This Performance and Accountability Report for fiscal year (FY) 2003 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 (FMFIA) 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 our Web site choose the “Contact Us” button, and the Office of the Chief Financial Officer from the

pull-down list.

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 (OIG). 

Performance Section

This section provides the annual performance information as required by Office of Management and Budget (OMB)

Circular A-11 and the Government Performance and Results Act (GPRA). Included in this section is a detailed discussion

and analysis on the agency’s performance in FY 2003. For each Service and major Office, the results are presented by

each Performance Goal within the six GSA Strategic Goals. 

Financial Section

This section contains the details on GSA’s finances in FY 2003. An introduction letter from GSA's Chief Financial Officer

(CFO), 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. 

5

4

3

2

1

How to use this report
FY 2003 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 A BLE OF C ONTENTS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 2

Letter from the Administrator 5

MANAGEMENT’S DISCUSSION AND ANALYSIS

Mission, Values and Goals 9

Organization 10

Performance Summary and Highlights 13

FY 2003 Key Performance Measures within Strategic Goal 14

Performance Validation and Verification 15

The President’s Management Agenda 16

GSA’s Summary of Management Challenges Identified 

by the Inspector General 20

Management Controls, Systems and Compliance with Laws 21

Federal Managers’ Financial Integrity Act 21 

Statistical Summary of Performance 22

Federal Financial Management Improvement Act 24

Financial Summary 25

PERFORMANCE SECTION

Introduction to Performance 33

Performance by Service/Staff Office

Public Buildings Service 34 

Federal Supply Service 51

Federal Technology Service 58

Office of Governmentwide Policy 71

Office of Citizen Services and Communications 85

Office of the Chief People Officer 93

Office of the Chief Information Officer 98

Office of the Chief Financial Officer 102

Office of Small Business Utilization 106

Office of Performance Improvement 108

WWW.GSA.GOV
T A BLE OF C ONTENTS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 3

FINANCIAL SECTION

Letter from the Chief Financial Officer 113

Independent Auditor’s Report 115

Letter of Transmittal from the Inspector General 115

Report of Independent Auditors 117

Inspector General’s Report on Internal Controls over Performance Measures 130

Financial Statements

Principal Financial Statements 132

Notes to Principal Financial Statements 142

Required Supplementary Information 162

Supplemental Consolidating Statements 164

Supplemental Consolidated Statement of Operations 164

Supplemental Consolidated Statement of Cash Flows 166

Supplemental Information and Other Reporting Requirements 168

Management Challenges Identified by the Inspector General 168

Debt Management 180

Cash and Payments Management 181

Erroneous Payments Management 182

APPENDICES

Data Sources 185

Summary Chart of Goals and Measures 189

Acronyms and Abbreviations 197

FY 2003 Performance and

Accountability Report

I

n 2001, GSA associates embarked on a

performance improvement initiative to

“Create a Successful Future at GSA.” This

ongoing initiative focuses on improving GSA’s

organizational capabilities and performance in

providing services to other federal agencies

enabling them to achieve their missions of

service to the American people. Now, clear signs

of our progress toward that successful future are very apparent.

We have successfully implemented a rigorous Performance

Management Process throughout the agency and we are working

collaboratively together, as a team, to achieve the challenging,

customer-focused goals we have set for ourselves. 

The successful future that is emerging is one in which we are not

only meeting the increasing needs of federal agency customers

for our traditional services of providing superior workplaces and

acquisition management services, but we are also meeting the

emerging needs for new services, including providing Internet

access directly to the American people for a more efficient means

of obtaining information, completing transactions and

interacting with their government. 

For example, the vision of providing Internet access to citizens

seeking information about government programs or completing

transactions became a reality in FY 2003 as GSA launched its

FirstGov.gov Web site becoming a single portal or “front-door”

to the federal government. This was one of the President’s

Management Agenda eGov initiatives called, “USA Services.”

The FirstGov.gov Web site accommodated more than 60 million

visits in FY 2003 and this rate is expected to grow rapidly. Also

in FY 2003, USA Services handled 2.5 million telephone

inquiries and 100,000 e-mails. Federal agencies can rely on

GSA’s USA Services system to provide an integrated approach

for providing information about government agencies to the

public rather than having each agency develop their own

separate system. As a result of USA Services, GSA helped federal

agencies save approximately $21 million in FY 2003.

Additionally, GSA has actively participated in

other eGov initiatives to improve efficiency and

better serve the public, including the following:

GSA established the “Government without

Boundaries” pilot, which developed an

interoperable approach to provide federal,

state and local parks and recreation

information at a single Web site called

“Recreation One-Stop.” Vacationers will be

able to find all the information they need in

one place.

GSA established a partnership with Los Angeles County so

that they can add information about local programs and

resources to the federal GovBenefits Web site. This means

that Los Angeles County citizens can go to this Web site to

learn about benefits available from all levels of government.

GSA helped establish an intergovernmental Board of

Directors to coordinate the sharing of geospatial data

maintained by federal, state and local governments. This

information, which was formerly created by surveyors and

printed on maps, is now obtained through satellites and

advanced telemetry and is crucial to many government

functions including Homeland Security.

Finally, another example of new services provided by GSA is the

fact that GSA managed the disbursement of $650 million to

state governments as required by the Help America Vote Act.

This money enables states to purchase modern technology for

conducting elections.

FY 2003 was an exceptional year for GSA in terms of the volume

of products and services that federal agency customers, both

military and civilian, called upon us to provide.

GSA supply operations are a component of the National Supply

System, the global logistics network that sustains the

Department of Defense in times of peace and in times of war.

Our shipments are linked with military supply chains. GSA

shipments from the distribution centers have increased

L ETTER FROM THE A DMINISTRATOR

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 5

Letter from the Administrator

Continued on following page

Stephen A. Perry
L ETTER FROM THE A DMINISTRATOR

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 6

$124 million over FY 2002. This increase is due primarily to

military deployment activities.

In support of the rapid deployment of troops in Afghanistan, the

GSA Express Store in Kaiserslautern, Germany expedited the air

shipment of a variety of vitally needed supplies, including first

aid kits. The GSA Express Store in Sigonella, Italy provided

primary supply support to the Navy in the Mediterranean and

Gulf Theater. 

In support of Operation Iraqi Freedom, the Eastern Distribution

Center became a primary source of supply for military personnel

serving in Iraq and the Persian Gulf. Military being deployed

sharply increased their emergency orders, particularly during

January. We expedited thousands of orders for same day

shipment/next day delivery. 

Both military and civilian agencies used GSA’s Multiple Award

Schedule Contracts to acquire over $14 billion of Information

Technology products and services in FY 2003, eight percent

higher than FY 2002. 

GSA worked in partnership with the Department of Homeland

Security to establish their temporary National Headquarters in

Washington. This included furniture, furnishings and office

support for housing for more than 600 associates, including the

Homeland Undersecretary and Assistant Secretaries. Work was

accomplished in four phases, including the design of space,

contract award, procurement and installation of furniture.

We also provided telecommunications and support for move-in. 

In the area of telecommunication services, during FY 2003, the

low prices GSA has negotiated for the Network Services Long

Distance Program under the FTS 2001 contracts saved federal

agencies an estimated $506 million compared to the cost which

would be incurred using typical rates of a representative, large

commercial contract. Depending on the category of service,

savings range from 31% to 67% below best comparable prices

with an average savings of 56% below commercial pricing. 

One of GSA’s newest responsibilities stems from a new law

enacted to help state and local governments save money by

authorizing them to purchase information technology products

and services from contractors on GSA’s Federal Supply Service

Multiple Award Schedule. The regulatory action to implement

the authority contained in Section 211 of the Cooperative

Purchasing Act was completed in May 2003. To date, over

710 contractors have signed up to participate in cooperative

purchasing. GSA is conducting outreach and training through

state and local government purchasing associations.

The Reports Consolidation Act of 2000 requires each agency

head to assess the completeness and reliability of the financial

and performance data used in the report. I am pleased to report

that the data contained in this report is complete and reliable.

The data gathered through the Public Buildings Service STAR

system has been a concern, but the quality is improving. 

During FY 2003, GSA management uncovered cases where

certain GSA associates failed to follow proper acquisition

procedures in some Federal Technology Service Clients Support

Centers. This information was turned over to GSA Inspector

General for further investigation. We have taken disciplinary

and remedial action and will continue to do so to maintain the

integrity of our acquisition programs. 

We are pleased that for the 16th consecutive year, independent

auditors have given our financial statements a clean opinion.

However, the opinion of the independent auditors on the

effectiveness of GSA's Internal Control over financial reporting

identified areas of non-conformance related to our newly

implemented financial management system. Except for this

non-conformance and two prior year non-conformances,

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.

I invite you to review this performance and accountability report

to learn more about the accomplishments of GSA associates

during FY 2003 and our plans for the future.

Stephen A. Perry

Administrator

December 18, 2003
Management’s Discussion 

and Analysis

M A N A G EMENT ’ S D ISCUSSION AND A NALYSIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 9

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 these have become

“non-mandatory.” 

The mission of GSA comes to life as its associates are

guided by GSA’s values.

The importance of these values was underscored this year

when contracting irregularities came to light in a Federal

Technology Service (FTS) regional office. When this

occurred, the GSA Inspector General was requested to

conduct an audit, which found a number of improper

practices. Once the problems were known, GSA’s response

was forged by its values, particularly, “Ethics and integrity

in all we do,” and “Professionalism.”

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 53 years.

Mission, Values and Goals
M ANAGEM ENT ’ S D ISCUSSION AND A NALY SIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 10

GSA’s path to a successful future is outlined by the six

GSA-wide strategic goals. These goals were established to

provide a broad framework from which to build a foundation

for specific performance goals and provide a context for the

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

Performance Section 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 President’s Management

Agenda (PMA) (page 16). 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

twenty-first century. GSA manages FirstGov.gov, the awardwinning official Web portal of the government. It pulls

together more than 180 million federal and state government

pages. Here, the public can get easy-to-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 e-mail

via “Contact Us.” Just click 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.

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, DC.

The Central Office consists of three services responsible for

coordinating nationwide programs; two offices that support

federal agencies and citizen-oriented organizations,

respectively; and eight staff offices that support the GSA

organization. 

PUBLIC BUILDINGS SERVICE (PBS): 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’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 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
M A N A G EMENT ’ S D ISCUSSION AND A NALYSIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 11

or sells such items 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): FTS provides information technology (IT) solutions and telecommunications

to federal agencies and other authorized users. FTS connects

agencies with private sector providers through contracts

that leverage government buying power to provide sophisticated IT and telecommunications products and services at

competitive prices.

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 GOVERNMENT-WIDE POLICY (OGP): OGP provides

a policy infrastructure that supports federal agencies in the

management of property, technology and administrative

services. 

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, email,

telephone, fax or print. 
M ANAGEM ENT ’ S D ISCUSSION AND A NALY SIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 12

Central Office and the regions are supported by a number

of Staff Offices:

The OFFICE OF THE CHIEF PEOPLE OFFICER (OCPO)

provides human capital strategic direction, human

resources (HR) support and related functions. 

The OFFICE OF THE CHIEF INFORMATION OFFICER

(OCIO) guides the development and management of

GSA IT.

The OFFICE OF THE GENERAL COUNSEL (OGC) provides

legal support and policy guidance.

The OFFICE OF PERFORMANCE IMPROVEMENT (OPI)

identifies, develops and executes changes that will

enhance GSA management, particularly with respect to

competitive sourcing. 

The OFFICE OF SMALL BUSINESS UTILIZATION (OSBU)

provides opportunities for small and disadvantaged

businesses to participate in government acquisition. 

The OFFICE OF CONGRESSIONAL AND INTERGOVERNMENTAL AFFAIRS (OCIA) operates as a liaison between

GSA and Congress. 

The BOARD OF CONTRACT APPEALS (BCA) hears and

decides contract disputes between government contractors

and GSA or other executive agencies. 

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. 

In FY 2003, GSA had 12,901 full-time equivalent employees

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

However, in early FY 2003 the Federal Protective Service

and the Federal Computer Incident Response Center, representing over 500 FTE, were transferred to the Department

of Homeland Security (DHS). A detailed discussion of the

transfer of functions can be found in Note 13 of the

Financial Statements on page 159.

FTE BREAKDOWN BY ORGANIZATION

TOTAL 12,901

STAFF OFFICES

11%

1,459

PBS

49%

6,263

OIG

2%

279

OCSC

1%

103

OGP

2%

249 FTS

11%

1,481

FSS

24%

3,067

Our associates are partners in GSA’s business success.
M A N A G EMENT ’ S D ISCUSSION AND A NALYSIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 13

Performance Summary

and Highlights

During FY 2003, GSA performed its mission by pursuingits six agency-wide strategic goals, listed on page 9

which reflect the breadth of the Agency’s mission. The

GSA FY 2003 Performance Plan (available online at

www.gsa.gov) 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 2003 performance goals identified by GSA management

and related performance results. A chart of Key

Performance Measures follows the discussion. Detailed

performance information for all GSA Services and Offices is

contained in the Performance Section.

The chart below of Key Performance Measures and the

table that follows show that, in general, GSA met or

exceeded expectations for 65 percent of its FY 2003

performance goals. GSA is becoming more sophisticated in

its use of the Performance Measurement Tool (PMT) system

to closely track results. Future plans include fully incorporating performance measures into the performance evaluations of individual associates. Plans also include utilizing

the Performance Management Process (PMP) to integrate

budget and performance and focus on long-term outcomes.

Additional information on all performance goals with past

results can be found in the Performance Section beginning

on page 33 and in Appendix II, The Summary Chart of

Goals and Measures beginning on page 189. 

GSA PERFORMANCE GOALS SUMMARY

NUMBER OF GOALS

NUMBER OF PERFORMANCE GOALS

MET NOT MET TBD

PBS FSS FTS OGP OCSC STAFF TOTAL

0

10

20

30

40

60

50

BUSINESS LINE

PBS

FSS

FTS

OGP

OCSC

STAFF

TOTAL

13

5

10

10

6

7

51

9

1

5

5

0

6

26

1

1
M ANAGEM ENT ’ S D ISCUSSION AND A NALY SIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 14

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 WORLD-CLASS WORKPLACE

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

STRATEGIC GOAL/

SERVICE OR OFFICE

Public Buildings Service

Public Buildings Service

Public Buildings Service

Federal Supply Service

Federal Technology Service

Federal Technology Service

Public Buildings Service

Public Buildings Service

Federal Technology Service

Office of Chief Financial

Officer

Office of Chief Financial

Officer

Office of the Chief People

Officer

Office of Small Business

Utilization

MEASURES

Percent of Ordering Officials that are highly satisfied in their

business dealings with PBS

Percent of tenants that rate the PBS leased space and 

services as satisfactory or better

Cost of leased space relative to market

Percent growth in Federal agency usage of the FSS programs

over FY 2002’s $27.3B

Percent of FTS satisfied customers as indicated on annual 

customer survey

Percent of task and delivery orders subject to the fair 

opportunity process

Percent of non-revenue producing space in PBS inventory 

Percent of government-owned assets achieving a positive “Funds

from Operations”

Percent of negotiated award dates for services and commodities

that are met or bettered

Percent of vendor invoices received electronically by Electronic

Data Interchange (EDI) through the Internet

Percent of vendor payments made by electronic media such as

Electronic Funds Transfer and purchase credit card

Percentile rank in the Gallup Q12 survey which measures the

culture of the agency

Percentage of contracting opportunities provided to small business

FY 2003 

TARGET

68%

85%

14.25%

3.66%

$28.3B

75%

80%

11.5 %

82%

90%

50%

81%

67th 

percentile

40%

FY 2003

ACTUAL

72%

89%

7.41% 

23.8%

$33.8B

79.5%

85%

11.1%

73%

91%

44%

88%

75th 

percentile

TBD

FY 2003 Key Performance Measures

within Strategic Goal
M A N A G EMENT ’ S D ISCUSSION AND A NALYSIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 15

To make reporting useful and reliable it is imperative todemonstrate that performance measures are backed by

accurate, reliable data; valid reliable data are important to

support management decisions on a day-to-day basis. GSA

uses a broad range of performance goals and measures.

