C REATING A S UCCESSFUL F UTURE AT GSA

Annual Performance and Accountability Report 2004
This Performance and Accountability Report for fiscal year (FY) 2004 provides the General Services

Administration’s (GSA) financial and performance information, enabling the President, Congress and the

American people to assess the Agency’s performance as provided by the requirements of the:

Reports Consolidation Act of 2000 and other laws; 

Government Management Reform Act of 1994;

Government Performance and Results Act of 1993;

Chief Financial Officers Act of 1990; and 

Federal Managers’ Financial Integrity Act of 1982.

The assessment of GSA’s performance contained in this report compares performance results to the Agency’s strategic

goals and performance goals. GSA’s Strategic Plan, Performance Plan, and annual Performance and Accountability

Reports are available on GSA’s Web site at www.gsa.gov/annualreport. GSA welcomes feedback on the form and content

of this report. From GSA’s Web site choose a contact.

This report is organized into the following major components:

Letter from the Administrator of GSA

The Administrator’s letter includes an assessment on the reliability and completeness of the financial and performance

information presented in the report and a statement of assurance on the agencies’ management controls as required by

the FMFIA. 

Management’s Discussion and Analysis (MD&A)

This section provides an overview of the financial and performance information contained in the Performance Section,

Financial Section and Appendices. The MD&A includes an overview of the GSA organization, highlights of the Agency’s

most important performance goals and results, current status of systems and internal control weaknesses and other

pertinent information such as the progress being made by GSA in implementing the President’s Management Agenda

(PMA) and the key management challenges identified by the Office of Inspector General. 

Performance Section

This section provides the annual performance information as required by Office of Management and Budget Circular 

A-11 and the Government Performance and Results Act. Included in this section is a detailed discussion and analysis on

the agency’s performance in FY 2004. Information on key performance measures with past results can be found in the

Performance Section. 

Financial Section

This section contains the details on GSA’s finances in FY 2004. An introduction letter from GSA's Chief Financial Officer,

followed by the Independent Auditor's Report, the Agency's audited financial statements and other supplemental

financial information containing the Inspector General's response to the management challenges facing GSA, and

information on the agency's Debt Management, Payments Management, Erroneous Payments, and intra-government

balances.

Appendices

A discussion of the data sources used in this report, summary chart of performance information, and a glossary

of acronyms. 

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How to use this report
FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT

Mission Statement

GSA helps federal agencies better serve the public by offering, at best value, superior

workplaces, expert solutions, acquisition services, and management policies.

Strategic Goals

Provide best value for customer agencies and taxpayers

Achieve responsible asset management

Operate efficiently and effectively

Ensure financial accountability

Maintain a world-class workforce and a world-class workplace

Carry out social, environmental, and other responsibilities as a federal agency
Table of Contents

T ABLE OF C ONTENTS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 2

Letter from the Administrator 5

MANAGEMENT’S DISCUSSION AND ANALYSIS

Mission, Values, and Goals 11

Organization 12

Performance Summary and Highlights 16

FY 2004 Key Performance Measures within Strategic Goal 17

Performance Validation and Verification 19

The President’s Management Agenda 20

GSA’s Summary of Management Challenges Identified 

by the Inspector General 25

Management Controls, Systems, and Compliance with Laws 26

Federal Managers’ Financial Integrity Act, Section 2 26 

Federal Managers’ Financial Integrity Act, Section 4 27 

Federal Financial Management Improvement Act 29

Anti-Deficiency Act 30

Improper Payments Information Act 32

Financial Summary 34

PERFORMANCE SECTION

Introduction to Performance 41

Performance by Service/Staff Office

Public Buildings Service 43 

Federal Supply Service 50

Federal Technology Service 56

Office of Governmentwide Policy 61

Office of Citizen Services and Communications 64

Office of the Chief People Officer 68

Office of the Chief Financial Officer 71

Office of Small Business Utilization 73

WWW.GSA.GOV/ANNUALREPORT
T ABLE OF C ONTENTS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 3

FINANCIAL SECTION

Letter from the Chief Financial Officer 75

Office of the Chief Financial Officer Achievements at a Glance 77

Independent Auditor’s Report 81

Letter of Transmittal from the Inspector General 81

Report of Independent Auditors 83

Inspector General’s Report on Internal Controls over Performance Measures 98

Financial Statements

Principal Financial Statements 100

Notes to Principal Financial Statements 110

Required Supplementary Information 130

Supplemental Information and Other Reporting Requirements 132

Updated Assessment of GSA’s Major Management Challenges 132

Debt Management 140

Cash and Payments Management 141

APPENDICES

I Data Sources 143

II Summary Chart of Goals and Measures 147

III Performance Goals and Measures No Longer Reported 153

IV Improper Payment Information Act Reporting Detail 156

V Acronyms and Abbreviations 157
Over many years, the Administrator's

office has been the site of events

which have had a lasting impact on

the country. Because it has been well

preserved, a visitor stepping into the

room today can begin to imagine how

it must have appeared 50 or 75 years

ago. In 1921-22, it was home to the

"Teapot Dome" scandal under

Department of Interior Secretary

Albert Fall. 

1917

1996
FY 2004 Performance and

Accountability Report

CORE MISSION

The U.S. General Services Administration’s (GSA) core mission

includes the critically important role

of helping other Federal government agencies

acquire superior workplaces with the

equipment, products, and services they need to

operate successfully. The GSA mission also includes the

important role of helping to enhance public accessibility to

information about government programs and activities. 

I'm very proud to report that during fiscal year (FY) 2004,

GSA associates continued to achieve high performance in

meeting the requirements of our Federal customers and the

American people. Agencies rely upon GSA for acquisition and

property management services and we are strongly committed

to meeting their needs.

PERFORMANCE MANAGEMENT PROCESS (PMP)

The unprecedented success achieved by GSA in FY 2004 is the

result of our dedication to public service and our commitment

to continuous improvement. A key to this success is a rigorous

Performance Management Process (PMP) we have adopted to

enable us to identify areas where there is a need for

improvement, to develop specific action plans, and to execute

them as necessary to achieve the desired results.

For example, our discovery of certain contracting irregularities

and non-compliance with Federal Acquisition Regulations

(FAR) at some of our Information Technology (IT) Solutions

Centers led to the development of performance improvement

goals and corrective action plans. These components have

been consolidated into the GSA-wide “Get It Right” Plan for

Excellence in Federal Acquisition. The plan will assure proper

use of contracting vehicles, full and open competition,

efficiency, integrity, and best value for the government.

Additionally, we are using the PMP to establish a resultsoriented culture and to lay the foundation for progress toward

GSA’s ambitious performance objectives. 

GSA’s aggressive push to meet the everincreasing requirements of our customer

agencies and the American people comes

directly from President Bush’s Management

Agenda. The PMP was built from several

major components, including setting

challenging goals based upon specific customer

requirements, documenting detailed strategy

and action plans, measuring performance on a

regular basis, and accountability for results. 

Customer-focused goal setting has been made possible by

significant improvements in our approach to Customer

Relationship Management (CRM). Increased strategic

interactions with program and acquisition management

officials at each customer agency are crucial for us to

understand their requirements for GSA’s acquisition services.

When information is obtained in a timely manner, we can

work together proactively to develop goals and execute

strategies that yield the best value for the agency.

ORGANIZATIONAL PERFORMANCE PLANNING

The GSA PMP is rigorous and detailed. To achieve success

with each major goal, we have documented a detailed strategy

and action plan indicating what must be done, by whom, and

by when. The GSA-wide goals, strategies, and action plans

have been cascaded into Organizational Performance Plan

documents for each GSA unit and into individual Associate

Performance Planning and Appraisal System (APPAS)

documents for each GSA associate. Last, we have

implemented a Performance Measurement Tool (PMT) that

we use regularly to measure performance by comparing actual

results to planned results. The PMT data is accessible to all

GSA associates. Regular performance reviews during the year

provide useful guideposts letting associates and organizations

know where corrective action may be required in order to

arrive at goals successfully. At year-end, the information is used

for purposes of accountability, reward, and recognition.

Letter from the Administrator

Continued on following page

Stephen A. Perry

L ETTER FROM THE A DMINISTRATOR

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 5
L ETTER FROM THE A DMINISTRATOR

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 6

RESULTS

While we certainly recognize the need to continue to

enhance the effective utilization of the PMP, we are pleased

that the process has facilitated improvement during 

FY 2004 in several areas, including the following:

GSA continued to assist Federal agencies in the acquisition

of workspace, products and services for use by 1.1 million

Federal workers:

Improved life-cycle management of Federal real

property assets, including reduction of the backlog of

repairs and alterations (R&A) and the disposition of

surplus assets. 

Improved efficiency in leasing office space with the use

of new National Broker Contracts.

Improved efficiency in processing customer orders for

IT products and services will result from the newly

developed system, GSA-Preferred.

GSA is supporting the Department of Defense (DOD) in the

global war on terrorism by:

Working with Defense Logistics Agency to ensure that

Federal Supply Service (FSS) products are included in a

distribution operation to be established in-theatre

(wherever our troops are stationed).

Providing IT support through the Federal Systems

Integration and Management Center for the U.S.

European Command to support and oversee troop

movements in Iraq.

Working with Coalition Joint Task Force 7 in Iraq to

provide Land Mobile Radio service to 9 Iraqi cities; as

well as with U. S. Army's Third Signal Corps in Iraq to

commercialize telecom and IT services for troops

rotating out of theater, and to provide Voice over

Internet Protocol (VoIP) kiosks at 160 sites for the use

of our troops in-theater. 

Providing services so that 45,000 dependent children

can communicate via e-mail with their parents in Iraq,

Afghanistan, and Bosnia.

Enabling the Marines and other members of the

military to order and pay for military requirements

while in the field through the Agency’s online ordering

system.

GSA is supporting the Department of Homeland Security

(DHS), including the Federal Emergency Management

Agency (FEMA) by:

Continuing to help FEMA respond to threats, natural

disasters, and other emergencies, including four

hurricanes that struck the United States over a six-week

period last summer. 

Helping develop the new National Response Plan,

which aims to ensure a coordinated response to any

national emergency. 

GSA improved the efficiency and effectiveness of the Federal

acquisition process by:

Developing the “Get It Right” Plan that is assuring the

proper use of contracting vehicles, full and open

competition, efficiency, integrity, and best value for the

government. The plan also calls for the acceleration of

the development of the Federal acquisition workforce.

Establishing the Office of the Chief Acquisition Officer

(OCAO) to help the acquisition community launch the

“Get It Right” Plan. 

GSA is supporting the creation of jobs and economic 

growth by:

Procuring more than $10 billion in goods and services

from the private sector for Federal agencies through the

third quarter of FY 2004. Of that amount, 41.76

percent — $4.2 billion — went to small businesses,

with $804 million going to firms classified as “small,

disadvantaged businesses”; in addition, $417 million in

contracting went to small, women-owned businesses.

Strengthening its programs to provide contracting

opportunities to veteran owned businesses, servicedisabled veteran owned businesses, and Native

American owned businesses. 
L ETTER FROM THE A DMINISTRATOR

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 7

GSA vastly improved public access to government

information by developing:

USA Services, one of 24 Presidential Electronic

Government (eGov) initiatives, which provides quick

access to the information and services citizens want

most. USA Services is comprised of the FirstGov.gov

Web portal, the National Contact Center (1-800-FEDINFO), and the distribution center in Pueblo, CO.

USA Services will have 230 million public contacts in

FY 2004.

FirstGov en Español, which makes Federal information

more accessible to the U.S. Spanish-speaking

population.

E-Authentication, which is setting the standard for the

identity proofing of individuals and businesses. 

GSA has improved operational performance through

aggressive application of the President’s Management

Agenda (PMA):

STRATEGIC MANAGEMENT OF HUMAN CAPITAL: The

development of GSA’s human capital plan ensures

opportunities for continued learning, promotes

professional advancement, identifies skills gaps, and

provides for the continuity of quality leadership. 

COMPETITIVE SOURCING: GSA reduced spending by

more than $2 million by applying competitive sourcing

to commercial operations.

LINKING BUDGET TO PERFORMANCE: GSA created a PMP

that emphasizes budgeting based on performance, not

arbitrary percentages. 

IMPROVED FINANCIAL PERFORMANCE: GSA has strengthened financial management enabling managers to make

sound business decisions using accurate data.

EXPANDED ELECTRONIC GOVERNMENT: GSA launched

USA Services, easing citizen access to timely

information and services via the Internet, telephone, 

e-mail, or publications, and launched FirstGov 

en Español, thereby widening access to these products

and services.

FEDERAL REAL PROPERTY ASSET MANAGEMENT: GSA

assisted with the development of Executive Order (EO)

13327 Federal Real Property Management, dated

February 4, 2004, to promote efficient and economic

use of Federal real property resources management, thus

providing maximum benefits to the government and

taxpayers.

As required by the Reports Consolidation Act of 2000, 

I have assessed the financial and performance data used in

this report, and believe it to be complete and reliable.

We are pleased that for the 17th consecutive year,

independent auditors have given our financial statements a

clean opinion. I certify that GSA’s management control

systems, taken as a whole, provide reasonable assurance that

the objectives of the Federal Managers’ Financial Integrity

Act (FMFIA), Section 2 and Section 4 and the Federal

Financial Management Improvement Act (FFMIA), are

being achieved. This matter and other pertinent issues are

discussed further in the Management Controls, Systems,

and Compliance with Laws section of this report. 

GSA has not only met its challenges, but has continued to

“create a successful future,” and has done so with a high

regard for the law, loyalty to the Constitution, and respect

for people worldwide. As an agency, we have accomplished

a great deal and I offer my thanks and appreciation to all

GSA associates whose time, efforts, and dedication are

reflected in GSA’s success.

Stephen A. Perry

Administrator

November 15, 2004
L ETTER FROM THE A DMINISTRATOR

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 8

Today the GSA building houses more than 3,000 associates, equipping them with the latest office and

telecommunications technology.
GSA Historic Highlights

The U.S. General Services Administration (GSA) was established on July 1, 1949

when President Harry Truman signed the Federal Property and Administrative Services

Act into law.

The Hoover Commission, chaired by President Herbert Hoover, studied ways to improve

the administrative services of the Federal government. The commission concluded that it

would be more effective and economical for the government to consolidate four small

agencies into one to avoid "senseless duplication, excess cost, and confusion in handling

supplies, and providing space." The Federal Property and Administrative Services Act

became law and GSA was created from the consolidation of these small agencies.

GSA’s original mission was to dispose of war surplus goods, manage and store government

records, handle emergency preparedness, and stockpile strategic supplies for wartime.

GSA also regulated the sale of various office supplies to Federal agencies and managed

some unusual operations, like hemp plantations in South America.

GSA has evolved through the years, gaining and losing functions as the role of the Federal

government has changed and technology has improved. 

1949

Management’s Discussion 

and Analysis
The U.S. General Services Administration

Building, was originally designed for the U.S.

Department of Interior, and built in 1916. It

was the first truly modern office building

constructed by the U.S. government and

served as a model for Federal office buildings

through the early 1930s. 
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 11

The Agency’s mission is strongly rooted in GSA’s original

authorizing legislation, the Property and Administrative

Services Act of 1949. By consolidating the Federal government’s real estate, supply, and other management support

functions, agencies run more efficiently, thereby providing

savings and other benefits to the taxpayers. GSA also works

with all the Federal departments and agencies to establish

management policies that will lead to greater success in the

future. Today for the great majority of functions, agencies

are able to determine for themselves whether GSA’s centralized services are their best value, as agencies are not

required to procure these “non-mandatory” supplies and

services from GSA.

The mission of GSA comes to life since its associates are

guided by GSA’s values.

Honoring these values is essential to meeting GSA’s goals.

The Agency’s earlier discovery of certain irregularities at

some of its IT Solutions Centers led to the development of

performance improvement goals and corrective action

plans. This has now been consolidated into the GSA-wide

“Get It Right” Plan for Excellence in Federal Acquisition.

The plan will assure proper use of contracting vehicles, full

and open competition, efficiency, integrity, and best value

for the government. It also calls for the acceleration of the

development of the Federal acquisition workforce, and the

establishment of the OCAO. 

GSA MISSION STATEMENT

GSA VALUES

Ethics and integrity in everything we do

Respect for fellow associates

Results orientation

Teamwork

Professionalism

GSA helps federal agencies better serve the public by offering, at best value, superior

workplaces, expert solutions, acquisition services, and management policies.

STRATEGIC GOALS

Provide best value for customer

agencies and taxpayers

Achieve responsible asset management

Operate efficiently and effectively

Ensure financial accountability

Maintain a world-class workforce and 

a world-class workplace

Carry out social, environmental and

other responsibilities as a federal agency

GSA has been carrying out its mission to acquire and provide goods, services, and facilities in support

of the needs of Federal agencies for 54 years.

Mission, Values, and Goals
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 12

Organization

The basic foundation of any business or agency is itsorganizational structure. GSA provides goods and

services and develops policy through a network of 

11 regional offices and a central office in Washington, D.C.

The Central Office consists of three services responsible for

coordinating nationwide programs; two offices that support

Federal agencies and citizen-oriented organizations,

respectively; and 12 staff offices that support the GSA

organization. 

PUBLIC BUILDINGS SERVICE (PBS): PBS’s mission is to

provide a superior workplace for the Federal worker and

superior value for the U.S. taxpayer. The challenge of

managing the dynamic tension between these two objectives is at the heart of GSA’s business processes. PBS is the

largest public real estate organization in the nation and a

provider of workspace and workplace solutions to more

than 100 Federal agencies.

PBS conducts two fundamental activities. The first is space

acquisition, either by lease or construction. It translates

needs into discrete requirements, marshals the necessary

resources, and sees that the space is delivered. The second

fundamental activity is life-cycle management of space. This

involves making decisions on maintenance, servicing

tenants, and ultimately deciding when and how to dispose

of a property at the end of its useful life.

FEDERAL SUPPLY SERVICE (FSS): FSS manages a large,

diverse marketplace in which hundreds of thousands of

Federal customers are brought together with more than

9,000 contractors. FSS has five business lines. Commercial

Acquisition provides Federal customers access to more than

four million services and products. Travel and

Transportation provides a broad range of services from

discount airfares to express delivery of packages to freight.

Vehicle Acquisition and Leasing Services buys over 58,000

vehicles annually and manages a worldwide fleet of over

185,000 vehicles. Personal Property Management reassigns

GSA’s path to a successful future is outlined by the six GSAwide strategic goals. These goals were established to

provide a broad framework from which to build a foundation for specific performance goals and to provide a context

for the long-term outcomes for which GSA is striving. In the

Performance Section of this report, GSA will report how

well it is doing against each of these goals for every service

and office. 

The strategic goals also provide a bridge from GSA’s

internal management to the PMA (page 20). For example,

under the eGov initiative GSA is harnessing the power of

the Internet to provide information to citizens and its

customers and to process transactions. The Internet is

leading GSA into the 21st century. GSA manages

FirstGov.gov, the award-winning official Web portal of the

government. It pulls together more than 180 million Federal

and state government pages. Here, the public can get easyto-understand information and services from the government 24 hours a day, seven days a week.

The public can also use FirstGov.gov’s Citizen Gateway to

transact business with the government and to access information on topics such as Social Security, taxes, surplus

government property, and more. Citizens can send GSA 

e-mail via “Contact Us” by clicking on Uncle Sam on the

FirstGov.gov home page. GSA works closely with other

Federal agencies and state governments to make information easily navigated by the public. This means additional

traffic for agency Web sites. The journey continues toward

global solutions.
CHIEF OF STAFF DEPUTY

ADMINISTRATOR

 ADMINISTRATOR

FEDERAL

SUPPLY SERVICE

FEDERAL

TECHNOLOGY

SERVICE

PUBLIC

BUILDINGS

SERVICE

OFFICE OF

GOVERNMENTWIDE

POLICY

NEW ENGLAND

REGION

BOSTON, MA

NORTHEAST AND

CARIBBEAN REGION

NEW YORK, NY

MID-ATLANTIC

REGION

PHILADELPHIA, PA

SOUTHEAST

SUNBELT REGION

ATLANTA, GA

ROCKY MOUNTAIN

REGION

DENVER, CO

GREATER

SOUTHWEST

REGION

FT. WORTH, TX

THE HEARTLAND REGION

KANSAS CITY, MO

GREAT LAKES

REGION

CHICAGO, IL

GSA BOARD

OF CONTRACT

APPEALS

OFFICE OF

CIVIL RIGHTS

 OFFICE OF

INSPECTOR

GENERAL

PACIFIC RIM

REGION

SAN FRANCISCO, CA

NORTHWEST/

ARCTIC REGION

AUBURN, WA

NATIONAL

CAPITAL REGION

WASHINGTON, DC

OFFICE OF THE

CHIEF FINANCIAL

 OFFICER

OFFICE OF THE

CHIEF PEOPLE

OFFICER

OFFICE OF

CONGRESSIONAL &

INTERGOV AFFAIRS

OFFICE OF CITIZEN

SERVICES AND

COMMUNICATIONS

OFFICE OF

GENERAL

COUNSEL

OFFICE OF

PERFORMANCE

IMPROVEMENT

OFFICE OF

SMALL BUSINESS

UTILIZATION

OFFICE OF THE

CHIEF INFORMATION

OFFICER

OFFICE OF

EMERGENCY

MANAGEMENT

OFFICE OF THE

CHIEF ACQUISITION

OFFICER

agency customers to understand their missions and requirements, and to help them choose, acquire, implement, and

manage the funding for the best solutions to meet those

needs. FTS-assisted services save taxpayer dollars, make it

possible for customer agencies to avoid doing costly, timeconsuming technology acquisitions, and enable them to

devote more of their own staffs directly to their agency

missions and programs. FTS works closely with every

major civilian and Federal government agency offering

assisted acquisition services on a fee-for-service basis.

M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 13

or sells items such as furniture, computers, and equipment

no longer needed by the government. Global Supply maintains an inventory of over 7,000 items that can be shipped

in large quantities at short notice.

FEDERAL TECHNOLOGY SERVICE (FTS): The mission of FTS

is to deliver cost-effective and innovative solutions in IT,

network services, and professional services to support

government agency missions worldwide. FTS works with
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 14

OFFICE OF GOVERNMENTWIDE POLICY (OGP): OGP consolidates all of GSA's governmentwide policy-making activities

within one central office. These include the $8 billion a

year spent on government travel, and the tens of billions of

dollars spent each year on internal administrative management systems. OGP is working to re-engineer the traditional

policy development model to emphasize collaborative

development. 

OFFICE OF CITIZEN SERVICES AND COMMUNICATIONS (OCSC):

OCSC is aimed at creating a more citizen-centric, resultsoriented Federal government. OCSC has opened the way

for citizens to interact with government by creating a single

electronic front door to the services and information they

require in the medium they prefer: the Web, e-mail, telephone, fax, or print. OCSC is aligned with the other GSA

Staff Offices because of the in-house communication

support it provides.

GSA’s Central Office and its regions are supported by a

number of Staff Offices:

The OFFICE OF THE CHIEF PEOPLE OFFICER (OCPO) develops

and delivers human capital programs, policies, and

services that promote GSA’s strategic management of

human capital. OCPO activities enhance GSA’s capability to achieve its mission, strategic goals, and

performance outcomes.

The OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO)

provides high quality, enterprise IT services and solutions at best value by leveraging IT resources to support

GSA business needs. Additionally, the OCIO is GSA’s

lead for the five eGov projects (E-Authentication,

eTravel, Integrated Acquisition, Federal Asset Sales

(FAS), and USA Services).

The OFFICE OF THE CHIEF ACQUISITION OFFICER (OCAO) is

responsible for managing a broad range of acquisition

activities, including ensuring compliance with applicable laws, regulations, and policies; fostering full and

open competition for contract awards; developing the

acquisition workforce; and ensuring accountability for

acquisition decision-making.

The OFFICE OF THE GENERAL COUNSEL (OGC) provides

sound and timely legal advice and representation to

GSA clients to enhance their ability to help Federal

agencies. OGC carries out all legal activities of GSA;

ensures full and proper implementation of GSA’s statutory responsibilities; and provides legal counsel to the

Administrator, Deputy Administrator, and other officials

of GSA (with the exception of certain legal activities of

the Office of Inspector General (OIG) and the Board of

Contract Appeals).

The OFFICE OF PERFORMANCE IMPROVEMENT (OPI) provides

advice to the Administrator and Deputy Administrator

on major policies and procedures related to GSA

performance. OPI is responsible for overseeing the

development and execution of performance measurement programs and GSA’s competitive sourcing.

The OFFICE OF EMERGENCY MANAGEMENT (OEM) coordinates emergency management services throughout GSA.

Emergency management includes all aspects of disaster

and emergency program policy development and implementation, response operations, training, drills, exercises, continuity of operations, business continuity,

recovery and resumption, and readiness assurance. 

The OFFICE OF SMALL BUSINESS UTILIZATION (OSBU) is

GSA’s advocate for small, minority, veteran, HUBZone,

and women business owners. OSBU promotes the

GSA associates' time, efforts, and dedication are

reflected in GSA’s success.
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 15

increased access to GSA’s nationwide procurement

opportunities by nurturing entrepreneurial opportunities, outreach, and training.

The OFFICE OF CONGRESSIONAL AND INTERGOVERNMENTAL

AFFAIRS (OCIA) serves as advisor to the Administrator

and supervises and maintains agency liaison with all

members of Congress and congressional committees.

The OCIA prepares and coordinates GSA’s annual

legislative program; communicates GSA’s legislative

program to the Office of Management and Budget

(OMB), Congress, and other interested parties; works

closely with OMB in the coordination and clearance 

of all proposed legislation impacting GSA and its

programs; and initiates, coordinates, and presents briefings to members of Congress and their staffs on GSA

program initiatives. 

The OFFICE OF THE CHIEF FINANCIAL OFFICER (OCFO)

conducts the performance process, including strategic

planning, budgeting, and the performance management

cycle within GSA; manages GSA’s core accounting

system; prepares financial statements and reports;

develops policies; and performs financial operations. 

The OFFICE OF CIVIL RIGHTS (OCR) is responsible for

implementing both the internal and external civil rights

programs at GSA. The internal civil rights program

ensures equal employment opportunity (EEO) for all

GSA associates and applicants for employment on the

basis of sex, race, color, national origin, religion,

disability, age (40 and over), and retaliation for

protected EEO activity. The external civil rights

program ensures nondiscrimination on the basis of race,

color, sex, age (40 and over), national origin, and

disability by recipients of GSA’s Federal Financial

Assistance and Federally conducted programs.

The BOARD OF CONTRACT APPEALS (BCA) serves as an

independent and objective tribunal in hearing and

deciding contract disputes between government

contractors and GSA, and between contractors and other

Executive agencies. The Board provides alternative

dispute resolution services to all Federal agencies and

contractors. The Board also hears and decides claims

involving transportation rate determinations, Federal

employee travel and relocation expense claims, and a

small number of other types of claims.

The OFFICE OF INSPECTOR GENERAL (OIG) promotes

economy, efficiency, and effectiveness within GSA, and

prevents and detects fraud in the Agency’s programs

and operations.

In FY 2004, GSA had 12,577 full-time equivalent employees

(FTE). Staffing levels have been consistent since 1998,

adjusting for FY 2003 transfer of the Federal Protective

Service (FPS) and the Federal Computer Incident Response

Center to the DHS. 

FTE BREAKDOWN BY ORGANI ZATION

TOTAL 12,577

STAFF OFFICES

12%

1,490

PBS

47%

5,932

OIG

2%

269

OCSC

1%

109

OGP

2%

211 FTS

12%

1,482

FSS

24%

3,084
Performance Summary

and Highlights

During FY 2004, GSA performed its mission by pursuingits six agency-wide strategic goals, listed on the title

page, which reflect the breadth of the Agency’s mission.

The GSA FY 2004 Performance Plan outlines the specific

performance goals undertaken to fulfill the strategic goals.

Specific performance measures are established within each

performance goal as a gauge for meeting these goals. 

The six strategic goals are inter-related and accordingly

many of the performance goals apply to more than one

strategic goal. 

This section highlights the most significant GSA-wide 

FY 2004 performance goals identified by GSA management

and related performance results. A chart of Key

Performance Measures follows the discussion and detailed

performance information is contained in the Performance

Section.

The chart below of Key Performance Measures shows that,

in general, GSA met or exceeded expectations for 

62 percent of its FY 2004 performance goals. GSA is

becoming more sophisticated in its use of the PMT system

to closely track results. In FY 2004, GSA enhanced its PMP

to integrate budget and performance and focus on longterm outcomes. In FY 2005, GSA will fully incorporate

performance measures into the performance evaluations of

individual associates.

Additionally, the PMA’s emphasis on results led to GSA’s

commitment to the Program Assessment Rating Tool

(PART), which was used to critically evaluate the

performance of GSA programs. By the end of FY 2004,

approximately 84 percent of GSA’s program dollars had

been rated. The PART process has helped GSA define longterm outcome goals that focus on how GSA meets customer

agency needs quickly and has reinforced its efforts to link

budget to performance, to set ambitious goals, and to

improve its efficiency measures.

GSA continues to work with OMB toward linking Agency

costs and performance goals as discussed in the PMA

Budget and Performance Integration section. Additional

information on key performance goals with past results can

be found in the Performance Section beginning on page 39

and all performance goals can be found in Appendix II, 

The Summary Chart of Goals and Measures beginning on

page 147. 

M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 16

AGENCY-WIDE PERFORMANCE GOALS

NUMBER OF GOALS

NUMBER OF PERFORMANCE GOALS

MET NOT MET TBD

PBS FSS FTS OGP OCSC STAFF TOTAL

0

2

6

12

14

16

BUSINESS LINE

PBS

FSS

FTS

OGP

OCSC

STAFF

TOTAL

4

4

2

-

1

2

13

3

-

1

1

1

1

7

 -

-

 -

 -

-

1

1

4

8

10
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 17

STRATEGIC GOAL/

SERVICE OR OFFICE

Public Buildings Service

Public Buildings Service

Federal Supply Service

Federal Technology Service

Office of Governmentwide

Policy

Office of Citizen Services

and Communications

Office of Citizen Services

and Communications

Public Buildings Service

Public Buildings Service

Public Buildings Service

Public Buildings Service

Federal Supply Service

Federal Supply Service

Federal Supply Service

Federal Technology Service

MEASURES

Percent highly satisfied tenants in leased space

Cost of leased space relative to the market

Percentage discount to customers from invoice price (vehicle

acquisition)

FTS Telecommunications pricing as compared to best

commercial prices

Number of agency applications meeting eAuthentication

credentialing policy standards (out of a universe of 24)

Tax dollars saved as a result of agencies sharing 

FirstGov technologies

Total number of multi-channel contacts with the public 

(citizens, business, government) per year

Maintain vacant space in the existing inventory of space leased

by PBS 

Percent of construction projects completed on schedule

Percent of R&A Projects on schedule

Cleaning, maintenance, and utility costs in office and similarly

serviced space—percent below private sector benchmarks.

Cycle time to process offers (days)

Percent of mark-up for stocked items

Percentage GSA leasing rates below commercial rates on the

GSA Vehicle Leasing Schedule

Percent of negotiated award dates for service and commodities

that are met or bettered (improved measures related to Regional

IT Solutions are under development)

FY 2004 

TARGET

68%

8.0%

>20%

$514 mil

4

$30.6 mil

224.9 mil

1.5%

84%

86%

13.4%

105

45.0%

>20%

>93%

FY 2004

ACTUAL

70%

10.6%

33.1%

$705 mil

2*

$19.8 mil*

241.9 mil

1.2%

80%*

78%*

14.5%

87

42.8%

31.67%

88%*

FY 2004 Key Performance Measures

within Strategic Goal

ACHIEVE RESPONSIBLE ASSET MANAGEMENT

OPERATE EFFICIENTLY AND EFFECTIVELY

PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS 

* Indicates goal not met. Continued on following page
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 18

STRATEGIC GOAL/

SERVICE OR OFFICE

Office of Chief Financial

Officer

Office of Chief Financial

Officer

Office of the Chief People

Officer

Public Buildings Service

Federal Technology Service

Office of Small Business

Utilization

MEASURES

Percent of vendor invoices received electronically 

Percent of vendor payments paid electronically

Percentile rank in the Gallup Q12 survey which measures the

engagement of the workforce

Percent reduction on energy consumption from FY 1985

baseline

Percent of task and delivery orders subject to the fair

opportunity process

Percentage of contracting opportunities provided to small

business

FY 2004 

TARGET

50%

85%

75th 

percentile

22.6%

>85%

43%

FY 2004

ACTUAL

56%

92%

69th 

percentile*

22.4%*

96%

TBD

MAINTAIN A WORLD-CLASS WORKFORCE AND WORLD-CLASS WORKPLACE

CARRY OUT SOCIAL, ENVIRONMENTAL, AND OTHER RESPONSIBILITIES AS A FEDERAL AGENCY

ENSURE FINANCIAL ACCOUNTABILITY

Through the Agency's internal PMP, GSA has made great strides in identifying long-term

outcome goals and efficiency measures for its programs.

* Indicates goal not met.
The Government Performance and Results Act of 1993

(GPRA) and the Reports Consolidation Act of 2000

require that each agency certify the completeness and

reliability of performance data and describe the means used

to verify and validate this data. Over the last several years,

to comply with these regulations and a finding of its OIG,

GSA has conducted reviews to verify and ensure the validity

of performance measurement data. Recently, the Agency

completed the first of a series of reviews for all

organizational components. To ensure the viability of this

process GSA will also be using a contractor to review the

work accomplished to date and to make recommendations

to improve and institutionalize the process.

GSA uses a broad range of performance goals and measures.

The data and the means to verify and validate the measures

are also diverse. A general discussion of the verification and

validation of each of those sources follows. 

CONTROLS AND PROCEDURES

GSA’s performance measurement data can be divided into

five types. The controls and procedures used to validate and

verify each type are outlined below.

FINANCIAL DATA: As stated above, GSA has a high

degree of confidence in its financial data. Normal audit

and other financial controls maintain the integrity of

these data elements. During the FY 2004 financial statement audit, various tests and reviews of the core

accounting system and internal controls were conducted

as required by the Chief Financial Officers Act. 

DATA FROM LARGE COMPUTER SYSTEMS: GSA has undertaken an extensive process of systems certification to

ensure that its computer systems operate as intended.

GSA increased the percent of IT systems certified and

accredited from 22 percent in FY 2003 to 89 percent in

FY 2004. Data quality is also maintained through

ongoing training. 

2

1

Performance Validation

and Verification

M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 19

Valid reliable data is important to support management

decisions on a day-to-day basis

DATA FROM MANUAL OR SMALL FEEDER COMPUTER

SYSTEMS: For these systems GSA stresses confirmation

so that more than one person is responsible for data

and written policy and procedures. 

BENCHMARK DATA FROM EXTERNAL SOURCES: Where

there is a close correspondence between a GSA

activity and a private sector counterpart, GSA utilizes

external data as a benchmark. When GSA does this it

strives to find highly reputable sources of data that are

recognized as industry standards, including the Gallup

Organization, Building Owners and Managers

Association (BOMA), Society of Industrial and Office

Realtors (SIOR), and the Logistics Management

Institute.

DATA OBTAINED UNDER CONTRACT: GSA often contracts

with outside polling firms, such as the Gallup

Organization, to develop customer satisfaction or other

survey data. Use of an outside contractor can make

customers more eager to participate and add credibility

to the results. In using such data, GSA always deals with

reputable firms that are leaders in the industry. GSA’s

contract provisions require that sound business practices be followed and GSA follows up to make sure it

can have confidence in the results. All of these firms

have their own validation and verification procedures.

5

4

3
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 20

The President’s Management Agenda

GSA’S STATUS AND PROGRESS

Human Capital

Competitive Sourcing

Financial Performance

Electronic Government

Budget and Performance Integration

Real Property

INITIATIVE CURRENT STATUS PROGRESS

What Progress Indicates 

OMB assesses agency "progress" on a

case by case basis against the deliverables and time lines established for the

five initiatives that are agreed upon with

each agency as follows:

GREEN

Implementation is proceeding according

to plans agreed upon with the agencies;

YELLOW

Some slippage or other issues requiring

adjustment by the agency in order to

achieve the initiative objectives on a

timely basis; and

RED

Initiative in serious jeopardy. Unlikely

to realize objectives absent significant

management intervention.

THE PMA has helped GSA focus on achieving results

based upon clear goals and challenging expectations. GSA

is pleased with its progress in each of the initiatives under

the PMA. The following pages provide a brief description of

each initiative, provide the current status of the

management program, and describe GSA’s progress to “get

to green” as GSA implements the PMA with the ultimate

goal of improving government performance and providing

better service to citizens.
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 21

PMA

BACKGROUND: The goal of Competitive Sourcing, one of the

PMA’s initiatives, is to improve agency performance by using

the A-76 process to conduct public/private competitions of

an agency’s commercial activities or functions. GSA has

established an infrastructure to accomplish this goal.

STATUS: Since the establishment of the competitive sourcing

goals by the President in FY 2001, GSA has moved from

“yellow” to “green” on the President’s quarterly Executive

scorecard for “current status.” This score was achieved

during the fourth quarter of FY 2004. Additionally, GSA has

completed 32 Streamlined Competitions and one Standard

Competition under the revised circular, and has completed

one Standard competition under the old circular. In June

2004, GSA issued the GSA Competitive Sourcing Program

Management Guide to provide guidance to those managing

and conducting competitions throughout GSA’s many

Services, Staff offices, and Regional offices. GSA has a

number of studies underway for FY 2005, including two

Agency-wide reviews. Finally, GSA submitted its FY 2004

Federal Activities Inventory Reform (FAIR) Act inventory to

OMB, with justifications, on June 18, 2004, and is also

currently working with OMB to develop a long-term

competitive sourcing “green” plan that covers potential

studies through FY 2008.

PROGRESS: GSA completed 20 competitions (one Standard

and 19 Streamlined) covering a total of 134 FTE in the fourth

quarter of FY 2004. OPI continues to provide training 

on competitive sourcing to associates in each of GSA’s 

11 regions, as well as Central Office personnel. OPI also

coordinated and chaired the last two Governmentwide

Conferences on Competitive Sourcing, co-sponsored by the

Office of Federal Procurement Policy (OFPP) and the

Federal Acquisition Council (FAC). As a regular course of

business, OPI maintains a quarterly report on all of GSA’s

Competitive Sourcing competitions with detailed information on costing data, key milestone dates for study completion, and contact information.

