicit competitive quotes or determine fair and reasonable
prices, thereby allowing them to fulfill their agencies' needs quickly
and easily. However, for purchases above a certain threshold, it is
advantageous for the ordering office to seek a price reduction and
consider additional contractors. Further, for service contracts that
are valued at more than $2,500 and require a statement of work, GSA
established special ordering procedures under the schedules program
that require agency personnel to solicit quotes from at least three
contractors and evaluate the mix and price of the labor categories
being offered, among other things.
[13] The sponsoring agency awards the contract, and other agencies
order from it. GWACs have been operated at the Departments of Commerce
and Transportation and at NASA, GSA, and the National Institutes of
Health. See Contract Management: Interagency Contract Program Fees Need
More Oversight, GAO-02-734 (Washington, D.C.: July 25, 2002). However,
as of 2002, the Department of Transportation no longer sponsors a GWAC.
[14] Contract Management: Not Following Procedures Undermines Best
Pricing Under GSA's Schedule, GAO-01-125 (Washington, D.C.: Nov. 28,
2000).
[15] For more information, see DOD's Inspector General reports
Multiple Award Contracts for Services, Report No. D-2001-189
(Washington, D.C.: Sept. 30, 2001) and Acquisition: Contract Actions
Awarded to Small Businesses, Report No. D-2003-029 (Washington, D.C.:
Nov. 25, 2002); VA's Inspector General report Evaluation of the
Department of Veterans Affairs Purchasing Practices, 01-01855-75
(Washington, D.C.: May 15, 2001); NASA's Inspector General report
Multiple-Award Contracts, IG-01-040 (Washington, D.C.:
Sept. 28, 2001).
[16] The Federal Acquisition Streamlining Act of 1994 established a
micropurchase threshold of $2,500.
[17] In 2002, VA planned to spend about $22 billion to provide
approximately 4.2 million veterans and family members with health care
through 163 VA hospitals and more than 850 outpatient clinics
nationwide.
[18] Government Purchase Cards: Control Weaknesses Expose Agencies to
Fraud and Abuse, GAO-02-676T (Washington, D.C.: May 1, 2002).
[19] Purchase Cards: Navy Vulnerable to Fraud and Abuse but Is Taking
Action to Resolve Control Weaknesses, GAO-03-154T (Washington, D.C.:
Oct. 8, 2002).
[20] P.L. 103-355, sections 8104 and 8203, Oct. 13, 1994.
[21] Agencies also acquire commercial items using other procurement
methods, such as the Federal Supply Schedule program and purchase
cards, or they may use other simplified procedures provided for under
the FAR.
[22] For fiscal year 2002, OMB established a goal that 20 percent, by
dollar value, of eligible service contracts over $25,000 be performance
based.
[23] Contract Management: Guidance Needed for Using Performance-Based
Service Contracting, GAO-02-1049 (Washington, D.C.: Sept. 23, 2002).
[24] There is no widely accepted definition of what constitutes the
federal acquisition workforce, and agency definitions vary greatly. For
this report, GAO defined the acquisition workforce as agency personnel
in 14 occupation codes, which include contracting officers, purchasing
officers, and procurement clerical support. The occupation codes we
used to define the acquisition workforce may be found in appendix I.
[25] Acquisition Workforce: Status of Agency Efforts to Address Future
Needs, GAO-03-55 (Washington, D.C.: Dec. 18, 2002).
[26] For additional information, see Exposure Draft: A Model of
Strategic Human Capital Management, GAO-02-373SP (Washington, D.C.:
Mar. 15, 2002) and OPM's Workforce Planning Model (http://www.opm.gov/
worforceplanning/wpfmodel.htm).
[27] See Contract Management: Trends and Challenges in Acquiring
Services, GAO-01-753T (Washington, D.C.: May 22, 2001) and Human
Capital: Major Human Capital Challenges at the Departments of Defense
and State, GAO-01-565T (Washington, D.C.: Mar. 29, 2001).
[28] Acquisition Workforce: Status of Agency Efforts to Address Future
Needs, GAO-03-55 (Washington, D.C.: Dec.18, 2002) and Acquisition
Workforce: Department of Defense's Plans to Address Workforce Size and
Structure Challenges, GAO-02-630 (Washington, D.C.: Apr. 30, 2002).
[29] The FPDC collects procurement data from approximately 60 executive
branch agencies. The Federal Aviation Administration, the U.S. Postal
Service, the legislative and judicial branches, and several other
government entities are not required to report their procurement
activities to the FPDC.
[30] (1) Defense Advanced Research Projects Agency, (2) Defense
Commissary Agency, (3) Defense Contract Audit Agency, (4) Defense
Security Service, (5) Defense Threat Reduction Agency, (6) Missile
Defense Agency, (7) National Imagery and Mapping Agency, (8) Pentagon
Force Protection Agency, (9) Defense Contract Management Agency, (10)
Defense Finance and Accounting Service, (11) Defense Information
Systems Agency, (12) Defense Intelligence Agency, (13) Defense Legal
Services Agency, (14) Defense Logistics Agency, (15) Defense Security
Cooperation Agency, (16) National Security Agency, and (17) Army Corps
of Engineers.
[31] P.L. 105-178, June 9, 1998.
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