The data and the means to validate and verify the measures

are also diverse. A general discussion of each of those

sources follows. Appendix I includes the specifics of data

sources for the goals and measures. 

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 2003 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. Data quality is also maintained through

ongoing training. Finally, many of the problems with

the System for Tracking and Administering Real

Property (STAR) and other large computer systems are

related to the conversion of old databases “as is.”

As these databases are cleaned up, the errors from

this source will be eliminated.

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. 

3

2

1

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, 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

Performance Validation

and Verification

Timely, reliable information measures and affects performance in a real

time environment.
M ANAGEM ENT ’ S D ISCUSSION AND A NALY SIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 16

GSA has made significant progress in each of the five

initiatives under the President’s Management Agenda

(PMA). Each quarter, the President releases an Executive

Scorecard, which rates progress and overall status in each

management area. These scores are rated using a “traffic

light” system and are based on criteria released by the

Office of Management and Budget during fiscal year 2001.

As of September 30, 2003, GSA was green on progress

in four out of the five initiatives; those initiatives were

Human Capital, Electronic Government, Financial

Management and Competitive Sourcing. The following

pages provide a brief description of each initiative,

provides the current status of the management program

and describes our progress to “get to green” as GSA

implements the PMA with the ultimate goal of improving

government performance and providing better service

to citizens. 

The President’s Management Agenda

GSA’S STATUS AND PROGRESS

Human Capital

Competitive Sourcing

Financial Performance

E-Government

Budget and Performance Integration

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.
M A N A G EMENT ’ S D ISCUSSION AND A NALYSIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 17

PMA

BACKGROUND: The goal of competitive sourcing, one of

President Bush’s Management Agenda 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 “red” to “yellow” on the President’s quarterly

Executive scorecard for “Current Status. ” This score was

achieved during the 4th quarter of FY 2003. Additionally,

the agency has developed a long-term competitive sourcing

plan that covers potential studies through FY 2007,

completed 3 Streamlined Competitions under the Revised

Circular of the FTS’ Financial Service Centers within 90 days

and completed 1 Standard Competition under the old

Circular of FSS’ National Customer Service Center in

15 months. Currently, GSA has a number of studies

underway for FY 2004. Finally, GSA submitted its FY 2003

FAIR Act Inventory to OMB, with justifications, on June 30,

2003 and is awaiting guidance from OMB for its “Green”

plan or long-term plan. 

PROGRESS: GSA completed four competitions (1 Standard

and 3 Streamlined) covering a total of 146 FTE in the 4th

Quarter of FY 2003. The Office of Performance

Improvement (OPI) provided 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 Government-wide 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 monthly report on all of GSA’s Competitive

Sourcing Studies with detailed information on costing data,

key milestone dates for study completion and the numerous

key officials participating in each study. 

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 is currently “red” in status but is on track to

improve its status to yellow. The agency is in the process

of developing organization specific Human Capital

Strategies for eight of its major organizations. These strategies will link business plans to the agency’s overall Human

Capital Strategic Plan and the GSA Strategic Plan. In effort

to link all of these strategies together the agency will issue

a performance appraisal policy based on these plans so

managers and associates can link individual performance to

the GSA mission. 

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

initiative. Among many other activities, during FY 2003,

GSA assessed skill gaps of its associates and developed

plans to address them for 3 mission critical occupations:

Financial Management, Realty Specialists and Acquisition

personnel. GSA also developed succession plans for its

Executive Leadership Corps and the above mentioned

mission critical occupations. In turn, it developed human

capital measures for GSA and is developing a Human

Capital Accountability System. As part of this accountability

system the Human Capital performance measures will be

part of individual assessment ratings. During the last year

GSA developed and implemented a performance rating

system for its Senior Executive Service and intends to

cascade this process to all associates in the coming year.

Strategic Management 

of Human Capital Status Progress Competitive Sourcing Status Progress
M ANAGEM ENT ’ S D ISCUSSION AND A NALY SIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 18

BACKGROUND: As part of the President’s Management goal

to create a citizen-centered electronic government, he has

outlined a number of criteria for agencies to meet to

achieve this aim. A citizen-centered government could

reduce redundant, wasteful spending because it would

consolidate multiple citizen service projects into a single

solution. Under this initiative, GSA continues to make

strides in providing a model for other agencies in the area

of electronic government. GSA’s Office of Citizen Services’

FirstGov program provides such a model. However, the

agency isn’t just looking at its external electronic government program, but also its internal IT management. During

the past year, GSA has strengthened its business cases used

to justify IT spending, ensured that projects are well

managed and improved system security.

STATUS: As of this date, the Agency remains “red” in status.

GSA is working diligently on improving this rating by

1) developing a business case for the Agency enterprisewide Customer Relationship Management (CRM) system,

2) meeting IT investment cost/schedule/performance goals,

3) continuing to make progress on completing GSA's

Financial Management Enterprise Architecture and 4) certifying and accrediting 80% of the agency’s operational IT

systems. GSA’s goal is to certify and accredit 80% of its

operational IT systems by FY 2005.

PROGRESS: The agency remains “green” in progress. The

Office of the Chief Information Officer (OCIO) is GSA’s lead

for the President’s Management Agenda government-wide

initiative “Expanding Electronic Government.” The five

Electronic Government projects for which GSA has the lead,

for all government agencies, serve both internal

and external customers. The five projects include

eAuthentication, eTravel, Integrated Acquisition, Federal

Asset Sales and USA Services. GSA has developed a to-be

enterprise architecture for financial management. 

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: Currently, GSA remains “yellow” on the Executive

Scorecard. GSA needs to demonstrate that its business line

managers use the financial information in the accounting

system to make daily business decisions. The agency plans

to provide the Office of Management and Budget (OMB)

with a demonstration of decision-makers’ use of financial

data to implement program decisions during December

2003. 

PROGRESS: As of September 30, 2003 GSA continues to be

green in program progress. GSA received a clean audit

opinion for the 16th consecutive year and successfully met

its accelerated and new financial reporting requirements.

The agency also met the other standards for success

required by the President and his management team. GSA

remains in compliance with the Federal Managers Financial

Integrity Act, has no material or internal control weaknesses

and is in compliance with the Anti-Deficiency Act. In

addition, GSA is developing a sequencing plan for

migrating its remaining legacy financial applications into the

agency’s core accounting system, Pegasys. GSA also implemented a number of initiatives to improve financial

performance, such as establishing a project management

office, a recovery audit program and developing a quality

assurance program for its intergovernmental accounting

transactions. 

Improved Financial

Status Progress Performance

Expanded Electronic

Status Progress Government
M A N A G EMENT ’ S D ISCUSSION AND A NALYSIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 19

BACKGROUND: This initiative is aimed at providing a greater

focus on performance. It will enhance the quality of information on program results so the government can make

better spending decisions. The outcome will be better

control over resources used and accountability for results by

program managers.

STATUS: GSA’s score for this initiative remains “red” for

current status. The earliest GSA can improve its status to

yellow is during the first quarter of FY 2006. This is when

GSA can have less than 50% of its PARTed programs with

results not demonstrated for two years in a row. 

PROGRESS: The agency is “yellow” in progress. GSA faces

several large challenges on this initiative, such as, developing 1) long term outcome goals, 2) efficiency measures

that meet OMB definitions and 3) determining the marginal

costs or savings of changing performance targets. GSA

continues to work with OMB on what long-term outcome

goals and measures would be optimal. Additionally, the

agency is making steady progress on its Activity-Based

Management program. Finally, the Administrator continues

to conduct quarterly reviews of each organization’s financial

and performance results.

Budget and Performance

Status Progress Integration

The electronic “front door” for

the federal government.
M ANAGEM ENT ’ S D ISCUSSION AND A NALY SIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 20

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 twentyfirst 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 Inspectors General of major federal agencies to report on the mostsignificant management challenges facing their respective agencies. The Office of Inspector General’s (OIG) 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 Reports to

the Congress. 

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.
M A N A G EMENT ’ S D ISCUSSION AND A NALYSIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 21

FEDERAL MANAGERS’ FINANCIAL INTEGRITY

ACT (FMFIA) — SECTION 2 

During the fiscal year that ended September 30, 2003,GSA continued its efforts to ensure that the agency has

an efficient and effective system of financial programs 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 2003, under the chairmanship of the Deputy

Administrator, the Management Control Oversight Council

examined a wide range of management issues that were

brought to its attention. When specific control weaknesses

were identified, the process of developing and implementing corrective action was put into action immediately.

Even when control weaknesses could not be discerned, the

Council continued to pursue problem areas to attempt to

identify an appropriate course of action to address them. 

In FY 2003, no material weaknesses were identified as

provided in the assurance statement provided in the

Administrator’s letter at the beginning of this report.

However, to improve GSA’s efficiency and effectiveness,

one new reportable condition was identified and is being

addressed concerning GSA's contract management.

A number of audit findings also identified this area as a

significant issue. 

Specific contract-related issues included weak contractor

selection criteria; task orders that were poorly crafted and

did not contain appropriate clauses; and inadequate

contract oversight to ensure contractors were delivering

required quality goods and services. In the case of the FTS,

it was discovered that some FTS services in the regions

went beyond FTS's legal authorities, conducted inappropriate splitting of procurements and engaged in inadequate

competition. A high-level team has been formed to address

agency-wide contract management problems and FTS

management has been directed to develop an aggressive

action plan, which is now being implemented.

The management team at GSA is committed to working

aggressively to correct this condition. GSA management is

confident that the Agency’s action plans 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

United States Capitol
M ANAGEM ENT ’ S D ISCUSSION AND A NALY SIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 22

STATISTICAL SUMMARY OF PERFORMANCE

Section 2, Internal Control Systems – Material Weaknesses

STATUS OF FY 2002 MATERIAL WEAKNESSES

GSA reported three material weaknesses at the end of

FY 2002. During FY2003, two of the material weaknesses

(FPS Control Centers and Security Enhancements in Federal

Facilities) were transferred to the DHS and removed as GSA

material weaknesses. However, prior to the transfer, GSA

completed all corrective actions for the material weakness

FPS Control Centers and the material weakness was closed.

In order to substantiate closure of the material weakness,

FPS surveyed all FPS Regional Directors to determine the

effectiveness of corrective actions. The survey revealed that

the weakness was corrected and the material weakness was

adequately resolved.

NUMBER OF MATERIAL WEAKNESSES

Prior Years

1997 Report

1998 Report

1999 Report

2000 Report

2001 Report

2002 Report

2003 Report

47

2

2

3

3

3

3

3

45

2

0

0

0

0

0

2

0

2

1

0

0

0

0

0

2

2

3

3

3

3

3

0*

NUMBER AT

BEGINNING 

OF YEAR

NUMBER 

CORRECTED

NUMBER

ADDED

NUMBER 

REMAINING END

OF FISCAL YEAR

*The Material Weakness “Security Enhancements in Federal Facilities” was transferred to the DHS and GSA no longer has reporting responsibilities. The other

DHS Material Weakness “Federal Protective Service (FPS) Control Centers” was corrected prior to transfer.

GSA also completed all corrective actions associated with

the third weakness, Multiple Award Schedule (MAS)

Program. In order to correct this weakness, FSS implemented the Offer Registration System module of FSS

OnLine. OIG reviewed the corrective actions taken by FSS

and concurred with the decision to close the material

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

M A N A G EMENT ’ S D ISCUSSION AND A NALYSIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 23

SYSTEMS NON-CONFORMANCES

As required by Section 4 of the FMFIA, GSA evaluates its

financial management systems annually for compliance

with the federal financial management systems requirements identified in OMB Circular No. A-127, Financial

Management Systems. 

Based on all review work performed during 2003, it is

GSA’s conclusion that it is in substantial compliance with

the requirements referred to in Section 4 of FMFIA and the

Federal Financial Management Improvement Act (FFMIA)

except for a new systems non-conformance relating to

financial reconciliation and monitoring controls. In addition,

progress continues to be made in addressing two prior-year

systems non-conformances. These non-conformances relate

to the need to improve network and application system

security controls and the need to improve systems development, implementation and change control processes.

RECONCILIATION AND MONITORING CONTROLS

As a result of the FY 2003 financial statement audit, certain

internal control weaknesses were identified regarding

reconciliation and monitoring controls surrounding the

financial system. These weaknesses included untimely and

incomplete reconciliations, insufficient reconciliation

documentation and unreconciled differences that were not

resolved in a timely manner. 

To address these issues, management will develop and

implement appropriate reconciliation policies and procedures. In addition, management will monitor reconciliation

results on a monthly basis to ensure that such activities are

being performed effectively. These actions will alert senior

management of deficiencies in control activities in a timely

manner so that adequate corrective actions can be taken.

More specific action plans will be finalized in January 2004.

NETWORK AND APPLICATION SECURITY CONTROLS

Significant progress was made during 2003 to address issues

raised in prior years. Specifically, OCIO continued to: issue

additional IT security policy guidelines, enhance systems

monitoring and Federal Computer Incident Response

Capability incident reporting, provide security awareness

training, maintain an IT security policy compliance database

and provide monthly and quarterly IT security reports for

management review. 

NUMBER OF SYSTEMS NON-CONFORMANCES

Prior Years

1997 Report

1998 Report

1999 Report

2000 Report

2001 Report

2002 Report

2003 Report

8

0

0

0

2

2

2

2

8

1

2

0

0

0

0

0

0

1

2

2

0

0

0

1

0

0

0

2

2

2

2

3

NUMBER AT

BEGINNING 

OF YEAR

NUMBER 

CORRECTED

NUMBER

ADDED

NUMBER 

REMAINING END

OF FISCAL YEAR
M ANAGEM ENT ’ S D ISCUSSION AND A NALY SIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 24

However, GSA still needs to more effectively implement

and enforce its existing security policies and guidelines.

To address this challenge, GSA’s OCIO has recently instituted

a vulnerability mitigation program, which includes internal

and external server scanning, war-dialing for modems and

scanning of wireless networks to identify and correct

potential security vulnerabilities. In addition, OCIO plans

to enhance its periodic IT security reviews to promote

improved IT security policy compliance. The planned target

date to initiate this latter action is January 2004. 

Also, GSA’s Services and Staff Offices (SSO) will take

additional actions to strengthen network and application

security controls. Appropriate action plans to address these

recommendations are being developed and should be

finalized by January 2004. 