BACKGROUND: The Human Capital Initiative requires Federal

agencies to develop both a vision and a roadmap for strategically managing their workforces so they can better accomplish their missions on behalf of the American people.

Agencies are required to build, sustain, and effectively

deploy a skilled, knowledgeable, diverse workforce to meet

the current and emerging needs of the Federal government.

STATUS: GSA improved its status to “yellow” in the first

quarter of FY 2004 and continues with initiatives and strategies to achieve “green” status in FY 2005. The Agency

completed organizational specific human capital strategies

for three of its major organizations, the FSS, the FTS, and

OCPO. The Agency will complete human capital strategies

for OCIO, OGC, OGP, and OCSC in early FY 2005. These

strategies link the business plans to the Agency’s overall

Human Capital Strategic Plan and the GSA Strategic Plan.

GSA issued the APPAS to link individual performance to

organizational goals. 

PROGRESS: GSA continues to be “green” in progress for

Strategic Management of Human Capital. Among the many

accomplishments in FY 2004, GSA issued guidance on the

Human Resources Management and Accountability System,

re-engineered business processes in the PBS, developed a

plan to address diversity in leadership positions, continued

to implement strategies to close the skills gaps, and evaluated succession plan strategies. 

Strategic Management 

of Human Capital Progress Competitive Sourcing Status Status Progress
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 22

BACKGROUND: This initiative supports specific goals to

reduce redundancy and increase the effectiveness of

outreach to citizens. A key goal is for citizens to be able

to access government services and information. It is

designed to make better use of IT investments to eliminate

billions of dollars of wasteful Federal spending, reduce

government’s paperwork burden on citizens and businesses, and improve government response time to citizens.

GSA has improved service for businesses and internal efficiency of the Federal government through four GSA-led

Electronic Government initiatives: E-Authentication,

eTravel, FAS, and Integrated Acquisition. The USA Services

Electronic Government initiative has improved citizen

access to all agencies. These solutions are being applied to

GSA and are supporting the entire Federal enterprise. GSA

is also focused on its internal IT management to ensure the

projects are well managed and that IT spending is not

duplicative of the 24 Electronic Government initiatives. 

STATUS: GSA improved its status rating to “yellow.” This

was due to GSA certifying and accrediting 97 percent of its

systems, the Inspector General (IG) verifying the effectiveness of the Department-wide IT security remediation process,

implementing an American National Standards Institute

(ANSI) standard Earned Value Management System (EVMS),

and demonstrating cost/schedule/performance adherence is

within 30 percent. GSA continues to make progress toward

improving its status rating to “green” by 1) modifying its

existing contracts to be compliant with the EVMS Standard, 

2) monitoring its major IT investments to ensure

cost/schedule/performance adherence within 10 percent, 

3) ensuring all systems are certified and accredited, 

4) completing the Agency’s “One GSA” Enterprise

Architecture (EA), and 5) continued progress on the five

GSA-led Electronic Government initiatives.

PROGRESS: GSA progress rating remains “green.” GSA

continues to deliver on the President’s Management goals

by delivering citizen-centered Electronic Government. 

BACKGROUND: This initiative is intended to improve the

quality of the Federal government’s financial information so

agencies can improve the integrity and efficiency of their

operations. The goal is to improve financial performance by

ensuring that Federal financial systems, in particular,

produce accurate and timely information. This data is

critical to Federal business line managers who rely on it in

their daily decision-making. Short-term objectives of the

initiative include reducing erroneous payments, and

sustaining or achieving successful financial audits.

STATUS: The status is "red" due to non-compliance with

FFMIA and the GSA FMFIA non-conformance issues raised

in FY 2003 and discussed in last year’s Performance and

Accountability Report (PAR). As of September 30, 2004, the

auditors had not issued their opinion for FY 2004, thereby

missing the grading window to improve GSA’s score. 

A corrective action plan was developed in FY 2004 and

implemented to address the prior year weaknesses. 

In addition, Administrator Perry states with reasonable

assurance that the objectives of FMFIA and FFMIA are being

achieved in FY 2004. GSA expects to be recognized as

compliant after completion of the FY 2004 audit, resulting

in an elevated status under this initiative in the first quarter

of FY 2005.

PROGRESS: As of September 30, 2004, GSA continues to be

“green” in progress. GSA has successfully met the criteria

for improved financial performance and is proud of its

accomplishments in the area of financial management. GSA

received its 17th consecutive clean opinion, was a recipient

of the prestigious Certificate of Excellence in Accountability

Reporting (CEAR) in FY 2003, consistently produces a

payment error rate well below government and industry

standards, trained all managers on the proper use of

internal controls resulting in an aggressive management

control program in the Agency, and began developing a

corrective action plan to improve the reporting of intragovernmental accounting transactions.

Improved Financial

Performance Progress Status

Expanded Electronic

Status Government Progress
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 23

Status Progress

The progress scores are based on the submission of several

program plans such as an E-Authentication Ramp Up Plan,

an EVMS Plan of Action and Milestones plan, an IT Project

Management Validation Strategy to implement OMB’s IT

Project Manager Qualification Guidance, and a Security

Critical Infrastructure Protection plan. Additionally, GSA’s

forms.gov Web site was successfully launched and a data

quality improvement plan was submitted to OMB for 

the Business Gateway. GSA has updated its current EA

materials, including a future action plan.

The electronic “front door” for

the Federal government.

BACKGROUND: This initiative is aimed at providing a greater

focus on performance. It is enhancing the quality of information on program results so that the government can

make better informed resource allocation decisions. The

outcome will be better control over resources and accountability for results by program managers.

STATUS: GSA’s score is “yellow” for status. The earliest that

GSA can improve to “green” for status is the fourth quarter

of FY 2005. At that time GSA should have less than 

10 percent of its PART programs with “results not demonstrated” for more than two years in a row. In other words,

over 90 percent of GSA programs evaluated with the PART

tool will have demonstrated results for at least two years.

PROGRESS: The Agency is “green” in progress. Through the

Agency’s internal PMP, GSA has made great strides in 

identifying long-term outcome goals and efficiency

measures for its programs. GSA continues to work with

OMB on establishing goals and measures for the remaining

programs. GSA is also developing marginal cost analysis

techniques and continuing to implement Activity-based Cost

Management. Finally, the Administrator continues to

conduct quarterly reviews of each organization’s financial

and performance results. All these initiatives and measurement tools are great strides in integrating budget and

performance.

Budget and Performance

Integration
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 24

Status Progress

BACKGROUND: On February 4, 2004, the President signed

Executive Order (EO) 13227 addressing Federal Real

Property Asset Management. Real property was added 

to the PMA in August 2004. The goal of the EO and this

initiative is to promote the efficient and economical use of

U.S. real property assets and to assure management

accountability for implementing Federal real property

management reforms.

STATUS: With the introduction of real property to the PMA

two months ago, all agencies started with a “red” score for

both status and progress. In September 2004, GSA moved

to “yellow” on the President’s quarterly Executive scorecard

for “current status.” This score was achieved at the end of

the fourth quarter of FY 2004 by completing an agency asset

management plan that was consistent with the Federal Real

Property Council’s standards or expected equivalent. 

The Council is in the process of developing standards and

GSA has played a leadership role in drafting template

components for the plan, as well as producing its plan for

use as an example for other agencies. GSA’s Real Property

Asset Management Plan was presented and endorsed by

OMB. GSA’s real property inventory system and performance measures were deemed consistent with the Council’s

expected standards. GSA will address the remaining three

elements of the “current status” on the scorecard in 

FY 2005. Clarification is being sought from OMB regarding

evidence needed for these elements.

Real Property

PROGRESS: GSA moved from “red” to “green” in progress

for real property. Completion of the asset management

plan in two months prior to published standards is the most

significant achievement. Additionally, GSA reviewed and

updated its asset management principles, owner’s objectives, and performance measures and targets. GSA

conducted a baseline review of asset management policy to

identify gaps and the need for updates or additional policy

guidance. GSA launched pilot projects for a computerized

maintenance management system, and completed an

analysis and issued a State of the Portfolio that reports

GSA’s FY 2003 real property performance and trend information. GSA is well positioned to meet the Council’s standards once they are made available and will continue to

play a leadership role in advancing real property asset

management.
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 25

PROCUREMENT ACTIVITIES

CONTRACT MANAGEMENT

INFORMATION TECHNOLOGY

MANAGEMENT CONTROLS

AGING FEDERAL BUILDINGS

HUMAN CAPITAL

PROTECTION OF FEDERAL 

FACILITIES AND PERSONNEL

Simplified processes have reduced order and delivery time, yet competitive principles are

not always followed and opportunities may be missed for less costly services and

products.

GSA's multibillion-dollar acquisition programs have expanded rapidly in terms of series,

variety, and complexity of the procurements performed. A growing list of warning signs

throughout the acquisition process suggests that the technical and management skills

needed by the procurement workforce to operate in this more sophisticated arena are not

keeping pace with these new demands.

Technology applications have increased exponentially as eGov is used to better manage

operations and interface with the public, but complex integration and security issues

exist.

Management controls have been streamlined, resulting in fewer and broader controls,

making it essential that the remaining controls be emphasized and consistently followed.

GSA is being challenged to provide quality space to Federal agencies using an aging,

deteriorating inventory of buildings and facing critical budgetary limitations in its

modernization program.

GSA's corporate knowledge is eroding and efforts to obtain requisite skills for the future

are impeded. Better recruitment and training programs are needed to develop the 

21st century workforce.

GSA is responsible for protecting the life and safety of employees and public visitors in

Federal buildings. A broadly integrated security program is required.

The Reports Consolidation Act of 2000 requires the IG of major Federal agencies to report on the most significantmanagement challenges facing their respective agencies. The OIG’s strategic planning process commits it to addressing

these critical issues. The following table briefly describes the challenges identified for GSA. These align with related work

products issued by the OIG and discussed in its Semiannual Report to the Congress. The complete text of challenges and

actions being taken can be found in the Financial Section on page 130. 

GSA's Summary of Management Challenges

Identified by the Inspector General

CHALLENGES BRIEF DESCRIPTION

The entire text of these challenges is located in the Financial Section.
FY 2003 discovery by the GSA IG of improper acquisition

practices within some FTS Client Support Centers (CSC). FTS

implemented legal and procurement management reviews,

and developed an acquisition checklist. In addition, FTS

issued financial guidance on revolving funds and project

closeout procedures. The policy, guidance, and reviews are

instrumental in maintaining the integrity of GSA’s acquisition

programs and the trust of its customers. 

Although GSA was not designated as one of GAO's high risk

areas, it has done significant work along with OMB in the

Federal Real Property area, as noted in the Administrator’s

letter and in the Real Property initiative of the PMA.

The management team at GSA is continuing to work

aggressively to correct the FTS condition. GSA management

is confident that the FTS actions taken will ensure that GSA

meets its responsibility of providing outstanding acquisition

services, and thus the best value for the U.S. taxpayer.

Management Controls, Systems,

and Compliance with Laws

M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 26

FEDERAL MANAGERS’ FINANCIAL INTEGRITY

ACT (FMFIA) — SECTION 2 

During the fiscal year that ended September 30, 2004,GSA continued its efforts to ensure that the Agency

has an efficient and effective system of financial programs

and internal, management, and administrative controls. 

As it works to serve the American people, GSA continues to

administer its programs as efficiently and economically as

possible. To do this, GSA relies on its system of

management controls to provide reasonable assurance that

its financial obligations comply with applicable laws, its

items of value are safeguarded, and its operations are

properly accounted for. 

During FY 2004, under the chairmanship of the Deputy

Administrator, the Management Control Oversight Council

(MCOC) approved a new electronic assurance statement

process to improve internal control reporting, ensure the

working knowledge of the management control program

throughout GSA, and meet accelerated timeline constraints.

The new electronic GSA 2004 Assurance Statement

Questionnaire and Checklist is based on OMB and

Government Accountability Office (GAO) control standards.

The GSA standardized questionnaire addressed what

managers should be looking at concerning controls to ensure

that managers throughout GSA reviewed, assessed, a

nd reported on internal controls for their program areas. 

In anticipation of a revised OMB Circular, A-123,

“Management’s Responsibility for Internal Control,” GSA is

already contemplating how to implement the draft

requirements as well as requiring an audit of its internal

controls.

In FY 2004, no material weaknesses were identified as

provided in the assurance statement in the Administrator’s

letter at the beginning of this report. During FY 2004, GSA

management took a number of actions in response to the 

An eagle is located over the central entrance, carved by

Ernest S. Bairstow, a sculptor from Washington, DC,

who also carved the speeches into the walls of the

Lincoln Memorial. 
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 27

STATISTICAL SUMMARY OF PERFORMANCE

Section 2, Internal control Systems - Material Weaknesses

GSA reported no material weaknesses at the end of FY 2003 and none have been added during FY 2004. 

FEDERAL MANAGERS’ FINANCIAL INTEGRITY ACT (FMFIA) — SECTION 4 

As required by law, GSA evaluates its financialmanagement systems annually for compliance with

Federal financial management system requirements,

applicable Federal accounting standards, and U.S. Standard

General Ledger (USSGL) recording and reporting

requirements at the transactional level. 

During FY 2004, a new process was developed and

implemented to more fully assess the adequacy of financial

management system controls. This process involved

utilizing a detailed questionnaire to assess IT security and

assurance controls. As in prior years, additional compliance

review steps included a review of pertinent audit reports

issued during FY 2004, a review of the current status of prior

year system-related issues, and discussions with senior

managers and auditors regarding the details of pertinent

system-related control issues. Taken as a whole, GSA is

confident that the various system-related review activities

completed provide a sufficient basis for assessing Agency

compliance with Section 4 FMFIA requirements for FY 2004. 

Based on all review work performed during FY 2004,

Agency management believes that GSA is in substantial

compliance with the requirements referred to in Section 4

of FMFIA. This conclusion is supported by more than 180

actions completed during the past year to address the prior

year system non-conformances relating to financial and

monitoring controls; network and application security

controls; and system development, implementation, and

change controls. 

For the future, further improvements will be made to

improve the quality of budgetary accounting, strengthen

system life-cycle management and system change controls,

and enhance controls in several Service-level financial

management systems. In addition, actions will be taken to

more fully and effectively integrate and streamline

compliance review activities pertaining to Section 2 and

Section 4 of FMFIA, FFMIA, and the Federal Information

Security Management Act of 2002 (FISMA).

NUMBER OF MATERIAL WEAKNESSES

NUMBER AT NUMBER

BEGINNING NUMBER NUMBER REMAINING END

OF YEAR CORRECTED ADDED OF FISCAL YEAR

Prior Years 49 47 0 2

1998 Report 201 3

1999 Report 300 3

2000 Report 300 3

2001 Report 300 3

2002 Report 300 3

2003 Report 320 01

2004 Report 000 0

1One Material Weakness was transferred to DHS and GSA no longer has reporting responsibility.
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 28

PRIOR-YEAR ENTITY-WIDE SYSTEM

NON-CONFORMANCES ADDRESSED

FY 2004 marked an important turning point for GSA in

terms of its efforts to correct three entity-wide system nonconformances. GSA management believes that substantial

progress was made to effectively address each area of nonconformance. As a result, for the first time in five years,

GSA management is proud to report that no entity-wide

system non-conformances are being reported for 

FY 2004. 

With regard to the prior-year system non-conformance

pertaining to reconciliation and monitoring controls, a

detailed and comprehensive corrective action plan was

prepared and implemented to address the reconciliation

issues first reported last year. With the creation of better

reconciliation tools, reconciliation procedures were

performed more effectively. Accounting personnel were

better instructed regarding how and when to perform

needed reconciliations. Better monitoring and control practices were also instituted to ensure that timely and complete

reconciliation activities were being performed in a systematic manner. 

During the past year, substantial progress was also achieved

in improving network and application security controls, and

strengthening system development, implementation, and

change controls across GSA. These two issues had been

reported as system non-conformances for the past five

years. To address these issues, GSA’s MCOC placed special

priority on developing and completing action plans to

improve system controls and system life-cycle management

controls, including system change control and configuration

management. As a result of these efforts, GSA was able to

complete over 180 action steps contained in more than 

80 detailed action plans. These completed actions served

to significantly enhance system controls, system life cycle

management practices, system monitoring and review activities, and system-related documentation for many of GSA’s

critical programs and financial management systems. 

In addition, new system life-cycle management and IT

security program guidance was issued for Agency-wide

implementation. Also, improved configuration management procedures were implemented to more effectively

control system changes and their impacts. 

STATUS OF SYSTEM NON-CONFORMANCES

NUMBER AT NUMBER

BEGINNING NUMBER NUMBER REMAINING END

OF YEAR CORRECTED ADDED OF FISCAL YEAR

Prior Years 990 0

1998 Report 022 0

1999 Report 002 2

2000 Report 200 2

2001 Report 200 2

2002 Report 200 2

2003 Report 201 3

2004 Report 330 0
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 29

ADDITIONAL IMPROVEMENTS PLANNED

FOR FY 2005

To ensure that GSA remains properly focused on being

proactive in improving the effectiveness of its financial

accounting and system controls, several initiatives are

planned for FY 2005. Major initiatives will involve taking

action to improve budgetary accounting; strengthen system

change and life-cycle management controls for certain FSS

systems; enhance various system controls for a critical FTS

system; and more fully integrate FMFIA, FFMIA, and FISMA

compliance review. 

During the past two years, several opportunities have been

identified to improve the quality of financial system

accounting for certain budgetary accounts. Improvement

areas will focus on improving the classification and

accounting of certain budgetary transactions within GSA’s

core accounting system and devising a better means of

more effectively and efficiently reconciling system-generated information to final budgetary reports. Planned 

FY 2005 improvements should lead to significant process

improvements; cost savings; and more reliable, timely, and

accurate budgetary accounting for the future. 

During the past year, GSA has addressed both of its longstanding system non-conformances pertaining to network

and application security controls and system development

life cycle and system change controls on an entity-wide

basis. However, additional improvements are planned to

strengthen existing system controls for three financial

systems being operated within the FSS and the FTS. Areas

targeted for improvement for these systems include access

controls, interface controls, system change controls,

improved separation of duties, and better system controlrelated documentation.

Planned FY 2005 improvements should significantly

enhance system controls for these legacy systems and

further improve GSA’s overall compliance with pertinent

laws and regulations. 

Finally, action is planned during FY 2005 to more effectively

integrate and more efficiently streamline compliance review

and assessment activities pertaining to FMFIA, FFMIA, and

FISMA compliance. Currently, these activities are

performed independently each year and involve considerable efforts on the part of the MCOC. By more effectively

coordinating and consolidating these review activities for

the future, more comprehensive and meaningful reviews

and assessments will be able to be completed in a timelier

manner at less cost. Accordingly, during FY 2005 GSA

plans to focus on this area of possible improvement.

Taken together, these planned initiatives should help ensure

that GSA remains focused on improving its system controls

on a continuous basis. Once completed, these actions will

help GSA achieve one of its key mission goals and provide

a solid foundation on which to build GSA’s enterprise

system architecture and related control environment. 

FEDERAL FINANCIAL MANAGEMENT IMPROVEMENT

ACT (FFMIA)

The FFMIA of 1996 requires Federal agencies to implement

and maintain financial management systems that comply

substantially with 1) Federal financial management system

requirements, 2) applicable Federal accounting standards,

and 3) the USSGL at the transaction level. Under the law,

Agency heads are required to assess and report on whether

these systems comply with FFMIA on an annual basis.

In assessing compliance with FFMIA, GSA adheres to the

revised FFMIA implementation guidance provided by OMB

and considers the results of OIG and the GAO audit reports,

annual financial statement audits, FISMA-related and other

questionnaire results, FISMA compliance reviews, and other

system-related activities.

Based on all information assessed, the GSA Administrator

has determined that GSA’s financial management systems

are in substantial compliance with FFMIA for FY 2004. 
FINANCIAL MANAGEMENT SYSTEMS FRAMEWORK

GSA’s current financial management systems framework

consists of a Commercial-Off-The-Shelf (COTS), Joint

Financial Management Improvement Act (JFMIP)-compliant

and certified core financial system; Pegasys; and several

other important financial systems applications (payroll,

NEAR, etc.) that provide for financial transaction processing

and financial analysis for its three main business lines (FSS,

PBS, and FTS) and General Management and Administration

(GM&A) offices. GSA utilizes a shared-service operation to

cross-service multiple external client agencies. It is

possible, however, that other instances of contracting

improprieties will be revealed by these efforts.

Plans to complete an integrated financial management

systems infrastructure are underway and are based upon

the "One GSA" EA. This "One GSA” EA will provide the

foundation for more effective and efficient delivery of

services by the GSA in the future. The target architecture

will result in reduced complexity in the systems environment and is intended to meet the following objectives: 

Reduce costs by eliminating duplicate systems;

Reduce the costs of maintaining legacy systems;

Ensure continual alignment of technology investments

to business processes;

Improve GSA’s service performance levels;

Promote the sharing of common services across the

GSA; and 

Provide a commonly understood point of departure for

future strategic analyses. 

GSA has adopted a value-chain analysis project to identify

its "to-be" EA using a model-driven architecture approach

that marries business processes with every layer of an EA,

taking into account competitive alternatives in the market

place. The value-chain work done to date confirms that

GSA's financial management services are an integral, inseparable part of GSA's core mission of acquisition services. 

As such, plans to achieve GSA's targeted financial systems

M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 30

infrastructure are being developed using integrated project

teams with cross-GSA representation. 

To transition to this new EA, during FY 2005 a series of

actions are planned, including:

1) Migrating cost allocation functionality from the NEAR

system to Pegasys;

2) Developing requirements for a comprehensive asset

management solution;

3) Significantly enhancing data warehousing functionality

to provide more extensive data access and reporting

capabilities; 

4) Partnering with the private sector to provide an innovative, cost-effective, e-enabled comprehensive accounts

receivable and billing solution that will meet GSA's

unique high-volume, highly complex revolving fund

transaction needs; and

5) Providing enhanced capabilities to streamline intragovernmental and vendor transaction processing. 

ANTI-DEFICIENCY ACT

In FY 2004, a review by GSA’s OGC determined that two

instances of the improper use of the IT Fund for non-IT

purposes in FY 2003 led to two violations of the Anti-deficiency Act. Since that time, GSA officials have taken aggressive action in order to prevent recurrence of the violations.

As part of the Agency’s aggressive actions undertaken, the

GSA Administrator and the FTS Commissioner requested

GSA’s IG initiate audits of other FTS CSCs in the remaining

GSA Regions throughout the nation. These reviews are

currently underway, and depending on the results and

findings, will assist us in further enhancing and improving

acquisition quality and integrity across the organization. It is

possible, however, that other instances of contracting improprieties will be revealed by these efforts.

In March of 2004 a technical violation occurred. GSA’s

Working Capital Fund (WCF) is used in administering the

various centralized administrative support services and is
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 31

Pegasys

 Core Accounting Functions

NEAR

 Accounts Receivable/Billing

Future Accounts

Receivable/Billing

Solution

Future Financial Information

System

 Data Store (Financial, Labor, 

 Payroll, Travel)

 Business Intelligence 

 Functions

 Modeling

 Analysis Functions

 Query & Reporting Functions

e-Travel (Outsourced

government-wide solution)

 Authorizations

 Reservations

 Vouchers

TODAY TRANSITION TARGET

Pegasys

 Core Accounting Functions

 Cost Allocation

 Asset Management

e-Payroll

 Payroll Functions

PAR

 Payroll Functions

FMIS

 Valid Accounting Transactions

 Detail & Summary Query Functions

InfoWizard

 Business Modeling & Analysis

FedDesk

 Travel Management &

 Reimbursement

 (Authorizations & Vouchers)

 Labor Data Collection/Distribution

 Miscellaneous Reimbursements

 Electronic Time & Attendance

 GSA Awards FedDesk

 Labor Data Collection/Distribution

 Miscellaneous Reimbursements

 Electronic Time & Attendance

 GSA Awards

NEAR

 Accounts Receivable/Billing

 Asset Management

 Cost Allocation

FINANCIAL MANAGEMENT SYSTEMS FRAMEWORK 
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 32

funded by reimbursements from the benefiting GSA organizations under formal agreements. Early this year a mistake

occurred in the timely transfer of cash from the benefiting

organizations that had obligated the funds in their respective accounts as a forerunner to the cash transfers. As a

consequence, the WCF experienced a temporary cash shortfall as of March 31, 2004. Procedures have been implemented to prevent this from occurring again. 

IMPROPER PAYMENTS INFORMATION ACT (IPIA)

GSA successfully implemented Public Law 107-300, the

IPIA, during FY 2004. The GSA Office of Finance retained

the services of a contractor to conduct a management

review for IPIA. GSA’s review focused on performing an

erroneous payment risk analysis of each GSA business

line/program to determine and estimate the amount of

potential improper and erroneous payments. The scope of

work included developing a statistically valid sampling plan

to create a population of payments to be analyzed from

each business line/program, performing the risk analysis of

the sampled accounting transactions along with supporting

documentation, and reporting the findings and recommendations for improvements. The contractor was also responsible for estimating the annual amount of erroneous

payments in the business lines/programs that are highly

susceptible to erroneous payments, developing recommendations to reduce erroneous payments, recommending

acceptable goals and ways to measure such goals, and a

reporting mechanism to ensure progress toward the stated

goals. All GSA programs were statistically sampled for

improper and erroneous payments. 

The risk assessment included such factors as prior audit

reports, internal control reviews, complexity of payment

calculations, complexity of laws and regulations, and other

risk factors. GSA does not have any programs previously

identified in former Section 57 of OMB Circular A-11, and

there are no statutory or regulatory barriers to limit any

corrective actions that the Agency may develop to reduce

improper payments.

Some of the most important policies the OCFO develops include those for cash and credit management.
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 33

The report concluded that no GSA program was highly

susceptible to erroneous payments1 according to the

threshold amounts established by OMB. However, several

recommendations were made to strengthen internal

controls to prevent erroneous payments related to duplicate

payments and missed discounts in some programs. GSA

has implemented the recommendations and strengthened

internal controls designed to reduce the occurrences of

these types of erroneous payments. 

GSA has demonstrated a strong commitment to improving

financial management and was at the forefront in the

Federal government for operation of a recovery audit

program. In 2001, prior to the National Defense

Authorization Act of 2002 (Public Law 107-107), GSA

entered into a contract for recovery audit services. The Act

requires that agencies that enter into contracts with a total

value in excess of $500 million in a fiscal year carry out a

cost-effective program for identifying errors made in paying

contractors and for recovering amounts erroneously paid to

the contractors. A required element of such a program is

the use of recovery audits and recovery activities. 

Payments are only made to the recovery auditor upon identification and successful collection of erroneous payments.

While GSA’s payment error rate remains low at .08 percent,

GSA has benefited substantially from the recovery audit

contract. Details regarding recovery audit activity for 

FY 2003 are presented in Appendix IV. GSA has also benefited from the valuable recommendations made by the

recovery audit contractor to strengthen internal controls to

prevent and detect erroneous payments. 

The GSA Administrator has delegated the authority for

implementation of Public Law 107-300 to the Agency’s CFO.

The CFO has further delegated to Agency program officials

the responsibility for reporting any program deemed highly

susceptible to erroneous payments, developing a corrective

action plan, estimating the annual amount of erroneous

payments in programs and activities, and establishing goals

to reduce them in accordance with the guidance provided

by OMB. Refer to Appendix IV for IPIA Reporting Details.

AGENCY PLANS FOR FY 2005 – FY 2007

GSA is committed to the PMA to improve financial management in the Federal government. During FYs 2005-2007,

GSA will conduct the annual risk assessment as required by

IPIA and continue to expand recovery audit services to

other program activities. If any GSA program is found

highly susceptible to erroneous payments, the responsible

program official will develop a corrective action plan in

accordance with Public Law 107-300. 

1 Erroneous or improper payments are any payment that should not have been made or that was made in an incorrect amount under statutory, contractual, and administrative or other legally applicable requirement. These involve overpayments, underpayments, payments to ineligible recipients, payments for ineligible service, duplicate payments, payments for services not received, and payments made without accounting for applicable discounts or credits.
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 34

THE ROAD TO ACCOUNTABILITY – 

FINANCIAL HIGHLIGHTS

For the 17th straight year, GSA’s financial statementsreceived a clean audit opinion. The independent

accounting firm of PricewaterhouseCoopers LLP (PwC)

issued the FY 2004 audit report. GSA’s preparation of these

statements is part of its goal in ensuring accountability over

the resources that are entrusted to it as well as to provide

accurate and reliable information. Agency management is

accountable for the integrity of the financial information

presented in the financial statements. 

The financial statements and financial data presented in this

report have been prepared from GSA’s accounting records

in conformity with generally accepted accounting principles

(GAAP) in the United States. GAAP for Federal entities are

the standards prescribed by the Federal Accounting

Standards Advisory Board (FASAB). 

OVERVIEW OF FINANCIAL POSITION

ASSETS: Total assets were $26,762 million at the end of 

FY 2004. This represents an increase of $1 billion (3.68

percent) over the previous year’s total assets of $25,778

million. This increase is largely attributable to continued

growth in GSA’s primary business operations, which is

reflected in capital asset purchases and alterations and

increases in earnings that provided cash (Funds with U.S.

Treasury) from operations. 

Taken together, Property and Equipment combined with

Funds with U.S. Treasury comprise 91.6 percent of the total

assets for FY 2004. The $461 million increase in Funds with

U.S. Treasury was primarily due to resources available to

invest in construction of Federal buildings in the Federal

Buildings Fund (FBF) and earnings generated from GSA

revolving funds. The $6,560 million of Funds with U.S.

Treasury is generally available to GSA to liquidate

outstanding commitments and to provide working capital to

the revolving fund programs, and contains balances that

will fund future needs. While the majority of these balances

($5,570 million) are available for such future needs, $2,232

million of the available balance is committed to funding of

building construction and alteration projects provided for in

legislation. Amounts totaling $990 million were unavailable

for spending as of September 30, 2004 and would require

future authorization or even legislation to be used.

Property and Equipment increased by $711 million 

(4 percent) from FY 2003. Property acquisitions of 

$2.3 billion during the year, net of the recorded depreciation expense of $1,367 million and $278 million in property

disposals, account for most of this increase. Property acquisitions in FY 2004 were primarily ($1.6 billion) comprised of

construction, modernization, and alterations to buildings.

GSA’s assets reflected in the Consolidating Balance Sheets

are summarized in the table below:

Financial Summary

ASSETS (Dollars in Millions) FY 2003 FY 2004

Land, Property and Equipment, Net $ 17,255 $ 17,966

Funds with U.S. Treasury 6,099 6,560

Accounts Receivable, Net 2,163 1,990

Other Assets 261 246

Total Assets $ 25,778 $ 26,762
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 35

ASSETS BY TYPE (Dollars in Millions)

TOTAL ASSETS $26,762

LAND, PROPERTY

AND EQUIPMENT

67%

$17,966

OTHER ASSETS

1%

$246

ACCOUNTS

RECEIVABLE, NET

7%

$1,990

FUNDS WITH

TREASURY

25%

$6,560

LIABILITIES BY TYPE (Dollars in Millions)

3%

$158

3%

$209

36%

$2,210

2%

$144

3%

$200 7%

$422

40%

$2,468

2%

$151

4%

$227

LIABILITIES

Accounts Payable

Debt

Unfunded Liabilities

Worker’s Compensation

Capital Leases/Installment Purchases

U.S. Treasury Judgement Fund

Contingencies/Environmental Disposals

Deferred Revenues/Advances

Miscellaneous Liabilitie

LIABILITIES (Dollars in Millions) FY 2003 FY 2004

Accounts Payable $ 2,549 $ 2,468

Debt 2,231 2,210

Unfunded/Other Liabilities 159 151

Workers’ Compensation 205 200

Capital Leases/Installment Purchases 369 422

U.S. Treasury Judgement Fund 206 227

Contingencies/Environmental Disposals 165 144

Deferred Revenues/Advances 271 209

Miscellaneous Liabilities 88 158

Total Liabilities $ 6,243 $ 6,189
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 36

LIABILITIES: In FY 2004, total Agency liabilities decreased by

$54 million (.87 percent) to $6,189 million from $6,243

million in FY 2003. Liabilities reported on the Consolidating

Balance Sheet are summarized in the preceding table.

GSA’s largest liability balances are accounts payable,

making up 39.9 percent of the total. These balances

decreased $81 million (3.2 percent) in FY 2004.

The $2,210 million of debt is 35.71 percent of total

liabilities, of which $68 million is unfunded. Periodically, in

lieu of direct appropriations, GSA receives authority in its

FBF to finance construction of buildings. Borrowings have

been obtained from the U.S. Treasury’s Federal Financing

Bank, with the expenditure of the funds amortized over a

30-year period. GSA has almost depleted its authority to

borrow and is currently retiring more debt than it is taking

on. In FY 2004 debt decreased by $21 million, mostly due

to such debt retirements, which are covered by operating

earnings in the FBF. 

Liabilities totaling $818 million, or 13.31 percent of total

liabilities, were unfunded, i.e., budgetary resources are not

yet available. For most unfunded liabilities, budgetary

resources will be made available in the years balances 

are due, in accordance with OMB funding guidelines. 

The major elements of unfunded liabilities are $200 million

for Workers’ Compensation, $422 million for capital leases

and installment purchases, $227 million for reimbursements

due the U.S. Treasury Judgment Fund for costs from past

litigation, and $144 million for contingencies and

environmental/ disposal liabilities.

ENDING NET POSITION: GSA’s Net Position at the end of 

FY 2004 on the Consolidating Balance Sheet and the

Consolidating Statement of Changes in Net Position was 

$20,573 million, a $1,038 million (5.01 percent) increase

from the prior fiscal year. Net Position is the sum of the

Unexpended Appropriations and Cumulative Results of

Operations at the end of 2004. 

The increase in Cumulative Results of Operations resulted

primarily from strong earnings in GSA’s revolving funds,

particularly the FBF (earnings of $1,109 million) and

General Supply Fund (GSF) (earnings of $114 million),

which mostly funds capital needs of those programs. 

RESULTS OF OPERATIONS

The results of operations are reported in the Consolidating

Statement of Net Cost, the Consolidating Statement of

Changes in Net Position, and in the Supplemental

Consolidating Statement of Operations.

The Consolidating Statement of Net Cost presents the cost

less any earned revenue from operating the Agency’s three

largest fund entities that support its three major business

divisions, the GSA Working Capital Fund, and other

operating funds in reporting the Agency’s Net Cost. 

GSA’s total Net Revenue from Operations for 2004, after

intra-agency eliminations, was $977 million. This is a

substantial change from FY 2003, when costs exceeded

revenues by $53 million. The primary reason for this swing

was the FY 2003 implementation of the Help America Vote

Act (HAVA), which provided investments of $665 million in

U.S. state and local government voting infrastructures, for

which there was no additional funding or cost in FY 2004.

Payments made in accordance with the HAVA were

expensed when made. For FY 2003, absent the effects of

the appropriated HAVA transactions, GSA’s revenues

exceeded costs of operations by $612 million. The largest

impact fueling net revenue growth is seen in the FBF, which

reported increased net results of $376 million, resulting

from increased efficiencies in managing the real property

portfolio, as well as effects of transferring portions of its

operations to the DHS which were formerly a drain on net

earnings of that fund.
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 37

The following charts summarize the activity on GSA’s Consolidating Statement of Net Cost and the Consolidating Statement

of Net Position by showing the funds available to GSA in FY 2004 and how these funds were used. 

REVENUE SOURCES (Dollars in Millions)

FEDERAL

BUILDINGS FUND

$8,290

OTHER FUNDS

$359

APPROPRIATIONS

RECEIVED

$663

INFORMATION

TECHNOLOGY FUND

$8,401

HOW FUNDS WERE USED (Dollars in Millions)

GENERAL

SUPPLY FUND

$3,710

FEDERAL

BUILDINGS FUND

$7,246

INFORMATION

TECHNOLOGY FUND

$8,384

OTHER FUNDS

$584

APPROPRIATIONS

USED

$657

GENERAL

SUPPLY FUND

$3,596
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 38

BUDGETARY ISSUES

Due to the alignment between programmatic priorities and

resource allocation, funding for capital investment in real

property remains a significant challenge. The current

funding level of the FBF is inadequate to meet the demand

for new construction, particularly new courthouses, and the

need to reinvest in the existing inventory of governmentowned buildings. PBS’s Strategy for Restructuring and

Reinvesting in the Owned Inventory has brought new

emphasis to addressing the non-performing assets in the

PBS inventory. This effort, along with asset management

reform legislation and continued support for Repairs and

Alterations (R&A) funding, is essential to reducing the 

$6 billion backlog of building repair and maintenance work

and providing quality space for GSA’s Federal customers

and the visiting public.

LIMITATION OF FINANCIAL STATEMENTS

Management prepares the accompanying financial

statements to report the financial position and results of

operations for the GSA, pursuant to the requirements of

Chapter 31 of the United States Code section 3515(b). While

these statements have been prepared from GSA’s books and

records, in accordance with the formats prescribed in OMB

Bulletin 01-09, Form and Content of Agency Financial

Statements, these statements are in addition to the financial

reports used to monitor and control the budgetary resources

that are prepared from the same books and records. These

statements should be read with the understanding that they

are for a component of the U.S. government, a sovereign

entity. One implication of this is that unfunded liabilities

reported in the statements cannot be liquidated without

legislation that provides resources to the Agency.

GSA associates are meeting the accelerated reporting dates while maintaining GSA’s reputation for

integrity and reliability in its accounting information. 
GSA Historic Highlights

1954 Established the first Federal motor pool.

1957 Used the term "telecommunications system"

for the first time to describe telephone service.

1959 Played a significant role in establishing the

Federal Procurement Regulation System.

1960s Instituted GSA’s Federal Technology

Service’s inter-city telephone system.

1950 1960 1970

1962 Created GSA’s Public Building Services. An

Ad Hoc Committee on Federal Office Space

recommended to President Kennedy that a major

public buildings program be undertaken to

address obsolete office buildings in Washington,

D.C. This resulted in the construction of many

of the Federal office buildings that now line

Independence Avenue in the nation's capital.

1970 Implemented the Consumer

Information Center (now the

Federal Citizen Information

center) created by an Executive

Order. Famous for its Pueblo,

CO distribution center, the FCIC

distributes millions of consumer

information brochures, and

answers millions of telephone

calls and e-mails from citizens

each year.