SYSTEMS DEVELOPMENT, IMPLEMENTATION AND CHANGE

CONTROLS

Additional efforts are still needed to improve controls

relating to system development and implementation

processes at GSA. During the past year, GSA has made

progress in this area. Specifically, OCIO initiated efforts to

update the Systems Development Life Cycle (SDLC) policy,

which incorporated quality assurance program requirements and initiated action to establish an agency-wide

Interoperability Control Board. OCIO plans to complete the

SDLC policy by February 2004.

In addition, GSA’s SSOs will take additional actions to

strengthen change control policies and procedures and

implement a systems development life cycle for GSA’s

financial systems. Appropriate action plans to address these

recommendations are currently being developed and will

be finalized by January 2004. 

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 Standard General Ledger (SGL) at the transaction level. Under this 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 General

Accounting Office (GAO) audit reports, annual financial

statement audits, A-127 questionnaire results, Federal

Information Security Management Act compliance reviews

and other systems-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 2003 except

that we identified an instance of non-compliance with

the Federal financial management system requirements of

FFMIA. This non-compliance relates to the lack of adequate

reconciliations and monitoring controls surrounding those

systems. 

GSA’s associates are working together to fulfill 

GSA’s management information requirements.
M A N A G EMENT ’ S D ISCUSSION AND A NALYSIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 25

THE ROAD TO ACCOUNTABILITY – 

FINANCIAL HIGHLIGHTS

For the 16th straight year, GSA’s financial statementsreceived a clean audit opinion. The independent

accounting firm of PriceWaterhouseCoopers, LLP (PwC)

issued the FY 2003 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 U.S. GAAP for Federal entities are the standards prescribed by the Federal Accounting Standards

Advisory Board (FASAB). 

OVERVIEW OF FINANCIAL POSITION

ASSETS: Total assets were $25,778 million at the end of

FY 2003. This represents an increase of $1,369 million

(5.6 percent) over the previous year’s total assets of $24,409

million. This increase is largely attributable to continued

growth in GSA’s primary business operations, which is

reflected in capital asset purchases and alterations, increases

in accounts receivable and increases in earnings that

provided cash (Funds with U.S. Treasury) from operations.

GSA’s assets reflected in the Consolidating Balance Sheets

are summarized in the table below (dollars in millions):

Taken together Property and Equipment combined with

Funds with U.S. Treasury comprise 90.6 percent of the total

assets for FY 2003. The $370 million increase in Funds with

U.S. Treasury was primarily due to: (1) resources available

to invest in construction of federal buildings in the Federal

Buildings Fund, (2) earnings generated from GSA revolving

funds and (3) improved cash management practices in the

Information Technology Fund. The $6,099 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

($3,505 million) are available for such future needs, $1,724

million of the available balance is committed to funding of

building construction and alteration projects provided for in

legislation. Amounts totaling $1,444 million were unavailable for spending as of September 20, 2003 and would

require future authorization or even legislation to be used.

Property and Equipment increased by the $631 million (3.8

percent) from FY 2002. Property acquisitions of $2.3 billion

during the year, net of the recorded depreciation of

$1.5 billion and $261 million in property disposals accounts

for most of this increase. Property acquisitions in FY 2003

were primarily ($1.7 billion) comprised of construction,

modernization and alterations to buildings.

Financial Summary

ASSETS (Dollars in Millions) FY 2002 FY 2003

Land, Property and Equipment, Net

Funds with U.S. Treasury

Accounts Receivable, Net

Other Assets

Total Assets

$ 16,624

5,729

1,865

191

$ 24,409

$ 17,255

6,099

2,163

261

$ 25,778
M ANAGEM ENT ’ S D ISCUSSION AND A NALY SIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 26

LIABILITIES: In FY 2003, total Agency liabilities increased by

$383 million (6.5 percent) to $6.2 billion from $5.9 billion in

FY 2002. Liabilities reported on the Consolidated Balance

Sheet are summarized in the table above (dollars in

millions).

GSA’s largest liability balances are accounts payable,

making up 40.8 percent of the total. These balances grew

$354 million (16.1 percent) in FY 2003, following the

general business growth of GSA’s largest operations, particularly the Information Technology Fund activities, which

comprised $320 million of the accounts payable increase.

The $2,231 million of debt is 35.7 percent of total liabilities,

of which $84 million is unfunded. Periodically, in lieu of

ASSETS BY TYPE (Dollars in Millions)

TOTAL ASSETS $ 25,778

LAND, PROPERTY

AND EQUIPMENT

67%

$ 17,255

OTHER ASSETS

1%

$ 261

ACCOUNTS

RECEIVABLE, NET

8%

$ 2,163

FUNDS WITH

TREASURY

24%

$ 6,099

LIABILITIES (Dollars in Millions) FY 2002 FY 2003

Accounts Payable

Debt

Unfunded/Other Liabilities

Deferred Revenues/Advances

Miscellaneous Liabilities

Total Liabilities

$ 2,195

2,308

1,025

244

88

$ 5,860

$ 2,549

2,231

1,104

271

88

$ 6,243

direct appropriations, GSA receives authority in its Federal

Buildings Fund (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 2003 debt decreased by

$77 million, mostly due to such debt retirements, which are

covered by operating earnings in the FBF. 

Liabilities totaling $1,084 million, or 17.4 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.
M A N A G EMENT ’ S D ISCUSSION AND A NALYSIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 27

The major elements of unfunded liabilities are $205 million

for Workers’ Compensation, $369 for capital leases and

installment purchases, $206 million for reimbursements due

the U.S. Treasury Judgment Fund for costs from past litigation and $165 million for contingencies and environmental/

disposal liabilities.

ENDING NET POSITION: GSA’s Net Position at the end of 2003

on the Consolidated Balance Sheet and the Consolidated

Statement of Changes in Net Position was $19.5 billion, a

$986 million (5.3 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 2003. 

The increase in Cumulative Results of Operations resulted

primarily from strong earnings in GSA’s revolving funds,

particularly the FBF (earnings of $668 million) and General

Supply Fund (earnings of $145 million) which mostly fund

capital needs of those programs. 

RESULTS OF OPERATIONS

The results of operations are reported in the Consolidated

Statement of Net Cost and the Consolidated Statement of

Changes in Net Position and in the Supplemental

Consolidating Statement of Operations.

The Consolidated Statement of Net Cost presents the cost

less any earned revenue of 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 Cost of Operations for 2003, after intraagency eliminations, was $53 million. This is a substantial

change from FY 2002, when revenues exceeded costs by

$467 million. The primary reason for this swing was implementation of the Help America Vote Act (HAVA), which

provided investments of $665 million in U.S. state and local

government voting infrastructures. Payments made in

accordance with the HAVA were expensed when made.

Absent the effects of the appropriated HAVA transactions,

GSA’s revenues exceeded costs of operations by

$612 million, a growth of $145 million (31 percent). The

largest impact fueling that growth is seen in the FBF, which

LIABILITIES BY TYPE (Dollars in Millions)

TOTAL LIABILITIES $ 6,243

ACCOUNTS PAYABLE

41%

$ 2,549

MISCELLANEOUS

LIABILITIES

1%

$ 88

DEFERRED

REVENUE/ADVANCES

4%

$ 271

DEBT

36%

$ 2,231

UNFUNDED/OTHER

LIABILITIES

18%

$1,104
M ANAGEM ENT ’ S D ISCUSSION AND A NALY SIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 28

reported increased net results of $214 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.

The following chart summarizes the activity on GSA’s

Consolidated Statement of Net Cost and the Consolidated

Statement of Net Position by showing the funds available to

GSA in FY 2003 and how these funds were used. 

REVENUE SOURCES (Dollars in Millions)

BUILDING RENTS

AND SERVICES

$7,867

APPROPRIATIONS

RECEIVED

$627

OTHER

$467

SALES OF SUPPLIES

$1,782

INFORMATION

TECHNOLOGY SERVICES

$8,582

MOTOR VEHICLE

SERVICES

$1,038

HOW FUNDS WERE USED (Dollars in Millions)

INFORMATION

TECHNOLOGY

$8,389

DEPRECIATION AND

AMORTIZATION

$1,460

CONTRACTED

SERVICES

$1,917

COST OF

SUPPLY SALES

$1,498

RENT

$3,374

OTHER

EXPENSES

$1,928

PERSONNEL SALARIES

AND BENEFITS

$1,223

APPROPRIATIONS USED

$1,220
M A N A G EMENT ’ S D ISCUSSION AND A NALYSIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 29

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. To address the latter, PBS launched the

PBS Strategy for Restructuring and Reinvesting in the

Owned Inventory. The strategy 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

funding, is essential to reducing the $6 billion backlog of

building repair and maintenance work and providing

quality workspace for our 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 General Services Administration, 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.

During FY 2003

GSA’s Financial

community was

challenged to

redefine and

streamline work

processes to meet

accelerated

reporting dates.
M ANAGEM ENT ’ S D ISCUSSION AND A NALY SIS

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 30
Performance Section
GSA, Central Office, Washington DC.
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 33

GSA embarked on an aggressive performance improvement initiative in FY 2003. It revisited existing performance

goals and measures and carefully refined them and in some

cases added to them to help better manage its business

goals. In this report, actual performance was measured

against the performance measures and targets in the FY 2004

Performance Plan, not the FY 2003 Performance Plan.

GSA, also made a major structural improvement in FY 2003

by designing and beginning the implementation of a PMP

encompassing the Strategic Planning, Budget and Performance Cycle. This process builds on the time-tested systems

used by the Internal Revenue Service (IRS) and 

the National Aeronautics and Space Administration. Through

this process policy, forecasting and planning are brought to

bear on the budget and resource allocation decisions. 

Briefly, the PMP consists of six phases: 

The Strategic Assessment Phase where GSA assesses

its position relative to the marketplace and its

customers;

The Administrator’s Guidance Phase, which sets

strategic direction, performance expectations and

priorities based on the Strategic Assessment; 

Strategy and Action Planning Phase in which the

Services and Offices document the actions they will

take to achieve the direction set in the previous

phase; 

The Performance Plan and Budget Justification Phase

where the Performance Budget is prepared for

submission to OMB and Congress based on the

results of the first three phases; 

The Business Planning Phase follows congressional

appropriation action and translates Congress’s

resource allocation decisions into operational plans,

goals and performance targets; 

The Performance Management Phase in which GSA

will execute and review strategy, programs, expenditures and performance results for its customers. 

6

5

4

3

2

1

GSA has developed the PMT to facilitate Budget and

Performance Integration as well as monthly financial

reporting and linking performance to financial results. 

The Administrator and Regional Administrators review

quarterly results through this system. The PMT approach

is establishing linkages between results and resources at

the operational level.

The PART was designed by OMB to assess federal programs

and is used to determine the strengths and weaknesses of

federal programs based on PART results. It lays the groundwork for evidence-based funding decisions, a key aspect of

budget and performance integration. GSA conducted four

PART assessments during FY 2003: Leasing, Real Property

Disposal, Personal Property Management and Regional IT

Solutions. Updates were performed for five other programs

that had been assessed in FY 2002. In general, the overall

evaluations were “Results Not Demonstrated,” as have been

the evaluations of the vast majority of federal programs

that have been rated thus far. The major shortcoming cited

has been the lack of measurable long-term outcome goals.

The effort to establish such goals is well underway and is

expected to improve the PART ratings and more important,

improve the management of GSA.

The remainder of this section presents, for each of GSA’s

three services and support organizations, the FY 2003

performance results versus performance goals within the

six GSA-wide strategic goals. For each of the GSA Services

and Offices, a short performance summary, followed by

tables, reflects the performance results for the current

fiscal year and the three prior fiscal years. Performance

results which reflect “TBD” designates those responses

where information was not available at the time of publication. This FY 2003 unavailable data will be included in

GSA’s FY2004 Performance and Accountability Report. 

Introduction to Performance
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 34

The PBS provides its customers with quality workenvironments that enable federal agencies to better

serve the public. PBS is the largest public real estate

organization in the nation and provider of 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 of

delivering a high-quality workplace for the federal worker

at a superior value for the taxpayer. 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

of, 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. 

PERFORMANCE HIGHLIGHTS

The paragraphs below summarize FY 2003 PBS key 

performance results by business functional activity.

BUILDING OPERATIONS: A Human Capital Strategy has been

developed 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. During FY 2003,

72 percent of these demanding officials were highly

satisfied in their dealings with PBS. 

RENTAL OF SPACE: A National Broker Services Contract is

planned to address the increased capacity needs 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.

PUBLIC BUILDINGS SERVICE

PBS

Ronald Reagan Building

An added benefit is a coherent national business process.

During FY 2003, PBS determined that issuing a “no cost”

contract 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. 

By using this vehicle, PBS will save $24 to $100 million a

year in Broker Contract services.

PBS’s objective is to lease space to provide customer

agencies the best value for taxpayer dollars. Often its not

just about acquiring space with the lowest cost but rather

its the location, building amenities, space features, 

and other factors that provide better value. The target for

FY 2003 for the cost of leased space relative to the market

was 14.3 percent. In FY 2003, PBS was 7.41 percent

below comparable lease market costs.

CONSTRUCTION AND ACQUISITION OF FACILITIES: PBS is

involved in a $10 billion, multi-year program to build new

federal courthouses and rehabilitate existing federal

courthouses to accommodate new security requirements,

enhanced prisoner security and handling measures, 

an increased number of federal cases and an increased

number of federal judges.
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 35

Two courthouses have been completed during FY 2003:

Denver, Colorado and Jacksonville, Florida. Design contracts were awarded for courthouses in Rockford, Illinois;

Cedar Rapids, Iowa; Nashville, Tennessee; Ft. Pierce,

Florida; and Jackson, Mississippi. 

Through a contract with Georgia Institute of Technology

(GT), 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 for conducting helpful visits of existing courthouses has been developed. This guide will facilitate

improvements in gathering information prior to starting

the design of future courthouses.

REPAIRS AND ALTERATIONS (R&A): 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. Workload changes 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 fiscal

years 2004, 2005 and beyond. For example, by FY 2005

PBS objectives are to have 85 percent of R&A projects completed on schedule and to reduce vacant space

(available/assignable space and space committed to client

agencies) in PBS’s owned portfolio to 7 percent. As of

September 2003, the percentage of R&A projects completed

on schedule was 79 percent. Also as of September 2003,

vacant space in the owned inventory was 8.3 percent.

These numbers are well below private sector averages. 

As the PBS Portfolio Strategy is implemented and non-performing assets are redeployed (disposal/exchange/transfer)

which are unable to generate sufficient income for their

reinvestment requirement and for which there is no longterm federal need, PBS will reduce the total reinvestment

needs of the owned portfolio. By redeploying nonperforming and underutilized assets, the portfolio’s capital

reinvestment needs were reduced by $115.6 million in 

FY 2002 and $55.1 million by mid-year FY 2003.

FINANCIAL MANAGEMENT: GSA maintains its buildings from

income generated by the buildings. Budgets are formulated based upon this anticipated income. The Funds

from Operations (FFO) shows how effectively and 

efficiently PBS is executing its budget. In FY 2003, 

PBS achieved a positive FFO for 73 percent of its assets

versus a target of 82 percent. The target was missed

because of unanticipated increases in snow removal,

utility and security expenses and delays in disposing or

correcting of under achieving assets. Efforts will continue

to restructure the PBS building portfolio to consist 

primarily of strong income producing properties. 

PROPERTY MANAGEMENT: To continue to meet the security

needs of PBS’s customers, the following actions have

been completed.

Developed and issued a national property managers

Occupant Emergency Plan supplement for Shelteringin-Place. This document is aimed at creating a “best

possible” solution for short-term protection of building

systems and occupants related to indoor and outdoor

contaminant releases. The guidance was developed in

partnership with the Georgia Institute of Technology,

a client agency, industrial hygienists, regional property

management organizations and with input from

Federal Protective Service/Department of Homeland

Security. 

Issued Occupant Emergency Plan, Shelter-in-Place,

national guidance, posted on www.gsa.gov, for

facilitating and coordinating building security committee discussion on this topic with property 

managers, hazardous materials (HAZMAT) specialists,

fire marshals, law enforcement, police and security

officials and local HAZMAT/Fire/Emergency Medical

Services experts.

PBS
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 36

PBS Performance By GSA-Wide Goal 

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

PERFORMANCE GOAL RESULT

Improve annual ordering official satisfaction. Goal Met

Improve customer satisfaction level in owned space surveyed. Goal Met

Keep the cost for new GSA leased office space at or below each of the Goal Not Met

four market ranges being tracked. 

Improve customer satisfaction level in leased space surveyed. Goal Met

Improve customer satisfaction scores. Goal Met

Maintain a 90% tenant satisfaction rating in newly constructed buildings. Goal Met

PERFORMANCE GOAL

Improve annual ordering official satisfaction.

MEASURE 

Percentage of ordering officials that are highly satisfied with their business dealings with PBS. 

DESCRIPTION OF THE MEASURE: PBS recognizes that customers are key to its future success. This survey collects 

information from ordering officials, which includes customer agency employees that represent their agencies in

ordering services and workspace from PBS. This group is the best judge of how well PBS is meeting the expectations of its customer agencies and providing the best value. Beginning in FY 2001, with the help of the Gallup

Organization, PBS surveyed 468 agency ordering officials, via telephone interviews. These customers were asked

questions concerning their satisfaction with PBS products and services, and the value GSA provided on a variety

of items such as service delivery, leasing, facility management, construction and alteration, security and problem

resolution. 

Historically, Gallup’s average score range for customer engagement surveys is 40 to 60 percent. PBS’s first 

year results were at the top of this range, providing an acceptable satisfaction level to serve as its baseline. 

However, PBS continues to seek a higher level of satisfaction by continuing to improve service to its customers. 

PBS has established 77 percent as its long-term target based on where it is now and expert advice from Gallup as

to what is achievable for this type of measure. The results are being studied to identify what drives ordering official

satisfaction and what improvements can be made to the survey process.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 59% 66% 68% 72%

PBS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 37

DISCUSSION OF FY 2003 TARGET VS. RESULTS: PBS attributes its results on the Ordering Official survey to several factors. 

In 2003, Customer Discovery Days were held throughout the country to focus associates on all of GSA's customer needs

and to emphasize the importance of its customers in all of GSA’s business decisions. Additionally, the national account

executives and national account managers supported regional efforts to improve customer loyalty and satisfaction at

the agency level by responding to their concerns and setting up procedures to address them.

PERFORMANCE GOAL

Improve customer satisfaction.

MEASURE 

Percentage of tenants that rate PBS-owned and operated services as satisfactory or better.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

83% 84% 85% 85% 89%

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

productivity, thus enhancing federal workforce service to the public. 

PBS has partnered with The Gallup Organization to assess customer satisfaction levels using a customer satisfaction

survey developed in conjunction with the International Facilities Management Association. The annual customer

satisfaction scores and targets for GSA-owned and operated services represent two years of survey data. Previously,

annual scores represented surveys done in that year only. By changing to the dual-survey reporting scheme, PBS is

able to show customer satisfaction for its entire inventory versus half. For example, the 1998 score represents the 1997

and 1998 survey results on the entire inventory. Starting in 2003, GSA will survey one-third of its inventory annually

and scores will move toward reflecting three years of survey data.

Below are PBS survey results, which show a steadily increasing level of satisfaction among tenants in GSA-owned

space. PBS will continue to target higher goals and plans to reach these goals by targeting problem areas within

individual buildings, sharing the best practices of high scoring building managers and using focus groups to better

understand what is needed to improve customer satisfaction.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The survey interval was changed to once every three years, thereby decreasing

the number of buildings surveyed each year and allowing for a greater focus on the designated tenants and on the key

buildings being surveyed. Additionally, many of the regions developed small, cross-functional teams to work on

improving customer satisfaction scores. In some regions, these teams included property, account and building

managers, as well as marketing reps. In one region, special “ambassadors” were appointed with the sole responsibility

of helping and interacting with customers. Overall, communications with PBS customers have been improved through

newsletters, Web sites and Web broadcasts. PBS also provided feedback on what was done since the last survey,

demonstrating its commitment to its customers and their problems and concerns. Finally, upper management

involvement has increased ranging from letters, to agency contacts and to participation in forums. All of these elements

have contributed to the higher customer satisfaction scores in FY 2003. 

PBS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 38

PERFORMANCE GOAL

Keep the cost for new GSA leased office space at or below each of the four market ranges being tracked.

MEASURE 

Cost for leased space relative to the market (weighted average for four categories).

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 11.0% 14.00% 14.25% 7.41%

DESCRIPTION OF THE MEASURE: PBS’s objective is to lease space to customer agencies that provides the best value for

taxpayer dollars. Best value is not always the space offered at the lowest price. Often, location, building amenities,

space features and a number of other factors can make building tenants more productive and efficient and provide better

value for dollars spent. PBS compares the space it leases to customers to reflect four categories. 

These categories are class A and class B space, inside or outside central business districts. The target above is the

weighted average in percent below the cost of private sector leases in four categories. By procuring leased space at

below market rates PBS ensures that it is meeting its goal to provide the best value for customer agencies and taxpayers.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: One Department of Defense lease was awarded in Arlington, VA for 525,000

square feet above the Society of Industrial and Office Realtors rate. Further checking indicates the lease was provided

as swing space for the Pentagon on an Other Than Full & Open basis as a result of 9/11 and includes an extraordinary

amount of cost related to security.

PERFORMANCE GOAL

Improve customer satisfaction level in leased space surveyed.

MEASURE 

Percentage of customers satisfied in leased space. 

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

80% 82% 84% 85% 89%

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

productivity, thus enhancing federal workforce service to the public. The actual annual customer satisfaction scores and

targets above for leased space represent two years of survey data. Previously, annual scores reflected surveys done

during a single year. By changing to the dual-survey-reporting scheme, PBS is able to show a customer satisfaction

score for its entire leased inventory. For example, the 1998 score represents the 1997 and 1998 survey results of the

entire inventory. Beginning in 2003, PBS will begin surveying one-third of its inventory annually thus moving from a

two-year to a three-year cycle.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The survey interval was changed to once every three years, thereby

decreasing the number of buildings surveyed each year and allowing for a greater focus on the particular tenants and

on the key buildings being surveyed. Additionally, many of the regions developed small, cross-functional teams to

PBS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 39

work on improving customer satisfaction scores. In some regions, these teams included property, account and building

managers, as well as marketing representatives. In one region special “ambassadors” were appointed with the sole

responsibility of helping and interacting with customers. Overall, communications with PBS customers have been

improved through newsletters, Web sites and Web broadcasts. PBS also provided feedback on what was done since

the last survey, demonstrating its commitment to its customers and their problems and concerns. Finally, upper 

management involvement has increased ranging from letters to agency contacts and participation in meetings. All of

these elements have contributed to the higher customer satisfaction scores in FY 2003. 

PERFORMANCE GOAL

Improve customer satisfaction scores.

MEASURE 

Realty services satisfaction survey.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A N/A 70% 85%

DESCRIPTION OF THE MEASURE: PBS has developed a survey that asks customers if the PBS-provided space improves their

ability to accomplish their mission, in terms of productivity. PBS performs this transaction-based survey on new space

requests completed for customer agencies. The survey is used to determine whether PBS contributes to meeting

customer goals. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: In 522 transactions covering over four million square feet PBS’s client agencies

reported an increase in productivity. PBS is currently working on improving its survey administration and expects

productivity to improve even more through its commitment to customer satisfaction. 

DESCRIPTION OF THE MEASURE: GSA’s mission includes the construction of federal buildings. PBS surveys the tenants of

these building to determine their level of satisfaction. PBS has higher customer satisfaction expectations for newly

constructed buildings than it does for other owned and leased buildings in its inventory. PBS sets long-term targets

based on the FY 1998 baseline.

PERFORMANCE GOAL

Maintain a 90% tenant satisfaction rating in newly constructed buildings.

MEASURE 

Improve customer satisfaction in newly constructed buildings.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

86% 89% 90% 90% 90%

PBS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 40

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Though PBS has met its goal for FY 2003, it continues to study survey results

to see what improvements in its performance are needed. A new survey has been developed that will be implemented

in 2004 that specifically targets new federal courthouses. These buildings form a large majority of PBS’s new

construction projects. This survey will provide a more comprehensive view of both the buildings functionality and

PBS’s customer’s’ satisfaction in the buildings.

GSA-WIDE GOAL 2: ACHIEVE RESPONSIBLE ASSET MANAGEMENT

PERFORMANCE GOAL RESULT

Reduce the cost escalation rate for repair and alterations projects Goal Met

to 1 percent. 

Increase overall potential revenue. Goal Met

Increase FFO. Goal Met

Reduce the amount of non-revenue producing space in the government Goal Met

owned inventory. 

Reduce the amount of non-revenue producing space in the leased Goal Met

inventory. 

Increase the percentage of government-owned assets with a return on Goal Met

equity (ROE) of at least 6 percent.

Increase the percentage of government-owned assets achieving a Goal Not Met

positive FFO. 

PERFORMANCE GOAL

Reduce the cost escalation rate for repair and alterations projects to 1 percent.

MEASURE 

Percentage of cost escalation on R&A projects.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A (1%) 3% 1% 0.5%

DESCRIPTION OF THE MEASURE: Projects are considered within budget until PBS escalates or requests reprogramming

and/or additional appropriations for the project that raise total project cost above the original appropriation amount.

One measure of effective management of these projects is keeping the overall cost escalation, on average, to 1 percent.

The rationale for this performance goal is that staying within budget means that both project planning (costing) and

execution (construction) have been well managed. By concentrating on the financial aspects of repair and alteration

projects, PBS ensures that taxpayers are getting the best value.

PBS
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 41

DISCUSSION OF FY 2003 TARGET VS. RESULTS: PBS had escalations and reprogrammings (requests to add funds beyond the

original congressionally appropriated amount) of $11 million. The total active PBS R&A program (through design

and/or construction) had a value of $2.28 billion, which computes to a percentage escalation of 0.5 percent. 

PBS has instituted several strategies that have been successful in minimizing escalations on our repair and alteration

program. We perform a more robust feasibility analysis and evaluate projects during the design phase for

completeness. Design construction excellence focuses PBS on the team makeup and construction processes to ensure

that we are aware of potential problems early in the process, providing us an opportunity to correct deficiencies prior

to escalations becoming necessary.

In FY 2004, with the exception of the Brooklyn, NY courthouse renovation, which continues to require additional

funding, PBS expects to achieve similar performance results. 

PERFORMANCE GOAL

Increase overall potential revenue.

MEASURE 

Percentage of potential revenue received.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 92.4% 92.7% 93.0% 93.8%

DESCRIPTION OF THE MEASURE: Potential revenue is the amount of revenue PBS would receive if 100 percent of PBS

owned and leased inventory was generating revenue for the FBF. Maximizing the percentage of potential revenue

collected, serves to maximize the use of government-owned and existing leased space that, in turn, maximizes the

contribution for capital investment. This percentage also serves as a means of measuring how fully PBS is utilizing its

assets and thus meeting its objective to conserve taxpayer investment.

PBS will never be able to capture 100 percent of the potential revenue because there will always be some vacant space,

space under alteration and GSA-occupied space in the inventory. However, PBS will target the potential revenue

measure to levels equivalent to the long-term goals for the reduction of non-revenue producing space.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: PBS achieved its potential revenue target by continuing its emphasis on filling

high-cost, vacant owned and leased space. In addition, the performance of PBS's portfolio has been improved through

PBS's portfolio restructuring initiative. Non-performing buildings that cannot be economically rehabilitated are being

retired from PBS space inventory.

PBS
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 42

DESCRIPTION OF THE MEASURE: FFO is revenues less funded operating costs (i.e., depreciation is not included) for GSA’s

owned and leased inventory. This is a basic performance measure of building management since funds from

operations increase by either reducing factors that negatively impact revenues such as non-revenue producing space,

or lowering operating costs. 

Based on the above, each building either has positive (revenues are higher than operating costs), or negative funds

from operations. The higher the funds from operations are, the more funds are made available for GSA’s programs.

Most important, increasing funds from operations provides additional funds for capital improvements necessary to

conserve taxpayer investment. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: PBS met and exceeded the target by bringing on-line and renting 

780,000 square feet of newly constructed space to our tenants. Newly constructed space provides higher rental rates

and revenue generation than older space already in our inventory, as well as providing our tenants a superior

workplace. Additionally, FFO improved through the backfilling of vacant space and the restructuring of our portfolio,

that re-deployed under-performing assets. 

PERFORMANCE GOAL

Increase FFO.

MEASURE 

Funds from Operations.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

$1.18B $1.35B $1.39B $1.44B $1.48B

PERFORMANCE GOAL

Reduce the amount of non-revenue producing space in the government owned inventory.

MEASURE 

Percentage of non-revenue producing space in government owned inventory.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

12.2% 11.8% 11.8% 11.5% 11.1%

DESCRIPTION OF THE MEASURE: Non-revenue producing space includes space under alteration, space occupied by PBS

and vacant available space. Government-owned space that does not produce revenue reduces the percentage of

potential revenue PBS can collect which, in turn, directly affects funds available for capital improvements. Reducing

non-revenue producing space is a measure of how fully PBS is utilizing its assets and meeting its objective to provide

best value to taxpayers.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: PBS takes every opportunity to turn non-revenue producing space into

revenue producing space, or disposes of under-performing assets. PBS does this by re-evaluating PBS space needs,

evaluating opportunities for filling vacant space and completing construction and renovation projects quickly. 

Using this strategy, PBS backfilled space in key assets and disposed of non-performing and under-performing assets

with significant blocks of vacant space.

PBS
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 43

PERFORMANCE GOAL

Reduce the amount of non-revenue producing space in the leased inventory.

MEASURE 

Percentage of non-revenue producing space in leased inventory.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

3.3% 2.7% 3.1% 3.0% 2.1%

DESCRIPTION OF THE MEASURE: Similar to the performance goal for owned inventory, leased space that is not occupied

reduces the percentage of gross potential revenue PBS can collect. This directly affects funds for capital improvements.

Non-revenue producing space includes space under alteration, space occupied by PBS and vacant available space. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: PBS uses a similar strategy for minimizing the amount of non-revenue

producing leased inventory, as they use for government owed inventory. PBS periodically re-evaluates client agency

space needs and evaluates opportunities for filling vacant space in existing leases. PBS also looks to terminate and/or

buyout leases with vacant space where there is no potential to backfill the space.