Performance Section
A series of improvements have been made to

office spaces to meet the evolving needs of the

Agency's workforce, including a model office

space for the 21st century. 
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 41

GSA focused on being a results-oriented organization

during FY 2004, institutionalizing the Performance

Management Process and utilizing OMB’s Program

Assessment Rating Tool.

GSA AND THE PERFORMANCE MANAGEMENT

PROCESS (PMP)

The Performance Management Process is an ongoing

process intended to facilitate sound business and financial

practices. Throughout the fiscal year, this approach encouraged collaborative decision-making among GSA senior

leaders regarding strategic plans, budget priorities, and

performance results.

In the broadest perspective, GSA’s PMP is a systematic

approach to achieving results by analyzing customer and

taxpayer requirements, setting performance goals based

upon those requirements, developing action plans, 

allocating resources in a manner that integrates budget 

and performance goals, and executing the plans as necessary to achieve desired results. The integration of strategic

planning, budget development, and performance management will help GSA apply its financial resources strategically

to deliver best value to its customers and meet all of its

strategic goals.

In support of the PMP, GSA has instituted a common Webbased user interface called the Performance Management

Tool. By linking resources and results, this financial and

performance reporting tool allows all associates, including

the Administrator, Regional Administrators (RA), and other

managers, to review quarterly results.

Within the PMP, GSA has used the President’s Management

Agenda as a guide to establish business practices that

enabled GSA to achieve quantifiable results and a workplace that has been rated one of the best in the Federal

government by the Partnership for Public Service. The PMA

has helped GSA achieve: 

Linking budget to performance so associates have

clear goals and objectives to measure program success 

Strengthening financial management so managers can

make sound business decisions using accurate data

Reducing spending by over $2 million by applying

competitive sourcing to commercial operations 

Reducing the time it takes to fill positions to less than

45 days

Launching USA Services, a single, electronic “front

door” to Federal information and services. 

GSA is committed to ongoing improvement and expects to

continue adapting the PMA initiatives to provide best value

results to its customer agencies and the American taxpayers. 

GSA AND THE PROGRAM ASSESSMENT

RATING TOOL (PART)

As part of the PMA, the OMB has established the PART,

which is used to objectively evaluate program performance.

GSA has 12 programs that have received PART reviews. 

Of the 12 programs reviewed, four received PART ratings

ranging from “Adequate” to “Effective.” GSA has prepared

remediation plans for the eight programs rated “Results Not

Demonstrated,” outlining actions to remedy deficiencies in

program goals with the aim of improving ratings.

Introduction to Performance
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 42

GSA PROGRAM RATING

FY 2002

FSS Multiple Award Schedules Results Not Demonstrated

FSS Supply Depots & Special Order Adequate2

FSS Vehicle Acquisition Adequate2 

FSS Vehicle Leasing Moderately Effective2

PBS Asset Management of Real Property Effective2

FY 2003

FSS Personal Property Management Results Not Demonstrated

FTS Regional IT Solutions Results Not Demonstrated

PBS Leasing Space Results Not Demonstrated

PBS Real Property Disposal Results Not Demonstrated

FY 2004

FTS National IT Solutions Results Not Demonstrated

OGP Office of Governmentwide Policy Results Not Demonstrated

PBS Construction Results Not Demonstrated

FY 2005

FSS Travel & Transportation Not Yet Evaluated

FTS Long Distance Not Yet Evaluated

FTS Telecommunications Not Yet Evaluated

PBS Misc Building Ops Not Yet Evaluated

Staff Working Capital Fund Not Yet Evaluated

FY 2006

FTS Professional Services Not Yet Evaluated

OCSC Office of Citizen Services & Communications Not Yet Evaluated

1 The budget is prepared two years in advance of the fiscal year, i.e. a PART review for the 2004 Budget is completed in FY 2002.

2 Originally scored as Results Not Demonstrated, rescored in FY 2004.

PART FISCAL YEAR SCHEDULE1 AND RESULTS

In FY 2004, GSA made a conscientious decision to reduce

the number of measures reported in the Performance and

Accountability Report (PAR) in order to focus attention on

the key measures in support of GSA’s strategic goals. The

remainder of this section provides performance highlights,

key measures, and results for the key measures from the

Services and selected Staff Offices. The complete list of

measures for FY 2004 can be found in Appendix II.

Performance measures that GSA is no longer reporting

externally can be found in Appendix III.
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 43

PBS, as landlord to the civilian Federal government,

strives to provide a superior workplace for the Federal

worker at a superior value to the U.S. taxpayer. By providing its customers with quality work environments, PBS

enables Federal agencies to better serve the public. 

As the largest public real estate organization in the nation,

PBS provides workspace and workplace solutions to over

100 Federal agencies.

PBS has undertaken a Portfolio Restructuring Initiative to

better align the building portfolio with GSA’s mission.

Increased focus has been placed on high performing

assets. Other assets that are expensive to operate and

maintain, produce little or no net income, require

significant capital repairs, and do not adequately serve

customer agencies will be disposed, if feasible and

practical. The restructuring effort focuses GSA’s attention

on the financial and physical performance of each asset

in the portfolio, prioritizes reinvestment dollars, provides

quality workplaces, increases customer satisfaction and

increases sustainability of historical and culturally

significant landmarks.

Also, a Human Capital Strategy was implemented during

FY 2004 to address customer needs and to re-invigorate

GSA’s National Account Program with its major customer

agencies. National Account Executives work closely with

ordering officials from GSA’s customer agencies to meet

their expectations. 

PERFORMANCE HIGHLIGHTS

The paragraphs below summarize the FY 2004 PBS

performance results by program activity.

CONSTRUCTION: PBS is involved in a multi-year

program to build new Federal Courthouses and

rehabilitate existing Federal Courthouses to accommodate

new security requirements, enhanced prisoner security

PUBLIC BUILDINGS SERVICE

and handling measures, an increased number of Federal

cases, and an increased number of Federal judges. Five

new courthouses have been completed during FY 2004:

Gulfport, MS; Wheeling Annex, WV; Seattle, WA; Laredo,

TX; and, Erie, PA. A design contract was awarded for a

courthouse in Austin, TX. Through a contract with the

Georgia Institute of Technology, a secure Internet site has

been established that provides documentation on

completed courthouses. The site includes a compendium

of “Lessons Learned.” In addition, a guide has been

developed to facilitate improvements in gathering

information prior to starting the design of future

courthouses. 

In FY 2004, construction projects on schedule improved

to 80 percent from 68 percent in FY 2003, reflecting

process improvements established by PBS. Even with the

substantial improvement from last year, PBS missed its

target of 84 percent.

LEASING SPACE: A National Commercial Broker Services

Contract developed in FY 2004 was awarded in October

2004. This contract addresses the increased capacity needs

PBS
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 44

of the Leasing Program within PBS. It will allow PBS to

leverage the size and the value of its leasing program,

while achieving cost savings and improving customer

service. An added benefit is a coherent national business

process. During FY 2004, PBS determined that issuing a

contract in which the broker will be paid on a commission

basis by the lessor would provide the greatest value. GAO

ruled on August 14, 2003 (Decision B-291947) that GSA

may enter into such contracts for real estate broker

services. PBS’s objective is to lease space to provide

customer agencies the best value for taxpayer dollars.

Often it is not just about acquiring space with the lowest

cost, but rather it’s the location, building amenities, space

features, and other factors that provide better value. 

The target for FY 2004 for the cost of leased space relative

to the market was eight percent below market. In FY 2004,

PBS was 10.6 percent below comparable market costs.

PBS’s performance goals for its existing lease inventory

include increasing the number of highly satisfied tenants

to 68 percent and maintaining a very low vacancy rate of

1.5 percent. PBS achieved both of these objectives by

increasing the percentage of highly satisfied tenants to

70.3 percent and limiting the vacancy rate in its total

leased inventory to 1.2 percent.

ASSET MANAGEMENT OF REAL PROPERTY: PBS has had

continued success at providing building operations

services at levels comparable to the private sector and at

costs below the market average. In FY 2004 combined

cleaning, maintenance, and energy costs stood at 

14.5 percent below the private sector. 

PBS is also progressing toward meeting its long-term

energy reduction goals. By the end of FY 2004, PBS has

reduced energy consumption by 22.4 percent from the

1985 baseline, just short of its FY 2004 objective of a 

22.6 percent reduction. PBS is still on track to meet the

long-term goal of a 35 percent reduction by FY 2010.

The goal of the R&A program is to keep GSA buildings in

good repair and provide Federal tenants with quality

workspace that enables them to carry out their missions.

The program’s workload does change over time as the

buildings age and the composition of the inventory

changes. PBS is focusing reinvestment capital on the

most productive assets with long-term Federal purposes.

These actions are part of PBS’s Portfolio Strategy. Better

scheduling and more aggressive tracking will improve the

management of R&A projects. PBS has set specific goals

and objectives to be accomplished in FYs 2005, 2006, and

beyond. For example, by FY 2005 PBS plans to have 

86 percent of R&A projects completed on schedule. 

In FY 2004, the percentage of R&A projects completed on

schedule was 78 percent. As the PBS Portfolio Strategy is

implemented, PBS is reducing the total reinvestment

needs of the owned portfolio. Nonperforming assets,

which are unable to generate sufficient income for their

reinvestment requirement, and assets for which there is

no long term Federal need, are being redeployed for

disposal, exchange, or transfer. By redeploying nonperforming and underutilized assets, the portfolio's capital

reinvestment needs were reduced by a total of $193

million in FYs 2003 and 2004.

PBS
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 45

PBS

PBS Performance By GSA-Wide Goal 

GSA-WIDE GOAL 1: PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS

PERFORMANCE GOAL RESULT

Achieve an overall customer satisfaction rating in leased space Goal Met

of 68% by FY 2004.

Deliver leased space to GSA clients at not less than 8% below industry Goal Met

for office space in FY 2004.

DESCRIPTION OF THE MEASURE: A high level of satisfaction with one’s work environment is a key factor that promotes

productivity, thus enhancing the Federal workforce’s service to the public. PBS has partnered with The Gallup

Organization to assess these satisfaction levels through a customer survey developed in collaboration with the

International Facilities Management Association. 

In FY 2004, PBS altered its target methodology in determining customer satisfaction. Instead of a “yes/no” question

format, which did not provide any distinction in the level of satisfaction, PBS used a 1-5 rating and only counted 4’s

and 5’s as “highly satisfied” tenants. As a result of the change in methodology, the goals for customer satisfaction were

reduced, but should provide a better gauge of true customer satisfaction.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: PBS has succeeded at meeting its FY 2004 target by making a

concentrated, organization-wide effort at increasing the level of satisfaction of its tenants. PBS can expect continued

improvements as a result of its Human Capital Initiative and the creation of its new Office of National Customer Services

Management.

The Office of National Customer Services Management coordinates customer relationships and creates and implements

business processes, tools, and training. The Office also provides guidance to support the acquisition and delivery of

space assignments and related services to its customers.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

N/A N/A 66% 68% 70%

PERFORMANCE GOAL

Achieve an overall customer satisfaction rating in leased space of 68 percent by FY 2004.

MEASURE 

Percent of highly satisfied tenants in leased space.

PBS
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 46

DESCRIPTION OF THE MEASURE: PBS benchmarks its leasing costs in office space to the private sector. By consistently

paying lease rates at or below comparable market rates, PBS ensures that it is achieving the best value for the taxpayer.

When calculated by contract, this measure also provides information as to the effectiveness of PBS’s negotiating of

favorable contract rates.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: PBS’s success at exceeding the FY 2004 target is due in part to its very

successful negotiating of new follow on leases at existing locations. 

GSA-WIDE GOAL 2: ACHIEVE RESPONSIBLE ASSET MANAGEMENT

PERFORMANCE GOAL RESULT

Maintain vacant space in leased buildings below 1.5% in FY 2004. Goal Met

New construction projects on schedule 84% of the time by FY 2004. Goal Not Met

86% of repair and alteration projects on schedule by FY 2004. Goal Not Met

DESCRIPTION OF THE MEASURE: This measure evaluates PBS’s effectiveness at maximizing the use of existing leased

space in PBS’s real property inventory. Vacant space includes any space for which PBS currently has no tenant,

including space that it has committed to a customer, but is not yet occupied.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: PBS has continued to improve in this area by periodically re-evaluating

client agency space needs and evaluating opportunities for filling vacant space in existing leases. PBS has concentrated

its efforts on reducing vacant space due to the significant savings to the taxpayer that can be achieved from maintaining

a high asset utilization rate.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

2.2% 2.0% 1.4% 1.5% 1.2%

PERFORMANCE GOAL

Maintain vacant space in leased buildings below 1.5 percent in FY 2004.

MEASURE 

Percent of vacant space in leased inventory.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

11.0% 14.0% 7.41% 8.0% 10.6%

PERFORMANCE GOAL

Deliver leased space to GSA’s clients at not less than 8 percent below industry for office space in FY 2004.

MEASURE 

Cost of leased space relative to market.

PBS
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 47

DESCRIPTION OF THE MEASURE: PBS strives to meet customer needs in a timely manner. In addition, PBS financial

projections include rental income from new construction projects as of the anticipated date of occupancy. It is,

therefore, critical that projects be completed on time so that they can begin to generate expected revenue. This measure

shows the percentage of projects completed on schedule, weighted by cost. This measure uses an earned value

technique to assess construction project performance on all projects over $10 million.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: The FY 2004 target was not met. PBS has begun positioning itself to

achieve its long-term goal of completing 90 percent of new projects on schedule by FY 2010. While falling short of the

FY 2004 target, the overall new construction program on schedule improved significantly over last year, rising from 

68 percent to 80 percent. One major project comprising over 15 percent of the overall value of the new construction

program did not finish the fiscal year on schedule, and had a significant negative impact on the overall performance of

the new construction program. During the fiscal year, PBS implemented several new initiatives, such as quality

assurance reviews of the project scopes of work and cost estimate reviews of project budgets, which were designed to

improve the program's performance. With these initiatives and PBS's ongoing efforts to enhance the available tools

and resources to project management teams, such as the new Project Manager Desk Guide to be rolled out in FY 2005,

the performance of the capital program should continue to improve.

DESCRIPTION OF THE MEASURE: PBS financial projections include rental income from newly repaired and altered space

as of the anticipated date of occupancy. It is, therefore, critical that projects be completed on time so that they can

begin to generate expected revenue. This measure shows the percentage of projects on schedule, weighted by cost.

This measure uses an earned value technique to assess major R&A project performance on all projects more than 

$10 million.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

75% 87% 78% 86% 78%

PERFORMANCE GOAL

Eighty-six percent of repair and alteration projects on schedule by FY 2004.

MEASURE 

Percent of R&A construction projects on schedule.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

75% 78% 68% 84% 80%

PERFORMANCE GOAL

New construction projects on schedule 84 percent of the time by FY 2004.

MEASURE 

Percent of construction projects completed on schedule.

PBS
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 48

DISCUSSION OF FY 2004 TARGET VS. RESULTS: The FY 2004 target was not met. One major project in the R&A program,

comprising nearly 20 percent of the value of the overall R&A program, fell short of the measure in FY 2004 and had a

significant negative impact on the overall performance of the R&A program. Without this project, the R&A program

would have exceeded its target for FY 2004. During the fiscal year, PBS implemented several new initiatives, such as

quality assurance reviews of the project scopes of work and cost estimate reviews of project budgets, designed to

improve the program's performance. With these initiatives and PBS's ongoing efforts to enhance the available tools

and resources to project management teams, such as the new Project Manager Desk Guide to be rolled out in FY 2005,

the performance of the R&A program should continue to improve over the long term.

GSA-WIDE GOAL 3: OPERATE EFFICIENTLY AND EFFECTIVELY

PERFORMANCE GOAL RESULT

Maintain operating service costs in office and similarly serviced space Goal Met

at 12% or more below private sector benchmarks by FY 2004.

DESCRIPTION OF THE MEASURE: PBS uses several benchmarks to monitor operating costs—maintenance, utilities, and

cleaning—in comparison with those in equivalent private sector buildings. The Building Owners and Managers

Association (BOMA), an advocacy group for the real estate industry, is PBS’s primary source for private sector operating

cost information. 

DISCUSSION OF FY 2004 TARGET VS. RESULTS: PBS has been successful at managing building operations cost by

negotiating cleaning and maintenance contract rates below BOMA benchmarks and by continuing energy reduction

efforts.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

16.1% 17.0% 14.8% 13.4% 14.5%

PERFORMANCE GOAL

Maintain operating service costs in office and similarly serviced space at 12 percent or more below private sector

benchmarks by FY 2004.

MEASURE 

Cleaning, maintenance, and utility costs in office and similarly serviced space—percent below private sector benchmarks.

PBS
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 49

GSA-WIDE GOAL 6: CARRY OUT SOCIAL, ENVIRONMENTAL, AND OTHER RESPONSIBILITIES AS

A FEDERAL AGENCY

PERFORMANCE GOAL RESULT

Improve energy reduction in standard facilities to 22.6% below the Goal Not Met

FY 1985 baseline by FY 2004.

DESCRIPTION OF THE MEASURE: PBS is a responsible steward of the environment and is committed to implementing

energy-saving solutions that improve the energy efficiency of operations and save taxpayer dollars. In addition, 

EO 13123, “Greening the Government through Efficient Energy Management,” mandates that PBS achieve a 35 percent

reduction in energy consumption over its 1985 baseline by 2010. 

DISCUSSION OF FY 2004 TARGET VS. RESULTS: PBS did not meet its target by 0.2 percent. PBS was unable to process

energy BTU (British Thermal Unit) credits from purchasing “green” power by the end of the reporting period for this

measure. However, with the planned purchases of green power, PBS is on track to meet the FY 2005 goal.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

18.4% 22.5% 18.6% 22.6% 22.4%

PERFORMANCE GOAL

Improve energy reduction in standard facilities to 22.6 percent below the FY 1985 baseline by 2004.

MEASURE 

Percent reduction on energy consumption from the FY 1985 baseline.

PBS
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 50

FSS

FSS provides a wide variety of services and products at

competitive prices to the Federal agencies that serve the

public.

As acquisition of services and complex solutions continued

its trend of rapid growth during FY 2000 to FY 2003, FSS

recognized the need to update training programs developed

after passage of earlier acquisition reform legislation. 

In FY 2003 FSS began developing a training program that

emphasized that everyone in the FSS acquisition value

chain (associates, buyers, and sellers) shares responsibility

for following acquisition procedures, regulations, and laws

in order to “Get It Right.” In FY 2004, this initiative, the

“Get It Right” campaign, became a GSA-wide effort with

customer agency partners, particularly the Department of

Defense (DOD), to strengthen acquisition processes.

PERFORMANCE HIGHLIGHTS

The paragraphs below summarize FY 2004 FSS major

performance results by business-line activity.

SUPPLY: In FY 2004 Global Supply sales to Federal

customers exceeded $1 billion, over 50 percent of which

can be attributed to support of military customers overseas,

civilian agencies in charge of fire suppression, and

customers who have no commercial alternative for product

fulfillment. This reflects an increase of 3 percent from 

FY 2003 sales, with support to military customers increasing

by approximately 11 percent. Practically all of FSS’s support

to military customers can be attributed to sustaining the

level of support for the troops in the Middle East. 

COMMERCIAL ACQUISITION: Total sales through Multiple

Award Schedule (MAS) contracts and IT governmentwide

Acquisition (GWAC) contracts were $34.96 billion during 

FY 2004. The IT Acquisition Center in the Central Office

continues to have the largest MAS sales volume with

approximately two-thirds of the sales for services and onethird of the sales for products. IT schedule sales surpassed

$16 billion in FY 2004. Services account for approximately

70 percent of the MAS program sales, and are growing

faster than products. Logistics Worldwide and Language

Services are some of the fastest growing services, with 

FY 2004 sales doubled over FY 2003 sales. Professional

Engineering Services saw a 50 percent increase in sales

from FY 2003. Management, Organizational & Business

Improvement Services has not maintained the rapid sales

growth of FY 2001 and FY 2002, yet this schedule surpassed

$2 billion in sales in FY 2004. Law enforcement, firefighting, and security services and products are also

growing fast. Products account for approximately 

30 percent of MAS program sales. Products from the

General Products Center in Fort Worth, TX, are among the

fastest growing sales.

FEDERAL SUPPLY SERVI CE
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 51

VEHICLE ACQUISITION AND LEASING SERVICES: GSA

Automotive, the vehicle acquisition service, is a mandatory

source that leverages the buying power of the Federal

government to obtain significant discounts for Federal

agencies. In FY 2004 over 64,000 vehicles were procured

at discounts averaging greater than 30 percent below

commercial pricing. GSA Fleet, the leasing service, grows

through transferring vehicle ownership and management

responsibilities of other Federal agencies’ fleets to GSA.

Since 1985, Fleet consolidations have been a smart solution

for the Federal government, with FY 2004 savings to

taxpayers exceeding $82 million dollars. This service is

funded through monthly rates and mileage fees by vehicle

type. During FY 2002 and FY 2003 approximately 6,700

vehicles were consolidated into the GSA Fleet. GSA Fleet

consolidated an additional 1,294 vehicles in FY 2004.

Savings through vehicle consolidations into the GSA Fleet

will continue to reduce costs to customer agencies, eliminating their capital requirements for vehicles, and

decreasing their need for personnel to manage fleets. GSA

Fleet services traditionally cost at least 20 percent less than

the private sector and continue to provide the best value to

the Federal government. Examples of some of the largest

consolidations over the past three years are the CONUS Air

Force (USAF) and the Navy base in Sigonella, Italy

(EuroUSN). The majority of vehicles consolidated into

GSA’s Fleet save customers and taxpayers $680 per vehicle

per year.

TRAVEL AND TRANSPORTATION: The Travel and

Transportation business line helps control the Federal

government’s direct and administrative costs for travel and

transportation services. Travel services include negotiated

airline contracts, travel agency, and travel charge card

services. Transportation services include the shipment of

parcels, freight, and household goods. The business line

also oversees the use of audit contractors to examine the

government’s air passenger, freight, and household goods

transportation billings so as to identify and seek recovery of

incorrect billings and overpayments for the Federal 

government. In recent years Federal travel and transportation budgets have totaled over $27 billion each year. 

The travel services, household goods, and freight programs

are funded through fees paid by Federal agencies.

The eTravel initiative is one of the PMA eGov initiatives,

and GSA has awarded contracts to three vendors to provide

a Web-based, end-to-end travel management service for

Federal employees. The eTravel Service (eTS) supports

travel planning, authorization, and arrangements, as well as

travel voucher preparation and approval. It unifies and

simplifies travel services for Federal employees and enables

effective management through data standardization and

business intelligence. Civilian agencies are expected to

complete deployment of the eTS by September 30, 2006. 

PERSONAL PROPERTY MANAGEMENT: The personal property

management program provides for property sales through

comprehensive, cost-effective solutions. Property no longer

needed by one Federal agency is entered into an electronic

system for screening and use by other Federal agencies,

thereby avoiding new procurements. Property with no

further Federal use can be screened electronically and is

offered at no cost to state and local governments and

eligible nonprofit groups. Property whose value cannot be

extended by reuse or donation is sold to the public, primarily through online auctions. 

The FAS Personal Property eGov initiative has resulted in a

contract award to a commercial firm that will establish an

eMarketplace for the sale of Federal personal property.

However, there has been a protest to the award that is

expected to delay FAS implementation until perhaps early

FY 2006. The FAS Personal Property solution should make

it easier for customers to find and buy government assets,

increase net proceeds from asset sales, decrease agencies'

expenses related to asset sales, improve the personal

property sales process, and accelerate asset disposal time.

The utilization and donation (U&D) program of the

Personal Property Management business line is funded by

$11.8 million in congressional appropriations; $14.8 million

in receipts funded the sales program.

FSS
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 52

FSS Performance By GSA-Wide Goal 

GSA-WIDE GOAL 1: PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS

PERFORMANCE GOAL RESULT

Maintain 20% or better discount from manufacturer’s invoice price. Goal Met 

(Vehicle Acquisition)

DESCRIPTION OF THE MEASURE: The average percentage savings is calculated by the weighted average discount from

vehicle manufacturer’s invoice prices for GSA’s seven top-selling vehicle types. Business projections show that 

20 percent discount below invoice continues to be a reasonable long-term outcome goal for this business line.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: The target was met. GSA Automotive tracks the discount from invoice

for the top seven selling vehicles as a measure of internal efficiency to ensure that FSS receives the maximum discount

from the manufacturer’s invoice price. FSS has achieved a discount of 20 percent or more since 1999, and business

projections show that 20 percent continues to be a reasonable annual target for this business line. This translates to

extremely effective pricing on the vehicles purchased for customer agencies, as well as those in the GSA Fleet, which

keeps monthly and mileage charges well under commercial lease rates.

The FY 2004 target for this measure was exceeded because of several factors. The large annual consolidated acquisition

of vehicles is the primary reason that GSA Automotive realizes large discounts from manufacturer’s invoice prices, which

are passed on to customers. Great prices are based on volume purchasing. Volume purchasing drives competition

among the “Big 3” vehicle manufacturers – General Motors (GM), Chrysler and Ford. In FY 2004, vehicle manufacturers

were very aggressive in sales of vehicles. This situation could change for a number of reasons beyond GSA’s control,

such as unforeseen changes in the economy. GSA Automotive program is currently re-training all contracting personnel.

Improved negotiation skills, along with expert knowledge of contracting principles and Federal regulations, will ensure

superior performance for this measure in the future. 

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

19.1% 27.3% 26.3% >20.0% 33.1%

PERFORMANCE GOAL

Maintain 20 percent or better discount from manufacturer’s invoice price. (Vehicle Acquisition)

MEASURE 

Percentage discount to customers from invoice price. 

FSS
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 53

GSA-WIDE GOAL 3: OPERATE EFFICIENTLY AND EFFECTIVELY

PERFORMANCE GOAL RESULT

Reduce the cycle time to process contract offers. (Commercial Acquisition) Goal Met

Reduce the mark-up for GSA stocked supply items toward the goal of 34.0%. Goal Met

Maintain the gap between GSA Fleet rates and commercial rates at 20% Goal Met

or more. (Vehicle Leasing)

DESCRIPTION OF THE MEASURE: Cycle time is measured in days, from the time of receipt of contract offer to execution.

The data source is the Offer Review System, an acquisition tracking system that is standard to all acquisition centers. 

DISCUSSION OF FY 2004 TARGET VS. RESULTS: Commercial Acquisition business line met the target for this efficiency

measure in part because of additional acquisition workforce resources. In FY 2004, FSS hired additional acquisition

personnel. This increase in the workforce has resulted in a better than expected decrease in cycle time to process

contract offers. The variance between the target and the actual performance is also due in part to the organization’s

emphasis on improving cycle time, but the difficulty of forecasting workload trends across this large program remains.

FSS has developed eOffer as a paperless means for its vendor community to submit both contract proposals and

modifications electronically. This new system was piloted in FY 2004. Once it is fully implemented, improvements

in the efficiency of the acquisition cycle will be realized. Additionally, eOffer will increase cycle time data validity

and accuracy.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

115 days 110 days 92 days 105 days 87 days

PERFORMANCE GOAL

Reduce the cycle time to process contract offers. (Commercial Acquisition)

MEASURE 

Cycle time to process offers (days).

FSS
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 54

FSS

DESCRIPTION OF THE MEASURE: Mark-up is the additional fee that GSA Global Supply charges customers to cover its

costs and is reflected in this measure as the average percentage. Stocked items are stored in GSA’s Supply Distribution

Centers. The long-term goal is to reduce mark-up from 48.5 percent in FY 2002 to 34.0 percent in FY 2009. 

This measure tracks the progress towards achieving this goal.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: GSA Global Supply performed successfully to achieve this target in 

FY 2004. The primary reason that this target was achieved is attributed to a 2.0 percent reduction that was implemented

April 1, 2004. It was estimated that the reduction would result in a savings of $5.6 million to the taxpayer for the second

half of FY 2004. This 2.0 percent reduction represents an accelerated step towards achieving the long-term goal of 

34.0 percent.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

N/A 48.5% 45.9% 45.0% 42.8%

PERFORMANCE GOAL

Reduce the mark-up for GSA stocked supply items toward the goal of 34.0 percent.

MEASURE 

Percent of mark-up for stocked items.

GSA provided disaster support, in the form of temporary housing , after the 2004 hurricanes which caused

widespread devastation from the Florida Keys to the Mississippi Gulf Coast.
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 55

FSS

DESCRIPTION OF THE MEASURE: GSA Fleet annual rates are compared to the private sector companies on schedule with

the GSA Automotive Division. FSS proposed this measure for the first time in FY 2004 and generated an externally

reported FY 2003 actual savings at 58 percent that had been based on historical data. After reviewing the measure, the

methodology for calculating gap between GSA Fleet leasing rates and commercial rates was modified in order to

accurately reflect the gap. Under the new methodology, the FY 2003 actual is calculated at 36.86 percent. 

Market conditions and business projections indicate that leasing vehicles at a savings of 20 percent or better over the

private sector rates continues to be a reasonable long-term goal for GSA Fleet.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: The target was met. This was a new measure for FY 2004. The FY 2003

actual performance data was generated from historical data. GSA Fleet did not have a rate increase between FY 2003

and FY 2004, so there is a slight reduction in savings between years.

GSA Fleet has limited rate increases for customer agencies and controlled costs through numerous initiatives.

Performance towards program goals is tracked through several performance indicators. GSA Fleet maintains low rates

due to vigilant monitoring of operation expenses, such as maintenance and repair costs, and overall reduction in

program overhead through the consolidation of selected Fleet Management Center (FMC) locations. GSA Fleet continues

to reduce costs while maintaining superior, world-class levels of customer satisfaction and retention, resulting in

significant savings and benefits over the private sector.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

N/A N/A 36.86% >20.0% 31.67%

PERFORMANCE GOAL

Maintain the gap between GSA Fleet rates and commercial rates at 20 percent or more. (Vehicle Leasing)

MEASURE 

Percentage GSA Fleet leasing rates below commercial rates on the GSA Vehicle Leasing Schedule.
FTS provides telecommunications, professional services,

and IT products and services to Federal agencies in support

of their mission to the public. FTS adds value by providing

technical, acquisition, life-cycle project management, and

financial services support to Federal agencies. These

services save taxpayer dollars by making it possible for

customer agencies to avoid doing costly, time-consuming

technology acquisitions, and enabling them to devote more

of their resources directly to agency missions and programs.

PERFORMANCE HIGHLIGHTS

The paragraphs below summarize FY 2004 FTS major

performance results by business line activity.

NETWORK SERVICES: Declining prices, a general

downturn in the capital markets, downsizing, mergers,

and allegations of wrongdoing have challenged the

telecommunications industry. FTS Network Services –

long distance and regional telecommunications – has

responded proactively to these challenges by:

Actively monitoring the regulatory actions of the

Federal Communications Commission and the State

Public Utility Commissions for rules and/or regulations

that may impact FTS service offerings.

Reviewing access charges and other telecommunications charges to ensure that FTS industry partners

comply with rules and regulations and do not overcharge customers for services provided.

Adding new industry partners to provide choices to

FTS customers and to enable the potential for

alternative and/or redundant offerings that help ensure

continuity of services.

FEDERAL TECHNOLOGY SERVICE

P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 56

FTS

FTS Network Services will continue to watch the regulatory and market environment for potential impact to its

customers and its service offerings. The performance of

FTS industry partners will continue to be monitored and

information will be shared with FTS customers, Congress,

and industry partners. 

IT SOLUTIONS: The IT Solutions program provides

assisted acquisition services to help Federal agencies

acquire and manage IT products and services, primarily

through the use of contracts with industry partners. 

IT Solutions provides these assisted services through 

11 regional and four national customer service centers

(CSC). 

One of the largest contracts awarded by IT Solutions is an

enterprise-wide project for the U.S. Environmental

Protection Agency (EPA). The project scope includes the

agency call center, local and wide area networking,

cabling, seat management, dial tone, e-mail, Web and
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 57

FTS

application hosting, high performance computing, and

managing the EPA data center. In the second year of its

implementation, the project has successfully implemented

a Managed Call Center and Managed Desktop Services,

both improving service levels and lowering costs. 

The project, using performance-based contracting, instituted cost saving measures that reduced overall costs by

$14 million during FY 2003 and anticipates an additional

5 percent savings during FY 2004. The project has also

continued to exceed substantial small business subcontracting goals, achieving 49 percent of subcontracting

dollars to small businesses during the first half of FY 2004.

FTS is working with the DHS, at their request, to execute

a Memorandum of Understanding between DHS and FTS

to provide acquisition support to the Office of the Chief

Procurement Officer, DHS. FTS will provide a single

point of contact and on-site acquisition expertise 

representing the three FTS business lines (IT Solutions,

Network Services, and Professional Services) with

national and regional representation to DHS to assist in

the quantification and execution of requirements. 

The DHS Office of the Chief Procurement Officer 

estimates the value of requirements to be $1 billion to 

$3 billion per year. This process will ensure that all

potential GSA acquisition solutions are considered and

the appropriate resources are in place to effectively

execute DHS requirements.

IT Solutions will use its unique cross-government vantage

point and expertise to develop, oversee, and maintain a

governmentwide enterprise software licensing agreement

initiative known as SmartBUY. Program management of

the SmartBUY program was established in IT Solutions in

April 2004 to leverage the buying power of the Federal

government and provide governmentwide software

licensing through enterprise agreements that provide best

prices and terms and conditions for commercial software.

The aggregation of software requirements across the

government will help to achieve savings through cost

avoidance of millions of dollars annually. The OMB is

sponsoring this new program and has directed agencies

to use this program when purchasing specified software.

A continuing focus within the IT Solutions business line is

to seek opportunities to improve business service delivery

to client agencies. The systems modernization effort

underway will replace regional and national IT Solutions

business systems with a single project ordering and

management system using COTS software. During 

FY 2004, IT Solutions completed the development and

began the deployment of the GSA Preferred (GSAP)

business system (previously referred to as 3GS). 

By unifying the FTS task order business under one

system, GSAP, FTS will simplify and improve the manner

in which it supports its clients and conducts business with

its industry partners. In addition, FTS has implemented

initiatives to improve the quality of its acquisition

services, including nationwide standards, policies, and

procedures. FTS has also established better review

processes to ensure appropriate management controls.

PROFESSIONAL SERVICES: The Office of Professional

Services (OPS) completed its first full fiscal year of

operation in FY 2004. It was intended that this first year

would provide the foundation and establish baselines for

this product line. The Professional Services business line

is the first extension for FTS in providing acquisition

services that are not primarily related to IT or network

services. FTS assists customers in buying services

available on eight GSA Schedules managed through two

Acquisition Centers in the FSS. OPS will continue to

build new partnerships among the existing business lines

in FTS and FSS while continuing to deliver quality

solutions to existing and new customers.
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 58

FTS Performance By GSA-Wide Goal 

GSA-WIDE GOAL 1: PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS

PERFORMANCE GOAL RESULT

Provide Federal customers substantial savings as a result of purchasing Goal Met

FTS telecommunications products and services.

DESCRIPTION OF THE MEASURE: The estimated savings are defined as the cost difference between the FTS 2001 prices

and best commercial prices. These savings translate to projected dollar amounts that GSA has saved Federal customers.

This measure reflects the cumulative savings that customers realized as a result of obtaining long-distance network

services from GSA’s FTS.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: The target was met. Depending on the category of service (switched

voice, private line, data services, or Internet Protocol) the FY 2004 savings are $705 million based on the gross sale

volume. This savings amount exceeds the target due to a combination of an increase in sales volume and to a change

in the estimated cost savings methodology. Historically, GSA has reported the cost savings based on financial volume.

Financial volume does not reflect the actual gross sales associated with the Long Distance program since only 7 percent

of the GSA management fee is reported as sales for Direct Billed customers. GSA has recently reset the baseline for

the estimated savings according to sales volume, which includes 100 percent of the sales for Direct Billed customers.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

N/A $32.8M $574.1M $514M $705M

PERFORMANCE GOAL

Provide Federal customers substantial savings as a result of purchasing FTS telecommunications products and services.

MEASURE 

FTS telecommunications pricing as compared to best commercial prices.

FTS
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 59

FTS

GSA-WIDE GOAL 3: OPERATE EFFICIENTLY AND EFFECTIVELY

PERFORMANCE GOAL RESULT

Meet customer requirements for transaction cycle time. Goal Not Met

DESCRIPTION OF THE MEASURE: To improve customer communications concerning task order requirements and service

expectations, the CSCs track and report actual task order award dates for services and commodities against the task

order award dates that have been negotiated with customer agencies. Percentage is calculated based on task orders

with award dates met compared to all task orders awarded.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: Additional internal management control processes and procedures

implemented in early FY 2004 resulted in longer than anticipated acquisition processing timeframes and negotiated

award dates that were not met as planned. Improvements in meeting negotiated award dates for task order

requirements were demonstrated in the fourth quarter of FY 2004 due to improved customer communications and

adjustments to processing timeframes.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

N/A 93% 91% > 93% 88%

PERFORMANCE GOAL

Meet customer requirements for transaction cycle time.

MEASURE 

Percentage of negotiated award dates for services and commodities that are met or bettered (Regional IT Solutions).
GSA-WIDE GOAL 6: CARRY OUT SOCIAL, ENVIRONMENTAL, AND OTHER RESPONSIBILITIES AS

A FEDERAL AGENCY

PERFORMANCE GOAL RESULT

Obtain best value solutions through competition. Goal Met

DESCRIPTION OF THE MEASURE: As an executive agent, GSA is authorized to award and administer task and delivery

orders against GWACs on behalf of other agencies. This performance measure tracks the percent of task orders in which

all contract holders were afforded a fair opportunity to be considered for the award. There are four authorized

exceptions to the fair opportunity process: 1) urgency, 2) unique source, 3) logical follow-on, and 4) minimum

guarantee of a certain level of business. The metric is an indicator of the competition fostered in placing orders against

the GWACs.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: The target was met. The target was exceeded due to training conducted

on GWAC ordering procedures and continued management emphasis on limiting the use of exceptions to the fair

opportunity process. These actions resulted in increased competition reflected in an increased number of task orders

subject to fair opportunity.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

70% 70% 86% > 85% 96%

PERFORMANCE GOAL

Obtain best value solutions through competition.

MEASURE 

Percentage of task and delivery orders subject to the fair opportunity process (Regional IT Solutions).

P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 60

FTS
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 61

OGP

OGP exercises GSA’s authorities as one of the central

management agencies of the Federal government. OGP

provides governmentwide policies to improve the

management of acquisition, real and personal property,

travel and transportation, and administrative services.