PERFORMANCE GOAL

Increase the percentage of government-owned assets with an ROE of at least 6 percent.

MEASURE 

Percentage of government owned assets with a return on equity (ROE) of at least 6 percent.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 54% 62% 64%

DESCRIPTION OF THE MEASURE: Beyond increasing the percentage of assets achieving positive funds from operations, PBS

is making an effort to increase the percentage of assets with a ROE of at least 6 percent. This goal is in keeping with

the GSA strategy to focus its limited resources on performing assets. It is PBS’s intent to create a portfolio in which all

of its assets will eventually fall into the top, “performing” tier of the three tiers used to classify each of PBS’s buildings.

The assets in this top tier all maintain an ROE of at least 6 percent; they are solid financial performers that fulfill the

long-term needs of the customers. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: PBS has seen significant improvement in the percentage of government-owned

assets achieving at least a 6 percent ROE. This improvement is attributable to PBS’s ongoing effort to workout or dispose

of financially non-performing assets and to reinvest in performing assets for which there is a long-term federal need. 

PBS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 44

PERFORMANCE GOAL

Increase the percentage of government-owned assets achieving a positive FFO.

MEASURE 

Percentage of government owned assets achieving a positive FFO.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 74% 82% 73%

DESCRIPTION OF THE MEASURE: Responsible asset management is one of GSA’s primary goals. To this end, GSA is

conducting an all-encompassing review of its owned buildings as part of an overall strategy to focus limited resources

on performing assets that have a continuing federal need. The first step in this strategy includes a diagnostic testing

or tiering of the buildings to evaluate the physical condition and financial performance of each building in GSA’s

portfolio. Following this assessment, buildings will be placed in one of three categories: performing, under-performing,

or non-performing. Beginning with non-performing assets, buildings will be closely monitored until their performance

status can be resolved through workout or disposal. By increasing the percentage of buildings with a positive FFO,

GSA will continue its effort to maximize the financial performance of retained assets and create a self-sustaining

inventory that will provide an improved quality of space for its customers and superior value for taxpayers.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Factors that contributed to PBS’s inability to meet the FY 2003 target for the

percent of government owned assets achieving a positive FFO: 1) unanticipated costs associated with the harsh winter

in the northeast U.S., including substantially above normal snow removing expenses and greater utility costs associated

with heating facilities; and 2) increased security costs in PBS facilities. 

GSA-WIDE GOAL 3: OPERATE EFFICIENTLY AND EFFECTIVELY

PERFORMANCE GOAL RESULT

Provide cleaning services in office and similarly serviced space at Goal Not Met

a cost of 4 percent below private sector benchmarks. 

Provide maintenance services in office and similarly serviced space Goal Met

at a cost below private sector benchmarks. 

Provide utilities in office and similarly serviced space at a cost Goal Not Met

below private sector benchmarks.

Increase the percentage of construction projects on schedule. Goal Not Met

Reduce the cost escalation rate for construction projects. Goal Met

All new buildings to be Leadership in Energy and Environmental Goal Not Met

Design (LEED) certified. 

Improve the percentage of repair and alteration projects on schedule. Goal Not Met

PBS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 45

DESCRIPTION OF THE MEASURE: By controlling cleaning costs, PBS helps keep its operating costs below the industry

average, provides tenants with quality workspace and contributes to the capital program. PBS has developed several

sophisticated benchmarks to monitor and compare operating costs with those in equivalent private sector buildings.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Cleaning cost includes costs of grounds maintenance such as snow removal.

During FY 2003, these costs were driven up by the severe winter. Recurring contract cost inconsistencies, Department

of Labor wage rate increases, and Worker's Compensation rate increases also contributed to additional contract costs.

PERFORMANCE GOAL

Provide cleaning services in office and similarly serviced space at a cost 4 percent below private sector.

MEASURE 

Cleaning costs in office and similarly serviced space.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 5% 5% 4% 1.3%

DESCRIPTION OF THE MEASURE: GSA tries to keep the cost of mechanical maintenance services well below such costs in

comparable private sector space, while continuing to provide tenants with a quality workspace. By keeping costs low,

GSA increases funds from operations, which directly contribute to the capital program. GSA has developed several

sophisticated benchmarks to monitor and compare operating costs with those in equivalent private sector buildings. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Our established strategies for containing costs have been successful. We plan

on further investigating competitive sourcing in the near future to increase our savings. 

PERFORMANCE GOAL

Provide maintenance services in office and similarly serviced space at a cost below private sector benchmarks.

MEASURE 

Maintenance costs in office and similarly serviced space.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 7% 7% 6% 6%

PBS
DESCRIPTION OF THE MEASURE: 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

will use an earned value technique to assess construction project performance on all projects of more than $10 million.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The principle reasons for project delays were: poor design and/or contractor

performance, requests for changes in the scope of work by the customer and security upgrades resulting from increased

security concerns. Due to delays and cost overruns in one of PBS’s costliest buildings, the new Brooklyn Courthouse,

it will be difficult to make this target in the future. Until older projects are completed and dropped from the universe

of projected used to calculate “percentage of projects on schedule” it will be difficult to significantly improve actual

performance on this measure. 

PBS has established the Construction Excellence Program to provide high quality construction for the best value using

the best business practices, our regional offices are implementing key elements of the program. The program emphasizes completing projects on time and within budget. The progressive success of this program improves the quality of

the design product and enhances working relationships with the customers and construction contractors. PBS now

uses construction research organizations to improve PBS performance and provides recognition for quality construction.

P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 46

PERFORMANCE GOAL

Provide utilities in office and similarly serviced space at a cost below private sector benchmarks.

MEASURE 

Utility costs in office and similarly serviced space.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 30% 34% 32% 30%

DESCRIPTION OF THE MEASURE: Controlling costs is a basic management function. Thus GSA targets keeping the cost of

utilities well below such costs in comparable private sector space, while continuing to provide tenants with a quality

workspace. By keeping costs low, GSA increases funds from operations, which directly contributes to the capital

program. GSA has developed several sophisticated benchmarks to monitor and compare operating costs with those in

equivalent private sector buildings.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The severe winter experienced in many of the areas that GSA serves

contributed to the surge in heating costs, in addition to above average costs associated with snow removal.

PERFORMANCE GOAL

Increase the percentage of construction projects on schedule.

MEASURE 

Percentage construction projects completed on schedule.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 75% 78% 80% 68%

PBS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 47

PERFORMANCE GOAL

Reduce the cost escalation rate for construction projects.

MEASURE 

Percentage of escalation on prospectus projects.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 6.0% 7.0% 4.0% 0.6%

DESCRIPTION OF THE MEASURE: Projects are considered within budget until PBS escalates or requests a reprogramming

and/or additional appropriations for the project that escalate total project cost above the original appropriation amount.

One measure of effective management of these projects is keeping the maximum project escalation, on average to 

4 percent. The rationale for this performance goal is that staying within budget means that both project planning

(costing) and execution (construction) have been well managed. By concentrating on the financial aspects of

construction projects, PBS ensures that taxpayers are getting the best value.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: PBS had escalations and reprogramming (congressionally approved requests

to add funds beyond the original congressionally appropriated amount) of $20.3 million on its new construction

program. The total active new construction program for PBS, projects currently in a phase of work (construction

authorization and appropriation through substantial completion) had a value of $600 million. PBS uses the same

strategies for new construction projects as those applied to R&A projects to minimize project escalations. In FY 2004,

with the exception of the new courthouse in Brooklyn, NY, which continues to require additional funding, PBS expects

to achieve similar performance results. 

PBS
DESCRIPTION OF THE MEASURE: PBS financial projections include rental income from new R&A 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 on schedule, weighted by cost. 

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

$10 million.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The same issues and strategies discussed in the “Percentage Construction

projects completed on schedule” measure also affect the R&A on schedule measure.

Due to delays and cost overruns in one of PBS’s costliest buildings, the renovation of the Brooklyn Courthouse, it will

be difficult to meet this target in the future until this building is completed and removed from the measure.

P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 48

PERFORMANCE GOAL

Improve the percentage of repair and alteration (R&A) projects on schedule.

MEASURE 

Percentage of R&A construction projects on schedule.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 75% 87% 83% 79%

PBS

PERFORMANCE GOAL

All new buildings to be LEED certified.

MEASURE 

Improve percentage of new buildings LEED registered.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A Project Initiated 100% 15%

DESCRIPTION OF THE MEASURE: The LEED Green Building Rating SystemTM is a voluntary, consensus-based national

standard for developing high-performance, sustainable buildings.

LEED emphasizes state of the art strategies for sustainable site development, water savings, energy efficiency, material

selections and indoor environmental quality. Beginning in FY 2003, all new construction and major R&A Projects must

be registered with the U.S. Green Building Council working towards LEED Certification, with a target level of Silver.

The LEED Silver rating is one of four award levels: LEED Certified, Silver, Gold and Platinum. A LEED Silver rating

recognizes excellent accomplishments in sustainable design. The results and benefits will include reduced operating

costs, reduced waste, conservation of natural resources, positive community relationships, increased building value,

increased occupant productivity and increased occupant satisfaction.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: 2003 marked the first year that LEED registration was a requirement for all

prospectus level projects. The score represents the percent of design and construction projects begun in 2003 that are

currently LEED registered. The score is deceptively low because registration does not need to be completed until

construction completion. Currently 35 percent of the new projects are incorporating LEED principles into their design,

but have not yet completed the registration process. In 2004 there will be significant improvement in the percent of

projects that are registered as these projects move toward their construction phase.
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 49

PERFORMANCE GOAL

Improve customer productivity scores. 

MEASURE 

Improve Realty Transaction Survey, Productivity.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A N/A 67% 62%

DESCRIPTION OF THE MEASURE: As a provider of choice, PBS needs to ensure that it provides value to the leasing process

and that it meets customer expectations. In addition, it is also GSA’s mission to supply space that actually improves

tenant productivity. To determine if PBS is meeting this goal, it has developed a survey that asks customers if the PBS

provided space improves their ability to accomplish their mission, in terms of productivity. PBS performs this

transaction-based survey on new space requests completed for customer agencies. The survey is used to determine

whether PBS contributes to meeting customer goals.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: This was a new measure and setting the target was difficult. PBS failed to

meet the target because it failed to set expectations with both the Realty Specialists and the customers. PBS will

educate the Realty Specialists on the importance of this measure so they can educate customers when a project begins

by letting them know that their space should improve their productivity. This sets expectations for both parties at

the beginning and makes them aware of this function. Part of the programming and space requirements development

should include consideration of this factor through adjacencies, workflow, location of equipment, technology, use of

natural light, group interaction space as needed, privacy as needed, convenience, close proximity to transportation,

eating places, etc. 

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

PERFORMANCE GOAL RESULT

Improve customer productivity scores. Goal Not Met

PBS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 50

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

AS A FEDERAL AGENCY

PERFORMANCE GOAL RESULT

Improve energy reduction in standard facilities. Goal Not Met

PERFORMANCE GOAL

Improve energy reduction in standard facilities.

MEASURE 

Percentage reduction in energy consumption from FY 1985 baseline.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

20.0% 18.4% 22.5% 25.0% 18.6%

DESCRIPTION OF THE MEASURE: This measure effectively tracks progress of energy reduction in GSA-owned and operated

buildings against a 1985 baseline and is the only PBS performance measure that is mandated by federal statute and

executive order. The energy consumption of the U.S. affects the national and world environment as well as the world

economy. PBS energy consumption is driven by customer needs, building design, building management and variable

weather conditions. As a responsible steward of the environment, PBS is committed to implementing energy-saving

solutions that improve the energy efficiency of its operations and save taxpayer dollars. PBS will continue to use

environmentally safe and sustainable energy sources where possible and economically feasible.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: PBS reduced the energy consumption of its buildings by 20 percent from 1975

to the baseline year of 1985. The exact impact of extreme weather on PBS’s energy reduction efforts is unknown;

however, this measure is heavily dependent on the weather and it is apparent that the harsh winter of 2002/2003 greatly

affected PBS’s recent energy consumption numbers. PBS’s Energy Center of Expertise is currently developing

methodology to better identify the impact of weather on PBS energy consumption, thereby enabling energy managers

to normalize the affects of weather and better quantify energy reduction progress. Additionally, PBS is developing

processes to ensure greater efficiency in new building construction and major building renovation projects.

Furthermore, a National Business Solution was developed this year to identify the role of each region in meeting the

PBS performance measure and to develop a regional plan for meeting the target.

PBS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 51

FSS provides a wide variety of products and services at

competitive prices to the federal agencies that provide for

the public welfare. 

PERFORMANCE HIGHLIGHTS

The paragraphs below summarize FY 2003 FSS key

performance results by business line. 

SUPPLY: In FY 2003, Global Supply sales to federal

customers totaled over $1 billion, nearly 45 percent of

which can be attributed to support of strategic customers.

This reflects an increase in strategic support of

approximately 15 percent from FY 2002. "Strategic" is

defined as providing critical support to customers that

have no commercial alternative for product fulfillment; for

example, military customers overseas and Wildland

agencies in charge of fire suppression. Support to military

customers increased by approximately 55 percent,

practically all of which can be attributed to deployments

leading up to Iraqi Freedom and the sustained level of

support since the end of the war. The increase was not

unlike that experienced during the Desert Storm build-up,

and continues to be well within GSA response capacity. 

COMMERCIAL ACQUISITION: 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 one third for products. With IT schedule

sales at nearly $16 billion in FY 2003, sales increased from

FY 2002 by 19 percent or $2.6 billion. Services account

for approximately 60 percent of the MAS program sales,

and are growing faster than products. Some of the fastest

growing services are:

Logistics Worldwide, Marketing, Media & Public

Information and Language Services – FY 2003 sales

have increased more than 100 percent over FY 2002

sales. These schedules are relatively new.

Professional Engineering Services – nearly 80 percent

increase in sales from FY 2002. 

Environmental Services – rapid sales growth in FY 2002,

and increased again in FY 2003 by 21 percent over

FY 2002 sales. 

Management, Organizational & Business Improvement

Services – sales increased 41 percent from FY 2001 to

FY 2002. Though this rate of growth was not maintained in FY 2003, this schedule surpasses $1 billion in

sales annually. 

Other fast growing services:

Products account for approximately 40 percent

of MAS program sales. Products from the GSA

Hardware Superstore, in Kansas City, MO are among

the fastest growing sales.

FEDERAL SUPPLY SERVI CE

FSS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 52

Sales in tools grew more than 93 percent from

FY 2001 to FY 2002. As schedules continue to

provide state-of-the-art tools and accessories at

reasonable prices, customers continue to look to

schedules to fulfill their requirements. This growth

may also be attributable to more do-it-yourself

philosophies as agencies face budget and personnel

constraints. 

Sales of appliances grew approximately 100 percent

from FY 2001 to FY 2002. This growth trend is

expected to continue because schedule offerings

provide the latest in energy efficient appliances and

the emphasis on “quality of life” may result in continued replacement of appliances in barracks,

housing areas, hospitals, jails and prisons.

VEHICLE ACQUISITION AND LEASING SERVICES: The GSA fleet

grows through transferring vehicle ownership and

management responsibilities of other federal agencies’

fleets to GSA. These fleet consolidations are a smarter

solution for the federal government and, with over

94,600 consolidations since 1985, save the taxpayers over

$85 million per year. This service is funded through

monthly rates and mileage fees by vehicle type.

During FYs 2002 and 2003 over 6,700 vehicles were

consolidated into the GSA fleet. Savings through vehicle

consolidation into the GSA fleet will continue to reduce

costs to customer agencies, eliminating capital

requirements for vehicles and decreasing the need for

personnel to manage fleets. GSA fleet services

traditionally cost 25 percent less than the private sector

and continue to provide the best value to the federal

government.

The two biggest consolidations, over the past three years,

CONUS Air Force (USAF) and the Navy base in Sigonella,

Italy (EuroUSN) illustrate customer savings from 

GSA management of their fleet requirements. The bulk of

the vehicles are in the $680 range of savings 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 to identify and

seek recovery of incorrect billings and overpayments for

the federal government. In recent years, federal travel

and transportation budgets have totaled approximately

$24 billion each year. This business line is funded

through fees paid by federal agencies.

PERSONAL PROPERTY MANAGEMENT: The personal property

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 on-line auctions. The utilization and donation

program of the Personal Property Management business

line is funded by $11.5 million in congressional appropriations; $12.7 million in receipts funded the sales program.

FY 2001 FY 2002 FY 2003

USAF

No. of Vehicles 3,336 1,659 1,148

Savings per vehicle/year $136 $136 $136

Total Savings $453,696 $225,624 $156,128

EUROUSN

No. of Vehicles 420

Savings per vehicle/year $5,213

Total Savings $2,189,460

USAF

EuroUSN

FSS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 53

DESCRIPTION OF THE MEASURE: FSS leverages the experience of its associates across all services and product lines, and

links customer-centric strategies at all levels of the organization to develop optimal service and product solutions for

its customers. 

FSS customers want a balance between cost and quality; with programs that are economical, efficient and effective and

with potential for enhancement. Success is measured by increased use of programs. By striking the right balance,

customers will increase the use of FSS programs resulting in increased FSS business volume. 

FSS derives its definition of best value from business volume and customer satisfaction. Business volume will increase

as more customers turn to FSS for best value solutions for the acquisition of products and services. 

Business volume is defined as “leveraged sales” for schedules and other fee-based programs. Leveraged sales are the

total value of the items or services the customer agency purchases using an FSS Schedule (including the fee that the

FSS receives as a result of this purchase). For other FSS programs that are not fee based, business volume refers to

total sales, including costs of goods sold. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: FSS business volume surpassed the FY 2003 target due to higher than

expected sales in its Acquisition Centers. Business volume for FSS Acquisition Centers was $6 billion higher

than planned.

FSS Performance By GSA-Wide Goal 

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

PERFORMANCE GOAL RESULT

Increase value to the customer; provide creative solutions, innovative Goal Met

services and products.

PERFORMANCE GOAL

Increase value to the customer through expanded offerings and improved FSS contract vehicles for providing 

increasingly effective alternatives to more costly acquisition processes.

MEASURE 

Growth in federal agency usage of the FSS programs (business volume).

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

BUSINESS VOLUME $22.5B $22.6B $27.3B $28.3B $33.8B

PERCENT CHANGE 27.8% 0.5% 20.8% 3.66% 23.8%

FSS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 54

FSS responded to customer needs with new schedules and more efficient acquisition processes. The new schedules are

growing faster than anticipated. The explosive growth in the use of eBuy, the electronic request for quotes (RFQ)

tool, is another contributing factor to the higher than expected business volume for FY 2003. Additionally in FY 2002

and FY 2003, FSS embarked on an aggressive training initiative to educate customers on the proper use of the MAS

program and its benefits. This customer education has undoubtedly affected the growth in use of the MAS program,

which results in greater-than-target FSS business volume.

GSA-WIDE GOAL 3: OPERATE EFFICIENTLY AND EFFECTIVELY

PERFORMANCE GOAL RESULT

Reduce operating costs. Goal Met

PERFORMANCE GOAL

Reduce the FSS operating costs. Implement and sustain internal business processes that optimize reliable, timely and

quality service.

MEASURE 

Operating cost per $100 business volume.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

$1.88 $2.20 $1.76 $1.73 $1.47

DESCRIPTION OF THE MEASURE: This is a productivity measure. As FSS produces more business volume at a lower cost,

the measured result indicates a more efficient and productive organization. By measuring operating cost per $100

business volume, FSS is able to track how well strategies and initiatives to improve efficiency and effectiveness are

working. As efficiency is improved through these processes, FSS anticipates that the operating cost per $100 business

volume will decrease. 

The formula for calculating operating cost per $100 business volume equals total operating costs divided by total

business volume, multiplied by 100. “Operating Costs” as defined for this measure, are selling, administrative and other

expenses associated with operations, and exclude expenses such as cost of goods sold, transportation, etc. 

Business volume equals the total leveraged business volume. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: FSS performance surpassed the target for FY 2003 due to less than planned

operating costs and higher than expected business volume. Optimizing operating costs is a continuing key operational

strategy. FY 2003 costs were lower than planned. Strategies for decreasing operating costs include leveraging IT

through eGov initiatives (eAcquisition, eTravel, eBuy, etc.), implementing process improvements to optimize reliable,

timely and quality service (expanding on-line tools and eSystems, such as Advantage, eBuy, eLibrary) and implementing

sales automation software and strategic planning for IT expenditures.

Two major factors contributed to higher than targeted FY 2003 business: (1) higher than expected growth in the use

of new schedules for services; and (2) explosive growth in the use of the new electronic RFQ tool, eBuy.

FSS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 55

DESCRIPTION OF THE MEASURE: This measure applies to FSS business lines only. It is actual total cost variance from plan,

calculated as revenue minus profit/loss. The annual target is set at –3 to +3 percent to maintain an acceptable level of

performance with an appropriate amount of resources. This is a business operational target to track forecasting and

pricing. Accurate forecasting ensures that customers are not overcharged or undercharged for the goods and services

FSS delivers. This measure shows the effectiveness of FSS’s planning capabilities. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: FSS realized higher than expected costs for the new general ledger system,

Pegasys and for telephones. A reallocation of telephone costs among the GSA Services resulted in higher actual

telephone costs for FSS.

PERFORMANCE GOAL

Ensure accurate forecasting and cost management to leverage operations and optimize pricing.

MEASURE 

Planned vs. actual cost.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

PLANNED $3,063M $3,141M $3,171M $3,477M

ACTUAL $3,136M $3,146M $3,398M $3,645M

VARIANCE 2.38% 0.16% 7.15% -3% to +3% 5%

GSA-WIDE GOAL 4: ENSURE FINANCIAL ACCOUNTABILITY

PERFORMANCE GOAL RESULT

Ensure accurate forecasting and cost management to leverage Goal Not Met

operations and optimize pricing. 

FSS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 56

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

7.9% 7.6% 6.9% 7.3% 6.7%

DESCRIPTION OF THE MEASURE: This is a productivity measure. As FSS realizes more revenue at a lower cost, the

measured result indicates a more efficient and productive organization.

FSS has control over both the direct costs and revenues and can create initiatives that will positively affect both factors.

This measure focuses on how well FSS controls costs and attracts new revenue.

This indicator measures business lines and support offices separately. Direct costs are divided by revenue. Direct costs

exclude allocations. For business lines, direct costs exclude allocations; revenue is the business line’s revenue.

For support offices, direct costs are the costs associated with that office, revenue is total FSS revenue. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: This measure requires planning and management of both direct costs and

revenue. While FSS has control over direct costs, the sales and revenues under the FSS schedules program has a major

impact on this measure. The revenues from the sales in the schedules program have been increasing faster than costs

over the past few years. Revenue is realized by the industrial funding fee (IFF) cost recovery method. Because FSS

has become more efficient, FSS will reduce the IFF in FY 2004, and next year’s performance on this measure will likely

be more on target.

PERFORMANCE GOAL

Manage operating costs so that they are equal or less than revenue.

MEASURE 

Total cost as percent of revenue.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

94.8% 97.1% 97% 97% 97%

DESCRIPTION OF THE MEASURE: This measure focuses on how well FSS controls costs and attracts new revenue. It applies

to FSS business lines only and is computed by dividing total business line costs by business line revenue. Total cost

includes business line direct costs and allocations. This measure provides FSS management with a quick view of the

financial health of each business line; it is a profit and loss type measure that is used in private industry. The target is

set at 97 percent because many FSS business lines are subject to environmental factors beyond our control. 

The significant changes in fuel prices for GSA’s fleet operations in past years is one example. The 3 percent margin is

used to cover risks associated with factors beyond our control.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: FY 2003 results are consistent with FSS’s plan and contribute to the steady

financial health of the organization. In a complex $3 billion budget, the actual performance for this measure missed

the target by 0.31 percent. FSS performance on this measure required very careful planning and management of both

costs and revenues. 

FSS

PERFORMANCE GOAL

Manage direct costs, leverage operations and optimize pricing to ensure that best value is provided to customers

agencies and the taxpayer.

MEASURE 

Direct cost as percent of revenue.
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 57

DESCRIPTION OF THE MEASURE: This measure ensures that socioeconomic businesses are getting their share of business

under FSS programs.

This indicator measures the amount of FSS schedules business volume of goods and services that meet specific

socioeconomic criteria established by SBA. The calculation is: Stock, SOP, direct delivery purchases, and schedules

transactions divided by total business volume for the Commercial Acquisition and Supply business lines. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The target represents an increase in socioeconomic business volume

proportional to the increase in the total FSS business volume. The FY 2003 target was set to maintain an acceptable

level of performance. FSS’s FY 2003 performance results for this goal are exceptional, considering that the FSS business

volume (the denominator in the equation for this measure) exceeded the target by over 20 percent. 

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

FEDERAL AGENCY

FSS has determined that socioeconomic business volume is the best outcome measure for government responsibility.

The strategies to achieve this goal include actively facilitating customer’s compliance with procurement laws and

regulations and promoting solutions for socioeconomic and environmental policies. FSS designs its programs and

processes around these strategies as part of its mission responsibilities, and provides training opportunities for

customers about proper and effective use of FSS programs. 

PERFORMANCE GOAL RESULT

Increase customer agency support of government-wide Goal Met

socioeconomic goals.

PERFORMANCE GOAL

Increase customer agency support of government-wide socioeconomic goals.

MEASURE 

Percentage of socioeconomic business volume.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

30.55% 33.10% 33.73% 33% 33.24%

FSS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 58

FTS provides telecommunications and IT products and

services to federal agencies in support of their mission to

the public. FTS adds value by advising and consulting

with agency customers to help them assess needs, identify solutions, write statements of work or task orders and

manage projects. 

PERFORMANCE AND RESULTS BY

BUSINESS-LINE

NETWORK SERVICES: Declining prices, a general downturn

in the capital markets and the economy, 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:

Timely sharing information with customers, Congress

and industry partners;

Assessing the impact of the MCIWorldCom (name

changed to MCI) bankruptcy to ensure FTS has a

Continuity of Operations’ strategy for its customers

who are provided services by this vendor;

Monitoring and planning contingencies when Winstar

was facing potential bankruptcy filing. FTS participated with the Department of Justice bankruptcy

hearing to represent the interests of the government

and potential impact to government telecommunication services if Winstar ceased operations;

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; and

Adding new industry partners to provide choice to

FTS customers and to enable the potential for alternative and/or redundant offerings that help ensure continuity of services.

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,

contingency plans for possible outcomes will be developed and information will be shared with FTS customers,

Congress and Industry partners.

INFORMATION TECHNOLOGY (IT) SOLUTIONS: The IT Solutions

program provides a comprehensive range of IT products

and assisted services to its federal government clients on

a fully cost-reimbursable basis through contracts with

industry partners – from the routine acquisition of IT

to the design, acquisition, implementation and maintenance of very large-scale secure, survivable, integrated

computing environments.

The program offers flexible, full-service IT solutions with

access to a wide variety of contracting vehicles that can

FEDERAL TECHNOLOGY SERVICE

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 59

be specifically tailored to the requirements of individual

clients. ITS can quickly obtain products and services

from existing GSA Schedules and Government-wide

Acquisition Contracts (GWAC), from internal contracts

designed for particular types of client needs as well as

using the contracting offices of other agencies. ITS can

also design, award and administer client-specific

contracts on behalf of the requesting agency. Customers

may engage National and Regional IT Solutions program

offices at a variety of service levels – from simple acquisition and delivery, to the provision of comprehensive

technical, contracting, financial and administrative

services, including full-scale project management.

The National IT Solutions program offices are organized

around their customers so that they may leverage longterm relationships with those customers and develop

in-depth knowledge of their missions and strategic plans.

In many cases, associates are located in customer space

working along side of the customer.

The Regional IT Solutions program offices combine its 

in-house technical expertise with commercially available

technology to provide timely and cost-effective IT

products and services to its customer agencies within

particular geographic regions. The fact that Regional IT

Solutions offices are located in close physical proximity to

their customer bases reduces travel time and overhead,

fosters close customer ties and leads to much repeat 

business. For example, the Southeast Sunbelt Region’s

geographical territory houses several very large 

military bases that include Joint Commands with large

client requirements.

Within the IT Solutions business line, there are

technological opportunities to improve business services.

By far, the greatest value opportunity is the replacement

of Regional and National IT Solutions business systems

with a single project ordering and management system

using commercial off-the-shelf software. A business

systems modernization program, called 3rd Generation

System (3GS), is underway which will drastically improve

business service delivery. By unifying the FTS task order

business under 3GS, FTS will simplify and improve the

manner in which it supports its clients and conducts

business with its industry partners.

FTS Performance by GSA-wide Goals 

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

PERFORMANCE GOAL RESULT

Increase customer satisfaction, indicating progress in service delivery Goal Met

at best value.

Foster competition to benefit federal agencies by promoting quality Goal Met

services at lower prices.

Assist customers in achieving savings in the acquisition of products Goal Met

and services. (Network Services - long distance)

Assist customers in achieving savings in the acquisition of products Goal Not Met

and services. (Network Services - regional telecommunications)

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 60

DESCRIPTION OF THE MEASURE: Dougherty and Associates, Inc are conducting a quantitative study of federal government

customers to evaluate and benchmark satisfaction with FTS products and services. The methodology called for

collecting data from 1,484 federal government customers during September 2003. The established survey quota groups

are sufficient for each of the FTS business units to report statistically valid customer satisfaction results.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The target was exceeded due to an increase focus on customer requirements.

The FY 2003 survey included all of FTS business lines and was for a period of 12 months versus the FY 2002 survey,

which included customers that had been with FTS for at least 24 months. The FY 2003 target was exceeded by

4.5 percent and improved over last year’s results (73.6 percent) by 5.9 percent.

PERFORMANCE GOAL

Increase customer satisfaction, indicating progress in service delivery at best value.

MEASURE 

Percentage of customers indicating satisfaction on annual customer survey. 

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

76% N/A 73.6% 75% 79.5%

PERFORMANCE GOAL

Foster competition to benefit federal agencies by promoting quality services at lower prices. 