OGP seeks to improve government services through the

effective use of technology, performance measures,

collaboration, regulations, and best practices. As a leader

and partner in numerous cross-agency initiatives, OGP

works to improve business processes. 

PERFORMANCE HIGHLIGHTS

The paragraphs below summarize FY 2004 OGP

performance results by program. 

ETRAVEL: OGP made significant progress in FY 2004 in

achieving its mission to deliver a unified, customercentric, travel management program for the Federal

government. The eTravel initiative awarded contracts that

launched the streamlining of the government travel

management process that will replace over 200 existing

disconnected travel systems with integrated end-to-end

outsourced travel services. The commercial capabilities

of eTS virtually eliminated agencies’ major capital investments and operations and maintenance costs in hardware

and software to support travel related business processes.

The Federal Travel Regulation (FTR) was modified to

provide agencies with policy guidance on migration to

eTS. OGP also established the eTravel Travel Management

Office (TMO) to launch change management governmentwide and assist Federal customers in their migration to

eTS. The TMO provided agencies with migration planning

tools and consulting services. These efforts established the

foundation for GSA as a “center of excellence” for shared

best practices in travel management. Service level agreements negotiated with eTS vendors in FY 2004 established

performance expectations for superior customer service

and successful eTS deployment.

FEDERAL EMPLOYEE IDENTITY (ID) CREDENTIALS: A

policy framework for Federal ID credentials was established under OGP’s leadership to greatly enhance trust

and uniformity. The first certified shared service providers

relying on the digital signature element were approved for

Federal buying in June. At least five agencies, DOD,

Department of Interior (DOI), DHS, the Veterans

Administration (VA), and the National Aeronautics 

and Space Administration (NASA), have committed to 

an aggregated buy of secure identity badges using these

policies and supporting guidance OGP issued. 

The "Government Smart Card Handbook" published by

GSA in March 2004 was recognized by the Smart Card

Alliance industry association as the most comprehensive

and complete reference on smart cards currently available.

The handbook aids government agencies deploying smart

card ID card systems in making good decisions by

providing practical project plans, technology considerations, lessons learned, and surveys from smart card

programs.

OFFICE OF GOVERNMENTWIDE POLICY
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 62

E-AUTHENTICATION: eAuthentication provides a governmentwide online identity verification architecture that

brings convenience, costs savings, and simplicity to the

authentication process by leveraging trust relationships

between the government and the American 

public. Cornerstones of eAuthentication are policy, 

technology, credentials, and agency applications. 

The Authentication Service Component is an open-standards-based, federated architecture that will provide the

government with a uniform method of validating the

identity of users of online government systems. During

FY 2004, the initiative has evolved a federated identity

management model that allows eGov customers to 

re-use existing government and commercially issued

credentials. As of June 30, 2004, eAuthentication is

operating at the level of limited production, a state

defined as the actual use of the architecture by at least

one agency application with a compatible credential

service. Two of the President’s initiatives, Grants.gov

(Health and Human Services (HHS)) and eTravel (GSA),

are currently implementing eAuthentication. 

REAL PROPERTY COUNCIL: GSA assisted with the

development of Executive Order 13327, Federal Real

Property Asset Management, issued by the President on

February 4, 2004. The EO established both a Senior Real

Property Officer within each Agency and the Federal Real

Property Council (FRPC) comprised of the Senior Real

Property Officers. The EO also delegated specific duties

and responsibilities to GSA to support the work of the FRPC

and improve the stewardship of Federal Real Property.

OGP established a Project Management Office to support

the FRPC and meet the needs of the initiative. Ongoing

work of the FRPC includes implementation of a governance

structure to facilitate process improvements for utilization

and disposal of real property and establishing universal

definitions, IT standards, and descriptive database for the

government real property system

FEDERAL ASSET SALES: OGP participated with PBS and FSS

in a study of the Federal property utilization, donation

(U&D) and sales program. The focus of the study is on

the consolidation of the sales function of government

property disposal, and is one of the PMA eGov initiatives.

The study resulted in 14 recommendations. In addition to

providing assistance in formulating project plans with

milestones and developing outcome measures for several

of the recommendations, OGP is moving forward on the

six recommendations for which it has the lead.

Implementation of the six recommendations will lead to

incremental improvements to the U&D process and

comprehensive improvements to the entire property

management process.

ACQUISITION: As of June 15, 2004, all functions of OGP’s

Office of Acquisition Policy transferred to the newly

created Office of Chief Acquisition Officer (OCAO). This

transfer consolidated all GSA acquisition responsibilities

into one office.

There have been notable improvements in the Federal

Acquisition Regulations (FAR) rulemaking timeframes

since the restructuring of the FAR committees and process

improvements initiated by the FAR signatories at GSA,

DOD, and NASA. During the first three quarters of 

FY 2004, 42 percent of all rules published were

completed within 40 weeks. There were no rules

published in the fourth quarter. The Acquisition Planning

Wizard, launched in April 2004, assists agency program

managers and acquisition workforce in implementing

acquisition plans. While not mandatory, nearly 1000

acquisition plans have been initiated in this tool.

The Services Acquisition Reform Act of 2003 (SARA) (Title

XIV, P.L. 108-136), authorizes the establishment of the

Acquisition Workforce Training Fund (AWTF) to ensure

that the Federal acquisition workforce adapts to the

changing roles of the Federal government in acquisition

of property and services. SARA emphasizes the need for

improved skills for the government’s acquisition

workforce, and the AWTF, managed by GSA’s Federal

Acquisition Institute, enables GSA to implement

improvements and increase support to governmentwide

acquisition training. SARA also establishes the

requirement for the creation of a OCAO in each Federal

agency.

OGP
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 63

OGP

OGP Performance By GSA-Wide Goal 

GSA-WIDE GOAL 1: PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS

PERFORMANCE GOAL RESULT

Develop and issue effective guidance and policies in support of the Goal Not Met

Federal eAuthentication initiative.

DESCRIPTION OF THE MEASURE: eAuthentication provides a governmentwide online identity verification architecture

that brings convenience, cost savings, and simplicity to the authentication process by leveraging trust relationships

between the government and the American public. Cornerstones of eAuthentication are policy, technology, credentials,

and agency applications. Priority customer targets for the eAuthentication Initiative include PMA’s 24 eGov initiatives.

This measure provides the number of PMA eGov initiatives that have implemented the eAuthentication credentialing

policy standards.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: The target was not met. Two of the PMA initiatives, Grants.gov (HHS)

and eTravel (GSA), are currently implementing eAuthentication. Grants.gov is currently using Access Certificates for

Electronic Services (ACES) credentials in a pilot and will migrate to the eAuthentication Federal architecture upon

completion of the pilot. eTravel will be leveraging 1.2 million existing Office of Personnel Management (OPM)

Employee Express credentials. 

Although eAuthentication has fallen short of the 2004 target of four PMA eGov initiatives, several more implementations

are either under development or in final discussion stages. The GSA Integrated Acquisition Environment (IAE) Initiative

is currently developing a pilot using ACES credentials. The eAuthentication Program Management Office is in

discussions with the OPM eTraining staff regarding the reuse of Employee Express credentials. Although not part of

the PMA initiatives, eOffer in GSA is an eGov application that went operational on May 17, 2004 using ACES certificates

with plans underway to use DOD External Certification Authority (ECA) and State of Illinois certificates.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

N/A N/A N/A 4 2

PERFORMANCE GOAL

Develop and issue effective guidance and policies in support of the Federal eAuthentication initiative. 

MEASURE 

Number of Agency applications meeting eAuthentication credentialing policy standards (out of a universe of 24).
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 64

OCSC

for customer service while saving the agencies the cost of

performing the services with their own resources.

GSA’S ENTERPRISE-WIDE CUSTOMER RELATIONSHIP MANAGEMENT (CRM) PROGRAM: GSA began its CRM program

approximately three years ago. The program started with

individual CRM implementations for the FTS followed by

FSS. These initial pilot implementations focused on

building consumer intelligence, managing customer

accounts, qualifying and pursuing large customer opportunities, and offering best value solutions using a COTS

solution from Siebel Systems.

ENTERPRISE-WIDE MARKETING: A complete redesign of the

GSA homepage, www.GSA.gov, began in the second

quarter of FY 2003. This effort included the complete

restructuring of the site and reorganizing roughly 5,000-

plus content items. The intent of the new Web site is to

better serve GSA business lines and the needs of GSA

customers. The redesigned site simplifies navigation so

that it is more intuitive and permits the cross-referencing

of offerings and information that span more than one

Service or Office. 

OFFICE OF C ITI ZEN SERVICES AND COMMUNICATIONS

OCSC was created to serve as the nation’s new front

door to the information and services of the Federal

government. Combining all of GSA’s citizen-centered

activities into a single office, the primary goal of OCSC is

to find new ways for citizens, businesses, other

governments, and the media to easily obtain information

and services from the government on the Web, via e-mail,

in print, by fax, and over the telephone. OCSC interacts

with the media, Federal agencies, the general public, and

with GSA internal audiences to provide information on

activities of GSA and its associates.

PERFORMANCE HIGHLIGHTS

The paragraphs below summarize FY 2004 OCSC major

performance results by program.

USA SERVICES: USA Services is the official multi-channel

front door to Federal information and services for citizens.

Its charter is to improve the delivery of information and

services while affecting significant government efficiencies

and budget savings. These benefits will be achieved by

creating a single point of contact for citizens where 

information resources from all Federal agencies may be

located and obtained.

USA Services is the result of the merger of two major

programs, each of which has been providing comprehensive access to Federal information and services within its

particular medium. The two programs are FirstGov.gov 

(for Web services) and the Federal Citizen Information

Center (FCIC), which operates several public facing Web

sites, the National Contact Center (NCC) at 1-800-FED-INFO

(for telephone and e-mail services), and a print information

distribution facility in Pueblo, CO (for publications).

By partnering with other government agencies, USA Services

is improving citizen customer services. It is also developing,

through collaborative efforts, governmentwide standards in

customer service, performance metrics, and best practices
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 65

OCSC

OCSC Performance By GSA-Wide Goal 

GSA-WIDE GOAL 1: PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS

PERFORMANCE GOAL RESULT

Leverage FirstGov technologies and solutions across the Goal Not Met

Federal Government.

Help the Federal Government become more citizen-centric by Goal Met

increasing the magnitude, quality, and outreach of Federal information 

via various channels.

DESCRIPTION OF THE MEASURE: The current FirstGov.gov Web infrastructure can handle multiple users of its search

engine and hosting solution. The current Web infrastructure also makes available certain software licensing agreements

owned by FirstGov.gov.

Marketing research conducted in 2003 on the cost of running search operations (software, hardware, and resources)

was used as a basis for projecting Tax Dollars saved for participants in the Web solutions. While some savings continue

to exist for GSA’s hosting customers, the greatest portion of savings has been tied to Federal Web sites using a

standardized, free access to the FirstGov search index. As the search market has evolved, several agencies have chosen

to purchase search engines to enable customization to their agency’s needs and have ceased using the FirstGov index,

thereby reducing the economies of scale reported. Recent surveys also indicate that there are other free alternatives

for search available from commercial sources, rendering the savings in tax dollars less relevant. As OCSC moves into

FY 2005, FirstGov will focus its resources on improving the relevancy of search results for citizens and adding features

to make the service more beneficial. FirstGov will continue to provide information to citizens that is relevant to their

needs, through site categorization or search, and will continue to make the search index available as an option for sites

that do not have a search function.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

N/A $9M $18M $30.6M $19.8M

PERFORMANCE GOAL

Leverage FirstGov technologies and solutions across the Federal government.

MEASURE 

Tax dollars saved as a result of agencies sharing FirstGov technologies.
Calculations for the hosting portion of the measure are based on vendor estimates for the normal cost of a hosting

arrangement. These were used to project the cost for small, medium, or large implementations. OCSC assumed the

need for redundant environments for Web servers, application servers, and database servers, similar to the FirstGov

environment. Each customer was categorized relative to the size of the implementation, and the typical cost calculated.

OCSC then compared the costs that OCSC is able to pass on to users to those estimates to calculate the savings. 

DISCUSSION OF FY 2004 TARGET VS. RESULTS: The target was not met. During the year, significant efforts were made

to update the quality of search results, improve capacity planning, and support internal infrastructure activities related

to search. OCSC was limited in its ability to add affiliates due to projects involving technical improvements and a

content management implementation. OCSC is communicating the search upgrade to Federal agencies and working

with many to add their sites to the free search service. However, the number of affiliates can be expected to fluctuate

as large agencies either enter or leave the program depending on their customization needs. OCSC’s focus will remain

on improving the quality of the search index, providing best practices suggestions to citizens and affiliates, and

measuring increased traffic and citizen satisfaction.

DESCRIPTION OF THE MEASURE: The FCIC of OCSC operates a variety of information channels to provide information

to the public in the method of their choice. The number of multi-channel contacts with the public consists of 1) page

view totals for FirstGov.gov and four other OCS Web sites, 2) the total toll free calls handled by the NCC, 3) e-mail

inquiries processed at NCC received from a variety of sources, 4) printed publications ordered from the distribution

facility in Pueblo, CO, and 5) the total of subscription e-mail letters distributed.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: The target was met. As noted, the FCIC operates a variety of information

channels to provide information to the public in the method of their choice. Each of these channels experiences growth

or contraction for a variety of reasons, many of which have to do with personal choices the public makes and are

difficult to project. 

The estimate for growth on the FirstGov.gov Web site was low while the estimate for the other four Web sites appears

to be very accurate. FirstGov.gov is a relatively new Web site and has received a lot of public promotion during the

last year, which has greatly contributed to its public usage. New information has been added, improvements have been

made to the usability of the site and additionally, a new Spanish language version was opened to the public last

October. New content sections have been added for seniors and parents. Significant improvements have been made

to the searching infrastructure to improve the quality of responses to citizen search queries. New functionality has been

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

40.8M 59.1M 209.7M 224.9M 241.9M

PERFORMANCE GOAL

Help the Federal government become more citizen-centric by increasing the magnitude, quality, and outreach of

Federal information via various channels.

MEASURE 

Total number of multi-channel contacts with the public (citizen, business, government) per year.

P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 66

OCSC
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 67

OCSC

added to the FirstGov.gov Web site, such as “Email a Web Page to a Friend.” There has also been a significant increase

in the number of Web sites linking to FirstGov.gov; the current total is 209,000. All of these improvements have

contributed to the continued strong growth of FirstGov.gov. 

The other Web sites are mature and have established audiences and less public visibility. Their usage rates have

climbed but at a much slower pace than the FirstGov.gov site. 

Toll-free telephone calls increased significantly above OCSC projection because of the reimbursable work that FCIC is

doing for the National Passport Information Center (NPIC). FCIC is providing a managed telecommunications solution

to the newly established NPIC and is providing enhanced Interactive Voice Response (IVR) support to all calls received

by the facility. This was the first job of this type that FCIC has implemented and OCSC’s original estimates (and

Passport’s) of activity were too low.

OCSC’s estimates of e-mail activity were somewhat optimistic. It anticipated higher usage rates by visitors to

FirstGov.gov and a more rapid development of partnerships with agencies so that OCSC might handle their misdirected

and/or basic e-mail. OCSC has met all of its goals in establishing partnerships with agencies, but so far, the volume of

e-mails resulting from these agreements has not grown as quickly as it had projected.

The distribution of printed publications is a mature FCIC channel and has been trending downward as the public turns

increasingly to the Internet as a supplier of choice. However, a sizeable number of citizens do not have Internet access

or prefer printed materials and continue to place orders for publications.
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 68

At the policy and program level, OCPO revised GSA’s 

associate performance management and awards policies to

more closely align with, and to reinforce the Agency’s

business goals and strategies. The new APPAS is a significant departure from the previous “pass/fail” system; it is

designed to make meaningful distinctions among levels of

performance based on organizational and individual objectives. Classroom training was provided to all managers and

supervisors. Other associates learned about the new system

through GSA On-Line University and through ongoing classroom instruction.

HUMAN RESOURCES SERVICES: Enhancing GSA’s success in

recruiting and hiring “the right person for the right job” was

a major initiative for FY 2004. The OCPO human resources

service community consistently strove to meet or improve

on its 45-day “Time to Fill” target, and worked with

selecting officials to fine-tune the questions used in GSAjobs

to identify the most promising applicants. GSA’s recruitment brand, “You Can Do That Here,” even won the muchOFFICE OF THE CHIEF PEOPLE OFFICER

OCPO

OCPO strives to develop and deliver human capital

programs, policies, and services that promote GSA’s

strategic management of human capital in order to enhance

GSA’s capability to achieve its mission, strategic goals, and

performance outcomes.

Utilizing the framework of GSA’s PMP, OCPO refined its

long-term outcome goal to link itself more closely with the

business of its customers. In FY 2004, OCPO reorganized

its Central Office to separate its human capital management

(strategy and policy) activities from human resources

services. The new Office of Human Capital Management

now brings dedicated resources to human capital strategic

planning, workforce analysis and forecasting, and policy

development. The Office of Human Resources Services

manages national and local service delivery to GSA organizations and associates.

PERFORMANCE HIGHLIGHTS

The paragraphs below summarize the FY 2004 major

performance results of OCPO by program.

HUMAN CAPITAL MANAGEMENT: At the strategic level, OCPO

worked closely with its eight largest internal customers and

within OCPO itself to develop organization-specific human

capital strategies. This “deep dive” into the human capital

needs of each organization focused on the capabilities

needed to achieve business goals, the maturity of those

capabilities in their existing workforces, and specific strategies to transform each workforce from one stage to another.

Strategies include assessing and enhancing the skills of

associates, hiring new talent, organizational realignment,

succession planning, and competitive sourcing. In support

of realignment and competitive sourcing initiatives, OCPO

continued to assist its customers in the utilization of workforce-shaping tools such as VSIP (Voluntary Separation

Incentive Payment) and VERA (Voluntary Early Retirement

Authority).
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 69

OCPO

coveted Bronze Telly Award, founded in 1980 to showcase

and recognize outstanding non-network commercials, film,

and video productions.

BUSINESS PROCESS IMPROVEMENTS: At the same time that

OCPO was looking outward towards its customers, it also

took an intense look inward at its own capabilities for

achieving future success. In addition to developing its own

human capital strategy, it began a multi-year effort to

examine, map, and re-engineer its own business processes,

with an eye towards greater efficiency and standardization.

This effort was linked to the “One GSA Enterprise

Architecture” initiative led by the GSA OCIO. It was also

linked to the PMA eGov initiative “HR Line of Business” led

by OPM and OMB. Business process re-engineering will

help position OCPO to continue its successful leadership of

GSA human capital management.

OCPO Performance By GSA-Wide Goal 

GSA-WIDE GOAL 5: MAINTAIN A WORLD-CLASS WORKFORCE AND WORLD-CLASS WORKPLACE

PERFORMANCE GOAL RESULT

Increase GSA associate engagement. Goal Not Met

DESCRIPTION OF THE MEASURE: The Gallup Q12 Survey of Associate Engagement is administered annually to all GSA

associates. The grand mean score measures overall engagement or productivity at each organizational level, and

discriminates top-performing workplaces from average and low-performing ones. A higher grand mean score is an

indicator of a higher-performing organization. Each of the Q12 items is actionable and tangible steps can be taken to

increase scores. This is one of the most important qualities of the Q12 program.

In previous years GSA’s goal was to rank in the 75th percentile of the organizations that Gallup surveys, because this

distinguishes an organization as “world-class.” However, because each year Gallup’s sample changes and the standard

to meet the 75th percentile changes, it is difficult for GSA to use the measure in a meaningful way. Therefore, beginning

in FY 2005, GSA will be measuring its progress against its past performance. GSA has included its grand mean score

this year for comparative purposes. 

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

N/A 67th percentile 75th percentile 75th percentile 69th percentile

N/A 3.76 3.83 3.88 3.89

PERFORMANCE GOAL

Increase GSA associate engagement.

MEASURE 

Percentile rank in the Gallup Q12 Survey, which measures the engagement of the workforce. (Grand mean score

also included)
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 70

DISCUSSION OF FY 2004 TARGET VS. RESULTS: The target was not met. GSA implemented the annual Q12 Survey of

Associate Engagement Agency-wide in FY 2002. Although GSA’s grand mean score increased by .06 over FY 2003, the

percentile ranking decreased by six percent due to factors GSA has no control over. Therefore, in FY 2005 GSA is

changing its measure to compare its current performance to its past performance. GSA’s new goal is to increase its

grand mean score .05 points per year. 

The Agency will continue to promote consistent and effective performance across GSA by employing the following

strategies:

Pursue a combined top-down and bottom-up strategy that will marry senior leadership commitment to drive

associate engagement within each team, with training and support throughout GSA at the work-group level.

Identify common issues and improvement opportunities across GSA for increased engagement and improved

performance through leveraging the efforts of individual work teams. 

Support frequent sharing of best practices by studying GSA’s best-scoring organizations.

Further investigate the link between improving Q12 scores and performance outcomes. 

Provide support to GSA’s Q12 trainers and ensure that all managers are trained. 

OCPO
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 71

OCFO

The OCFO is responsible for financial management within GSA.

The OCFO develops overall agency policies and procedures

for budget administration, planning and performance measurement,

financial reporting, and financial management systems. Some of the

most important policies include those for cash and credit

management. An overall summary of the accomplishments of

OCFO is presented in the OCFO’s letter.

OFFICE OF THE CHIEF FINANC IAL OFFICER

OCFO Performance By GSA-Wide Goal 

GSA-WIDE GOAL 4: ENSURE FINANCIAL ACCOUNTABILITY

PERFORMANCE GOAL RESULT

Increase the percentage of vendor invoices received electronically Goal Met

by Electronic Data Interchange through the Internet.

Increase the percentage of vendor payments by electronic media such Goal Met

as Electronic Funds Transfer and purchase card.
P ERFORMANCE S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 72

DESCRIPTION OF THE MEASURE: By placing clauses in GSA contracts and orders, OCFO is encouraging electronic

invoices via the Internet. GSA encourages vendors to use EDI because it improves productivity and increases efficiency.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: The target was met. At year-end 56 percent of GSA’s invoices were

received electronically. OCFO has continued to market Internet invoicing to vendors at conferences and GSA EXPO.

OCFO also informs vendors of this option when they call its offices. OCFO continues to encourage Contracting Officers

to make electronic invoicing a requirement in new contracts. 

DESCRIPTION OF THE MEASURE: Encourage use of EFT by emphasizing the use of purchase cards to procurement

officials when a purchase is less than $100,000.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: The target was met. During FY 2004 OCFO was able to exceed its target

of 85 percent. OCFO continues to work with vendors to sign them up for EFT payments. Initiative has been taken to

inform both the Service Office associates and vendors regarding the requirements for vendors to register in the CCR

(Central Contractor Registration). Upon receipt of a request to establish new vendor numbers, if the vendor’s banking

information is not included in the request, the OCFO returns it along with a letter of explanation of the CCR registration. 

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

79% 79% 88% 85% 92%

PERFORMANCE GOAL

Increase the percentage of vendor payments by electronic media such as Electronic Funds Transfer (EFT) and purchase card.

MEASURE 

Percent of vendor payments paid electronically.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

24% 38% 44% 50% 56%

PERFORMANCE GOAL

Increase the percentage of vendor invoices received electronically by Electronic Data Interchange (EDI) through the

Internet.

MEASURE 

Percent of vendor invoices received electronically.

OCFO
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OSBU

OFFICE FURNITURE FOR MULTIPLE FEDERAL AGENCIES: The FSS

National Furniture Center conducted an 8(a) ID/IQ

(Indefinite Delivery/Indefinite Quantity) set-aside for the

procurement of contemporary and traditional steel office

furniture. The award to three 8(a) contractors was 

originally made in November 2002. The estimated value of

these contracts is in excess of $20 million for a five-year

period. During FY 2004, there has been great success with

these three contractors as Federal agencies continue to

make purchases against these contracts. Many of the

National Furniture Center customers prefer to purchase

from a special order program ID/IQ contract because of the

ease of ordering by national stock number.

The OSBU is GSA's advocate for small, minority,veteran, HUBZone, and women business owners.

OSBU promotes increased access to GSA's nationwide

procurement opportunities by nurturing entrepreneurial

opportunities, outreach, and training.

OSBU supports small business activities throughout the

country with its Small Business Utilization Centers in 

11 regional offices. In addition there are Small Business

Technical Advisors in the FSS, the FTS and the PBS as well

as GSA Central Office.

PERFORMANCE HIGHLIGHTS

The paragraphs below provide examples of FY 2004 major

performance results for OSBU.

MODERNIZATION OF FEDERAL BUILDING IN PITTSBURGH, PA:

GSA Mid-Atlantic Region awarded a $53.8 million contract

to the small business firm, Burchick Construction Company

Inc of Pittsburgh, Pennsylvania. The firm will be responsible for the modernization of the William S. Moorhead

Federal Building in downtown Pittsburgh. Built in 1964, the

27-floor facility is home to 47 Federal agencies and more

than 2,500 occupants. The modernization includes an

overhaul of the HVAC (heating, ventilation/air conditioning)

system, upgrade of the electrical and fire alarm systems,

asbestos abatement, plumbing and handicapped accessibility improvements, and renovations to the offices

throughout the facility. Construction completion is scheduled for October 2008.

DEPARTMENT OF DEFENSE IT EQUIPMENT: NCS Technologies,

Inc. is a small disadvantaged business located in Sterling,

VA. As a GSA IT Schedule contractor, NCS Technologies

received an order from DOD in the amount of $4.9 million

for 5,843 personal computers. 

OFFICE OF SMALL BUSINESS UTILI ZATION
OSBU Performance By GSA-Wide Goal 

GSA-WIDE GOAL 6: CARRY OUT SOCIAL, ENVIRONMENTAL, AND OTHER RESPONSIBILITIES AS

A FEDERAL GOVERNMENT AGENCY

PERFORMANCE GOAL RESULT

Meet or exceed the goal of providing contracting opportunities TBD

to small businesses.

DESCRIPTION OF THE MEASURE: The OSBU serves as GSA's advocate for small, minority, veteran, HUBZone, and

women business owners. Its mission is to promote increased access to GSA's nationwide procurement opportunities.

The SBA provides specific targets for the key elements of the overall small business utilization goal, including Small

Disadvantaged Business, Section 8(a), Woman-owned Business, Service Disabled Veteran-owned Business, and

HUBZone. The annual target represents the consolidation of these targets. This measure reflects overall program

performance. It is the only measure counted in the determination of whether GSA meets the GSA-wide goal. All data

is preliminary for FY 2004 and subject to verification within GSA as well as by the SBA.

DISCUSSION OF FY 2004 TARGET VS. RESULTS: Overall GSA expects to achieve its target for FY 2004, based on

preliminary data. The OSBU has worked diligently to secure senior staff (Central Office and Regional) commitment to

achievement by promoting OSBU’s vision and providing updates on progress in meeting or exceeding the small

business goal. In addition, individual OSBU associates are assigned responsibility for the performance of each Service

in achieving the goals of the small business program. OSBU provides timely information on small business program

activities (policy and regulatory) to the Regions and Services. OSBU participates in numerous outreach activities that

make it possible for the small business community to meet key contracting experts and be counseled on the

procurement process. This includes procurement networking sessions, marketing strategies and techniques workshops,

procurement conferences, and training workshops for potential FSS contractors.

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL

40.1% 44.35% 45.72% 43% TBD1

1 Note that the FY 2004 results cannot become final until certified by the Small Business Administration (SBA) in approximately April 2005.

PERFORMANCE GOAL

Meet or exceed the goal of providing contracting opportunities to small businesses. 

MEASURE 

Percentage of contracting opportunities provided to small business. 

OSBU

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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 74
GSA Historic Highlights

1984 Introduced the

Federal government

to charge cards.

1972 Started the Federal Buildings Fund (FBF) as a

revolving fund to construct, maintain, operate,

and renovate Federal buildings. Revenues

deposited into the fund come from the rental

income paid to GSA by other Federal tenants.

1970 1980

Established the Automated Data and

Telecommunications Service. This operation

evolved into the Federal Technology Service.

1978 Centralized the Federal government’s

procurement policy in the Office of

Acquisition Policy.

1979 Transferred emergency management

functions to the Federal Emergency

Management Agency.

1985 Began to provide governmentwide policy

oversight and guidance for Federal real property

management as a result of an Executive Order

signed by President Reagan.

1973 Created the Office of Federal Management

Policy when GSA was asked to take a greater

policy-making role.

Financial Section
CFO MISSION STATEMENT

Provide world-class financial 

management services, professional 

guidance, and innovative solutions 

to our customers.
I

am pleased to present the General

Services Administration’s fiscal year 

(FY) 2004 financial statements. GSA

received its 17th consecutive unqualified

opinion on our FY 2004 financial statements,

which attests to the fact that our financial

statements are fairly presented and

demonstrates our integration of performance

and accountability. 

The financial auditors, PricewaterhouseCoopers LLP (PwC),

during the performance of the GSA FY 2003 Financial

Statements audit found material weaknesses related to

reconciliation issues occurring with the implementation of

our financial system. The auditors recommended instituting

and documenting effective reconciliation controls and

corrective action plans. In direct response to the findings,

GSA Office of the Chief Financial Officer (OCFO) created an

action plan to correct the material weaknesses related to

reconciliations of open items and fund balance with

Treasury to the general ledger. Management has

implemented a series of reconciliation controls to ensure

accounts are reconciled monthly and appropriate

supervisory review has occurred. Overall, the material

weakness action plans have been successfully executed by

all parties involved, and we have successfully eliminated /

reduced all material weaknesses as noted by PwC.

However, OCFO recognizes that there is more work to be

done with respect to management controls associated with

our financial statements.

During FY 2004, GSA received its first Certificate of

Excellence in Accountability Reporting (CEAR) award from

the Association of Government Accountants, confirming our

dedication to enhance performance and

better meet the needs of our customers.

PAR improvement initiatives undertaken by

the GSA OCFO and the GSA business lines

were contributing factors to this year’s

success. I am very proud of the OCFO

staff in meeting the accelerated reporting

dates while maintaining our reputation for

integrity and reliability in our accounting

information. 

During FY 2004, control reviews discovered violations of

the Anti-Deficiency Act, which are noted in the

Management Controls section of the MD&A. Ensuring that

violations do not occur in the year ahead is a top priority of

our agency. 

The GSA OCFO continues to provide full-service corporate

financial management for all GSA and more than 

40 external customers. OCFO directly supports the overall

GSA mission of helping Federal agencies better serve the

public by offering, at best value, superior workplaces,

expert solutions, acquisition services, and management

policies by providing transparent financial management

services so the three major business lines can focus on

delivery of their core goods and services. During FY 2004,

the OCFO associates took on additional management

challenges and changes to improve our performance and

accountability. On the next page, you will find highlights

of our performance improvement initiatives.

Kathleen M. Turco

Chief Financial Officer

November 15, 2004

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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 77

Letter from the Chief Financial Officer

Kathleen Turco
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 78

PERFORMANCE MANAGEMENT PROCESS

During FY 2004, OCFO fully implemented thePerformance Management Process (PMP) for GSA.

Through the PMP, OCFO analyzes customer and taxpayer

requirements, established performance goals based upon

those requirements, develop action plans, and then allocate

resources. This detailed financial, budgetary, and

performance data provides managers with a solid

foundation on which to base day-to-day management

decisions. The continual PMP cycle unites the GSA Strategic

Plan, the PMA, the Program Assessment Rating Tool (PART),

Business Line/Program Area Performance Goals and

Measures and other management tools. The PMP fully

supports the Government Performance and Results Act

(GPRA) and is ensuring that GSA is well positioned to

achieve a successful future.

PERFORMANCE MANAGEMENT TOOL (PMT) AND MEASURES

In the two years since the GSA PMT debuted, the organization has moved to the forefront of Federal organizations

seeking to connect a well-articulated strategy and precise

execution of daily activities and performance metrics. GSA

has been recognized by Intelligent Enterprise Magazine, the

International Institute for Business Technology, and others

for implementing one of the most comprehensive enterprise-wide performance measurement tools in the public

sector. In FY 2004, the upgraded PMT tool was unveiled

increasing enhancements and usability establishing an integrated framework for building operational performance

management solutions throughout GSA.

INTERNAL CONTROLS AND AUDIT FOLLOW-UP

In FY 2004, GSA changed the method by which it requests

Assurance Statements. In previous years, the process was

paper driven, with limited input from offices below the

Office of the Chief Financial Officer 

Accomplishments at a Glance

During FY 2004, the OCFO associates took on additional management challenges and

changes to improve their performance and accountability.
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 79

Head of Service and Staff Office’s (HSSO)/Regional

Administrator's office level. Also, previous years' Assurance

Statements contained only a brief statement on management controls, with little supporting documentation or

detail on the effectiveness of controls within the organization. For the FY 2004 process, GSA developed a new

Assurance Statement questionnaire based on OMB and

GAO management control standards. The questionnaire

contained specific questions on controls for the organizations and requested that details and narratives be provided.

Managers within each organization and region were asked

to complete their own Assurance Statement questionnaire

along with a management controls checklist (the checklist

was developed and utilized as a self-assessment tool to

ensure managers had supporting documentation for their

Assurance Statement). Responses were consolidated into

individual HSSO/RA Assurance Statements and sent to the

MCOC for analysis and review.

PROGRAM MANAGEMENT OFFICE

Following the PMA challenge of sound financial management, GSA responded by establishing an Agency-wide PMP

for executive leadership to collectively set budgetary 

priorities, develop performance measures associated with

those priorities, and carry out action plans required for

implementation. This has further galvanized GSA’s commitment to the PART, which has reinforced its efforts to link

budget to performance, set ambitious goals, and improve its

efficiency measures. By the end of FY 2005, 12 out of 

20 programs, or 84 percent of GSA’s program dollars, will

have gone through a rigorous analysis using the PART

methodology. Use of the PART tool forces GSA to continually

improve results and is a constant challenge to the status quo.

PEGASYS 5.1 UPGRADE

Pegasys became GSA's official accounting system of record

on October 1, 2002. Among many modern features that this

COTS solution provides GSA, the functionality of the new

USSGL addresses external reporting requirements and

assists in the consolidated Federal financial statements.

Pegasys was upgraded to version 5.1 in April 2004. 

The upgrade allowed GSA to advance to the software

version, which is compliant with the most recent Federal

legislative requirements and holds the most current JFMIP

certification. The upgrade also allows GSA to utilize

numerous enhancements that have been made to the

software, including automation in the area of external

reporting.

FISMA REVIEWS

The large number of complex information systems and the

speed with which information flows today presents great

challenges for developing and coordinating programs to

manage those vulnerabilities, while also disseminating the

appropriate information to those who need it. Successful

management requires strong information sharing, communication, and coordination capabilities. Keeping their focus

on assuring security for its customers against any potential

threats, the OCFO Central Office technical support staff has

received excellent reports for both the 2004 PwC penetration testing and the OCIO's “CFO-Q4 FY 2004 Internal

Scanning.” These FISMA reviews and plans of action and

milestones (POA&M) update processes have matured year

after year becoming more empirical based and focusing on

system and program performance measures. 

PAYROLL AND STATEMENT ON AUDITING STANDARDS (SAS) 70

GSA converted two additional payroll clients this year

bringing the number of payroll clients to 33. As OMB

continues to lead the Line-of-Business initiative and further

reduce the number of payroll service providers, GSA is

determining how best to compete in this arena. As a

service to its payroll customers and because their financial

statements must be reviewed and/or audited, GSA has

undertaken for the first time a controls audit in accordance

with Statement on Auditing Standards (SAS) #70, Service

Organizations. 

INTRAGOVERNMENTAL TRANSACTIONS

The inability of the government to properly account for the

processing and recording of intragovernmental transactions

impedes the achievement of receiving a clean opinion on

the Governmentwide Consolidated Financial Statements.
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 80

GSA has taken several steps to resolve this weakness. 

In FY 2004, GSA is participating in the Intragovernmental

Transaction Exchange (IGTE) project in an effort to 

standardize the exchange process for RENT data between

pilot agencies. Results of the pilot were shared and

discussed with the OMB. More recently, GSA has initiated

dialogue with its trading partners regarding the difference in

revenue, expenses, accounts payable, and accounts receivable. These efforts will improve the data contained in

Treasury’s Intragovernmental Reporting and Analysis

System (IRAS). These actions are the first steps in correcting

and resolving differences on intragovernmental transactions

reported by the various Federal agencies. 

FIVE-YEAR PLAN

The OCFO has made substantial progress during FY 2004

towards its four goals laid out in the five-year plan. With

the leadership provided by the OCFO the following objectives were met towards these goals. GSA has completed the

first full cycle of the PMP. GSA has received its 17th consecutive clean audit opinion. OCFO successfully implemented

a major upgrade to its core financial system. OCFO has

initiated a series of studies to assess its human capital

needs, to include a skills gap analysis, succession planning,

and mission critical occupations.
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November 15, 2004

MEMORANDUM FOR STEPHEN A. PERRY

ADMINISTRATOR (A)

KATHLEEN M. TURCO

CHIEF FINANCIAL OFFICER (B)

FROM: DANIEL R. LEVINSON

INSPECTOR GENERAL (J) 

SUBJECT: Audit of the General Services Administration’s Fiscal Years 2004 and 2003 Financial Statements

Buildings Fund, General Supply Fund, and the Information

Technology Fund). In its opinion, GSA’s financial statements presented fairly, in all material respects, the financial

position of GSA, and these funds, and their net cost of operations, changes in net position, budgetary resources, and

financing for the years ending September 30, 2004 and

2003.

However, in its consideration of GSA’s internal controls

over financial reporting, PwC identified six reportable

conditions concerning GSA’s need to (1) improve development, implementation, and change controls over GSA’s

financial applications, (2) strengthen the Federal Supply

Service’s application security controls, (3) improve controls

over transferring substantially complete construction in

process projects within the Public Buildings Service, (4)

improve contracting practices in the Federal Technology

Service’s (FTS) Office of Information Technology (IT)

Solutions, (5) develop and implement policies and procedures to reconcile intragovernmental activity and balances

with its non-fiduciary trading partners, and (6) improve

GSA’s budgetary reporting process. PwC also reported on

four violations of compliance with laws and regulations.

One violation concerned instances in which FTS officials

breached Government procurement laws and regulations.

The remaining three instances of noncompliance were

This memorandum transmits PricewaterhouseCoopers

LLP’s (PwC) report on its Fiscal Years 2004 and 2003

Financial Statement Audit of the General Services

Administration (GSA), and the Office of Inspector General’s

(OIG) report on internal controls over performance

measures.