MEASURE 

Percentage of task and delivery orders subject to the fair opportunity process.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 70% 70% 80% 86%

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

against Government-wide Acquisition Contracts (GWAC) on behalf of other federal 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 ons; and 4) minimum guarantee, when a certain level of business was guaranteed to the

original contractor. This metric is an indicator of the competition fostered in placing orders against the GWACs.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The target was exceeded due to management emphasis on limiting the use of

exceptions to the fair opportunity process. This resulted in an increase of tasks orders subject to fair opportunity

reflecting increased competition.

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 61

DESCRIPTION OF THE MEASURE: Cumulative cost savings across FTS2001 product lines are based upon best commercial

price comparisons. FTS2001 product lines are SVS, DTS, FRS, ATM and IPS. In FY 2003 this measure was expanded

from SVS to all services.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: This measure reflects the cumulative savings that FTS’s customers realized as

a result of obtaining Long-distance network services from GSA’s FTS. Savings are calculated each quarter, by service

category, and are the result of comparing FTS prices to those prices of large commercial companies obtained from the

same commercial carriers we use (MCI, Sprint, AT&T, etc.). Individual agency savings are dependent upon the actual

service acquired and the volume of service obtained. The target was exceeded by approximately 5 percent as reflected

on the chart above. 

During FY 2003, the Network Services Long Distance Program has provided tremendous economic value to FTS’s

customers, saving them $574.1 million dollars this year alone. Depending on the category of service (SVS, FRS, DTS,

ATM, IPS) savings range from 45 percent to 68 percent below best commercial prices with an average savings of

53 percent below commercial pricing.

PERFORMANCE GOAL

Assist customers in achieving savings in the acquisition of products and services by providing state-of-the-art,

commercial telecom products and services at competitive rates (long distance).

MEASURE 

Cumulative cost savings below commercial discounted services for Switch Voice Service (SVS), Dedicated

Transmission Service (DTS), Frame Relay Service (FRS), Asynchronous Transfer Mode (ATM) and Internet Protocol

Service (IPS).

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

SVS $ 32.8M $186.5M $184.0M

DTS $171.0M $143.4M

FRS $142.0M $179.7M

ATM $ 42.0M $ 44.4M

IPS $ 2.0M $ 22.6M

TOTAL $543.5M $574.1M

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 62

DESCRIPTION OF THE MEASURE: FTS is committed to offering customers quality services at competitive prices.

Metropolitan Area Acquisition (MAA) contracts offer significant savings to customers in metropolitan areas that are

served by the MAA program. This measure reflects estimated cost savings due to MAA implementation and pricing. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Through 48 fully competed contracts the MAA provides service to 26 major

metropolitan areas. MAA’s offer a wide variety of local voice and data services, analog or digital, with more than

60 basic and enhanced features to choose from in meeting individual agency configuration needs. This goal was not

met. The $46 million was a goal based on estimated savings and potential growth. FTS did meet it’s goal for bringing

on new customers. The savings target was not met due to the fact that the new business yielded a smaller savings

than originally targeted. Although we did not meet FTS’s FY 2003 target, to date, the MAA program continues to achieve

30 to 60 percent savings over commercial rates and overall, potentially saved federal customers an estimated

$100 million. These cost savings provide FTS customers with the ability to fund new requirements and technology

without increasing their budgets, thus saving the taxpayer money. The Metropolitan Area Acquisition (MAA) program

is part of an overall federal telecommunications strategy designed to foster competition in government

telecommunications services. The MAA program spearheads the GSA strategy to market and deliver competitive and

innovative services to existing customers. 

GSA-WIDE GOAL 3: OPERATE EFFICIENTLY AND EFFECTIVELY

PERFORMANCE GOAL RESULT

Provide timely and effective telecommunications service. Goal Met

Improve acquisition processes and methods to reduce time to award Goal Met

local telecommunications. 

Provide timely and effective service delivery of local telecommunications. Goal Met

Improve acquisition processes and methods to reduce time to award Goal Met

task orders for IT Solutions. 

Provide competitive prices to customers. Goal Met

PERFORMANCE GOAL

Assist customers in achieving significant savings in the acquisition of products and services 

(Regional Telecommunications).

MEASURE 

Cost savings in major metropolitan areas.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

$0.25M $3.0M $33.5M $46.0M $42.1M

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 63

DESCRIPTION OF MEASURE: This performance measure covers additional offerings made available to customers through

the contract modification efforts for the FTS2001 (Long Distance) and Crossover programs (long distance vendors to

local and vice versa). The FTS2001 contract modifications and crossover allow GSA customers to add telecommunications

technology and to modify the existing telecommunications contracts to run their missions more effectively. This

performance measure focuses on two modification classifications:

Enhanced service modifications – function is to add various components or features of voice and data services provided

by the FTS2001 and Crossover contracts, or improve these services.

Emerging service modifications – function is to add new telecommunications services under the FTS2001 contract and

through Crossover initiatives.

The goal established for FTS Network Services service delivery operations focuses on achieving a 10 percent reduction

in processing times over the previous year. The streamlined contract modifications and crossover initiatives result in

expanded network service offerings, promoting additional opportunities to provide ‘best value’ FTS solutions to support

customers’ mission requirements.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The average number of days for FTS2001 modifications has been 25 days for

FY 2003. FTS contract modification times have been an average of 30 percent better than plan for FY 2003. The average

number of days for Crossover modifications has been 19 days for FY 2003. FTS contract modification times have been

an average of 64 percent better than planned for FY 2003. The actual results were better than anticipated due to the

program implementing re-engineering initiatives to provide timely and effective service delivery. 

The Network Services Long Distance Program is constantly modifying existing contracts to introduce new products,

services and technology to meet customer demands and keep pace with the changing market place. During FY 2003,

the Network Service Long Distance Program has completed (cumulative results through September 30, 2003) 65 contract

modifications and enhancements (FTS2001, 30 and Crossover, 35). 

PERFORMANCE GOAL

Provide timely and effective telecommunications service.

MEASURE 

Average number of days to complete contract modifications for FTS2001 and for Crossover.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

FTS 2001 35 days 36 days 25 days

CROSSOVER 38 days 54 days 19 days

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 64

DESCRIPTION OF THE MEASURE: The FTS Office of Regional Services offers local telecommunications service and solutions

through numerous awarded contract vehicles. The timeliness of contract modifications (to include technology

refreshment and crossover provision) is critical to providing timely and effective service delivery. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The target was exceeded due to efforts to streamline procedures. The Office

of Regional Services worked with the regions to decrease the number of days to complete contract modifications.

Improvements include enhancements to the evaluation process, implementing a program to track the modifications and

weekly status reporting. The expeditious awards of contract modifications benefit FTS customers by offering cost

effective state of the art telecommunications solutions in a timely manner. Taxpayer benefits include improved service

delivery that is more closely aligned with commercial practices. 

PERFORMANCE GOAL

Improve acquisition processes and methods to reduce time to award for local telecommunications.

MEASURE 

Average number of days to complete contract modifications.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 43 days 60 days 38 days

PERFORMANCE GOAL

Provide timely and effective service delivery of local telecommunications.

MEASURE 

Percentage of time negotiated completion date for local network service is met or bettered.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A N/A 85% 90%

DESCRIPTION OF THE MEASURE: This measure tracks service delivery time intervals (expected versus actual service

delivery) to improve the accuracy and timeliness of local telecommunications service delivery.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The actual result is based on a sampling from three major national projects in

support of DHS’s Transportation Security Administration, Department of Justice (DOJ) and OCIO. The target was

exceeded due to increased efforts to improve local telecommunications service delivery. We are re-evaluating the use

of sampling to measure this and use a more comprehensive approach.

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 65

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

expectations, the Client Support Centers track and report actual task order award dates for services and commodities

against the task order award dates that have been negotiated with customers. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Actual task award dates have been on target with customer requested award

dates in FY 2003.

PERFORMANCE GOAL

Improve acquisition processes and methods to reduce time to award task orders for IT solutions.

MEASURE 

Percentage of negotiated award dates for services and commodities that are met or bettered.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 91% 90% 91%

PERFORMANCE GOAL

Provide competitive prices to customers.

MEASURE 

Percentage of dollar savings between Independent Government Cost Estimates (IGCE) and award amounts.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 5.5% 6.0% 7.3%

DESCRIPTION OF THE MEASURE: IGCE is a tool used by the acquisition staff; it serves as the initial benchmark against which

all proposals are measured to determine price reasonableness. The cost estimate is also used during negotiations to

obtain the best price for the customer. The methodology comparing the IGCE to the award amount is an interim

measure pending the identification of alternatives to measure cost savings and procurement effectiveness. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Target was exceeded due to increased emphasis on use of the IGCE to

negotiate best prices for the customer agency.

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 66

GSA-WIDE GOAL 4: ENSURE FINANCIAL ACCOUNTABILITY

PERFORMANCE GOAL RESULT

Increase business volume. Goal Met

Achieve net operating results to increase retained earnings in Goal Not Met

IT fund for future capital investment.

Implement business process efficiencies to reduce cost of Goal Not Met

delivering products.

Ensure full cost recovery of operations. Goal Not Met

PERFORMANCE GOAL

Increase business volume. 

MEASURE 

Percentage growth in business revenue.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 14.6% 9.1% 22.5%

DESCRIPTION OF THE MEASURE: Revenue forecasts are developed during the budget process based on planned levels of

orders and expected performance. Accurate forecasting of new orders, as well as unfilled orders, is a key element in

the development of revenue, operating expense and margin.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The primary driver was the increased business volumes in the Regional IT

Solutions business unit, which experienced growth of more than $1 billion. The growth was mainly due to the DOD

customers, who posted increased volumes across most of the regions.

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 67

DESCRIPTION OF THE MEASURE: NOR measures the use of resources in providing goods and services to federal customers.

This measure reflects the management control of operating costs, reserve expenditures, pricing/fee structure and revenue

forecasting capabilities. A positive NOR allows FTS to contribute toward maintaining a sufficient level of retained

earnings (reserves) which are necessary to operate the IT Fund. In addition, NOR also addresses investment in new

initiatives that offer potential in terms of new services and cost savings to client. Subsequently, funds accumulated in

retained earnings (reserves) allow FTS to manage its resources in a fiscally responsible manner and stabilizes prices to

customers, permitting them to better forecast their budget needs. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The decrease in NOR is primarily due to a prior period adjustment

($19 million in the long distance program), and the increase in the overall cost of operations was required to support

the growth in business volumes. 

PERFORMANCE GOAL

Achieve net operating results to increase retained earnings in IT fund for future capital investment.

MEASURE 

Net Operating Results (NOR).

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A $34.01M $14.96M $(0.91M)

PERFORMANCE GOAL

Implement business process efficiencies to reduce cost of delivering products.

MEASURE 

Direct operating expenses as a percentage of gross margin.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 59% 49% 64.4%

DESCRIPTION OF THE MEASURE: There are two primary elements in providing value-added products and services to

federal customers: cost of product and cost of delivering product. Operating expenses reflect the GSA cost of delivering

products to federal agencies. These costs are recovered through established prices/rates charged to customers.

The success of FTS relies on its ability to offer customers quality services at competitive prices; control and management

of the cost of delivering product is critical to assess the organizational process improvements. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: If you remove the $19 million prior year expense adjustment from the Gross

Margin, the actual percent of Direct Operating Expenses to Gross Margin for FY 2003 would be 60 percent (vs. last

year’s 59 percent). However, the FY 2003 target of 49 percent projected a reduction in operating costs that we were

not able to achieve. FTS is developing improvements to its forecasting methodology to prevent such variances from

recurring.

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 68

DESCRIPTION OF THE MEASURE: Contribution index represents the ratio of gross margin to the total operating expenses

and measures the organization’s ability to fully recover its cost of delivering product, including any planned profits,

which are contributed toward maintaining a sufficient level of retained earnings. This measure provides fundamental

information about the operating activities of the organization and is used to monitor, control and revise the operations

to meet FTS strategic objectives.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The variance of target versus actual is primarily due to forecasting of revenue

and expenses. Emphasis will be placed on improved accuracy of revenue projections and cost requirements in 

FY 2004, so that the contribution index target and actual will be closer, allowing for a more balanced allocation of

resources and spending.

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

PERFORMANCE GOAL RESULT

Recruit, hire, develop and retain a highly skilled workforce. Goal Not Met

PERFORMANCE GOAL

Ensure full cost recovery of operations.

MEASURE 

Contribution Index. 

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 1.58 1.09 1.06

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 69

MEASURE DESCRIPTION OF THE MEASURE: Associates are the most vital assets of FTS in providing the highest quality

solutions to federal agencies’ technology needs. To ensure continued success, FTS will continue to encourage

associates to give time and thought to Individual Development Plans to improve their skills and expertise.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The target was not met in FY 2003 primarily due to changes in Region 10.

During FY 2003, Region 10 improved the review and development process of their IDPs. The changes/restructuring

efforts caused the region not to meet its targets. However, the IDP’s are now competency based, and aligned with

budget and performance deadlines.

PERFORMANCE GOAL

Recruit, hire, develop and retain a highly skilled workforce.

MEASURE 

Percentage of Individual Development Plans (IDP) updated annually and documented.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 81% 90% 87%

PERFORMANCE GOAL

Recruit, hire, develop and retain a highly skilled workforce.

MEASURE 

Average number of training hours completed in mission-critical areas of acquisition, technology, business and project

management.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 38 50 42

DESCRIPTION OF THE MEASURE: The measure is the average number of training hours. In FTS effective service delivery

relies largely on a highly skilled workforce; FTS associates are on the cutting edge of technology and must keep abreast

of the latest technological changes. FTS associates receive training in its four mission critical areas: acquisition,

technology, business and project management. In addition FTS invests in a range of leadership programs which

provide associate development for the future as well as present needs of FTS, enabling the organization to be proactive

and strategic in its planning.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: FY 2003 target was not met due to the low participation rate in the project

management area of FTS. Management within the service determined that associates must address priority projects

which limited the hours that they were available for training. 

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 70

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

A FEDERAL AGENCY

PERFORMANCE GOAL RESULT

Achieve and maintain an appropriate level of procurements with Goal Met

small business.

PERFORMANCE GOAL

Achieve and maintain an appropriate level of procurements with small business.

MEASURE 

Percentage of procurements with small business as compared to total prime contracts.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

36% 30% 37% 31% 35%

DESCRIPTION OF THE MEASURE: The federal government purchases billions of dollars in goods and services annually and

policy and law require that all small businesses have the maximum opportunity to participate in providing those goods

and services. To ensure that small businesses receive an equitable share of the federal procurement dollars spent each

year goals are negotiated with the Small Business Administration (SBA). The measure shows the relationship of the

portion of total prime contracts awarded to small businesses by FTS.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: FTS attributes the actual results to efforts made by FTS personnel to ensure

small businesses are provided the opportunity to participate in FTS contracts. FTS also attributes the achievement to

continued use of existing contracts where small businesses are prime contract holders. FTS personnel participate in

numerous special initiatives (e.g., networking breakfasts, procurement conferences, tradeshows and one-on-one

counseling), which targeted the small business community.

FTS
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 71

OGP exercises GSA’s authority as one of the central

management agencies of the federal government. OGP

provides government-wide policies to improve the

management of acquisition, 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.