Results of Independent Audit

The Chief Financial Officers (CFO) Act of 1990 (P.L. 101-

576) requires GSA’s Inspector General or an independent

external auditor, as determined by the Inspector General, to

audit the Agency’s financial statements. Under a contract

monitored by the OIG, PwC, an independent public

accounting firm, performed the Fiscal Years 2004 and 2003

Financial Statement Audit of GSA. The contract required

that the audits be performed in accordance with

Government Auditing Standards issued by the Comptroller

General of the United States, and the Office of Management

and Budget’s (OMB) Bulletin No. 01-02, “Audit

Requirements for Federal Financial Statements,” as

amended.

PwC issued unqualified opinions on GSA’s Fiscal Years 2004

and 2003 consolidated and combined financial statements

and the financial statements of individual funds (Federal

Independent Auditor’s Report
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Independent Auditor’s Report

violations of the Anti-Deficiency Act. These violations

included two instances in which the IT Fund was used for

non-IT purposes, and one instance in which a temporary

cash shortfall occurred in the Working Capital Fund. 

OIG Evaluation of PwC’s Audit Performance

The results of our testing indicated that the Office of the To

ensure the quality of the audit work performed, we

conducted a review of PwC’s Fiscal Years 2004 and 2003

Financial Statement Audit of GSA. Specifically, we:

Reviewed PwC’s approach and planning of the audit;

Evaluated the qualifications and independence of the

auditors;

Monitored the progress of the audit at key points;

Reviewed PwC’s audit report;

Examined audit documentation related to assessing

internal controls over GSA’s financial reporting process

and GSA’s Information Technology systems; and 

Performed other procedures we deemed necessary.

PwC is responsible for the attached auditor’s report dated

November 12, 2004 and the conclusions expressed therein.

We do not express an opinion on GSA’s financial statements

or internal controls or on whether GSA’s financial management systems substantially complied with the Federal

Financial Management Improvement Act (FFMIA); or

conclusions on compliance with laws and regulations.

Report on Internal Controls Over Performance

Measures

In accordance with OMB Bulletin No. 01-02, the OIG

performed the necessary audit procedures to obtain an

understanding of the design and operation of internal

controls over the reliability of data supporting the performance measures reported in the Management Discussion and

Analysis section of GSA’s Fiscal Year 2004 Annual

Performance and Accountability Report. Our review found

that these internal controls as designed by the Office of the

Chief Financial Officer (OCFO) are operating effectively.

Last year, we identified a reportable condition regarding

GSA’s need to fully implement a plan to review the

performance measure data for all Services and Staff Offices

on a rotational basis. This year we found that the OCFO

has taken significant steps to fully implement this plan.

These included reviewing the performance data for GSA’s

major Staff Offices, preparing a soon to be enacted GSA

Order identifying the policies, procedures, and responsibilities for the implementation of GSA’s performance measurement data verification and validation process, and hiring a

consultant to review the process used by the CFO to verify

and validate performance measures, and make recommendations for improvement. As a result of these actions, we

consider the reportable condition to be resolved.

The Office of Inspector General appreciates the courtesies

and cooperation extended to PwC and to our audit staff

during the audit and review. If you or your staff have any

questions, please contact me or Eugene L. Waszily, Assistant

Inspector General for Auditing.
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Independent Auditor’s Report
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Independent Auditor’s Report
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Independent Auditor’s Report
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Independent Auditor’s Report
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Independent Auditor’s Report
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Independent Auditor’s Report
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Independent Auditor’s Report
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Independent Auditor’s Report

This report presents the results of the Office of

Inspector General’s (OIG) review regarding the

design and operation of the system of internal

controls over performance measures reported in the

Management Discussion and Analysis section of the General

Services Administration’s (GSA) Fiscal Year 2004

Performance and Accountability Report. This report also

describes our audit responsibilities for conducting the

performance measure review. 

Scope and Methodology

Under a contract monitored by the OIG, Pricewaterhouse

Coopers LLP performed the audit of GSA’s Fiscal Year 2004

Financial Statements. However, the portion of the audit

related to internal controls over performance measures was

performed by the OIG. During our review, we assessed the

reasonableness of GSA’s controls concerning the existence

and completeness of data supporting individual

performance measures. To obtain an understanding of the

controls in place, we examined current GSA Government

Performance and Results Act reporting policy and met with

officials from the Office of the Chief Financial Officer

(OCFO) regarding compliance with the policy. We also

November 8, 2004

MEMORANDUM FOR STEPHEN A. PERRY

ADMINISTRATOR (A)

KATHLEEN M. TURCO

CHIEF FINANCIAL OFFICER (B)

FROM: DANIEL R. LEVINSON

INSPECTOR GENERAL (J) 

SUBJECT: Report on Internal Controls Over Performance Measures Report Number A040226/B/F/F05002

reviewed documentation provided by OCFO officials that

demonstrated that internal controls were in place and

operational. Our procedures were not designed to provide

assurance on internal controls over reported performance

measures. Therefore, we do not provide an opinion on such

controls.

We conducted this review in accordance with generally

accepted government auditing standards, as well as the

provisions set forth in the Office of Management and

Budget Bulletin No. 01-02, Audit Requirements for Federal

Financial Statements, related to performance measures.

Results of Audit

The internal controls designed by the OCFO over GSA’s

performance measure data reported in the Management

Discussion and Analysis Section of the Agency’s Fiscal Year

2004 Performance and Accountability Report are operating

effectively. While we had identified significant internal

control weaknesses in the past, the results of our testing

indicated that the OCFO has taken a number of steps to

ensure the adequacy of the internal controls over GSA’s

performance measure data. 
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In Fiscal Year 2003, we reported that the OCFO did not

fully implement an established process to ensure the

adequacy of the internal controls over performance measure

data. Specifically, we found that although the OCFO

reviewed the data supporting the performance measures for

the Federal Technology Service in Fiscal Year 2003 and the

data for the Federal Supply and Public Buildings Services in

Fiscal Years 2002 and 2001 respectively, they did not

perform such reviews for GSA’s major Staff Offices. We felt

that in not doing so, the OCFO was not making sufficient

progress in implementing their plan to address the adequacy

of the internal controls over the performance measure data.

We deemed this lack of progress to be an internal control

weakness, and determined it was of sufficient magnitude to

warrant a reportable condition. 

This year, however, we found that the OCFO reviewed the

performance measurement data for GSA’s major Staff

Offices. The OCFO’s review of the performance measure

data reported by the Staff Offices, coupled with the reviews

of the performance measure data reported by the Services

over the past three years, has resulted in the completion of

an initial review of GSA’s overall performance measure data,

and represents significant progress in the implementation of

internal controls over the data supporting the Agency’s

performance measures.

The OCFO has also performed two additional steps in an

effort to ensure the adequacy of the internal controls over

the Agency’s performance data. First, the OCFO has

prepared a draft GSA Order entitled, “Performance Measure

Data Verification and Validation Procedures.” Once signed

into effect, this Order will identify the policies, procedures,

and responsibilities for the establishment of GSA’s

performance measurement data verification and validation

process. The Order will formally require that the

performance measurement data for all Services and Staff

Offices be reviewed on a three year cycle. Second, the

OCFO has hired a consultant to review the process used to

verify and validate the data supporting GSA’s performance

measures, and to make recommendations as to how to

improve this process and implement these suggested

improvements throughout GSA.

The steps taken by the OCFO during Fiscal Year 2004 have

adequately addressed our concerns that significant

deficiencies exist in the design and operation of the internal

controls in place over GSA’s performance measure data.

Accordingly, we have determined that the internal controls

over the existence and completeness of the data supporting

GSA’s performance measures appear to be operating

effectively. Therefore, we consider the reportable condition

identified in Fiscal Year 2003 to be resolved. 
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 100

GENERAL SUPPLY FUND:

INFORMATION TECHNOLOGY FUND:

FEDERAL BUILDINGS FUND:

CONSOLIDATING STATEMENTS OF NET COST

For the Fiscal Years Ended September 30, 2004 and 2003

(Dollars in Millions)

Revenues: 

Building Operations - Government-Owned 

Building Operations - Leased

Expenses:

Building Operations - Government-Owned 

Building Operations - Leased

Net Revenues From (Cost of) Continuing Operations

Transferred Operations: (Note 15)

Revenues - Federal Protective Service

Expenses - Federal Protective Service

Net Revenues From (Cost of) Transferred Operations

Net Revenues From (Cost of) Operations

Revenues:

Global Supply Operations

Vehicle Acquisition and Leasing

Commercial Acquisition

Professional Services

Other Programs

Expenses: 

Global Supply Operations

Vehicle Acquisition and Leasing

Commercial Acquisition

Professional Services

Other Programs

Net Revenues From (Cost of) Operations

Revenues:

Network Services

IT Solutions

Expenses:

Network Services

IT Solutions

Net Revenues From (Cost of) Operations

2004 2003

$ 3,936 

4,354 

3,021 

4,225 

1,044 

- 

- 

- 

1,044 

1,110 

1,515 

556 

490

39 

1,080 

1,487 

473 

492

64 

114 

1,206 

7,195 

1,175 

7,209 

17 

$ 3,805 

4,067 

3,071 

3,985 

816 

83 

231 

(148)

668 

967 

1,517 

551 

21

29 

956 

1,476

427 

21

60

145 

1,098 

7,589 

1,102

7,598 

(13)

Principal Financial Statements
LESS: INTRA-GSA ELIMINATIONS (NOTE 1-B):

GSA CONSOLIDATED:

OTHER FUNDS:

Revenues:

Working Capital Fund

GSA OE and OGP Funds

Other Funds

Expenses:

Working Capital Fund

GSA OE and OGP Funds

Other Funds (Note 17)

Net Revenues From (Cost of) Operations

Revenues

Expenses

Revenues

Expenses

Net Revenues From (Cost of) Operations

2004 2003

329 

24 

6 

340 

167 

77 

(225)

541 

568 

20,219

19,242

$ 977 

323 

27 

3 

329 

152 

752 

(880)

528 

555 

19,552 

19,605 

$ (53)

The accompanying notes are an integral part of these statements.

F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 101

Continued from previous page
Principal Financial Statements

LIABILITIES AND NET POSITION

NET POSITION (NOTE 14):

ASSETS 

Intragovernmental Assets:

Funds with U.S. Treasury (Note 1-D,2)

Accounts Receivable - Federal, Net (Note 4)

Prepaid Expenses and Advances - Federal

Total Intragovernmental

Inventories (Note 1-E)

Accounts Receivable - Public, Net (Note 4)

Prepaid Expenses and Advances - Public

Other Assets

Property and Equipment (Notes 1-F,5):

Buildings

Leasehold Improvements

Telecommunications and ADP Equipment

Motor Vehicles

Other Equipment

Less: Accumulated Depreciation and Amortization

Subtotal

Land

Construction in Process and Software in Development

Total Property and Equipment

Total Assets

Intragovernmental Liabilities:

Accounts Payable and Accrued Expenses - Federal

Deferred Revenue and Advances - Federal

Intragovernmental Debt (Note 6)

Workers' Compensation Actuarial Liability (Note 7)

Other Intragovernmental Liabilities (Note 9)

Total Intragovernmental

Accounts Payable and Accrued Expenses - Public

Deferred Revenue and Advances - Public

Environmental and Disposals Liabilities (Notes 5,10)

Obligations Under Capital Leases (Note 8)

Annual Leave Liability (Note 1-G)

Deposit Fund Liability

Earnings Payable to U.S. Treasury

Other Liabilities (Note 9)

Total Liabilities

Cumulative Results of Operations

Unexpended Appropriations

Total Net Position

Total Liabilities and Net Position

FEDERAL 

BUILDINGS FUND 

GENERAL 

SUPPLY FUND

2004 2003 2004 2003

$ 4,854 

270 

- 

5,124 

3 

6 

- 

19 

21,712 

307 

- 

- 

64 

(10,371)

11,712 

1,178 

1,643 

14,533 

$ 19,685 

$ 79 

33 

2,231 

111 

226 

2,680 

813 

13 

80 

277 

37 

- 

- 

149 

4,049 

15,599 

37 

15,636 

$ 19,685

$ 423 

376 

2 

801 

227 

68 

2 

6 

- 

9 

- 

3,782 

140 

(1,266)

2,665 

- 

4 

2,669 

$ 3,773 

$ 21 

72 

- 

30 

6 

129 

267 

- 

- 

- 

18 

- 

84 

- 

498 

3,275 

- 

3,275 

$ 3,773

$ 458 

300 

1 

759 

229 

80 

6 

8 

- 

6 

- 

3,674 

121 

(1,215)

2,586 

- 

2 

2,588 

$ 3,670 

$ 31 

47 

- 

33 

6 

117 

160 

- 

- 

- 

17 

- 

- 

6 

300 

3,370 

- 

3,370 

$ 3,670 

$ 5,355 

259 

2 

5,616 

3 

12 

- 

15 

23,700 

333 

- 

- 

59 

(11,302)

12,790 

1,277 

1,077 

15,144 

$ 20,790 

$ 77 

24 

2,210 

113 

249 

2,673 

801 

26 

103 

306

39 

- 

- 

126 

4,074 

16,686 

30 

16,716 

$ 20,790

F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 102

The accompanying notes are an integral part of these statements.

CONSOLIDATING BALANCE SHEETS

As of September 30, 2004 and 2003

(Dollars in Millions)
INFORMATION

TECHNOLOGY FUND OTHER FUNDS

GSA CONSOLIDATED

TOTALS

2004 2003

LESS: INTRA-GSA

ELIMINATIONS

2004 2003 2004 2003 2004 2003

$ 288 

1,260 

- 

1,548 

- 

10 

- 

9 

- 

- 

168 

- 

93 

(220)

41 

- 

63 

104 

$ 1,671 

$ 44 

78 

- 

9 

2 

133 

1,233 

- 

- 

- 

12 

- 

- 

- 

1,378 

293 

- 

293 

$ 1,671 

$ 315 

1,495 

- 

1,810 

- 

6 

- 

10 

- 

- 

169 

- 

91 

(205)

55 

- 

30 

85 

$ 1,911 

$ 38 

176 

- 

11 

2 

227 

1,409 

- 

- 

- 

12 

- 

- 

1 

1,649 

262 

- 

262 

$ 1,911

$ 494 

2 

9 

505 

- 

22 

- 

2 

- 

- 

- 

- 

74 

(25)

49 

- 

- 

49 

$ 578 

$ 12 

40 

- 

15 

54 

121 

32 

- 

35 

- 

19 

29

45 

8 

289 

179 

110 

289 

$ 578

$ 472 

3 

17 

492 

- 

19 

- 

3 

- 

- 

- 

- 

64 

(15)

49 

- 

- 

$ 49 

$ 563

$ 10 

37 

- 

19 

46 

112 

25 

- 

45 

- 

18 

51 

37 

8 

296 

159 

108 

267 

$ 563

$ - 

19 

2 

21 

- 

- 

- 

29 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ 50 

$ 19 

31 

- 

- 

- 

50 

- 

- 

- 

- 

- 

- 

- 

- 

50 

- 

- 

- 

$ 50

$ - 

16 

- 

16 

- 

- 

- 

35 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ 51 

$ 16 

35 

- 

- 

- 

51 

- 

- 

- 

- 

- 

- 

- 

- 

51

- 

- 

-

$ 51

$ 6,560 

1,878 

11 

8,449 

230 

112 

2 

3 

23,700 

342 

168 

3,782 

366 

(12,813)

15,545 

1,277 

1,144 

17,966 

$26,762 

$ 135 

183 

2,210 

167 

311 

3,006 

2,333 

26 

138 

306 

88 

29 

129 

134 

6,189 

20,433 

140 

20,573 

$26,762 

$ 6,099 

2,052 

18 

8,169 

232 

111 

6 

5 

21,712 

313 

169 

3,674 

340 

(11,806)

14,402 

1,178 

1,675 

17,255 

$ 25,778 

$ 142 

258 

2,231 

174 

280 

3,085 

2,407 

13 

125 

277 

84 

51 

37 

164 

6,243 

19,390 

145 

19,535 

$ 25,778 

F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 103
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 104

RESULTS OF OPERATIONS:

CHANGES IN UNEXPENDED APPROPRIATIONS:

ENDING BALANCE OF NET POSITION:

BEGINNING BALANCE OF NET POSITION:

CONSOLIDATING STATEMENTS OF CHANGES IN NET POSITION

For the Fiscal Years Ended September 30, 2004 and 2003

(Dollars in Millions)

Cumulative Results of Operations 

Unexpended Appropriations

Net Position Beginning Balance

Net Revenue From (Cost of) Operations

Appropriations Used (Note 1-C)

Non-Exchange Revenue (Notes 1-C, 1-G)

Imputed Financing Provided By Others

Transfer of Earnings Paid and Payable to U.S. Treasury

Transfers of Net Assets and Liabilities

(To) From Other Federal Agencies

Receipts Paid and Reclassified as Payable From

(To) the Land and Water Conservation Fund

Other

Net Results of Operations

Appropriations Received

Appropriations Used

Appropriations Adjustments and Transfers From Other 

Agencies or Funds

Other

Net Change in Unexpended Appropriations

Cumulative Results of Operations

Unexpended Appropriations

Net Position Ending Balance

FEDERAL 

BUILDINGS FUND 

GENERAL 

SUPPLY FUND

$ 14,820 

45 

14,865 

668 

381 

- 

53 

- 

(323)

- 

- 

779 

373 

(381)

- 

- 

(8)

15,599 

37 

$ 15,636

$ 3,370 

- 

3,370 

114 

- 

- 

27 

(246)

10 

- 

- 

(95)

- 

- 

- 

- 

- 

3,275 

- 

$ 3,275 

$ 3,193 

- 

3,193 

145 

- 

- 

24 

- 

9 

- 

(1)

177 

- 

- 

- 

- 

- 

3,370 

- 

$ 3,370 

$15,599 

37 

15,636 

1,044 

463 

- 

53 

- 

(473)

- 

- 

1,087 

460 

(463)

(4)

- 

(7)

16,686

30 

$16,716

2004 2003 2004 2003

The accompanying notes are an integral part of these statements.

Principal Financial Statements
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 105

INFORMATION

TECHNOLOGY FUND OTHER FUNDS

GSA CONSOLIDATED

TOTALS

2004 2003

LESS: INTRA-GSA

ELIMINATIONS

2004 2003 2004 2003 2004 2003

$ 262 

- 

262 

17

- 

- 

14 

- 

- 

- 

-

31

- 

- 

- 

- 

- 

293 

- 

$ 293 

$ 263 

- 

263 

(13)

- 

- 

13 

- 

- 

- 

(1)

(1)

- 

- 

- 

- 

- 

262 

- 

$ 262 

$ 159 

108 

267 

(225)

194 

42 

26 

(19) 

5 

(2)

(1)

20

203 

(194)

(7)

- 

2 

179 

110 

$ 289

$ 131 

97 

228 

(880)

839 

21 

46 

(5)

5 

3 

(1)

28 

872 

(839)

(23)

1 

11 

159 

108 

$ 267 

$ - 

- 

- 

(27)

- 

- 

27 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ - 

$ - 

- 

- 

(27)

- 

- 

27 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ - 

$19,390 

145 

19,535 

977 

657 

42 

93 

(265)

(458)

(2)

(1)

1,043 

663 

(657)

(11)

- 

(5)

20,433 

140 

$20,573 

$ 18,407 

142 

18,549 

(53)

1,220 

21 

109 

(5)

(309)

3 

(3)

983 

1,245 

(1,220)

(23)

1 

3 

19,390 

145 

$ 19,535 
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 106

STATUS OF BUDGETARY RESOURCES:

RELATIONSHIP OF OBLIGATIONS TO OUTLAYS:

COMPONENTS OF OUTLAYS:

BUDGETARY RESOURCES:

COMBINING STATEMENTS OF BUDGETARY RESOURCES

For the Fiscal Years Ended September 30, 2004 and 2003

(Dollars in Millions)

Budget Authority

Unobligated Balance, Net - Beginning Balance

Spending Authority:

Earned Revenue

Change in Unfilled Customer Orders

Prior Year Recoveries

Resources Temporarily Not Available

Capital Transfers

Total Budgetary Resources

Obligations Incurred

Unobligated Balance - Available

Unobligated Balance - Not Available

Total Status of Budgetary Resources

Obligations Incurred

Less: Spending Authority from Offsetting Collections and Recoveries

Obligated Balance, Net - Beginning Balance

Less: Obligated Balance - Ending:

Accounts Receivable

Unfilled Customer Orders

Undelivered Orders

Accounts Payable

Outlays

Disbursements

Collections

Less: Offsetting Receipts

Net Outlays

FEDERAL 

BUILDINGS FUND 

2004 2003

$ 110 

3,812 

7,985 

(52)

139 

(481)

(82)

11,431

7,990 

2,725 

716 

11,431 

7,990 

(8,072)

869 

239 

1,706 

(2,177)

(902)

(347)

7,657 

(8,004)

- 

$ (347)

$ 9

3,922 

8,293 

(67)

175 

(647)

(57)

11,628

7,982 

3,558 

88 

11,628 

7,982 

(8,401)

1,134 

230 

1,649 

(2,207)

(888)

(501)

7,791 

(8,292)

- 

$ (501)

The accompanying notes are an integral part of these statements.

Principal Financial Statements
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 107

GENERAL 

SUPPLY FUND

INFORMATION

TECHNOLOGY FUND OTHER FUNDS

GSA COMBINED

TOTALS

$ -

535 

4,566 

436 

78 

- 

(162)

5,453

4,859 

594 

- 

5,453 

4,859 

(5,080)

(77)

385 

1,074 

(989)

(299)

(127)

4,436 

(4,563)

- 

$ (127)

$ - 

535 

3,972 

445 

29 

- 

- 

4,981 

4,446 

535 

- 

4,981 

4,446 

(4,446)

(106)

366 

655 

(737)

(207)

(29)

3,899 

(3,928)

- 

$ (29)

$ -

2,180 

8,476 

(472)

748 

- 

- 

10,932

8,601 

2,331 

- 

10,932 

8,601 

(8,752)

(1,865)

1,226 

5,704 

(3,645)

(1,242)

27 

8,635 

(8,608)

- 

$ 27 

$ - 

796 

8,726 

1,121 

1,249 

- 

- 

11,892 

9,712 

2,180 

- 

11,892 

9,712 

(11,096)

(571)

1,456 

6,078 

(4,244)

(1,424)

(89)

8,428 

(8,517)

- 

$ (89)

$ 230

108 

361 

2 

22 

- 

(4)

719

605 

69 

45 

719 

605 

(385)

153 

3 

3 

(133)

(44)

202 

566 

(364)

(16)

$ 186

$ 899 

94 

360 

(7)

25 

- 

(12)

1,359 

1,251 

73 

35 

1,359 

1,251 

(378)

135 

5 

3 

(126)

(35)

855 

1,206 

(351)

(2)

$ 853 

2004 2003 2004 2003 2004 2003 2004 2003

$ 239

6,745 

21,696 

(101)

1,023 

(647)

(223)

28,732

22,047 

6,552 

133 

28,732 

22,047 

(22,618)

(655)

1,844 

8,430 

(6,974)

(2,473)

(399)

21,428 

(21,827)

(16)

$ (415)

$ 1,009 

5,237 

21,043 

1,507 

1,442 

(481)

(94)

29,663 

23,399 

5,513 

751 

29,663 

23,399 

(23,992)

327 

2,066 

8,442 

(7,284)

(2,568)

390 

21,190 

(20,800)

(2)

$ 388 
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 108

RESOURCES USED THAT ARE NOT PART OF THE NET COST OF OPERATIONS:

COSTS FINANCED BY RESOURCES RECEIVED IN PRIOR PERIODS:

COSTS REQUIRING RESOURCES IN FUTURE PERIODS:

RESOURCES USED TO FINANCE ACTIVITIES:

CONSOLIDATING STATEMENTS OF FINANCING

For the Fiscal Years Ended September 30, 2004 and 2003

(Dollars in Millions)

Obligations Incurred

Less: Spending Authority From Offsetting Collections

and Adjustments

Financing Imputed for Cost Subsidies

Other

Total Resources Used to Finance Activities

(Increase)/Decrease in Goods and Services Ordered But

Not Yet Received

Increase/(Decrease) in Unfilled Customer Orders

Costs Capitalized on the Balance Sheet

Financing Sources Funding Prior Year Costs

Other

Total Resources Used That Are Not Part of 

the Net Cost of Operations

Depreciation and Amortization

Net Book Value of Property Sold

Other

Total Costs Financed by Resources Received

in Prior Periods

Unfunded Capitalized Costs

Unfunded Current Expenses

Total Costs Requiring Resources in Future Periods

Net (Income From) Cost of Operations

FEDERAL 

BUILDINGS FUND 

GENERAL 

SUPPLY FUND

2004 2003 2004 2003

$ 7,990 

(8,072)

53 

428 

399 

(19)

(52)

(1,503)

(39)

(488)

(2,101)

1,063 

- 

(29)

1,034 

2 

(2)

- 

$ (668)

$ 4,859 

(5,080)

27 

(64)

(258)

(252)

436 

(719)

- 

32 

(503)

371 

278 

- 

649 

- 

(2)

(2)

$ (114)

$ 4,446

(4,446)

24 

(9)

15

(504)

445 

(689)

- 

(39)

(787)

363 

262 

- 

625 

- 

2 

2 

$ (145)

$ 7,982 

(8,401)

53 

465 

99 

(30)

(67)

(1,500)

(35)

(470)

(2,102)

968 

- 

(2)

966 

(5)

(2)

(7)

$(1,044)

The accompanying notes are an integral part of these statements.

Principal Financial Statements
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 109

INFORMATION

TECHNOLOGY FUND OTHER FUNDS

GSA CONSOLIDATED

TOTALS

2004 2003

LESS: INTRA-GSA

ELIMINATIONS

2004 2003 2004 2003 2004 2003

$ 8,601 

(8,752)

14 

9 

(128)

599 

(472)

(37)

- 

2 

92 

17 

- 

- 

17 

- 

2 

2 

$ (17)

$ 9,712 

(11,096)

13 

(9)

(1,380)

275

1,121 

(25)

- 

3 

1,374 

24 

- 

(5)

19 

- 

-

- 

$ 13 

$ 605 

(385)

26 

(7)

239 

(7)

2 

(11)

- 

5 

(11)

11 

- 

- 

11 

- 

(14)

(14)

$ 225 

$ 1,251 

(378)

46 

(4)

915 

(16)

(7)

(6)

- 

(5)

(34)

10 

- 

- 

10 

- 

(11)

(11)

$ 880 

$ - 

- 

27 

- 

27 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ 27 

$ - 

- 

27 

- 

27 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ 27 

$22,047 

(22,618)

93 

403 

(75)

310 

(101)

(2,267)

(35)

(431)

(2,524)

1,367 

278 

(2) 

1,643 

(5)

(16)

(21)

$ (977)

$ 23,399 

(23,992)

109 

406 

(78)

(264)

1,507 

(2,223)

(39)

(529)

(1,548)

1,460 

262 

(34)

1,688 

2 

(11)

(9)

$ 53 
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 110

Notes to the Financial Statements

For the Fiscal Years Ended 

September 30, 2004 and 2003

Organization

The U.S. General Services Administration (GSA) was

created by the U.S. Federal Property and

Administrative Services Act of 1949, as amended.

The U.S. Congress enacted this legislation to provide for the

Federal government an economic and efficient system for

the procurement and operation of buildings, procurement

and distribution of general supplies, acquisition and

management of a motor vehicle fleet, management of automated data processing resources, and management of

telecommunications programs. 

The Administrator of GSA, appointed by the President of

the United States with the advice and consent of the 

U.S. Senate, oversees the operations of GSA. GSA carries

out its responsibilities through the operation of several

appropriated and revolving funds.

SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

For its principal financial statements, GSA uses consolidating and combining formats to display its three largest

revolving funds: the Federal Buildings Fund (FBF), General

Supply Fund (GSF), and Information Technology Fund

(ITF). All other funds have been combined under Other

Funds.

The accompanying financial statements of GSA include the

accounts of all funds under GSA control, which have been

established and maintained to account for resources under

the control of GSA management. The entities included in

the Other Funds category are described below, together

with a discussion of the different fund types.

1

REVOLVING FUNDS are accounts established by law to

finance a continuing cycle of operations with receipts

derived from such operations usually available in their

entirety for use by the fund without further action by the

U.S. Congress. The revolving funds in the Other Funds

category consist of the following:

Federal Consumer Information Center Fund

Working Capital Fund 

GENERAL FUNDS are accounts used to record financial transactions arising under congressional appropriations or other

authorizations to spend general revenues. GSA manages 

10 General Fund accounts of which four are funded by

current year appropriations, three by no-year appropriations, and three cannot incur new obligations. The general

funds included in the Other Funds category are as follows:

Allowances and Office Staff for Former Presidents

Electronic Government Fund

Excess and Surplus Real and Related Personal Property

Holding Account

Expenses, Presidential Transition

Election Reform Payments

Election Reform Reimbursements

Office of Inspector General

Operating Expenses, General Services Administration

Policy and Citizen Services Fund

Real Property Relocation

SPECIAL FUNDS are accounts established for receipts

earmarked by law for a specific purpose, but are not generated by a cycle of operations for which there is continuing

authority to reuse such receipts. GSA uses Special Fund

receipts to pay certain costs associated with the disposal of

surplus real property and for funding of the Transportation

Audits Program. GSA's special funds consist of the following:
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 111

Expenses, Disposal of Real and Related Personal 

Property

Expenses, Transportation Audits

Expenses, Acquisition Workforce Training Fund

Operating Expenses, Disposal of Real and Related

Personal Property

Other Receipts, Surplus Real and Related Personal

Property

Receipts of Rent, Leases and Lease Payments for

Government Owned Real Property

Receipts, Transportation Audits

Receipts, Acquisition Workforce Training Fund

Transfer of Surplus Real and Related Personal Property

MISCELLANEOUS RECEIPT AND DEPOSIT FUND accounts are

considered non-entity funds since GSA management does

not exercise control over how the monies in these

accounts can be used. Miscellaneous Receipt Fund

accounts hold receipts and accounts receivable resulting

from miscellaneous activities of GSA where, by law, such

monies may not be deposited into funds under GSA

management control. The U.S. Department of the

Treasury automatically transfers all cash balances in these

receipt accounts to general funds of the Treasury at the

end of each fiscal year. Deposit Fund accounts hold

monies outside the budget. Accordingly, their transactions do not affect budget surplus or deficit. These

accounts include (1) deposits received for which GSA is

acting as an agent or custodian, (2) unidentified remittances, (3) monies withheld from payments for goods and

services received, and (4) monies whose distribution

awaits a legal determination or investigation. The receipt

and deposit funds in the Other Funds category consist of

the following:

Budget Clearing Account

Credits for Withholding and Contributions, Civil Service

Retirement and Disability Fund

Employees' Payroll Allotment Account, U.S. Savings

Bonds

Fines, Penalties, and Forfeitures, Not Otherwise

Classified

Forfeitures of Unclaimed Money and Property Classified

General Fund Proprietary Interest, Not Otherwise

Classified

General Fund Proprietary Receipts, Not Otherwise

Classified, All Other 

Proceeds from Sale of Surplus Property

Reserve for Purchase Contract Projects

Suspense

Suspense, Transportation Audits

Unconditional Gifts of Real, Personal or Other Property

Withheld State and Local Taxes

B. Basis of Accounting

The principal financial statements are prepared in accordance with generally accepted accounting principles

(GAAP) as promulgated by the Federal Accounting

Standards Advisory Board (FASAB), and OMB Bulletin

No. 01-09, "Form and Content of Agency Financial

Statements." The American Institute of Certified Public

Accountant’s (AICPA) Statements on Auditing Standards

No. 91, Federal GAAP Hierarchy, established a hierarchy

of GAAP for Federal financial statements. GSA's financial

statements are prepared in accordance with formats

prescribed in OMB Bulletin No. 01-09. These formats are

considerably different from business-type formats. 

The Statements of Net Cost present the operating results

of GSA by major programs and responsibilities. 

The Balance Sheets present the financial position of GSA

using a format clearly segregating intragovernmental

balances. The Statements of Changes in Net Position

display the changes in equity accounts. The Statements

of Budgetary Resources present the sources, status, and

uses of GSA's budgetary resources. Last, the Statements

of Financing bridge the gap between the uses of 

budgetary resources with the operating results reported

on the Statements of Net Cost.

GSA did not perform all reconciliations with trading

partners required by OMB Bulletin No. 01-09, which

requires agencies to reconcile intragovernmental income,

expense, assets, and liabilities, with all of its trading

partners. GSA limited its reconciliations to fiduciary transactions activity.
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 112

Certain prior year balances have been reclassified to

conform with the current year's presentation.

On the Statements of Net Cost, Balance Sheets, Statements

of Changes in Net Position, and Statements of Financing, all

significant intra-agency balances and transactions have been

eliminated in consolidation. No such eliminations have

been made on the Combining Statements of Budgetary

Resources. Certain amounts of expenses eliminated on the

Statements of Net Cost are imputed costs for which the

matching resource is not revenue on this statement, but

rather imputed resources provided by others, displayed on

the Statements of Changes in Net Position. Accordingly, on

the Statements of Net Cost the revenue and expense eliminations do not match. The Statement of Changes in Net

Position displays the offsetting balances between these categories. 

The preparation of financial statements requires management to make estimates and assumptions that affect the

reported amounts of assets and liabilities and disclosure of

contingent assets and liabilities at the date of the financial

statements and the reported amounts of revenues and

expenses during the reporting period. Actual results may

differ from those estimates.

C. Revenue Recognition and Appropriations Used

Substantially all revenues reported by GSA’s funds on the

Statements of Net Cost are generated from intragovernmental sales of goods and services. Expenses are primarily incurred with non-Federal entities supplying the

underlying goods and services being provided to GSA’s

Federal customers. Each fund has established rate-setting

processes governed by the laws authorizing its activities.

In most cases, the rates charged are intended to cover the

full cost that the funds will pay to provide such goods and

services and to provide capital maintenance. In accordance with the governing laws, rates are generally not

designed to recover costs covered by other funds or

entities of the U.S. government, such as for post-employment and other inter-entity costs. Revenues from nonFederal entities make up an immaterial portion of GSA’s

total sales. Accordingly, where not otherwise governed by

law, unique rates for non-Federal customers have generally not been established. 

Generally, Revolving Fund and reimbursable General Fund

revenue is recognized when goods have been delivered or

services rendered. In the FBF, rent revenues are earned

based on occupancy agreements with customers, as space

and services are provided. Revenue under nonrecurring

reimbursable building repair and alteration (R&A) projects

is recognized under the percentage-of-completion method. 

In the GSF, Global Supply revenues are recognized as

goods are provided to customers. Vehicle Acquisition and

Leasing revenues are recognized when goods are provided

and based on rental agreements over the period vehicles

are dispatched. Commercial Acquisitions revenues are

recognized when goods are provided, and fee revenues in

the GSA Schedules programs are earned based on estimated

and actual usage of GSA's contracting vehicles by other

agencies. The Schedules programs generated $255 million

in fees, constituting 6.9 percent of GSF revenues.

Professional Services revenues are recognized when goods

and services are provided. In the ITF, telecommunications

service revenues are generally recognized based on

customer usage or on fixed line rates. IT Solutions

revenues are earned when goods or services are provided

or as reimbursable project costs are incurred. In the

Working Capital Fund (WCF), revenues are generally recognized as general management and administrative services

are provided to the Service components of GSA and to

external customers. Such WCF revenues are earned in

accordance with agreements that recover the direct cost and

an allocation of indirect costs from the components of GSA

receiving those services.

Non-Exchange revenues are recognized on an accrual

basis on the Statements of Changes in Net Position for

sales of surplus real property, reimbursements due from

the audit of payments to transportation carriers, and other

miscellaneous items resulting from GSA’s operations

where ultimate collections must be deposited in miscellaneous receipt accounts of the Treasury. Non-Exchange

revenues are reported net of associated bad debt expense

on uncollectable accounts.

Notes to the Financial Statements
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 113

Appropriations for General Fund and Special Fund 

activities are recorded as a financing source on the

Consolidating Statements of Changes in Net Position when

expended. Unexpended appropriations are reported as an

element of Net Position on the Balance Sheets.

D. Fund Balance with U.S. Treasury 

This total represents all unexpended balances for GSA's

accounts with the U.S. Treasury. Amounts in Funds with

U.S. Treasury are based on the balances reported on the

books of the U.S. Treasury, as the official record of the

Federal government. Adjustments are only made to those

amounts when significant errors are identified. See Note

2 for further details regarding such adjustments. 

GSA acts as a disposal agent for surplus Federal real and

personal property. In some cases, public law entitles the

owning agency to the sales proceeds, net of disposal

expenses incurred by GSA. Proceeds from the disposal of

equipment are generally retained by GSA to replace

equipment. Under GSA's legislative authorities, the gross

proceeds from some sales are deposited in GSA's Special

Fund receipt accounts and recorded as Non-Exchange

Revenues in the Consolidating Statements of Changes in

Net Position. A portion of these proceeds is subsequently

transferred to a Special Fund to finance expenses incurred

in disposing of surplus property. The remainder is periodically accumulated and transferred, by law, to the Land

and Water Conservation Fund administered by the U.S.

Department of the Interior.

E. Inventories

Operating supplies, which are consumed in operations,

are valued at the lower of cost, determined principally on

the first-in, first-out method, or market. Inventories held

for sale to other Federal agencies consist primarily of GSF

inventories, which are valued at the lower of cost, generally determined on a moving average basis, or market.

The recorded values are adjusted for the results of

physical inventories taken periodically in accordance with

a cyclical counting plan.

In the FBF, inventory balances consist of operating

supplies. In all other instances, inventory balances

reported are inventories held for sale. In the GSF, 

$2 million of the balances in inventories held for sale are

excess inventories. Excess inventories are defined as

those exceeding the economic retention limit (i.e., the

number of units of stock which may be held in inventory

without incurring excessive carrying costs). Excess inventories are generally transferred to another Federal agency,

sold, or donated to state or local governments.

F. Property and Equipment (See Note 5)

Property and equipment purchases and additions in 

FY 2004 and 2003 of $10,000 or more that have a useful

life of 2 or more years are capitalized and valued at cost.

Property and equipment transferred to GSA from other

Federal agencies on the date GSA was established is stated

at the transfer value, which approximates historical cost.

Subsequent thereto, equipment transferred to GSA is

stated at net book value, and surplus real and related

personal property transferred to GSA is stated at the lower

of net book value or appraised value. Expenditures for

major additions, replacements, and alterations are capitalized. Normal repair and maintenance costs are expensed

as incurred. The cost of R&As and of leasehold improvements performed by GSA, but financed by other agencies,

is not capitalized in GSA's financial statements as such

amounts are transferred to the other agencies upon

completion of the project. Substantially all land, buildings,

and leasehold improvements are leased to other Federal

agencies under short-term cancellable agreements.

Generally, these agencies are billed for leased space at

rent based upon commercial rates for comparable space. 

Depreciation and amortization of property and equipment

are calculated on a straight-line basis over their initial or

remaining useful lives. Leasehold improvements are

amortized over the lesser of their useful lives or the unexpired lease term. Buildings capitalized by the FBF at its

inception in 1974 were assigned remaining useful lives of

30 years. Prior to 1974, no depreciation was recorded by

GSA. Upon completion, construction costs are capitalized
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 114

in the Land and Buildings accounts. Buildings acquired

under capital lease agreements are also depreciated over

30 years. Major and minor building renovation projects

carry estimated useful lives of 20 years, and 10 years,

respectively.

Telecommunications equipment and automated data

processing equipment are used in operations to perform

services for other Federal agencies for which billings are

rendered. Most of the assets comprising other equipment

are used internally by GSA. Telecommunications and

other equipment is depreciated over periods generally

ranging from 3 to 10 years. Automated data processing

equipment is depreciated over periods generally ranging

from 3 to 5 years.

Motor vehicles are generally depreciated over 4 to 6 years.

In FY 2001, GSA implemented FASAB Statement of Federal

Financial Accounting Standards (SFFAS) No. 10,

Accounting for Internal Use Software. This standard

requires capitalization of software development costs

incurred for systems having a useful life of 2 years or

more. With implementation of this standard, GSA adopted

minimum dollar thresholds per system that would be

required before capitalization would be warranted. 

For the FBF, this minimum threshold is $1 million. For all

other funds, it is $250,000. 

G. Annual, Sick, and Other Types of Leave

Annual leave is accrued as it is earned and the accrual is

relieved as leave is taken. Each year the balance in the

accrued annual leave account is adjusted to reflect current

pay rates.

Sick leave and other types of nonvested leave are

expensed as taken.

FUND BALANCE WITH U.S. TREASURY

A. Reconciliation to Treasury 

There were no differences between amounts reported by

GSA and those reported to U.S. Treasury as of September 30,

2004. Differences existing between the total balance

reported by GSA that were greater (less) than those reported

by the U.S. Treasury at September 30, 2004, and 2003 were

as follows (dollars in millions):

B. Balances by Fund Type

Funds with U.S. Treasury are primarily components of

revolving funds such as the FBF, GSF, and ITF. The fund

balances in the Other Funds category contains amounts in

the following fund types(dollars in millions):

C. Relationship to the Budget

In accordance with SFFAS No. 1, Accounting for Selected

Assets and Liabilities, the following information is

provided to further identify amounts in Funds with U.S.

Treasury as of September 30, 2004, against which 

obligations have been made, and, for unobligated

balances, to identify amounts budgetarily available for

future expenditures and those only available to liquidate

prior obligations. Unobligated balances presented below

2004 2003

Revolving Funds $ 142 $ 124

Appropriated and General Funds 165 154

Special Funds 147 143

Deposit Funds 23 41

Miscellaneous Receipt Funds 17 10

Total Other Funds $ 494 $ 472

2004 2003

Federal Buildings Fund $ - $ (1) 

General Supply Fund - (6)

Information Technology Fund - (12)

Other Funds - 26

Total $ - $ 7

2

Notes to the Financial Statements
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 115

may not equal related amounts reported on the

Combining Statements of Budgetary Resources (CSBR),

particularly for Other Funds, as this schedule presents

elements of Funds with U.S. Treasury, which excludes

other authorities reportable in the CSBR and includes

balances in Funds that are not reportable in the CSBR

(dollars in millions):

D. Availability of Funds

Included in GSA's accounts are certain amounts that may

be transferred to either the U.S. Treasury or the Land and

Water Conservation Fund (see Note 1-D). These amounts,

related to the Transportation Audits program and surplus

real property disposals, are subject to transfer subsequent

to GSA's determination of the internal working capital

needs of these programs. Such amounts totaled 

$119 million and $124 million at September 30, 2004 and

2003, respectively, of which $22 million and $25 million

were recorded as liabilities in the Consolidating Balance

Sheets. At September 30, 2004 and 2003, the balance of

Funds with Treasury that were no longer available for

expenditure totaled $3 million and $10 million, respectively. Of these amounts, substantially all balances were

transferred back to the Special Fund Receipt Accounts

from which they were appropriated, with minor amounts

returned to Treasury.

FY 2004

FBF $ 1,118 $ 3,501 $ 736 $ 5,355

GSF (171) 594 - 423

ITF (2,043) 2,331 - 288

Others 171 69 254 494 

Total $ (925) $ 6,495 $ 990 $ 6,560 

FY 2003

FBF $ 999 $ 2,658 $ 1,197 $ 4,854

GSF (77) 535 - 458

ITF (1,865) 2,180 - 315

Others 151 74 247 472 

Total $ (792) $ 5,447 $ 1,444 $ 6,099 

OBLIGATED

BALANCE, NET 

UNOBLIGATED BALANCE

AVAILABLE UNAVAILABLE TOTAL

NON-ENTITY ASSETS

As of September 30, 2004, and 2003, certain amounts

reported on the balance sheet are not available to management for use in ongoing operations and are classified as

Non-entity assets (see Note 1-A). These balances consisted

of the following (dollars in millions):

2004 2003

Funds with U.S. Treasury $ 88 $ 87

Accounts Receivable - Public 1 1

Prepaid Expenses - Federal 9 17

Total $ 98 $ 105

3
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 116

NONCURRENT NOTES RECEIVABLE

CURRENT:

ACCOUNTS AND NOTES RECEIVABLE

Substantially all accounts receivable are from other Federal agencies. Unbilled accounts receivable result from the delivery

of goods or performance of services for which bills have not yet been rendered. Allowances for doubtful accounts are

recorded using aging methodologies based on analysis of historical collections and writeoffs.

Notes receivable are from the sale of surplus real and related personal property, from motor vehicle damage claims, and

from contract claims. Interest rates range from 0 percent to 8.6 percent.

A summary of Accounts and Notes Receivable is as follows (dollars in millions).

4

Accounts Receivable - Billed

Accounts Receivable - Unbilled

Allowance for Doubtful Accounts

Subtotal Current Receivables

(Net of Allowance of $40 million and 

$35 million in 2004 and 2003, respectively)

Total Accounts and Notes Receivable

FEDERAL 

BUILDINGS FUND 

GENERAL 

SUPPLY FUND

2004 2003 2004 2003

$ 143 

164 

(31)

276 

- 

$ 276 

$ 94 

354 

(4)

444 

- 

$ 444 

$ 105 

277 

(2)

380 

- 

$ 380 

$ 93 

188 

(10)

271 

- 

$ 271 
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 117

INFORMATION

TECHNOLOGY FUND OTHER FUNDS

GSA CONSOLIDATED

TOTALS

2004 2003

LESS: INTRA-GSA

ELIMINATIONS

2004 2003 2004 2003 2004 2003

$ 102

1,168 

- 

1,270 

- 

$ 1,270 

$ 128 

1,373 

- 

1,501 

- 

$ 1,501 

$ 27 

2 

(5)

24 

- 

$ 24 

$ 23 

3 

(4)

22 

- 

$ 22 

$ - 

19 

- 

19 

- 

$ 19 

$ - 

16 

- 

16 

- 

$ 16 

$ 316 

1,693 

(19)

1,990 

- 

$ 1,990

$ 399 

1,801 

(37)

2,163 

- 

$ 2,163 
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 118

B. Cleanup Costs

In GSA's FBF, certain properties contain environmental

hazards that will ultimately need to be removed and/or

require containment mechanisms to prevent health risks

to the public. Cleanup of such hazards is governed by

various Federal and State laws. The laws most applicable

to GSA are the Comprehensive Environmental Response

Compensation and Liability Act of 1980, the Clean Air Act,

and the Resource Conservation and Recovery Act.

In accordance with the FASAB’s SFFAS Numbers 5 and 6,

Accounting for Liabilities of the Federal Government,

Accounting for Property Plant and Equipment, respectively, and interpretive guidance in "Federal Financial

Accounting and Auditing Technical Release Number 2"

issued by the Accounting and Auditing Policy Committee,

if an agency is required by law to clean up such hazard,

the estimated amount of cleanup cost must be reported in

the financial statements. Accordingly, GSA recognized

liabilities totaling $103 million and $80 million for

Environmental and Disposal costs as of September 30,

2004, and 2003, respectively, for properties currently in

GSA's property inventory. In instances where no reasonable estimate of the cost to clean up a particular site could

be made, GSA recognized the estimated costs for related

environmental studies as is prescribed in the guidance

noted above. In some instances, GSA has been named as

a party in certain environmental cases where the subject

property is no longer in the GSA or Federal property

inventory. GSA's liability for such cases is further

discussed in Note 10.

C. Prior Period Reclassification

During FY 2004, GSA identified an error in a transaction

posted to the FY 2003 Balance Sheet that was a material

error in classification between the Buildings and

Construction in Process asset categories. To properly

state assets in the FBF, GSA utilizes a statistical projection

to calculate the dollar amount of projects that should be

reclassified from the Construction in Process line to the

Buildings on the Balance Sheet. In FY 2003, a statistically

significant sample item was incorrectly determined to be

PROPERTY AND EQUIPMENT

A. Summary of Balances

In FY 2004, GSA recorded capitalized interest costs of $1.1 million in the Construction in Process account associated with

debt provided by the U.S. Treasury's Federal Financing Bank (FFB), as discussed in Note 6. Interest capitalized in FY 2003

amounted to $451,000. Balances in GSA's Property and Equipment accounts subject to depreciation as of September 30,

2004, and 2003, are summarized below (dollars in millions).

5

Buildings

Leasehold Improvements

Telecom and ADP Equipment

Motor Vehicles

Other Equipment

Total

$ 21,712 

313 

169 

3,674 

340 

$ 26,208 

$ 10,073 

271 

137 

1,153 

172 

$ 11,806 

$ 11,639

42 

32 

2,521 

168 

$ 14,402 

$12,720 

39 

25

2,591 

170 

$15,545 

$10,980 

303 

143 

1,191 

196 

$12,813 

$23,700 

342 

168 

3,782 

366 

$28,358 

Cost

Accumulated

Depreciation

Net Book

Value Cost

Accumulated

Depreciation

Net Book

Value

2004 2003
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 119

complete. As a result, a $921 million dollar misclassification occurred, overstating the balance of Buildings and

understating the balance of Construction in Process. 

In accordance with SFFAS No. 21, Reporting Corrections

of Errors and Changes in Accounting Principles, balances

in these asset categories reported on the FY 2003 comparative Balance Sheets and the schedule above have been

reclassified accordingly. The effect on depreciation is

considered immaterial and a correcting entry has been

posted to the FY 2004 depreciation expense. 

DEBT FINANCING

A. Purchase Contract and Lease Purchase Debt

Purchase contract debt consists of two distinct financing

methods employed to finance construction of Federal

buildings. The Dual System provided monies via publicly

issued Participation Certificates and Participation

Certificates of U.S. Treasury's FFB. The Package System

originally consisted of mortgage notes where construction

and financing were arranged by the same party. GSA is

not authorized to obtain any additional purchase contract

debt without congressional approval.

In FY 1993 through 1995, GSA refinanced all outstanding

publicly issued Participation Certificates and Package

System mortgage notes with the FFB. GSA now has title

to all purchase contract buildings.

Starting in FY 1991, GSA entered into several agreements

to fund the purchase of land and construction of buildings under the FBF lease purchase authority. Under these

agreements, the FBF borrows monies through the FFB or

executes lease-to-own contracts to finance the lease

purchases.

The program authorizes total expenditures of $1,945

million for 11 projects. In FY 2004 and 2003, the FFB

made advance payments on the behalf of GSA totaling

$48 million and $20 million, respectively. As of

6

September 30, 2004 and 2003, $146 million and $194

million, respectively, of borrowing authority under the

lease purchase program remained available for obligation. 

Resources to retire debt are obtained from annual

revenues generated by the FBF. Aggregate debt maturities are as follows (dollars in millions): 2005 - $113; 2006

- $35; 2007 - $38; 2008 - $40; 2009 - $43; 2010 and beyond

- $1,208.

B. Pennsylvania Avenue Debt

The former Pennsylvania Avenue Development

Corporation (PADC) originally received authority to

borrow from the FFB to finance construction of the

Ronald Reagan Building (RRB) in Washington, D.C., with

a project budget of $738 million. Effective March 31,

1996, the PADC was dissolved, with portions of its 

functions, assets, and liabilities being transferred to GSA,

including the RRB.

Subsequent legislation consolidated GSA’s portion of

these assets and liabilities into the FBF, in which the cost

and associated debt for the RRB is now recorded. 

In FY 2003, the FFB made payments of $1 million in

advance payments on the behalf of GSA for this project.

No more costs are anticipated to be borrowed under this

authority.

Aggregate maturities on debt related to the RRB are as

follows (dollars in millions): 2005 - $14; 2006 - $16; 2007

- $17; 2008 - $18; 2009 - $19; 2010 and beyond - $649.
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 120

C. Schedules of Debt Arrangements

GSA’s outstanding debt arrangements in the FBF at September 30, 2004 and 2003 were as follows 

(dollars in millions):

This liability includes the estimated future costs of death

benefits, workers' compensation, and medical and miscellaneous costs for approved compensation cases. The present

value of these estimates at the end of FY 2004 was calculated by DOL using a discount rate for 2004 of 4.88 percent

and in 2005 and thereafter of 5.245 percent. At the end of

FY 2003, the discount rate used was 3.84 percent for 

FY 2004 and 4.85 percent for FYs 2005 and thereafter. 

The actuarial liability recorded by GSA totaled $167 million

and $174 million as of September 30, 2004 and 2003, 

respectively.

WORKERS' COMPENSATION BENEFITS

The Federal Employees' Compensation Act (FECA) provides

income and medical cost protection to covered Federal

civilian employees injured on the job, employees who have

incurred a work-related occupational disease, and beneficiaries of employees whose death is attributable to a 

job-related injury or occupational disease. The FECA

program is administered by the U.S. Department of Labor

(DOL) which initially pays valid claims and subsequently

seeks reimbursement from the Federal agencies employing

the claimants. The DOL provides the actuarial liability for

claims outstanding at the end of each fiscal year. 

7

2004 2003 

PURCHASE CONTRACT DEBT:

Dual System:

Participation certificates held by the FFB, due at various dates from June 26, 2004, 

through November 15, 2004, at interest rates ranging from 8.472 percent to 9.162 percent. $ 5 $ 28 

PACKAGE SYSTEM:

Mortgage loans held by the FFB due at various dates from March 25, 2004, through March 25, 2005,

at interest rates ranging from 6.399 percent to 7.939 percent. - 3

LEASE PURCHASE DEBT: 

Mortgage loans and construction advances held by the FFB, due at various dates from August 1, 2005, 

through January 30, 2031, at interest rates ranging from 2.296 percent to 8.561 percent 1,472 1,454 

PENNSYLVANIA AVENUE DEBT:

Ronald Reagan Building, mortgage loans due November 2, 2026, at interest rates ranging from 

5.073 percent to 8.323 percent 733 746 

TOTAL GSA DEBT $ 2,210 $ 2,231
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 121

LEASING ARRANGEMENTS

As of September 30, 2004, GSA was committed to various

noncancellable operating leases primarily covering administrative office space and storage facilities maintained by

the FBF. Many of these leases contain escalation clauses

tied to inflationary and tax increases, and renewal options.

The following are schedules of future minimum rental

payments required under leases that have initial or

remaining noncancellable lease terms in excess of one

year, and under capital leases together with the present

value of the future minimum lease payments (dollars in

millions):

OPERATING LEASES

2005 $ 3,222

2006 2,859

2007 2,572

2008 2,277

2009 2,006

2010 and thereafter 9,176

Total minimum lease payments $ 22,112

CAPITAL LEASES

2005 $ 32

2006 32

2007 32

2008 31

2009 31

2010 and thereafter 366

Total minimum lease payments 524

Less: Amounts representing Interest 215

Executory Costs 3

Total obligations under capital leases $ 306

FISCAL YEAR TOTAL

8 Substantially all leased space maintained by the FBF is

sublet to other Federal agencies at rent charges based

upon approximate commercial rates for comparable

space. The agreements covering the sublease arrangements allow customer agencies, among other things, to

terminate the sublease at any time. In most cases,

however, GSA believes the subleases will continue

without interruption. Rental income under subleasing

agreements approximated $4.4 billion and $3.6 billion for

the fiscal years ended September 30, 2004 and 2003,

respectively. Rent expense under all operating leases,

including short-term non-cancellable leases, was approximately $3.7 billion and $3.4 billion in FY 2004 and 2003,

respectively. The Consolidating Balance Sheets as of

September 30, 2004, and 2003, include capital lease assets

of $363 million and $319 million for buildings, respectively. Aggregate accumulated amortization on such 

structures totaled $104 million and $75 million in those

years, respectively. For substantially all of its leased

property, GSA expects that in the normal course of

business such leases will be either renewed or replaced in

accordance with the needs of its customer agencies.
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 122

COMMITMENTS AND CONTINGENCIES

A. Commitments

In addition to future lease commitments discussed in Note 8,

GSA is committed under obligations for goods and services

that have been ordered but not yet received (undelivered

orders) at fiscal year-end. Aggregate undelivered orders for

all GSA activities amounted to $7.1 billion in FY 2004 and

$7.7 billion in FY 2003.

10

B. Contingencies

GSA is a party in various administrative proceedings, legal

actions, environmental suits, and claims brought by or

against it. In the opinion of GSA management and legal

counsel, the ultimate resolution of these proceedings,

actions, and claims will not materially affect the financial

position or results of operations of GSA.

OTHER LIABILITIES

As of September 30, 2004, and 2003, amounts reported on the balance sheet as Other Intragovernmental Liabilities and

Other Liabilities consisted of the following (dollars in millions):

9

2003

Other Intragovernmental Liabilities:

Workers’ Compensation Due to DOL $ 22 $ 6 $ 2 $ 3 $ 33

Deposits Held in Suspense - - - 51 51

Payments Due to the Judgment Fund 227 - - - 227

Total $249 $ 6 $ 2 $ 54 $311

Other Liabilities:

Contingencies $ 6 $ - $ - $ - $ 6

Installment Purchase Liabilities 116 - - - 116

Pensions for Former Presidents - - - 8 8

Unamortized Rent Abatements 4 - - - 4

Total $126 $ - $ - $ 8 $134

2002

Other Intragovernmental Liabilities:

Workers’ Compensation Due to DOL $ 20 $ 6 $ 2 $ 3 $ 31

Deposits Held in Suspense - - - 43 43

Payments Due to the Judgment Fund 206 - - - 206

Total $226 $ 6 $ 2 $ 46 $280

Other Liabilities:

Contingencies $ 33 $ 6 $ 1 $ - $ 40

Installment Purchase Liabilities 112 - - - 112

Pensions for Former Presidents - - - 8 8

Unamortized Rent Abatements 4 - - - 4

Total $149 $ 6 $ 1 $ 8 $164

TOTAL GSA

FBF GSF ITF OTHERS CONSOLIDATED

2004

2003
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 123

C. Contingencies Covered by GSA Funds

As of September 30, 2004 and 2003, GSA recorded liabilities

in total of $100 million and $99 million, respectively, for

pending and threatened legal matters for which, in the

opinion of GSA management and legal counsel, GSA funds

will probably incur losses. Of these amounts, $94 million

and $60 million for those years, respectively, related to environmental claims. Environmental claims are included in

Environmental and Disposal Liabilities, and the balance of

possible contingent liabilities are reported within Other

Liabilities on the Consolidating Balance Sheets.

In addition, GSA had another $179 million and $122 million

in contingencies at September 30, 2004 and 2003, respectively, where it is reasonably possible, but not probable, that

GSA funds will incur some cost. Accordingly, no balances

have been recorded in the financial statements for these

contingencies.

In most cases, legal matters which directly involve GSA

relate to contractual arrangements GSA has entered into

either for property and services it has obtained or procured

on behalf of other Federal agencies. The costs of administering, litigating, and resolving these actions are generally

borne by GSA unless it can recover the cost from another

Federal agency. Certain legal matters in which GSA may be

named party are administered and, in some instances, 

litigated by other Federal agencies. Amounts to be paid

under any decision, settlement, or award pertaining thereto

are sometimes funded by those agencies.

D. Contingencies Covered by the Judgment Fund

In many cases, tort and environmental claims are administered and resolved by the U.S. Department of Justice and

any amounts necessary for resolution are obtained from a

special Judgment Fund maintained by the Department of the

Treasury. In accordance with the FASAB’s Interpretation

Number 2, Accounting for Treasury Judgment Fund

Transactions, costs incurred by the Federal government are

to be reported by the agency responsible for incurring the

liability, or to which liability has been assigned, regardless

of the ultimate source of funding. In accordance with this

interpretation, GSA reported $35 million and $46 million in

FY 2004 and 2003, respectively, of Environmental and

Disposals and Other Liabilities for contingencies, which will

require funding exclusively through the Judgment Fund. 

Of those amounts, $35 million and $45 million, result from

several environmental cases outstanding at the end of 

FY 2004 and 2003, respectively, where GSA has been named

as a potentially responsible party. Environmental costs are

estimated in accordance with AAPC Federal Financial

Accounting and Auditing Technical Release No. 2,

Determining Probable and Reasonably Estimable for

Environmental Liabilities of the Federal Government. 

Additional contingencies subject to ultimate funding from

the Judgment Fund where the risk of loss is reasonably

possible, but not probable, ranged from $170 million to 

$3.5 billion at September 30, 2004 and ranged from 

$104 million to $3.5 billion at September 30, 2003. 

The recognition of claims to be funded through the

Judgment Fund on GSA’s Consolidating Statements of Net

Cost and Consolidating Balance Sheets is, in effect, recognition of these liabilities against the Federal government as a

whole, and should not be interpreted as claims against the

assets, or resources of any GSA fund, nor will any future

resources of GSA be required to liquidate any resulting

losses. Further, for most environmental claims, GSA has no

managerial responsibility other than as custodian and

successor on claims made against former Federal entities,

particularly former World War II defense related activities.

Amounts paid from the Judgment Fund on behalf of GSA

were $34 million and $76 million in FY 2004 and 2003,

respectively. Of these amounts $26 million and $46 million,

respectively, related to claims filed under the Contract

Disputes Act for which payments have been or will be made

to reimburse the Judgment Fund by the GSA funds liable

under the contracts in dispute. The balance of claims paid

on behalf of GSA do not require reimbursement to the

Judgment Fund.
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 124

UNFUNDED LIABILITIES

As of September 30, 2004, and 2003, budgetary resources

were not yet available to fund certain liabilities reported on

the balance sheet. For the balances in question, most are

long-term in nature where funding is generally made available in the year payments are anticipated. These Unfunded

Liabilities consist of amounts reported on the Consolidating

Balance Sheets for FY 2004 and 2003, under the captions:

Workers' Compensation Actuarial Liability, Other

Intragovernmental Liabilities, Annual Leave Liability,

Environmental and Disposals, and Other Liabilities. 

In addition, balances reported as Intragovernmental Debt for

FY 2004 and 2003, include unfunded balances totaling 

$68 million and $84 million, respectively. Certain other

balances reported in the Consolidating Balance Sheets under

the captions: Deposit Fund Liability, and Earnings Payable to

Treasury, as well as amounts shown as Deposits Held in

Suspense in Note 9, while unfunded by definition, will be

liquidated from resources outside of the traditional funding

process.

RECONCILIATION TO THE PRESIDENT’S BUDGET

In accordance with FASAB SFFAS No. 7, Accounting for

Revenue and Other Financing Sources and Concepts for

Reconciling Budgetary and Financial Accounting, if there

are differences between amounts reported in these financial

statements versus those reported in the most recent Budget

of the United States Government (President’s Budget), they

must be disclosed. Differences can occur between amounts

reported in the Combining Statements of Budgetary

Resources (CSBR) and similar amounts reported as actual

results in the President’s Budget. Balances submitted to the

U.S. Treasury constitute the basis for reporting of actual

results in the President’s Budget. 

In the most recent President’s Budget, for the FY 2005,

which displays actual results for FY 2003, the OMB modified

the data that GSA reported to the U.S. Treasury. These

modifications were made so that FY 2003 results would be

12

11 more comparative to the effects of implementing the

Homeland Security Act. As a result, balances related to

activity for the first five months of FY 2003, prior to the

transfer, and balances transferred to DHS were deducted

from the original amounts reported by GSA. This affected

balances reported under GSA’s FBF as Budgetary Resources

by $195 million, Obligations Incurred by $186 million,

Unobligated Balance by $10 million and Outlays by $253

million. For this same comparative purpose, $12 million

was deducted from each of those same categories related to

the FedCIRC program, which is included in Other Funds. 

Other differences between the CSBR and the President’s

Budget are due to adjustments identified by GSA during the

preparation of the CSBR, which occurred after the U.S.

Treasury’s deadline for reporting of fund balances and

budget execution results. Such adjustments to the balances

reported to Treasury were made on the CSBR to more fully

reflect the activity for the fiscal year ended and for balances

as of September 30, 2003. Additional reconciling differences

are caused by the presentation style of the President’s

Budget, which excludes Budgetary Resources, Obligations

Incurred, and Unobligated Balances in expired annual appropriated funds but are appropriately included in the CSBR in

the Other Funds group. Such amounts totaled $55 million,

$27 million and $28 million, respectively, in FY 2003. 

The basis of the CSBR is data reported to the U.S. Treasury

on the Statements of Budget Execution and Budgetary

Resources (SF 133’s). However, as the CSBR is being developed, items may be identified that require adjustment to the

data originally submitted on the SF 133’s, which would

create differences between the CSBR and the President’s

Budget. Generally, such items are identified after the 

deadlines for reporting to the U.S. Treasury, and reflect

reclassifications of balances to report the proper status of

obligations or budgetary resources. For FY 2003, the most

significant of these items was due to timing/cutoff differences. Adjustments recorded in the ITF resulted in increases

to undelivered orders by $54 million, decreases to unfilled

customer orders of $35 million, and decreases to the 

unobligated balance by $95 million. Re-estimates were
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 125

required in the FBF, the most significant of which required

reclassifications to increase accounts payable by $55 million,

and decrease undelivered orders by $89 million. In the GSF,

errors in original estimates lead to significant adjustments

which increased undelivered orders by $362 million, unfilled

customer orders by $315 million, spending authority from

reimbursements by $359 million and accounts receivable by

$43 million.

Additional differences were caused by reclassification of

certain ITF results (see Note 13). The effect of the reclassifications decreased Obligations Incurred, increased

Unobligated Balance, and decreased Obligated Balance by

$404 million on the Statements of Budgetary Resources for

the ITF and GSA consolidated.

The most significant comparable amounts reported in the

CSBR and President’s Budget, and the total differences

where the CSBR contains balances greater or (less) than

amounts reported in the President’s Budget are shown

above (dollars in millions).

STATEMENT OF BUDGETARY RESOURCES

The CSBR present GSA’s budgetary results in accordance

with reporting requirements prescribed in OMB Circular No.

A-11, Preparation, Submission, and Execution of the Budget,

which identifies budgetary resources available for spending,

the status of those resources, and the relationship between

obligated balances and outlays (see Note 12). The basis of

the CSBR is data reported to the U.S. Treasury on the

Statements of Budget Execution and Budgetary Resources

(SF 133’s). However, as the CSBR is being developed, items

13

may be identified that require adjustment to the data 

originally submitted on the SF 133’s. Generally, such items

are identified after the deadlines for reporting to the U.S.

Treasury, and reflect reclassifications of balances to reflect

the proper status of obligations or budgetary resources.

With the acceleration of financial reporting, such differences

will be minimized in the future. 

For FY 2004, the most significant of these items was due to the

effect of timing/cutoff differences from the FY 2003 reporting.

Adjustments recorded in the ITF resulted in increases to the

Change in Unfilled Customer Orders by $35 million, decreases

to Obligations Incurred of $69 million, and decreases to the

Unobligated Balance Brought Forward by $95 million. 

Re-estimates were required in the FBF, the most significant of

which required reclassifications to increase Accounts Payable

by $66 million, and decrease Undelivered Orders by 

$68 million. In the GSF, errors in originally reported estimates

lead to significant adjustments which decreased Obligations

Incurred by $365 million, and the change in Unfilled Customer

Orders by $315 million, and Spending Authority from

Reimbursements by $43 million.

During FY 2004, GSA identified a programming logic error in

one of the subsystems feeding the core Pegasys accounting

system that had been causing Undelivered Orders and

Unobligated Balances to be misclassified starting in FY 2003.

The misclassifications affected the FY 2003 Statements of

Budgetary Resources and Statements of Financing for the ITF

and GSA Consolidated. The effect on the Statements of

Budgetary Resources increased Obligations Incurred,

decreased the Unobligated Balance - Available, and increased

Undelivered Orders by $404 million as of and at September 30,

2003. The effects on the Statements of Financing similarly

FBF GSF ITF OTHERS TOTAL

CSBR PRESIDENT'S CSBR PRESIDENT'S CSBR PRESIDENT'S CSBR PRESIDENT'S CSBR PRESIDENT'S DIFFERENCE

BUDGET BUDGET BUDGET BUDGET BUDGET

Budgetary Resources $11,912 $11,750 $4,981 $4,605 $11,892 $11,906 $1,359 $1,300 $30,144 $29,561 $ 583 

Obligations Incurred 7,990 7,765 4,446 4,066 9,712 10,035 1,251 1,219 23,399 23,085 314

Unobligated Balance 3,922 3,985 535 539 2,180 1,871 108 84 6,745 6,479 266 

Obligated Balance 1,134 1,175 (77) (75) (1,866) (1,544) 153 151 (656) (293) (363) 

Outlays (347) (115) (29) (50) (89) (99) 855 851 390 587 (197)
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 126

overstated Obligations Incurred, and the Change in

Undelivered Orders by the same amount. The affected

balances on the Statements of Budgetary Resources and

Statements of Financing have been reclassified accordingly, to

remove these effects from the FY 2003 results.

STATEMENTS OF CHANGES IN NET POSITION

A. Cumulative Results of Operations

Cumulative results of operations for Revolving Funds

include the net cost of operations since their inception,

reduced by funds returned to the U.S. Treasury, by congressional rescissions, and by transfers to other Federal agencies,

in addition to balances representing invested capital.

Invested capital includes amounts provided to fund certain

GSA assets, principally land, buildings, construction in

process, and equipment, as well as appropriated capital

provided as the corpus of a fund (generally to meet 

operating working capital needs).

GSA's FBF, GSF, ITF, WCF, and Federal Consumer

Information Center Fund (FCICF) have legislative authority

to retain portions of their cumulative results for specific

purposes. The FBF retains cumulative results to finance

future operations and construction, subject to appropriation by Congress. In the GSF, earnings are retained to

cover the cost of replacing the motor vehicle fleet and

supply inventory. The ITF retains cumulative results to

provide financing for major systems acquisitions and

improvements, contract conversion costs, major contingencies, and to maintain sufficient working capital. 

The WCF retains earnings to finance future operations.

The FCICF retains cumulative results to finance future

operations, subject to appropriation by Congress.

B. Unexpended Appropriations

Unexpended Appropriations consist of unobligated

balances, and undelivered orders, net of unfilled customer

orders. Undelivered orders are orders placed by GSA with

14

vendors for goods and services that have not been

received. Unfilled customer orders are reimbursable

orders placed with GSA by other agencies, other GSA

funds or from the public where GSA has yet to provide the

good or service requested. At September 30, 2004, and

2003, balances reported as unexpended appropriations

were as follows (dollars in millions):

TRANSFER OF FUNCTIONS

On November 25, 2002, the President signed the Homeland

Security Act of 2002. This legislation centralized several

entities of the Federal government that have provided

protection, security information analysis, and communications regarding threats, emergencies, and disasters within

the United States. Two elements of GSA, the Federal

Proctection Service (FPS) and the FedCIRC, were transferred

to the new DHS in accordance with this law, effective as of

March 1, 2003. 

The FPS was formerly a program of the PBS, with operations

funded through the FBF. The primary mission of the FPS is

protecting Federal buildings and the Federal employees

housed therein. Funding for FPS has been generated as an

element of rents charged to the Federal agencies occupying

Federal buildings and from reimbursable agreements from

customers for enhanced security services. 

The FedCIRC led a Federal partnership to address computer

security related incidents. This program was funded as part

of GSA’s Operating Expense Fund, which is an element of

the Other Funds grouping in GSA’s financial statements. 

15

2004 2003

Unobligated Balances:

Available $ 55 $ 59

Unavailable 19 20

Undelivered Orders, Net 66 66 

Total Unexpended Appropriations $ 140 $ 145
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 127

In accordance with the cited legislation, the operation of

these activities remained in GSA through February 28, 2003,

at which point all outstanding assets, liabilities, and 

budgetary authorities for these programs were transferred to

the DHS. Accordingly, five months of operations are

reflected on GSA’s financial statements for FY 2003. As

prescribed in FASAB Technical Bulletin 2003-01, Certain

Questions and Answers Related to the Homeland Security Act

of 2002, the Consolidating Statements of Net Cost reflect 

the segregation of these discontinued operations. 

The Statements of Net Position reflect the net of assets and

liabilities transferred as Transfers out of Cumulative Results

of Operations.

The long-term financial impact of the transfer of FPS

activity will primarily be seen in reduced reimbursable

revenues, and an even greater reduction of operating

expenses in the FBF, thus increasing net income in the

fund. The initial impact in FY 2003 was seen as the FPS

program activity after the transfer to DHS generated 

$186 million of revenues and $412 million of expenses.

Accordingly, the net income recognized in the FBF for 

FY 2003, was significantly higher than FY 2002, primarily

due to this impact. In FY 2004, this impact was continued,

as rent revenues continued to include elements for

security, while the costs were no longer borne by GSA. 

As part of the FY 2004 appropriations act for DHS, GSA

was directed to transfer funds to DHS totaling $464 million

to provide operational funding for the FPS. 

The long-term financial impact of the transfer of FedCIRC

will be reflected in the reduction of future appropriations

related to this activity and the closely aligned obligations

and expenses generated from program operations. 

The initial impact on FY 2003 financial results can be seen,

as FedCIRC program operations generated $7 million in

new obligations, and $8 million in operating expenses

after the transfer of this activity to DHS.

Amounts transferred to DHS on March 1, 2003 consisted

of the following balances (dollars in millions):

EMPLOYEE BENEFIT PLANS

A. Background

Although GSA funds a portion of pension benefits for its

employees under the Civil Service Retirement System

(CSRS) and the Federal Employees Retirement System

(FERS) and makes the necessary payroll withholdings

from them, GSA is not required to disclose the assets of

the systems or the actuarial data with respect to accumulated plan benefits or the unfunded pension liability

relative to its employees. Reporting such amounts is the

direct responsibility of the Office of Personnel

Management (OPM). Reporting of health care benefits for

retired employees is also the direct responsibility of OPM.

In accordance with Statement of Federal Financial

Accounting Standards (SFFAS) Number 5, Accounting for

Liabilities of the Federal Government, GSA recognizes the

normal cost of pension programs and the normal cost of

other post-employment health and life insurance benefits,

as defined in that standard, on the Consolidating

Statements of Net Cost. While these costs will ultimately

be funded out of direct appropriations made to OPM and

do not require funding by GSA activities, they are an

element of governmentwide costs incurred as a result of

GSA’s operations.

16

FPS FedCIRC

Funds with Treasury $ 445 $ 18

Equipment 11 -

Accounts Payable (106) -

Annual Leave (6) -

Other Liabilities (26) -

Net Balance $ 318 $ 18 

Unobligated Balance $ 275 $ 7

Undelivered Orders $ 69 $ 11
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 128

B. Civil Service Retirement System

At the end of FY 2004, 35.9 percent of GSA employees

were covered by the CSRS, a defined benefit plan. Total

GSA (employer) contributions (9.01 percent of base pay

for law enforcement employees, and 8.51 percent for all

others) to CSRS for all employees in FY 2004 

and 2003 amounted to $26 million and $28 million,

respectively.

C. Federal Employees Retirement System

On January 1, 1987, the FERS, a defined contribution plan,

went into effect pursuant to Public Law 99-335. Employees

hired after December 31, 1983, were automatically covered

by FERS and Social Security while employees hired prior to

January 1, 1984, elected to either join FERS and Social

Security or remain in CSRS. As of September 30, 2004, 

63.7 percent of GSA's employees were covered under FERS.

One of the primary differences between FERS and CSRS is

that FERS offers automatic and matching contributions into

the Federal government's Thrift Savings Plan (TSP) for each

employee. Under CSRS, employees can invest up to 

5 percent of their base pay in the TSP. Employees under

FERS can invest up to 13 percent of base pay, plus GSA will

automatically contribute 1 percent of base pay and then

match employee contributions up to an additional 4 percent

of base pay. During FY 2004 and 2003, GSA (employer)

contributions to FERS (23.3 percent of base pay for law

enforcement employees and 10.7 percent for all others)

totaled $55 million and $53 million, respectively. Additional

GSA contributions to the TSP totaled $23 million and 

$21 million in those years, respectively.

D. Social Security System

GSA also makes matching contributions to the Social

Security Administration (SSA) under the Federal Insurance

Contributions Act (FICA). For employees covered by FERS,

GSA contributed matching amounts of 6.72 percent of gross

pay (up to $87,900) to SSA's Old-Age, Survivors, and

Disability Insurance (OASDI) program in calendar year 2004.

Additionally, GSA makes matching contributions for all

employees of 1.45 percent of gross pay to the Medicare

Hospital Insurance program in calendar year 2004. Only 

0.4 percent of GSA's employees are covered exclusively by

these programs. Payments to these programs in FY 2004

and 2003 amounted to $48 million and $47 million, 

respectively.

E. Schedule of Unfunded Benefit Costs

Amounts recorded in FY 2004, and 2003, in accordance with

SFFAS No. 5 for post-employment benefits are as follows

(dollars in millions.):

HELP AMERICA VOTE ACT

On October 9, 2002, the President signed the Help America

Vote Act of 2002 (P.L. 107-252), to generate significant

improvements in voting processes and the administration of

elections across the United States. Under this Act, GSA was

provided with $650 million in appropriations, available to

the 50 states, the District of Columbia, Guam, Puerto Rico,

American Samoa, and the U.S. Virgin Islands to improve

administration of elections, and to replace punch card and

lever voting machines. Under the terms of the Act, GSA

17

2004

FBF $ 16 $ 22 $ 38

GSF 9 11 20

ITF 5 5 10

Other Funds 9 9 18

Total $ 39 $ 47 $ 86 

2003

FBF $ 16 $ 22 $ 38

GSF 8 9 17

ITF 4 5 9

Other Funds 8 8 16

Total $ 36 $ 44 $ 80 

PENSION

BENEFITS

HEALTH/LIFE

INSURANCE TOTAL

2004

2003
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 129

made disbursements to the states and approved localities of

all but $379 thousand of the appropriated balance in 

FY 2003. 

Additional funding related to the purposes of this Act was

provided as part of the Consolidated Appropriations

Resolution, 2003 (P.L. 108-7), signed February 20, 2003.

Within GSA’s authorities, $15 million was appropriated for

the purposes of reimbursing states for the cost of optical

scan or electronic voting equipment obtained prior to the

Federal election in November 2000. All but approximately

$100 thousand was disbursed in FY 2003 in accordance with

the terms of this Resolution.

The almost $665 million in payments made in accordance

with these two laws are reflected as a portion of expenses

reported on the Consolidating Statements of Net Cost under

the Other Funds grouping. 

There has been no subsequent funding under this act in 

FY 2004.

FTS CONTRACTING IRREGULARITIES

During FYs 2004 and 2003, GSA's Office of Inspector

General (OIG) performed audits that identified a variety of

questionable and improper contracting practices, including

the use of the ITF for non-IT purposes in violation of the

Purpose Statute, 31 USC 1301(a). GSA did, however, have

other funds that were properly available to contract for the

services in question. As of the date of these financial statements, GSA has identified contracts, totaling $134 million,

inappropriately funded by the ITF, all for years prior to 

FY 2004. GSA has received reimbursement from its

customer agencies for the expenditures in question, and

associated adjustments are not significant to the FY 2004 and

2003 financial statements. It is possible that ongoing

program evaluations and OIG audits will discover additional

contracting irregularities.

Among the contracts identified as having been improperly

funded by the ITF, were two contacts from FY 2003 and

prior, totaling $57 million, which resulted in violations of the

Antideficiency Act, 31 USC 1341 (a). These violations will

be reported to the President and the presiding officers of

each House of Congress as required by law. It is possible

that additional violations of the Antideficiency Act will be

identified and reported in connection with these audits.

18
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 130

Deferred Maintenance 

As of the end of FY 2004, GSA had no material amounts of deferred maintenance cost to report. GSA administers the

Building Maintenance Management Program that, on an ongoing basis, maintains the Building Class inventory in

acceptable condition, as defined by GSA management. GSA utilizes a condition assessment survey methodology,

applied at the overall portfolio level, for determining reportable levels of deferred maintenance. Under this methodology,

GSA defines "acceptable condition" and "acceptable level of service" in terms of certain National Performance Measures,

formulated under the provisions of the Government Performance and Results Act (GPRA) of 1993. 

GSA expenses normal repair and maintenance costs as incurred. Although GSA has no substantive backlog of deferred

maintenance tasks, the average building in the GSA inventory is 43-years-old, and only 25 percent of these buildings have

had extensive modernization. This has led to a large inventory of capital R&A work items of which approximately 

$6.5 billion have not yet been addressed by an ongoing PBS R&A project. As this backlog is related to capitalizable improvements and modernization, they are not considered deferred maintenance in accordance with SFFAS No. 6, Accounting for

Property, Plant, and Equipment, which is intended to report only maintenance items that would be expensed through the

normal course of business. For FY 2005, GSA has requested new obligational authority of approximately $980 million for

the R&A program.

Intragovernmental Balances

Substantially all of GSA’s program operations and operating results are categorized as general government functions. 

For FY 2004, the following schedule identifies major customers of GSA's intragovernmental revolving funds and the associated amount of sales representing over 80 percent of GSA's total consolidated revenues (Dollars in millions):

Required Supplementary Information

AGENCY AMOUNT

Department of the Army $ 3,133

Department of the Navy 2,359

Department of the Air Force 2,057

Department of Justice 1,752

Department of Homeland Security 1,157

Department of Defense 1,072

Judiciary 1,047

Department of the Treasury 1,008

AGENCY AMOUNT

Department of Health and Human Services 711

Social Security Administration 613

Department of Agriculture 538

Department of the Interior 517

Department of State 516

Others 3,215

Total $ 19,695
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 131

The following schedule reflects accounts receivable balances owed to GSA as of September 30, 2004, from the major

customers of GSA's intragovernmental revolving funds, representing over 80 percent of GSA's total consolidated accounts

receivable (dollars in millions):

GSA reported $3,006 million of intragovernmental liabilities on its Balance Sheet as of September 30, 2004. Of that balance,

the significant elements included the following items:

AGENCY AMOUNT

Department of the Treasury (Borrowings) $ 2,210

Department of Treasury (Judgment Fund) 227

Department of Labor 250

Others 319

Total $3,006

AGENCY AMOUNT

Department of the Army $ 386

Department of the Air Force 287

Department of the Navy 247

Department of Defense 244

Department of Justice 87

Department of Homeland Security 71

Department of the Treasury 61

Department of Agriculture 54

Civil Corps of Engineers 51

Department of Health and Human Services 42

Others 348

Total $1,878
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 132

PROCUREMENT ACTIVITIES

ISSUE: GSA provides Federal agencies with products and

services valued in the billions of dollars through various

types of contracts it establishes and administers. Among

other contracting programs and vehicles, GSA is

responsible for the MAS program, a significant number of

MAC, and the City Pair Airline contracts. Although GSA’s

specific concerns vary somewhat depending on the

contracting program or vehicle, management challenges

in this area generally center on the contract evaluation

and award process, and involve the often-related issues of

1) competition, 2) pricing, and 3) implementation of

statutory or regulatory compliance-type requirements. 

THE MAS PROGRAM provides Federal agencies with a

simplified procurement process for the purchase of a

diverse range of commercial supplies and services from

multiple vendors at prices associated with volume buying.

MAS contracts are awarded to contractors supplying the

same generic types of items or services at varying prices

for delivery within the same geographic areas. Federal

agencies then simply order supplies or services from the

schedules (or catalogs) at the pre-negotiated prices and

pay the contractors directly for their purchase. GSA

administers over 60 schedules that produced sales of 

$27 billion in FY 2003, and the volume is expected to

continue to grow. 

GSA is concerned that, as the MAS program has grown,

the importance of certain program fundamentals,

including pricing objectives and other pricing tools, has

diminished. These fundamentals, which are set out by

regulation, include the mandate for most-favored

customer (MFC) pricing, the requirement to perform

meaningful price analysis when awarding or extending

contracts, and the use of pre-award audits to assist in

negotiating contracts. MFC pricing ensures that MAS

contract pricing harnesses the Federal government’s

collective buying power for pricing purposes. Price

analysis is the key substantive step a contracting officer

performs for the purpose of arriving at fair and

reasonable prices. Pre-award audits are the main tool by

which a contracting officer can be assured that a vendor’s

pricing is as represented. Such audits also provide

contracting officers with additional details regarding a

vendor’s pricing and sales practices in anticipation of

negotiations. In 2001, OCFO issued an OIG white paper,

reporting that FSS was not consistently negotiating MFC

prices. Many MAS contract extensions are accomplished

without adequate price analysis and available tools are

not being used effectively to negotiate better MAS prices. 

MACS are appropriate when the government cannot

predetermine, above a specified minimum, the precise

quantities of supplies or specific services that will be

required during the contract period. Using source selection

procedures, GSA competitively awards multiple contracts

covering the same scope of work, and as needs are

identified for specific tasks and products, agencies compete

the task/delivery orders among the contract holders. 

The use of MACs is encouraged by the Federal Acquisition

Streamlining Act of 1994 to promote best value and the fair

opportunity for contract awardees to compete among

themselves. The competition is intended to lower prices,

obtain better quality, reduce delivery time, and improve

customer service. Each of GSA’s three major Services has

developed MACs. However, at times the opportunity to be

considered for task orders has been unnecessarily limited,

thus reducing the possibilities for lower prices, better

quality, reduced delivery time, and improved customer

service.

Supplemental Information and 

Other Reporting Requirements

Updated Assessment Of GSA’s Major Management Challenges
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 133

AIRLINE CITY PAIR contracts are awarded annually. The 

$1 billion program provides Federal travelers with below

market fares and provides advantages over commercial

restricted coach fares, including unrestricted and fully

refundable fares, no penalties for cancellations or

schedule changes, and stable fare prices. To ensure the

best value possible for Federal agencies, FSS needs to

consider applying private sector practices when evaluating

offers, make travelers aware of benefits of using dual

fares, and ensure that measurement data is received from

the airlines, banks and travel management centers. 

CLIENT SUPPORT CENTERS. Over the past year and a half,

OCFO has identified improper contracting practices at the

FTS CSCs in several regions, and it has several other

reviews in process. OCFO identified numerous improper

task order and contract awards. In making these awards,

CSC officials breached government procurement laws and

regulations, and on a number of occasions, processed

procurement transactions that totaled more than $100

million of goods and services through the ITF that were

well outside the fund’s legislatively authorized purposes.

Inappropriate contracting practices included improper sole

source awards, misuse of small business contracts,

allowing work outside the contract scope, improper order

modifications, frequent inappropriate use of time and

materials task orders, and not enforcing contract

provisions. Several factors contributed to these problems,

including an ineffective system of internal management

controls, personnel sacrificing adherence to proper

procurement procedures in order to accommodate

customers’ preferences, and a culture that emphasized

revenue growth. GSA’s reports have received the attention

of senior management, several congressional committees,

the OMB, and the media. In addition, other Federal

agencies, particularly DOD, have initiated analyses of

contract actions since these questionable procurement

actions were done on behalf of work requests from other

agencies. 

AGENCY ACTIONS: OIG is participating with FSS in a

working group to review current MAS procurement

practices and analyze potential enhancements to program

pricing activities. The group is comprised of

representatives from the OCAO, OGC, FSS acquisition,

and the OIG. On June 20, 2003, FSS issued a Procurement

Information Bulletin (PIB) to provide guidance and

instructions to contracting officers in requesting audit

assistance from the OIG when making new awards

exercising options to extend the term of a contract. The

principles in the PIB also apply to audits of new MAS

offers. The PIB should help contracting officers take

better advantage of the assistance that can be provided by

the OIG.

FSS is supporting FAR changes that will require agencies

acquiring services using the MAS services schedules to

attempt to obtain better-than-negotiated pricing on large

procurements. On June 18, 2004, the FAR Council issued

a final ruling regarding ordering procedures under GSA’s

MAS contracting program. Among other things, the final

rule requires ordering agencies to seek competition

among MAS vendors, document their award decisions,

and seek additional price reductions under Blanket

Purchase Agreements (BPA). 

GSA worked with an interagency committee to develop a

best practices guide, Seven Steps to Performance-Based

Services Acquisition. Additionally, a Center of Expertise

has been established to gather sample statements of work

and develop a template for performance-based service

contracting solicitations.

The Agency conducted a study of FSS and FTS operations

related to IT offerings in order to enhance GSA’s ability to

provide best value to customer agencies. Three teams

were established to develop business plans to combine

and realign functional areas related to IT that are currently

carried out separately in FSS and FTS, and expand expert

assistance services, both technical and procurement, into

other GSA products and services.

GSA streamlined its supply operations by consolidating its

distribution centers at two locations. Recently, the Western
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 134

Supplemental Information and 

Other Reporting Requirements

Distribution Center moved to a more modern facility with

an updated material handling system. The Agency

estimated savings through efficiencies and technology at $9

million. A similar redesign is anticipated at the Eastern

Distribution Center. An assessment of the validity of the

estimated savings for the upgrades and modernization of

the Western Distribution Center is currently underway. 

In June 2004, GSA established a new OCAO, aimed at

ensuring compliance with Federal contracting rules,

fostering full and open competition for contracts, and

strengthening accountability in contracting. The office

absorbed many of the functions formerly in the OGP.

On July 13, 2004, GSA unveiled a comprehensive plan

designed to ensure improved contracting operations and

proper use of GSA’s contracting vehicles. The “Get it

Right” plan aims to make acquisition policies, regulations,

and procedures clear and explicit and improve the

education/training of the Federal acquisition workforce

on the proper use of GSA contracting vehicles and

services. GSA worked closely with other Federal

agencies, particularly DOD, in identifying actions

necessary to ensure proper use of GSA contracting

vehicles by GSA and other agencies. The plan will be a

work in progress that will be continuously refined and

updated.

CONTRACT MANAGEMENT

ISSUE: GSA increasingly accomplishes its mission by

using contractors to provide client services and products.

In FY 2002, GSA added new procurements valued at

more than $13 billion to its active contract inventory.

While GSA gains tremendous advantage by leveraging its

human capital to manage and arrange for work to be

performed by contractors rather than doing the work

itself, the corporate skill base necessary to effectively

manage contracts is not keeping pace with the growth

and complexity of this important activity.

Through a number of unrelated audits performed over

recent years, GSA observed certain trends that caused the

Agency to be concerned with contract management.

Some points OIG has noted are:

Weak selection criteria permit poor performing

contractors to win awards, or projects were

awarded to contractors with no expertise in the

services needed. Task objectives were poorly

crafted, milestone plans were missing, and

unauthorized personnel issued some task orders. In

addition, contracts were awarded without

appropriate clauses to hold contractors responsible

for protecting sensitive data from unauthorized

release.

Use of contract formats that offer no incentives to

keep projects moving. Contractors often neglect to

establish required quality control programs, or do

not submit firm construction schedules meaning

that delays are unknown until they become serious.

GSA personnel are not providing project oversight,

are slow in making project-critical decisions, and

often do not inspect completed work projects prior

to payment. Also, services were paid for but never

provided, and authorizations to pay for services

invoiced had no supporting documentation.

GSA leasing officials did not monitor receipt of

services required under leases and relied on

tenant complaints for identifying service

deficiencies rather than taking a proactive

approach to ensuring required services are

provided. OIG also noted a lack of

documentation supporting whether identified fire

and other safety conditions in leased facilities

were corrected.

In GSA’s briefings to its senior management, it has been

emphasized that effective contract management: 

Starts with complete acquisition planning 

Relies on sound source selection criteria to select

only the best contractors 
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 135

Requires clear and concise contract language 

Demands well trained contract administrators 

Needs well defined work or task order

requirements, including milestone plans with

positive and negative incentives 

Command assertive action to get wayward

contracts promptly on track. 

There is a heightened need for improvement efforts as

GSA’s contracting workload continues to increase at a

rapid rate. While many GSA contracts are well crafted

and properly administered OIG is finding weaknesses

more often.

AGENCY ACTIONS: GSA has provided training in source

selection and related procurement issues for property

development personnel. The Agency has also established

an online folder to post source selection best practices.

Contracting officers are receiving classes in advanced

source selection and refresher training on aspects of

construction project administration, such as critical path

analysis, enforcement of clauses and scheduling, claims

management, processing change orders, and linking the

indirect costs of client directed changes back to clients. 

INFORMATION TECHNOLOGY

ISSUE: With the increased development and

implementation of new IT systems within GSA to perform

its mission and manage its operations, challenges in this

area continue to increase. Many of GSA’s systems store and

process sensitive information, which includes personal

employee data, financial data, and contractors’ proprietary

information. Management challenges related to systems

requirements and performances are faced at all phases of

development, implementation, and operation. Further, it is

critical that the IT Security Program adequately manage all

IT security risks. GSA is the lead agency for five electronic

government initiatives. Two of the initiatives address

Government to Business or Government to Citizen services,

and three initiatives are to provide services to other

government departments and agencies. These IT

applications, developed to better manage operations and

interface with the public, also give rise to complex

integration and security issues that must be addressed.

Success is dependent upon breaking development into

short-term manageable segments with performance-based

deliverables consistent with system objectives. 

SYSTEMS DEVELOPMENT: GSA is in the process of replacing

a number of its old systems, in keeping with technological

advances and to meet current regulations. Many of the IT

projects are designed to go beyond automating current

business functions and create real change in the way that

GSA does business. However, GSA has experienced

recurring difficulty in deploying and maintaining structured

system development practices that ensure the proper

development of requirements as well as implementation of

prescribed system processes. As a result, GSA systems

commonly experience development schedule delays and

cost overruns, need frequent redesign, and have difficulty

sharing usable data between systems. 

Many GSA IT projects attempt to minimize development

cost and deployment schedules by developing systems

based on existing COTS software packages. COTS solutions

offer agencies the ability to forgo lengthy development of

core system functionality and the ability to adhere to

industry information processing standards. However, the

majority of COTS solutions do require modifications to meet

unique Federal requirements. Moreover, new systems

require interfaces with existing systems that are difficult to

implement. Reviews by OIG has shown this to be the case

with GSA’s new accounting system, Pegasys, the foundation

of which is a COTS financial management product. During

FY 2001, the OCFO re-scoped Pegasys to focus on

providing elements of the core financial functionality. As

planned, on October 1, 2002, Pegasys became the Agency’s

official system for accounting records. While this is a key

accomplishment, numerous challenges remain before

completing full implementation of an integrated financial

management system. 
Supplemental Information and 

Other Reporting Requirements

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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 136

IT SECURITY: The FISMA of 2002 permanently authorized

the framework laid out in the earlier Government

Information Security Reform Act (GISRA) emphasizing

key principles for computer security for Federal programs

and systems. With the OIG’s latest program evaluation, it

found that GSA continues to make progress in

implementing its Agency-wide IT Security Program. The

Security Division within the OCIO has 1) issued security

guidelines and revisions to the Agency-wide policy on IT

security, and 2) taken steps to correct security weaknesses

identified in GSA’s POA&M. However, system-level

POA&Ms are not consistently used to track and correct

identified security weaknesses. Key systems security

documentation was outdated or not complete; and

contractors were granted access without appropriate

background investigations. 

AGENCY ACTIONS: In January 2003, the OCIO issued a new

handbook on IT Security Policy to document and set forth

GSA’s IT Security Policy, an element required for meeting

the goals of GSA’s IT Security Program. In addition,

Milestone and Action Plans for improving security for 23

of GSA’s major applications were provided to the OMB as

required by statute. 

MANAGEMENT CONTROLS

ISSUE: Multiple management controls have been replaced,

through reinvention initiatives, by fewer and broader

controls, making it essential that the remaining controls be

emphasized and consistently followed. The matter of weak

internal controls underlies several of the other management

challenges discussed elsewhere in this paper.

PROCUREMENT: Management has been emphasizing the

use of purchase cards as a means of streamlining the

procurement process. Individuals can charge any amount

up to their spending authority. The Agency’s emphasis on

using purchase cards whenever possible significantly

heightens the importance of adequate controls for

purchase card transactions. GSA’s concerns encompass

whether speedy procurement is being attained at the

expense of appropriate regulatory requirements and good

management controls, whether charge cards are being

used solely for appropriate government purchases, and

whether GSA is getting the best price. 

Many agencies have applied themselves of the services

available under GSA’s government wide charge card

program, yet some have failed to adequately implement

controls over the use of the cards by their employees.

While it is the responsibility of individual agencies to

establish controls for their own cardholders, OMB and

Congress still look to GSA to take a leadership role in

development of effective charge card program controls

across the government. Within GSA, steps taken to

strengthen controls over vehicle and travel cards appear

to be effective since GSA seldom finds instances of

misuse by GSA cardholders. Although the key control of

supervisory review of cardholders’ transactions is now

more consistently followed, GSA does occasionally

identify problems. 

DATA INTEGRITY: In passing the GPRA, Congress

emphasized that the usefulness of agencies’ performance

data depends, to a large degree, on the reliability and

validity of that data. Past audit work has shown that the

absence of controls or the non-compliance with existing

controls has resulted in poor quality data at the

operational levels of many GSA programs.

AGENCY ACTIONS: GSA’s CFO is aware of the importance

of adequate controls for charge card transactions and has

worked with the OIG office to strengthen those controls.

New processes are in place that force reviewing officials

to examine purchase transactions monthly. Cards are

withdrawn from those who do not comply. GSA

purchase cardholders and approving officials are required

to complete refresher training every two years. In

addition, the CFO periodically issues e-mail reminders to

cardholders stressing their responsibilities for proper use

of the cards. As a result, the Office has seen a substantial

reduction of fraud stemming from card use. GSA is also

a key participant in an OMB sponsored Federal
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 137

committee working to identify ways to improve the

overall charge card control systems governmentwide.

The PBS Commissioner has taken action to improve the

integrity of the data in the Inventory Reporting

Information System (IRIS). Because this system is used to

manage the R&A Program, it is imperative that data in IRIS

be reliable since PBS management decisions regarding

the investment, repair, or disposal of assets could be

significantly impaired. An IRIS based measure for the

basic R&A Program has been put in place and a contract

was awarded for modification to import key financial

project data from the Financial Management System.

In an effort to rein in the cost growth and bid busts on

new construction projects, the commissioner has directed

the national office to:

Expand and strengthen its participation in the

oversight of major projects and the development of

the project teams working on them 

Develop a comprehensive project management

manual 

Require senior management involvement where

technical evaluation of project plans find

unresolved deficiencies and missing requirements

before projects are advanced to OMB 

Establish a design management evaluation process

that includes an independent cost estimate at

various design phase submissions.

AGING FEDERAL BUILDINGS

ISSUE: GSA is being challenged to provide quality space

to Federal agencies in a competitive environment with an

aging, deteriorating inventory of buildings and critical

budgetary limitations. 

It is estimated that it would take over $5 billion to bring

the building inventory up to standard. Since the FBF

generates annual revenue of about $8 billion, most of

which is committed to leased space costs, operating

expenditures, and construction of new courthouses,

finding funds for needed repairs is a major problem.

GSA needs to determine which buildings represent the

greatest risk from a safety and operational perspective,

which buildings will yield the best return on investment,

what the government’s future space requirements are,

and how to fund the highest priority projects in a timely

manner. 

Prior reviews showed a need for PBS to improve the

administrative aspects of asbestos management, develop

a more comprehensive fire safety management system

that focuses on a national fire safety strategy, evaluate the

formula used to measure a building’s net income, and

improve profit and loss information to facilitate better

property management decisions.

AGENCY ACTIONS: PBS developed a strategy for

restructuring the owned building inventory. The strategy

envisions a combination of actions including disposals,

exchanges, public/private partnerships, outleases, and

new construction. With the Portfolio Restructuring

Initiative, PBS has proposed a three-tiered approach in

prioritizing the inventory, using a series of asset

diagnostic tests or measures, each with a performance

target or threshold that will assist in categorizing

individual buildings. The first test simply seeks to

determine whether the property produces sufficient

income to meet both operating expenses and a reserve

for replacement. The second test measures an asset’s

financial performance in terms of return on investment.

Other tests address operating efficiency, customer

satisfaction, rental rate and vacancy levels, and current

repair and replacement needs. After this performance

review, each asset will be categorized as either

performing, under-performing, or non-performing. GSA

will consult with affected agencies on appropriate

resolution strategies for each troubled asset. GSA has

briefed congressional subcommittees with jurisdiction

over GSA, and they are very supportive of this effort, as

are OMB and GAO. 
Supplemental Information and 

Other Reporting Requirements

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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 138

Management has developed a PBS-wide environmental

system to become more proactive in how it views and

acts on environmental issues and to address issues such

as property contamination, compliance with Federal and

state environmental laws and regulations, and liability for

tenant activities. PBS also developed a more comprehensive fire safety strategy, which endeavors to provide a

functional, safe, and healthful work environment; protect

property; and promote client agency mission continuity.

PBS redesigned its policy for charging rent to customer

agencies in FY 1997. The largest source of income to the

FBF is the rent charged by PBS to its customer agencies

for the space they occupy in GSA controlled space. In 

FY 2003 this amount was estimated to be $6.6 billion. 

The construction excellence program was established to

help PBS improve the management of its construction

program and to complete new construction and major

R&A projects timely and with minimal changes.

HUMAN CAPITAL

ISSUE: Like many Federal agencies, GSA has an aging

workforce and faces significant potential loss of

institutional knowledge in the coming years. Since 1993,

GSA has been downsizing and has focused on

restructuring its financial and business efforts. The

Agency workforce was reduced from 20,000 to 14,000

between 1993 and 1999. Much of the downsizing was

accomplished through early retirement and buyout

authority, and by filling job vacancies sparingly. In March

2003, a mass transfer of 1,268 employees to the DHS

further reduced the workforce to approximately 12,800. 

Since 1998, the OIG has consistently cited human capital

management as one of the major management challenges

facing GSA. Additionally, Congress and GAO have

identified human capital management policies as a

missing link in the government’s performance

management framework. GAO added this issue to its list

of major management challenges facing Federal agencies.

Human capital planning and organizational alignment,

leadership continuity and succession planning, and

recruitment and retention of staff with the right skills were

identified as key areas needing attention.

AGENCY ACTIONS: GSA has moved on several fronts to

meet identified human capital challenges. The Agency

recently completed an Agency-level workforce analysis

that parallels GSA’s Human Capital Strategic Goals that

were developed as part of the strategic plan in August

2002. The report will assist management in making

informed human capital decisions. Identified MCOs are

particularly emphasized in recruitment and retention

strategies. The OCPO selectively uses human resources

flexibilities to compete for employees. It has developed

recruitment and retention strategies with the help of OPM

and employee focus groups, and uses the “compelling job

offer” technique to convince potential employees of the

importance of the position.

GSA has a number of initiatives regarding employee

orientation, engaging existing employees, and developing

leaders within GSA. New employees are provided the

opportunity to attend an intensive two-and-a-half-day to

five-day “welcome to GSA,” an orientation to the

individual’s specific organization.

GSA issued a contract with the Gallup Organization for

administration of the Q12 survey that provides a snapshot

of how well the Agency is doing, where specific

improvements can be made, and the level of employees’

engagement at the workplace.

In its efforts to more accurately and consistently inventory

its activities under the FAIR Act, GSA’s competitive

sourcing team oversees each Service’s inventory and

reports on any discrepancies or variances, and it

established the OPI that will oversee the competitive

sourcing initiatives for GSA.

As part of its human capital strategy and to address

planning needs, the OCPO launched the GSA Leadership

Institute in February 2002 with the implementation of its
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 139

premier program, Leadership for New Supervisors,

designed to help new supervisors master skills to lead

their workforce to achieving excellent results. Added in

June 2002, the Agency-wide competitive Advanced

Leadership Development Program provides an

opportunity for high potential GS-13s, 14s, and 15s to be

selected into a program that will equip them for

consideration for senior level positions. In December

2002, the Institute launched the Supervisory Toolbox, a

nuts and bolts two-day workshop for all supervisors and

managers on the human resources responsibilities,

flexibilities, and resources necessary to be effective

supervisors. The Leading Edge Program, announced in

April 2003, offers managers an opportunity to customize

a development program keyed to GSA’s leadership

competencies, including a 360-degree assessment,

executive coaching, and workshops. Additional

programs are being crafted to help develop the Agency’s

future leaders.

PROTECTION OF FEDERAL FACILITIES

AND PERSONNEL

ISSUE: Providing a safe, healthful, and secure

environment for over one million workers and the visitors

to over 8,600 owned and leased Federal facilities

nationwide is a major multifaceted responsibility of GSA.

The increased risks from terrorism have greatly expanded

the range of vulnerabilities traditionally faced by building

operations personnel. In March 2003, the FPS was

transferred from GSA to the DHS. While FPS is no longer

part of GSA, the Agency will have a continual need to

closely interact with security personnel due to GSA’s

mission of housing Federal agencies. GSA and FPS/DHS

operate under a Memorandum of Agreement (MOA) for

obtaining services such as basic security for buildings,

contract guards, law enforcement, background suitability

determinations for contractors (including child care), prelease security checks, occupant emergency plan support,

and continuity of operations plan activation support.

Ensuring that Federal employees have a secure work

environment and that building assets are adequately

safeguarded must remain a primary concern of GSA.

An additional concern relates to how to pay for the

upgrades and replacement of the security countermeasure

equipment that was initially obtained with $140 million in

funds provided directly by Congress. As equipment ages

and technology advances, the cost to maintain the

security of GSA’s buildings could significantly impact

availability of funds for other building needs, and could

create significant issues if tenants object to higher rent

costs resulting from upgraded security. 

AGENCY ACTIONS: As part of the FPS transition to the new

department, a MOA was prepared, setting forth the

support services GSA will provide to DHS and the security

services DHS will provide to GSA. Such services include

the continuation of the Federal Security Risk Manager

(FSRM) Program , a risk assessment methodology that

addresses potential threats to Federal facilities. This

methodology was designed to link threats, risk levels, and

countermeasure recommendations, and address

vulnerabilities and impact of loss should an incident

occur. The desired goal is to reduce threats at each

facility through specific countermeasures to address the

risks. 

In addition, as part of the increased focus on security,

GSA is adopting a nationwide uniform credential, based

on Smart Card technology. A smart chip embedded in the

credential will identify each employee visually and

electronically for both identification and physical access

purposes.
Supplemental Information and 

Other Reporting Requirements

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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 140

Debt Management

Outstanding debt from non-Federal sources

decreased from $17.5 million at fiscal year-end

2003 to $12.2 million at fiscal year-end 2004. The

amount of delinquent debt decreased from $10.2 million

to $7.7 million for the same period. Non-Federal

receivables consist of debts owed on third-party claims,

travel advances, proceeds from the sale of real property,

and other miscellaneous receivables.

To comply with the Debt Collection Improvement Act of

1996, GSA transmits delinquent claims each month to the

U.S. Department of the Treasury Financial Management

Service (FMS) for collection cross servicing. From

October 1, 2003 to September 30, 2004, the GSA Finance

Centers referred approximately $6.4 million of delinquent

non-Federal claims to the Treasury Department for crossservicing collection activities. Collections on non-Federal

claims during this period exceeded $240 million.

Administrative offsets resulted in additional collections of

$13.8 million. GSA also collects non-Federal claims using

Pre-Authorized Debits (PAD). From October 1, 2003 to

September 30, 2004, 125 PADs totaling $131,891 were

processed. Also, during this period, $9.7 million was

received from the Department of Justice to settle an

investigation of billing discrepancies on two GSA MASs. 

GSA actively pursues delinquent non-Federal claims using

installment agreements, salary offset, administrative wage

garnishment, and any other statutory requirement or

authority that is applicable. Through an outside contract

arrangement, GSA actively reviews and pursues

overpayments, in conjunction with its PBS and FTS

Accounts Payable Division associates. GSA is continuing

to remove all non-paying claims over two years old from

open receivables. All two-year-old claims without

collection activity were researched and collected or

written off. GSA has in place a plan to review delinquent

accounts and contact debtors, especially those

approaching two years old, on a quarterly basis. These

claims are researched and either collected or written off.

GSA also holds meetings with some of its larger

customers, such as the District of Columbia government

and the National Institute for the Blind/National Institute

for the Severely Handicapped (NIB/NISH), to discuss and

arrange payment of outstanding bills.
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 141

The Prompt Payment Act along with the Debt

Collection Improvement Act of 1996 requires the

timely payment of commercial obligations for

supplies and services using EFT. GSA reviews and

modifies, if needed, its procedures continuously to ensure

prompt payment utilizing EFT. GSA has shown marked

improvement in the percentage of invoices paid electronically and on-time while reducing the percentage paid

late and the dollar amount per million disbursed even

when the number of invoices paid and the dollars

disbursed have increased. The statistics for the current

and preceding two fiscal years are as follows:

Cash and Payments Management

FY 2002 FY 2003 FY 2004

Total Number of Invoices Paid 1,197,817 1,298,134 1,390,406

Total Dollars Disbursed $15.9 Billion $19.1 Billion $20.8 Billion

Total Dollars of Interest Penalties $1,025,381 $1,690,335 $779,835

Interest Paid per Million Disbursed $105.00 $95.00 $39

Percentage of Invoices Paid On Time 91% 93% 98%

Percentage of Invoices Paid Late 7% 1% 1%

Percentage of Invoices Paid Electronically 81% 88% 92%
F INANCIAL S ECTION

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 142

Supplemental Information and 

Other Reporting Requirements
GSA Historic Highlights

1987 Opened its first childcare center in 1987 and

today operates 111 centers across the country.

1988 GSA transferred the strategic stockpile of war

supplies to the Department of Defense.

1995 Merged all of GSA's policy functions into

the Office of Governmentwide Policy.

1980 1990 2000

1996 Introduced its associates to the Internet

and intranet and spurred the development

of electronic commerce through GSA

Advantage!TM

2002 Consolidated all of GSA’s

citizen-centered activities into

a single organization, the Office

of Citizen Services and

Communications. The office

provides access to information

in whatever medium citizens

prefer – the Internet, email,

telephone, fax or print. OCSC

manages FirstGov.gov USA

Services.

Appendices
In 1999, GSA initiated a demonstration "First Impressions"

project in the lobby, which included replicating the original

corridor lighting.
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 143

Appendix 1: Data Sources

FINANCIAL DATA SYSTEMS

PEGASYS: Pegasys became GSA's official accounting system

of record on October 1, 2002. Among many modern

features that this COTS solution provides GSA, the

functionality of the new USSGL addresses external reporting

requirements and assists in the consolidated Federal

financial statements. Pegasys was upgraded to version 5.1

in April 2004. The upgrade allowed GSA to advance to the

software version, which is compliant with the most recent

Federal legislative requirements and holds the most current

JFMIP certification. The upgrade also allows GSA to utilize

numerous enhancements that have been made to the

software, including automation in the area of external

reporting.

DATA FROM LARGE COMPUTER SYSTEMS

GPDS: GPDS (General Services Administration Procurement

Data System) is a computer-based procurement information

system developed to collect and edit GSA procurement data

prior to submission to the Federal Procurement Data System

(FPDS), and, as the only GSA-wide procurement

information system, provides GSA managers at all levels

with information on GSA acquisition operations. As GSA’s

FPDS “feeder system,” the GPDS enables FPDS to meet its

objectives of collecting, developing, and disseminating data

to be used for management, oversight, and evaluation of

Federal procurement by Congress, the executive branch,

and the private sector. GPDS receives data from

Comprizon.Buy monthly downloads, STAR downloads, and

Pegasys quarterly downloads.

The Federal Procurement Data System (FPDS), which is

operated and maintained by the GSA Federal Procurement

Data Center, is the central repository of statistical

information on Federal contracting; it contains detailed

information on contract actions over $25,000 and summary

data on procurements of less than $25,000. The system

identifies who bought what, from whom, for how much,

when, and where for all of the executive departments and

agencies. 

STAR: STAR (System for Tracking and Administering Real

property) is the primary tool used by PBS to track and

manage the government's real property assets and to store

inventory data, billing data, building data, customer data,

and lease information. The STAR application assists PBS in

supporting its business process and has been redesigned to

more closely mirror that of commercial real estate business

processes. STAR promotes responsible asset management,

which in turn allows PBS to compete more effectively and

efficiently in the Federal real estate market. Additionally, it

provides direct access to business data supporting the

management of space and customer billing records. STAR

manages aspects of real property space management,

including identification of all building space, daily

management of 22,000 assignments, and monthly billing for

all property to its client Federal agencies. The application

is used to generate the annual billing and collection of over

$6 billion in rent from Federal agencies.

DATA FROM MANUAL OR SMALL FEEDER

COMPUTER SYSTEMS

IRIS: IRIS (Inventory Reporting Information System)

documents and schedules all identified R&A building needs.

IRIS tracks the execution of construction projects through

the design and construction phases, helps conduct longrange planning, and assists in developing the Budget

Activity F&A programs annually. IRIS is a repository for

fully scoped projects and their associated detailed cost

estimates. During FY 2004, IRIS redeveloped a client-server

application to a fully Web-enabled application. The first

phase of the development was the IRIS Safety module,

which was successfully deployed in March of 2004. 
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 144

The Work Items module is currently under redevelopment

and will be completed in FY 2005. These enhancements

will allow the user to access the application from any

authorized desktop giving the user the ability to use IRIS

while traveling or telecommuting.

EAS: EAS (Electronic Acquisition System) , or Comprizon,

supports the daily business of acquisition for PBS associates

nationwide. This system streamlines the flow of work

within each business area by providing nationwide

acquisition preparation, tracking, and reporting. This

sophisticated system designed for government acquisition

practices includes requisition tracking, acquisition planning,

contract awarding, contract administration, payment

transfers, and contract closeout functions. EAS has

undergone many subsequent upgrades and is currently

moving to an enhanced centralized Web-based version

product called Comprizon.Suite. This upgrade represents a

major step towards more reliable, faster, and user-friendly

systems for PBS associates. Future improvements for EAS

are targeted, which will accelerate and simplify the way PBS

does business by building a stronger tie to Pegasys and

Electronic Posting Sites, such as FedBizOps and FedTeDs,

thus improving the accuracy of data in support of eGov

initiatives and offering “anywhere, anytime” access to users.

RENT ESTIMATE: Rent Estimate is a PBS Enterprise

application that uses source information from back-office

systems and applications, such as STAR, Appraisal Data

System, and Galaxy to estimate rent for Federal clients. 

To support Federal agencies in their budgeting process, PBS

provides the Rent Estimate at least 18 months prior to the

start of the fiscal year. Before the Rent Estimate can be

distributed to Federal agencies, the President's OMB must

approve the rates. These estimates are used by GSA’s

customers and by GSA in the budget formulation process.

TOPS: TOPS (Telecommunications Ordering and Pricing

System) is a system, which automates the local

telecommunications service business process, including

ordering, billing, and reconciliation of telecommunication

services. The purpose of the system is to decrease

paperwork and provide faster processing and increased

customer agency satisfaction. TOPS allows Federal

agencies to order telephone equipment and services online

on a nationwide basis. This automated system cuts order

handling and processing time and decreases the cost of the

entire process of delivering telecommunications products. 

OMIS: OMIS (Office of IT Integration Management

Information System) is an operational system that provides

an assortment of project financial capabilities to include

project tracking, employee timesheets, project billing,

project expense tracking, project fiscal reporting, and

management tools/reports. OMIS provides the Federal

Systems Integration and Management Center (FEDSIM) with

a means of maintaining basic financial transaction

information along with individual time accounting and

management reporting capability. In addition, OMIS

provides an interface to the GSA financial system of record,

Pegasys. OMIS institutionalizes financial standards and

methodologies, and provides for the financial management

of FEDSIM’s increasing business base while providing

support directly to FEDSIM’s management team,

information for FEDSIM’s Industry Partners, and FEDSIM

clients. OMIS, in conjunction with Tracking and Ordering

System (TOS), provides a full suite of contracting, finance,

and project management capabilities for FEDSIM

management, FEDSIM clients and FEDSIM industry

partners. 

TOS: TOS (Tracking and Ordering System) is an operational

system that was developed and implemented in multiple

phases. TOS initially supported the creation and processing

of Letter Orders, delivery order tracking, and electronic

invoicing by one vendor. In subsequent phases/upgrades,

modules and functionality have been added to conform to

the natural evolution of FEDSIM’s business models. Specific

examples include updates to allow for electronic bidding on

commodities by vendors, electronic invoicing by all

vendors, vendor notification that Delivery Orders have been

issued, and electronic interfaces to other financial and

accounting systems. In particular FEDSIM personnel have

added interfaces with OMIS to facilitate more complete

project management. 

Appendix 1: Data Sources
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 145

ITSS/ITOMS: ITSS/ITOMS (IT SolutionShop/Integrated Task

Order Management System) provides for electronic ordering

and acceptance of commodities and services, and computes

and posts financial transactions associated with order

funding and order payment. ITSS is an online procurement

system for IT products and services. ITSS electronically

links Federal clients, vendors, and FTS customer service

representatives; it is available 24 hours a day, seven days a

week for the geographically dispersed Federal clients to use

in ordering IT products and services from their desktops.

ITOMS is the financial management system for ITSS orders

which creates the financial transactions sent to the financial

system of record, Pegasys. 

Both ITSS and ITOMS were developed in response to a

critical need to move away from paper-intensive processes.

Because of increasing business volume of the IT Solutions

business line, the repetitive data entry and redundancy

required unacceptable levels of time and effort to reconcile

financial records of the regions and central office. Internet

based ITSS/ITOMS provides an end-to-end electronic order

processing solution that supports FTS staff, customer

agencies, and vendors. It provides an electronic path for

defining, issuing, awarding, and monitoring tasks. 

MAA STATUS TRACKING TOOL: The MAA (Metropolitan Area

Acquisition) Tracking Tool is a Lotus Notes application. 

It was designed originally to help with project management

in implementing the MAA, a local telecommunications

contract vehicle, which provides greatly reduced rates to

Federal agencies in metropolitan areas. The tracking tool

continues to be used to track new MAA business in the

post-implementation environment as well as to generate

various workload statistics such as MAA savings to date, the

mean time from order issuance to order completion, etc. 

COMMERCIAL ACQUISITION AND SUPPLY OPERATING AND

MANAGEMENT INFORMATION SYSTEM (FSS-19): FSS utilizes

both systems for tracking sales data. They are password

protected and conform to the GSA Information Security

Policies and Procedures. Schedule data is reported

quarterly and is verified by site visits to the contractors. 

TARPS: TARPS (Transportation Accounts Receivable and

Payable Systems) provides performance data for measures

aimed at cost recoveries resulting from audits of FSS

transportation billings.

ROADS: ROADS (Requisitioning, Ordering, and Documentation System) captures contract pricing for vehicles for FSS.

Security for this system is maintained by limited access and

password protection. 

FEDS: FEDS (Federal Disposal System) provides data for

FSS transferred and donated property. 

FSS SALES AUTOMATION SYSTEM: Data for sales proceeds is

obtained from this system. 

BENCHMARK DATA FROM EXTERNAL SOURCES

BOMA: The industry benchmarks are from BOMA (Building

Owners and Managers Association). BOMA is an advocacy

group for the real estate industry, a federation of 94 local

associations whose members own or manage more than six

billion square feet of downtown or commercial properties

and facilities across the United States. BOMA is recognized

for its expertise in the field of real property, frequently

testifying before Congress, and working with property

holding agencies. The Experience Exchange Report is a

database that contains building operations statistics on more

than 4,000 buildings throughout the United States. It is used

extensively in the private sector and it is an accurate source

for industry operating data that is comparable to that of

PBS. 

SIOR: Industry benchmark data is obtained from SIOR

(Society of Industrial and Office Realtors). SIOR is a

commercial network and its publications are valuable tools

in determining current trends and market rates from which

GSA can benchmark. Member professionals, who work in

each reported market, develop the market information used

by SIOR. However, the regions have the option to use

other market sources if the SIOR data no longer reflect local

market conditions, or are unavailable for a market.
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 146

DATA OBTAINED UNDER CONTRACT

GALLUP: Customer satisfaction measures for PBS are

compiled and processed by The Gallup Organization. The

Gallup Organization has been the world leader in the

measurement and analysis of people’s attitudes, opinions,

and behavior for over 60 years. The statistical confidence

level of the data obtained from Gallup is 95 percent. As a

result of this professional assistance, the level of confidence

in this data is very high. There is every assurance that the

customer satisfaction information is credible and that it is

verifiable and valid. Also, the customer satisfaction

measures have been audited within the last three years. 

Gallup also conducts employee engagement surveys for all

of GSA. The Gallup Q12 survey measures associate

attitudes to differentiate the top-performing workplaces

from the average and low-performing ones. This is

accomplished by the administration of an Agency-wide

survey that has been professionally designed and validated

and that asks associates to respond to questions that most

closely capture their perceptions of their workplace

environments, thereby deducing what is defined as

associate engagement. Gallup is encouraging users of the

Q12 survey to move away from percentile comparisons,

and are no longer providing GSA with percentile

information. 

MITRETEK SYSTEMS: The periodic comparison of

commercial rates versus the rates that are charged

customers, under the FTS 2001 telecommunications

programs, are performed by Mitretek. Mitretek has

developed specialized computer models to analyze

telecommunications cost.

Appendix 1: Data Sources
As GSA moves towards complete integration of budget and performance, it has replaced its stand alone Performance Plan with a Performance Budget.

The following measures and targets were used in FY 2004 and were reflected in the FY 2005 Congressional Justifications, not the FY 2004 Performance

Plan (dated April 2003). The 21 Key Performance Measures are highlighted below. The results for the remaining performance measures will be published

on GSA’s Web site in December, 2004 (www.gsa.gov/annualreport). A list of measures reported in the FY 2003 Performance and Accountability Report

(PAR) that are no longer reported externally can be found in Appendix III. Dollars in millions (M).

A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 147

Appendix 11: Summary Chart of Goals and Measures

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL RESULTS

1: PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS

PBS Achieve a highly satisfied

overall customer satisfaction level of 68% by 

FY 2004.

Percent highly satisfied 

tenants in leased space.

82% 84% 66% 68% 70% Goal

Met

PBS Deliver leased space to our

clients at not less than 8%

below industry for office

space in FY 2004.

Cost of leased space relative

to the market.

11.0% 14.0% 7.41% 8.0% 10.6% Goal

Met

PBS Achieve an overall “highly”

satisfied customer satisfaction rating of 73% on the

ordering official survey by

FY 2004.

Percent of highly satisfied

customers on the ordering

official survey.

59% 66% 72% 73% TBD TBD

PBS Execute energy conservation

goals while increasing customer satisfaction rating to

69% by FY 2004 in owned

space.

Percent of highly satisfied

tenants in owned space.

N/A N/A 67.6% 69.0% TBD TBD

PBS Attain a highly satisfied customer satisfaction score of

75% on the quality of service delivered by FY 2004.

Percentage of customers

indicating satisfaction on

annual customer survey. 

(Real Property Disposal)

N/A N/A 75% 75% TBD TBD

PBS Maintain “highly satisfied”

ratings of 93% on the

Property Disposal Survey.

Percentage of customers

indicating satisfaction on 

customer property disposal

transactional surveys. 

N/A N/A 90% 92% TBD TBD

PBS By FY 2004, Real Property

Disposal will complete 73%

of 49 Act disposals within

320 days.

Percentage of disposals 

completed within 320 days. 

N/A N/A 68% 73% TBD TBD

FSS Maintain 20% or better discount from manufacturer’s

invoice price. (Vehicle

Acquisition)

Percentage discount to 

customers from invoice

price.

19.1% 27.3% 26.3% >20% 33.1% Goal

Met

FSS Increase fill rate by 0.1% per

year from 95.2% to 95.4%

while maximizing inventory

turns.

Fill rate for requisitions. N/A N/A 95.3% 95.3% TBD TBD
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 148

Appendix 11: Summary Charts of Goals and Measures

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL RESULTS

1: PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS

FSS Increase customer satisfaction to the 75th percentile or

better for customer satisfaction in the government.

GSA Global Supply external

customer satisfaction survey

score.

N/A 75 79.6 79 TBD TBD

GSA Automotive external

customer satisfaction survey

score.

N/A 78.7 75.7 78 TBD TBD

GSA Fleet external customer

satisfaction survey score.

N/A 83 83.7 83 TBD TBD

Personal Property

Management external 

customer satisfaction 

survey score.

N/A 73 75 77 TBD TBD

Travel Program external 

customer satisfaction 

survey score.

N/A 72 72 71 TBD TBD

FSS Manage direct costs to

ensure that best value is

provided to customer agencies and the taxpayer.

Direct cost as a percentage

of revenue. (Commercial 

Acquisition)

N/A 11.6% 11.9% 11.7% TBD TBD

FSS Increase the number of

Federal agency customers

through TMSS. 

Number of TMSS users. N/A N/A N/A 1850 TBD TBD

FTS Provide Federal customers

with substantial savings as 

a result of purchasing FTS

telecommunications 

products and services.

FTS Telecommunications

pricing as compared to 

best commercial prices.

N/A $32.8M $574.1M $514M $705M Goal

Met

FTS Effectively plan and 

manage the post award 

implementation of the

Networx contract.

Manage post award milestones Planned vs. Actual.

(Long Distance)

N/A N/A N/A TBD TBD TBD

OGP Develop and issue effective

guidance and policies in

support of the Federal 

E-Authentication initiative.

Number of agency 

applications meeting EAuthentication credentialing policy standards. 

(out of universe of 24)

N/A N/A N/A 4 2 Goal

Not 

Met

OGP Deliver assisted services that

demonstrate acquisition and

project management excellence and result in solutions

that meet customer mission 

requirements.

Number of agencies using

Federal Identity

Credentialing Committee

policy standards for credentialing employees and contractors.

N/A N/A N/A 7 TBD TBD

OGP Establish a Component

Organization and

Registration Environment

Registry and increase adoption of common business

processes and/or key components that enable these

processes.

Number of common business processes and/or key

components adopted by

Federal programs.

N/A N/A N/A 12 TBD TBD

OCSC Leverage FirstGov technologies and solutions across

the Federal government.

Tax dollars saved as a result

of agencies sharing FirstGov

technologies.

N/A $9.0M $18.0M $30.6M $19.8M Goal

Not

Met
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 149

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL RESULTS

1: PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS continued

OCSC Help the Federal government become more citizencentric by increasing the

magnitude, quality, and outreach of Federal information

via various channels.

Total number of multi-channel contacts with the public

(citizen, business, government) per year.

40.8M 59.1M 209.7M 224.9M 241.9M Goal

Met

OCSC Government Web sites that

are citizen-centric and user

friendly. 

Agencies adopting FirstGov

common content model.

N/A N/A 0 of 75 4 of 75 TBD TBD

OCAO 80% of all changes to the

Federal Acquisition

Regulation are accomplished

within 40 weeks.

Percent of new FAR rules

completed within 40 weeks.

N/A 10% 10% 80% TBD TBD

OCAO Increase GSA Performance

Based Service contracting

actions.

Percent of GSA eligible 

service contract dollars

awarded as performancebased contracts.

15% 9% 24% 40% TBD TBD

2: ACHIEVE RESPONSIBLE ASSET MANAGEMENT

PBS Maintain the amount of

vacant leased space in PBS’s

leased inventory at 1.5% in

FY 2004.

Maintain vacant space in

the existing inventory of

space leased by PBS.

2.2% 2.0% 1.4% 1.5% 1.2% Goal

Met

PBS New construction projects

on schedule 84% of the

time by FY 2004.

Percent of construction

projects completed on

schedule.

75% 78% 68% 84% 80% Goal

Not

Met

PBS Improve the percentage of

repairs and alterations 

projects on schedule to 

86% in FY 2004.

Percent of R&A Projects on

schedule.

75% 87% 78% 86% 78% Goal

Not

Met

PBS Obligate 75% of Basic

Repairs and Alterations

budget for planned projects

by the end of FY 2005.

Percent of basic R&A obligated on planned projects

by the end of the fiscal year.

N/A N/A N/A Baseline TBD TBD

PBS Maintain the percent of

escalations on R&A projects

at or below 1.5% by 

FY 2004.

Percent of escalations on

R&A projects.

(1.0%) 3.0% 0.5% 1.5% TBD TBD

PBS Increase to 65% the percentage of government-owned

assets with a Return on

Equity of at least 6% by FY

2004.

Percentage of governmentowned assets with an ROE

of at least 6%.

N/A 54% 64% 65% TBD TBD

PBS Increase the percentage of 

owned assets with a positive

Funds From Operations to

75% by 

FY 2004.

Percentage of governmentowned assets achieving a

positive FFO.

N/A 74% 73% 75% TBD TBD

PBS Funds From Operations

from leased inventory

should be no less than $0 in

FY 2004.

Funds From Operations

from leased inventory.

N/A $78M $45M $0 TBD TBD
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 150

Appendix 11: Summary Charts of Goals and Measures

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL RESULTS

2: ACHIEVE RESPONSIBLE ASSET MANAGEMENT continued

PBS Decrease the vacant (available and committed) space

to 7.6% of the owned inventory by FY 2004.

Percentage of vacant and

committed space in the 

government-owned

inventory.

N/A 9.2% 8.3% 7.6% TBD TBD

FTS Improve the financial 

condition of Professional

Services.

Direct operating expense as

a percentage of gross margin.

N/A N/A N/A 52% TBD TBD

FTS Improve the financial condition of the IT Fund.Direct operating expense as

percent of gross margin.

(Regional IT Solutions)

N/A 50% 57% 48% TBD TBD

Direct operating expense as

percent of gross margin.

(National IT Solutions)

N/A 82% 81% 67% TBD TBD

Direct operating expense as

percent of gross margin.

(Regional

Telecommunications)

N/A 52% 59% 67% TBD TBD

Direct operating expense as

percent of gross margin.

(Long Distance)

N/A 33% 95% 52% TBD TBD

OGP Improve software asset management in government.Number of agencies (out of

24 major agencies) that

implement the standard 

software asset management

policy.

N/A N/A N/A 4 TBD TBD

OGP Increase the number of Federal

programs using effective

Web-enabled real property

management systems.

Number of Federal programs

with effective Web-enabled

software for the management of real property.

N/A N/A N/A 3 TBD TBD

OGP Implement eTravel Service. Number of vouchers

processed through eTravel

Service.

N/A N/A N/A 68,000 TBD TBD

3: OPERATE EFFICIENTLY AND EFFECTIVELY 

PBS Maintain operating service

costs in office and similarly

serviced space at 12% or

more below private sector

benchmarks.

Cleaning/Maintenance/Utilit

y costs in office and similarly serviced space—percent

below private sector benchmarks.

16.1% 17.0% 14.8% 13.4% 14.5% Goal

Met

PBS Maintain the percentage of

escalation on construction

projects at 1%.

Percentage of escalations on

construction projects.

6% 7% 0.6% 1.5% TBD TBD

FSS Reduce the cycle time to

process contract offers.

(Commercial Acquisition)

Cycle time to process

offers. (days)

115

Days

110 

Days

92

Days

105 

Days

87

Days

Goal

Met

FSS Reduce the mark-up for 

GSA stocked supply items

toward the goal of 34.0%.

Percent of mark-up for

stocked items.

N/A 48.5% 45.9% 45.0% 42.8% Goal

Met

FSS Maintain the gap between

GSA Fleet rates and 

commercial rates at 20% 

or more.

Percentage GSA leasing

rates below commercial

rates on the GSA Vehicle

Leasing Schedule.

N/A N/A 36.86% >20% 31.67% Goal

Met
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 151

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL RESULTS

3: OPERATE EFFICIENTLY AND EFFECTIVELY continued

FSS Reduce cycle time to

process modifications from

23 to 20 days. (Commercial

Acquisition)

Cycle time to process modifications. (days)N/A 23 16 22 TBD TBD

FSS Rationalize governmentwide

Acquisition Contract’s to

reduce overlap and result in

contract vehicles that are

more complementary to

MAS.

Percentage of new GWACs

and GWACs with significant

changes reviewed by

Contract Vehicle Review

Board.

N/A N/A N/A 100% TBD TBD

FSS Ensure the timely, effective,

and efficient disposition of

excess and surplus personal

property by decreasing the

time it takes to complete

disposal action for excess

property from 99 to 86 days.

Cycle time for disposal

process (days) for personal

property.

N/A 99 83 87 TBD TBD

Percent of personal property

reported electronically.

N/A N/A 86% 99% TBD TBD

FSS Maximize percentage discount savings from the City

Pair Program.

Percentage discount from

walk-up fare.

N/A 72% 72% 74% TBD TBD

FSS Implement transition of

Federal agencies to eTravel

Service by Dec 31, 2004 and

complete migration to eTS

by Sept 30, 2006.

Number of agencies migrating to eTravel Service.N/A N/A N/A 8 TBD TBD

FTS Increase operational 

capacity for Professional

Services.

Number of FSS Schedules

for which we provide acquisition support.

N/A N/A 3 8 TBD TBD

FTS Meet customer requirements for transaction cycle

time.

Percent of negotiated award

dates for service and 

commodities that are met

or bettered. (Regional IT

Solutions)

N/A 93% 91% > 93% 88% Goal

Not

Met

FTS Meet customer requirements

for transaction cycle time. 

Percent of negotiated award

dates for service and commodities that are met or bettered. (National IT Solutions)

N/A 88% 95% > 93% TBD TBD

4: ENSURE FINANCIAL ACCOUNTABILITY

FSS Consolidate other agencies’

vehicles to reduce the 

overall cost of fleet to the

government.

Annual Savings to the government ($ million) per cost

benefit study.

N/A $1.87 $3.10 $3.56 TBD TBD

CFO Increase the percentage of

vendor invoices received by

Electronic Data Interchange

through the Internet.

Percent of vendor invoices

received electronically.

24% 38% 44% 50% 56% Goal

Met

CFO Increase the percentage of

vendor payments by 

electronic media such as

Electronic Funds Transfer

and purchase card.

Percent of vendor payments

paid electronically.

79% 79% 88% 85% 92% Goal 

Met
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 152

Appendix 11: Summary Charts of Goals and Measures

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

ACTUAL

FY 2004

TARGET

FY 2004

ACTUAL RESULTS

5: MAINTAIN A WORLD-CLASS WORKFORCE AND WORLD-CLASS WORKPLACE

OCAO Increase the use of Federal

Acquisition Institute Online

training.

Number of FAI online

training instances completed

N/A 19,280 19,390 21,300 TBD TBD

CPO Increase GSA associate

engagement.

Percentile rank in the

Gallup Q12 survey, which

measures the engagement

of the workforce.

N/A 67th 75th 75th 69th Goal

Not

Met

Grand Mean Score N/A 3.76 3.83 3.88 3.89

6: CARRY OUT SOCIAL, ENVIRONMENTAL AND OTHER RESPONSIBILITIES AS A FEDERAL AGENCY

PBS Improve energy reduction

in standard facilities to

22.6% below the FY 1985

baseline by FY 2004.

Percent reduction on 

energy consumption 

from FY 1985 baseline.

18.4% 22.5% 18.6% 22.6% 22.4% Goal

Not

Met

FTS Obtain best value solutions

through competition.

Percent of task and delivery

orders subject to fair opportunity process. (Regional IT

Solutions)

70% 70% 86% > 85% 96% Goal

Met

Percent of task and delivery

orders subject to fair opportunity process. (National IT

Solutions)

N/A 70% 86% > 85% TBD TBD

Percent of task and delivery

orders subject to fair opportunity process. (Regional

Telecommunications)

N/A N/A N/A >60% TBD TBD

Percentage of dollar value of

eligible service orders

awarded with performancebased statements of work.

(Regional IT Solutions)

N/A N/A N/A 40% TBD TBD

Percentage of dollar value of

eligible service orders

awarded with performancebased statements of work.

(National IT Solutions)

N/A N/A N/A 40% TBD TBD

Percentage of dollar value of

eligible service orders

awarded with performancebased statements of work.

(Regional

Telecommunications)

N/A N/A N/A 40% TBD TBD

OSBU Meet or exceed goal of providing contracting opportunities to small 

businesses.

Percentage of contracting

opportunities provided to

small business.

40.1% 44.35% 45.72% 43.0% TBD TBD
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 153

In FY 2004, GSA made a conscientious effort to reduce the number of goals reported externally in order to highlight the goals that can accurately and

succinctly reflect GSA’s performance. The complete list of FY 2004 Performance Goals can be found in Appendix II. The following goals are no longer

being reported externally.

Appendix 1i1: Performance goals and Measures no Longer Reported

1: PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS

PBS Improve customer satisfaction scores. Realty services satisfaction survey.

PBS Maintain a 90% tenant satisfaction rating in newly constructed

buildings.

Improve customer satisfaction in newly constructed buildings.

FSS Increase value to the customer; provide creative solutions,

innovative services, and products. 

Growth in Federal agency usage of FSS programs.

FTS Increase customer satisfaction, indicating progress in service

delivery at best value. 

Percent of customers indicating satisfaction on annual customer

survey.

FTS Assist customers in achieving savings in the acquisition of

products and services. (Network Services—Regional

Telecommunications) 

Cost savings in major metro areas.

OGP Ensure adoption of Federal Premier Lodging (FPLP) within the

77 target markets to meet Federal travelers’ needs, reducing

overall government spending. 

Dollar savings to government over corporate rate.

OGP Move Federal agencies to commercial payment process for mail

to drive agencies to be more strategic in their operations. 

Dollar values of payments to USPS made through commercial

processes.

OGP Support authentication needs for eGov initiatives. Number of eGov initiatives with completed authentication needs

assessments and determined solution sets.

OGP Facilitate the consistent use of XML for Federal eGov initiatives. Number of eGov initiatives adopting XML recommendations.

OGP Increase the number of agency programs using OGP-facilitated

performance measures.

Number of agency programs that use OGP-facilitated

performance measures.

OCSC Participate formally in the governance structure of all eGov and

Homeland Security initiatives that have State/local implications.

Number of eGov initiatives with state/local implications that the

Office of Intergovernmental Solutions is part of the governance

structure.

Desired level of state, local, and international participation in

Federal IT projects.

OCSC Improve position of GSA as valuable information resource for all

audiences.

Process improvements and management reforms implemented.

Number of GSA.gov Web site pages views.

OPI Meet OMB targets for study and/or direct conversion of

commercial FTEs as reported on GSA FAIR Act Inventory. 

Number of FTE positions studied. Dollars saved.

2: ACHIEVE RESPONSIBLE ASSET MANAGEMENT

PBS Increase overall potential revenue. Percent of potential revenue received.

PBS Increased Funds from Operations. Funds from Operations.

PBS Reduce the amount of non-revenue producing space to 10.4% in

government-owned inventory in FY 2004.

Percent of non-revenue producing space in government-owned 

inventory.

PBS Reduce the amount of non-revenue producing space in the

leased inventory.

Percent of non-revenue producing space in leased inventory.

CIO Provide a secure IT environment. Percent of high-risk vulnerabilities resolved within the 30-day of

report.

PERFORMANCE GOALS PERFORMANCE MEASURES
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FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 154

3: OPERATE EFFICIENTLY AND EFFECTIVELY

PBS All new buildings to be LEED certified. Improve percentage of new buildings LEED registered.

PBS Reduce operating costs. Operating cost per $100 business volume.

FTS Provide timely and effective telecommunications service. Average number of days to complete contract modifications for

FTS 2001 and for crossover.

FTS Improve acquisition process and methods to reduce time to

award for local telecommunications. 

Average number of days to complete contract modifications.

FTS Provide timely and effective service delivery. Percent of time negotiated completion date for local network

service is met or bettered.

FTS Provide competitive prices to customers. Percent of dollar savings between Independent Government

Cost Estimates (IGCE) and award amounts.

OGP Improve clarity of OGP polices, regulations and guidelines to

increase efficiency of government management and operations. 

Number of significant regulations and guidelines updated.

OGP Increase sharing of management systems to allow for better

decisions-making, accountability, and cost avoidance. 

Number of agency programs that use OGP shared management

systems to support decision-making.

OGP Implement President’s Management Agenda for competitive

sourcing (identifying and competitively sourcing or directly

converting commercial functions).

Percent of OGP Fair Act inventory competed or directly

converted.

CIO Improve Capital Planning and Investment control and

implantation process.

Percent of major IT investment projects that are within 10% of

planned cost and schedule.

CIO Improve Capital Planning and Investment control and

implantation for the 5 GSA led eGov initiatives. 

Percent of the major 5 GSA led eGov initiatives IT investment

projects that are within 10% of planned cost and schedule.

CIO Provide secure, reliable, and cost effective IT infrastructure

services. 

Percent of customer satisfaction.

4: ENSURE FINANCIAL ACCOUNTABILITY

FSS Ensure accurate forecasting and cost management to leverage

operations and optimize pricing. 

Planned vs. Actual costs.

Includes direct operating expense, procurement support,

supply distribution, and rent. 

Direct cost as percent of revenue (revenue is total sales figure).

Includes all costs of operations, prior year adjustments, and

depreciation.

Total cost as percent of revenue.

FTS Increase business volume. Percent of growth in business (revenue).

FTS Achieve net operating results to increase retained earnings in IT

fund for future capital investments.

Net operating results.

FTS Implement business process efficiencies to reduce cost of

delivering products.

Direct operating expenses as a percent of gross margin.

FTS Ensure full cost recovery of operations. Contribution Index.

CFO Meet all requirements to maintain a clean opinion on GSA’s

financial statements.

Receive clean opinion on financial statements.

OCFO Eliminate material weaknesses for financial and non-financial

components under FMFIA.

Zero internal control material weaknesses (financial and nonfinancial components).

PERFORMANCE GOALS PERFORMANCE MEASURES

Appendix 1i1: Performance Goals and Measures no Longer Reported
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 155

5: MAINTAIN A WORLD-CLASS WORKFORCE AND WORLD-CLASS WORKPLACE

PBS Improve customer productivity scores. Improve Reality Transaction Survey, Productivity.

FTS Recruit, hire, develop, and retain a highly skilled workforce. Percent of IDPs updated annually and documented. 

Average number of training hours completed in mission critical

areas of acquisition technology, business, and project

management.

OGP Achieve 55th percentile ranking in the Gallup Q12 Survey. Performance Ranking in the Gallup Q12 Survey.

OGP Increase participation at OGP supported educational venues and

activities to increase workforce efficiency.

Number of participants at OGP supported educational venues

and activities.

OGP Develop a competency based assessment process for GSA

acquisition workforce.

Number of GSA 1102’s who complete competency assessment

process.

Percent of GSA 1102’s that fully qualify under Clinger Cohen.

OCPO Improve the value of GSA Online University. Percent increase registrations.

OCPO Develop and implement strategies to address skill gaps in

Mission Critical Occupations (MCO).

Reduce Gaps in MCO.

OCPO Rank in the 75th percentile in the Gallup Q12 survey. Increase grand total mean score from the 67th to the 75th

percentile.

OCPO Develop a stronger linkage between organizational and

individual performance.

Develop new performance appraisal system linking appraisals to

performance metrics..

6: CARRY OUT SOCIAL, ENVIRONMENTAL, AND OTHER RESPONSIBILITIES AS A FEDERAL AGENCY

FSS Increase customer agency support of governmentwide

socioeconomic goals.

Percent of socioeconomic business volume.

FTS Achieve and maintain an appropriate level of procurements with

small business.

Percent of procurements with small business as compared to

total prime contracts.

OGP Provide accessible vendor product information to Federal

agencies to support Section 508 procurement requirements to

achieve an IT environment accessible to all citizens.

Number of vendors with templates on the “Buy Accessible”

database.

OGP Work with OPM to increase percent of Federal employees who

telework.

Percent of Federal employees who telework.

OCSC Disseminate strategic information messages to all audiences. Move strategic messages to industry standards.

PERFORMANCE GOALS PERFORMANCE MEASURES
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 156

Appendix IV: Improper Payments Information Act (IPIA)

RECOVERY AUDIT PROGRAM

GSA’s recovery audit contractor came on board in April 2001

and initially performed an audit of GSA’s disbursement

records and vendor statement of accounts for FY 2000. This

process continued for FY 2001 and 2002. In FY 2003 and

2004, recovery audit activities were expanded to include a

review of our GSA’s commodity and service contracts.

In FY 2003, a combined total of $14.4 million in payment

errors was discovered through internal reviews and recovery

audit activities. Details regarding GSA’s recovery audit

program for FY 2003 are presented in the table below:

Since most of GSA’s business dealings with vendors are of a

reoccurring nature, it is anticipated that the vast majority of

the outstanding balance will be successfully collected.

During the life of the contract, the contractor has identified

$28.7 million in improper payments and GSA has recovered

$17.4 million of that amount.

GSA’s FY 2003 Recovery 

Audit Program Results

(in dollars)

Total Agency Costs $ 1,517,734

Agency Salaries & Expenses $ 77,055

Total Contracted Expenses $ 1,440,679

Paid $ 1,234,204

Due $ 206,475

Total Payment Errors Identified $ 14,409,125

Discovered By Contractor $ 7,536,288

Amount Unrecoverable $ 0

Amount Recovered $ 7,128,262

Amount Outstanding $ 408,026

Discovered Internally By GSA $ 6,872,837

Amount Unrecoverable $ 0

Amount Recovered $ 3,988,333

Amount Outstanding $ 2,884,504

The contractor has made recommendations to GSA to

strengthen internal controls over improper payments in the

PBS Lease Program. PBS has committed to dedicating more

resources to lease administration activities to improve

payment accuracy. Specifically, PBS has taken the

following actions to strengthen internal controls and

prevent further occurrences of improper payments:

1) Initiated a recurring program of peer reviews of lease

contracts to help identify and correct weaknesses in

regional work processes. 

2) Assembled a task force to explore factors affecting

the timely transmittal of lease documentation to

GSA’s finance center, as well as those factors

affecting the timely data entry into GSA’s accounting

system. 

3) Launched E-lease, a new tool that has been in the

pilot state that will provide uniform templates and a

standard form for all lease transactions. 

GSA will continue to be a valuable resource for those

Federal agencies still needing to implement recovery audit

programs. The management team at GSA recognizes the

importance of reducing government waste and is firmly

committed to reducing improper payments by carrying out

an effective recovery audit program.
Appendix V: Acronyms and Abbreviations

3GS 3rd Generation System

AAPC Accounting and Auditing Policy Committee

ACES Access Certificates for Electronic Services

ADP Automated Data Processing

AICPA American Institute of Certified Public Accountants

ANSI American National Standard Institute

APPAS Associate Performance Planning and Appraisal System

AWTF Acquisition Workforce Training Fund

BCA Board of Contract Appeals

BOMA Building Owners and Managers Association

BPA Blanket Purchase Agreement

BTU British Thermal Unit

CCR Central Contractor Registration

CEAR Certificate of Excellence in Accountability Reporting

CFO Chief Financial Officer

CIO Chief Information Officer

CONUS Continental United States

COTS Commercial-Off-The-Shelf

CRM Customer Relationship Management

CSBR Combining Statement of Budgetary Resources

CSC Client Support Center

CSRS Civil Service Retirement System

DHS Department of Homeland Security

DOD Department of Defense

DOI Department of Interior

DOL Department of Labor

A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 157
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 158

EA Enterprise Architecture

EAS Electronic Acquisition System

E-Authentication Electronic identity proofing of individuals and businesses,

based on risk of online services used

ECA External Certification Authority

EDI Electronic Data Interchange

EEO Equal Employment Opportunity

EFT Electronic Funds Transfer

eGov Electronic Government

EO Executive Order

EPA Environmental Protection Agency

eTravel A Web-based service for travel planning and authorization 

of reimbursement

eTS eTravel Service 

EuroUSN United States Navy based in Europe

EVMS Earned Value Management System

FAC Federal Acquisition Counsel

FAI Federal Acquisition Institute

FAIR Federal Activities Inventory Reform

FAR Federal Acquisition Regulations

FAS Federal Asset Sales

FASAB Federal Accounting Standards Advisory Board

FBI Federal Bureau of Investigation

FBF Federal Buildings Fund

FCIC Federal Citizen Information Center

FCICF Federal Consumer Information Center Fund

FECA Federal Employees Compensation Act

FedCIRC Federal Computer Incident Response Center

FEDS Federal Disposal System

FEDSIM Federal Systems Integration and Management Center

FEMA Federal Emergency Management Agency

FERS Federal Employees Retirement System

FFB Federal Financing Bank

FFMIA Federal Financial Management Improvement Act

Appendix V: Acronyms and Abbreviations
FFO Funds From Operations

FICA Federal Insurance Contribution Act

FISMA Federal Information Security Management Act

FMC Fleet Management Center

FMFIA Federal Manager's Financial Integrity Act

FMS Financial Management Service

FPDS Federal Procurement Data Base

FPLP Federal Premier Lodging Program

FPS Federal Protective Service

FRPC Federal Real Property Council

FRS Frame Relay Service

FSRM Federal Security Risk Manager

FSS Federal Supply Service

FSS-19 Commercial Acquisition and Supply Operating and 

Management Information System

FTE Full-Time Equivalent

FTR Federal Travel Regulation

FTS Federal Technology Service

FY Fiscal Year

GAAP Generally Accepted Accounting Principles

GAO Government Accountability Office

GISRA Government Information Security Reform Act

GM General Motors

GM&A General Management and Administration

GPDS General Services Administration Procurement Data System

GPRA Government Performance and Results Act

GSA General Services Administration

GSAP GSA Preferred

GSF General Supply Fund

GWAC Governmentwide Acquisition Contract

HAVA Help America Vote Act

HHS Health and Human Services

HR Human Resource

A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 159
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 160

HSSO Heads of Services and Staff Offices

HUBZone Historically Underutilized Business Zones

HVAC Heating, Ventilation/Air Conditioning

IAE Integrated Acquisition Environment

ID Identity

ID/IQ Indefinite Delivery/Indefinite Quantity

IDP Individual Development Plan

IG Inspector General

IGCE Independent Government Cost Estimate

IGTE Intragovernmental Transaction Exchange

IPIA Improper Payments Information Act

IRAS Intragovernmental Reporting and Analysis System

IRIS Inventory Reporting Information System

IT Information Technology

ITF Information Technology Fund

ITOMS Integrated Task Order Management System

ITSS IT Solutions Shop

IVR Interactive Voice Response

JFMIP Joint Financial Management Improvement Program

LEED Leadership in Energy and Environmental Design

LLP Limited Liability Partnership

MAA Metropolitan Area Acquisition

MAC Multiple Award Contract

MAS Multiple Award Schedule

MCO Mission Critical Occupation

MCOC Management Control Oversight Council

MD&A Management’s Discussion and Analysis

MFC Most-favored customer

MOA Memorandum of Agreement

Appendix V: Acronyms and Abbreviations
NASA National Aeronautics and Space Administration

NCC National Contact Center

NEAR National Electronic Accounting and Reporting 

NIB/NISH National Institute for the Blind/National Institute for the 

Severely Handicapped

NPIC National Passport Information Center

OASDI Old-Age, Survivors and Disability Insurance

OCAO Office of Chief Acquisition Officer

OCFO Office of Chief Financial Officer

OCIA Office of Congressional and Intergovernmental Affairs

OCIO Office of Chief Information Officer

OCPO Office of Chief People Officer

OCR Office of Civil Rights

OCS Office Citizen Services

OCSC Office of Citizen Services and Communications

OEM Office of Emergency Management 

OFPP Office of Federal Procurement Policy

OGC Office of General Counsel

OGP Office of Governmentwide Policy

OIG Office of Inspector General

OMB Office of Management and Budget

OMIS Office of Information Technology Integration Management 

Information System

OPI Office of Performance Improvement

OPM Office of Personnel Management

OPS Office of Professional Services

OSBU Office of Small Business Utilization

PAD Pre-Authorized Debits

PADC Pennsylvania Avenue Development Corporation

PAR Performance and Accountability Report

PART Program Assessment Rating Tool

PBS Public Building Service

PIB Procurement Information Bulletin

PMA President’s Management Agenda

A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 161
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 162

PMP Performance Management Process

PMT Performance Measurement Tool

POA&M Plans of Action and Milestones

PwC PricewaterhouseCoopers

R&A Repair and Alteration

RA Regional Administrators

ROADS Requisitioning, Ordering and Documentation System

ROE Return on Equity

RRB Ronald Reagan Building

SARA Services Acquisition Reform Act of 2003

SAS Statement on Auditing Standards

SBA Small Business Administration

SBU Small Business Utilization

SF133 Standard Form 133: Statement of Budget Execution

and Budgetary Resources

SFFAS Statement of Federal Financial Accounting Standards

SIOR Society of Industrial and Office Realtors

SSA Social Security Administration

STAR System for Tracking and Administering Real Property

TARPS Transportation, Accounts Receivable and Payable Systems

TBD To Be Determined

TMO Travel Management Office

TMSS Transportation Management Services Solution

TOPS Telecommunications Ordering and Pricing System

TOS Tracking and Ordering System

TSP Thrift Savings Plan

U&D Federal Personal Property Utilization, Donation, and Sales 

Program

USAF United States Air Force

Appendix V: Acronyms and Abbreviations
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 163

USDA United States Department of Agriculture

USPS United States Postal Service

USSGL United States Standard General Ledger

VA Veterans Administration

VERA Voluntary Early Retirement Authority

VoIP Voice over Internet Protocol

VSIP Voluntary Separation Incentive Payment

WCF Working Capital Fund

XML Extensible Markup Language
A PPENDICES

FY 2004 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 164

This report is available through our Web site at www.gsa.gov/annualreport

Also linked to that site is our 2004 Performances Plan 

and our past performance and accountability publications.

Other GSA Web pages of possible interest:

Firstgov.gov

GSA Homepage: www.gsa.gov

GSA Jobs : http://OCPO.gsa.gov/
FY 2003 Certificate of Excellence 

in Accountability Reporting