PERFORMANCE AND RESULTS FOR FY 2003

Our most important role in benefiting taxpayers this year

has been our role in the overall federal government eGov

effort. Some examples of our efforts are as follows:

EXTENSIBLE MARKUP LANGUAGE (XML) REGISTRY REPOSITORY:

XML lays the technological foundation of interoperability,

which allows sharing of technology and information flow

across government. The OGP’s XML.gov initiative will

provide a consolidated cross-government approach to

XML definition, storage and reuse among all Federal

agencies and their partners. In addition, by providing a

means of electronic information sharing that enables

other eGov transactions, the initiative will yield

efficiencies and directly benefit customers and

stakeholders including federal entities, state entities, local

entities and the public. 

RULES/RULEMAKING: OGP participates in the eRulemaking

initiatives and is becoming uniform internally by using

standard processes and platforms. This includes an

ongoing effort to digitize regulatory materials to allow

staff greater access to materials, and to allow public

access to requested materials, via Freedom of Information

Act (FOIA) requests.

CONTRACTS/CONTRACTING: OGP has established the

Interagency Contracts Directory (ICD), a searchable

online database of contracts available for multi-agency

use, in accordance with the Federal Acquisition

Regulations (FAR) through a rule published in July of

2003. The ICD in contrast with the Federal Procurement

Data System (FPDS) will list only the basic contract

vehicles and will contain only contract vehicles available

for other agencies use. It will allow a quick search of

what is available for use and where it is located.

Contracting activities are required to input information

that will help other agencies perform market research on

available contracts. Program Managers and Contracting

Officers will be able to search on a number of contract

characteristics including socio-economic elements to

assist them in meeting, for instance, their small 

business goals. 

OFFICE OF GOVERNMENTWIDE POLICY

OGP
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 72

OGP Performance by GSA-Wide Goals 

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

PERFORMANCE GOAL RESULT

Ensure adoption of Federal Premier Lodging Program (FPLP) Goal Met 

within the 77 target markets to meet federal travelers’ needs, 

reducing overall government spending.

Move federal agencies to commercial payment processes for mail Goal Not Met

to drive agencies to be more strategic in their operations. (percent)

Move federal agencies to commercial payment processes for mail Goal Not Met

to drive agencies to be more strategic in their operations. (dollars)

Expand the use of performance-based contracting to increase Goal Not Met

government efficiency.

Support authentication needs for eGov initiatives. Goal Not Met

Facilitate the consistent use of XML for federal eGov initiatives. Goal Met

Increase the number of agency programs using OGP-facilitated Goal Met

performance measures. 

PERFORMANCE GOAL

Ensure adoption of FPLP within the 77 target markets to meet federal travelers’ needs, reducing overall 

government spending.

MEASURE 

Dollar savings to government over corporate rate.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A $5.03M $24.75M $33.6M

DESCRIPTION OF THE MEASURE: This measure indicates the cost effectiveness of FPLP by measuring the savings to the

government over the corporate rate. FPLP award rates are used to set per diem for FPLP locations. Projected cost

savings are estimated by multiplying the estimated FPLP room nights used, by the average dollar savings (average FPLP

rate compared to the average corporate rate). The number of room nights used by FPLP travelers will be verified by

OGP management based on data submitted by participating properties on a monthly basis. Data from travel charge

cards will also be gathered as a secondary source of FPLP usage information. OGP calculates the average FPLP rates

after contract awards are made. Average corporate rates are provided by Adventure Travel. (Note: Corporate rates

were used as the basis for savings instead of per diem rates because the basic premise of the FPLP is to use the

marketplace to set the per diem rate rather than the old telephone survey method. There is not likely to be any

significant savings by using the per diem rates as the basis for savings because FPLP rates are used to set per diem

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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 73

rates in all FPLP locations. While many FPLP hotels may have rates below a particular per diem rate, many others will

have rates equal to that same per diem rate. The real success of FPLP will be whether Federal travelers are able to get

rooms in the locations they need.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Cost savings for FY 2003 are $33.6 million; FPLP rates were 36 percent less

than corporate rates. Savings were calculated by multiplying the projected room nights used (599,795) by the average

savings over corporate rate ($58). OGP achieved FPLP rates that are 35 percent better on average than corporate rates

through a competitive contracting process under which lodging properties offers are not only benchmarked against

each other but also against industry average daily rate data.

PERFORMANCE GOAL

Move federal agencies to commercial payment processes for mail to drive agencies to be more strategic in 

their operations. (percent)

MEASURE 

Percentage of federal mail payments to U.S. Postal Service (USPS) through commercial processes.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

16% 15% 17% 20% 16%

DESCRIPTION OF THE MEASURE: When federal line managers pay for postage as private sector organizations do, and

account for postage costs through their standard accounting and budget processes, they are able to track postage costs

in real time and identify opportunities to save money before they spend it. OGP believes that the result of these commercial processes will be cost savings. 

This measure is derived by dividing the dollar value of payments to USPS made through commercial processes by the

total federal spending with USPS. Data is collected from the 28 large federal agencies. As of June 2003, there were

28 large agencies that spend at least $1 million annually on postage. 

Federal Management Regulation, 41 CFR 102-192, requires agencies to move to commercial payment processes no later

than October 1, 2003. The large, centrally managed federal mail programs (e.g., Social Security, Financial Management

Service, Census), will probably achieve this goal within the context of the existing Official Mail Accounting System

(OMAS) although this is not “commercial payment processes” as originally envisioned. These centrally managed mail

programs, however, are capable of making their program managers accountable for postage costs and enforcing

postage savings within the OMAS environment. Other agencies will be expected to move to existing commercial

payment processes. OGP expects that it will take years for most agencies to fully implement their conversion, and this

expectation is reflected in the targets for this performance measure. 

New measures will be used for FY 2004 to reflect a change in our strategy. Since the largest agencies will continue to

use the government-unique Official Mail Accounting System (OMAS) for the foreseeable future, the new measures will

track the number of agencies that have plans in place to ensure accountability for mail costs, and the number that have

implemented their mail accountability plans. 

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DISCUSSION OF FY 2003 TARGET VS. RESULTS: At the time the existing measures were developed, we expected all federal

agencies to convert to the commercial payment process and to be able to use commercial mail service vendors who

are locked out by the OMAS. This has proven to be impractical, because it would require the Postal Service to build

and maintain a second government-unique system along with the existing OMAS. In addition, the Treasury Department

now requires that the federal spending on postage be kept in Treasury, which requires the use of OMAS. Several large

agencies have requested and received a waiver from the conversion to commercial processes, which caused the actual

2003 measure to fall slightly short of the target.

PERFORMANCE GOAL

Move federal agencies to commercial payment processes for mail to drive agencies to be more strategic in 

their operations. (dollars)

MEASURE 

Dollar value of payments to USPS made through commercial processes.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A $165M $190M $163.6M

DESCRIPTION OF THE MEASURE: The dollar value of federal mail payments to USPS is calculated by totaling the sum of the

payments to USPS made through commercial processes. Data will be collected from the 28 large federal agencies. 

As of June 2003, there are 28 large agencies that spend at least $1 million annually on postage.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Similar to the case of the percentage of federal mail payments to USPS, OGP

anticipated that all federal agencies would convert to the commercial payment process. In addition, the Treasury

Department required that all federal spending on postage remain within Treasury, requiring the use of the existing

OMAS, as explained in the previous discussion. These circumstances outside our control have caused the target to fall

slightly short of its goal. 

PERFORMANCE GOAL

Expand use of performance-based contracting to increase government efficiency.

MEASURE 

Percentage of eligible service contract dollars awarded as performance-based contracting.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 15% 9% 30% 24%

DESCRIPTION OF THE MEASURE: Performance Based Contracting (PBC) (or Performance Based Service Actions (PBSA)) is

a method for structuring all aspects of an acquisition around the purpose of the work to be performed as opposed to

the manner by which the work is to be performed. The statement of work for a PBC focuses on the result desired

rather than the specifications on the process. OMB directs that agencies write contracts using performance-based techOGP
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 75

niques on at least 20 percent of the total eligible service contract dollars beginning in FY 2002, with increases each

year, and up to 50 percent by FY 2005. Eligible contract dollars are contracts over $25,000. This measure looks at the

total GSA contract dollars in this category and calculates the percentage of these that are awarded as PBCs. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The calculation for FY 2003 Actual includes all eligible contract dollars over

$25,000 within GSA. Since leasing is not appropriate for PBC and FPS is no longer a part of GSA, these service dollars

will be extracted from GSA’s total service dollars for FY 2003. This change was made to OGP’s database this year. 

FY 2001 and FY 2002 data included real property lease contracts and FPS contracts. 

We missed the FY 2003 target because 1) we only have two quarters of data to report due to a lag in the legacy Federal

Procurement Data System (FPDS); and 2) FY 2003 FPDS data includes errors and adjustments that require revisions. 

In the interim, these changes negatively impacted our planned goal. By the time four quarters of FY 2003 data are

reflected, we anticipate that the 30 percent goal will have been achieved or exceeded, demonstrating GSA’s expanded

use of performance based contracting.

PERFORMANCE GOAL

Support authentication needs for eGov initiatives.

MEASURE 

Number of eGov initiatives with completed authentication needs assessment and determined solution sets.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 6 22 13

DESCRIPTION OF THE MEASURE: The eAuthentication initiative is a cross cutting need that is intended to support the

authentication needs of all 24 eGov initiatives. This measure provides the number of eGov initiatives that have been

assessed for cross certification with the authentication Gateway. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The target for completed assessments of eGov initiatives is 22; as of the end

of FY 2003, risk assessments have been completed on 13. Five initiatives were determined not to require

eAuthentication’s risk assessment (E-RA) service; therefore, no risk assessments were performed on them. This reduced

the total number of eGov initiatives in need of assessment from 22 to 17. The Office of Personnel Management and

Environmental Protection Agency have been contacted and we are in the process of scheduling E-RA’s for them. 

The E-RA tool has been posted to the eAuthentication Web site (http://cio.gov/eauthentication) and is available for

general use. We missed the target because agencies were less than responsive to OGP’s overtures to get the risk

assessments done during the fiscal year.

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DESCRIPTION OF THE MEASURE: The eAuthentication initiative is a cross-cutting need that is intended to support the

authentication needs of all 24 eGov initiatives. This measure provides the number of eGov initiatives that have begun

operating with the authentication Gateway. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The "3" in 2003 Actual refers to the number of eGov applications that were

installed in the authentication gateway. Two of these are National Finance Center applications and one from the Social

Security Administration. The SSA application went into limited production use in May, and demonstrated the practical application of the Gateway to the real-world transactions. SSA estimated the daily savings from limited number of prison facilities to be $10,000 per day. During the later part of 2003 the decision was made to adopt a federated (decentralize

architecture) approach in place of a centralized gateway architecture; development of the gateway ceased as of October

10, 2003. Consequently additional applications, including one with the Disaster Mitigation Initiative, were never put

into production. Hence the 2003 target of "6" was not met. In FY 2004 OGP will revise this measure to reflect a more

policy-oriented focus.

PERFORMANCE GOAL

Support authentication needs for eGov initiatives. 

MEASURE 

Number of eGov initiatives using the Gateway or common solution.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 2 6 3

PERFORMANCE GOAL

Facilitate the consistent use of XML for federal eGov initiatives.

MEASURE 

Number of eGov initiatives adopting XML recommendations.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 3 5 9

DESCRIPTION OF THE MEASURE: This measure tracks the governmentwide development of XML schemas for data storage

and transfer. Schemas are templates to build and use XML documents.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Nine XML initiatives have been completed: 1) ITIPS/OMB Exhibit 300; 2) BRM

Version 1.0; 3) Enterprise Human Resources Integration (EHRI); 4) eGrants; 5) NARA; 6) eTravel; 7) Integrated

Acquisition Environment (IAE) (Federal Procurement Data System only); 8) Regulatory XML/eRulemaking (ROCIS

completed; and 9) BRM Version 2.0. OGP’s success on this initiative is due to working through the CIO Council’s

Component Subcommittee to gain access to Program Managers for the eGov initiatives. We developed a 

consolidated strategy for the development and management of XML and other technical and business components.

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DESCRIPTION OF THE MEASURE: This measures calculates the number of federal agency programs that use OGP-facilitated

performance measures, as a proxy for the impact our measures have on those agency programs. The most current U.S.

Government Manual is the official source for the federal universe of agencies and their programs. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Under OGP’s leadership, 398 Federal agency programs are voluntarily using

performance measures developed in collaboration with OGP, or are participating in performance measurement

initiatives that OGP leads. OGP recognizes the value of identifiying and instituting the right performance measures

which provide information that allow managers to drive changes and improve overall program performance. Through

interagency communication and cooperation, OGP has found several opportunities to collaborate, promote and

develop the use of government-wide performance measures. Examples of successful OGP performance measures in

use by federal agencies include: 1) Real Property Cost Per Person Model and Productivity Payback Model, that

mainstream the paradigm shift from focusing on facilities to workplaces, and by using benchmarking and international

research projects to learn more information about world-class practices; 2) the annual Federal Fleet Report, which

provides summary information on federal motor vehicle fleet performance indicators, as well as cost-per-mile, number

of vehicles and overall costs.”

GSA-WIDE GOAL 3: OPERATE EFFICIENTLY AND EFFECTIVELY

PERFORMANCE GOAL RESULT

Improve clarity of OGP policies, regulations and guidelines to Goal Met

increase efficiency of government management and operations.

Increase sharing of management systems to allow for better Goal Met

decision-making, accountability and cost avoidance.

Implement PMA for competitive sourcing. Goal Met

PERFORMANCE GOAL

Increase the number of agency programs using OGP-facilitated performance measures.

MEASURE 

Number of agency programs that use OGP-facilitated performance measures.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

58 218 380 330 398

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DESCRIPTION OF THE MEASURE: This measure calculates the number of significant OGP policies, regulations and

guidelines that OGP updates for customer agencies or the public. Since federal agencies have multiple missions, there

must be sound policies in place that afford agencies the flexibility to accomplish their goals in the most effective

manner. OGP provides this policy framework through issuance of policies and guidelines for the management of

property, technology, and administrative services. These policies provide the guiding principles for consistent

processes and efficient management of government.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Based on the 2002 actual of 20, the 2003 target of 38 was a reasonable estimate

at the time that goal was forecast. However, during the year there were issues in the various program areas (such as mail

security) that required clarification and additional guidance was issued, which resulted in a higher number of regulations

being published. We also increased our participation in various working groups and seminars that led to increased

collaboration on guidance that address government-wide issues. Additionally, the measure originally included only the plain

language updates. However to ensure the report reflects all the accomplishments in the regulatory arena, the measure later

included the non-regulatory materials that were published. This is a proxy measure that looks at the output produced by

the various program areas. OGP will discontinue this measure in FY 2004 and focus on outcome measures that are more

accurate indicators of OGP's accomplishments.

PERFORMANCE GOAL

Improve the clarity of OGP policies, regulations and guidelines to increase efficiency of government management

and operations.

MEASURE 

Number of significant regulations updated.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 3 20 38 101

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DESCRIPTION OF THE MEASURE: This measures calculates the number of agency programs that use OGP’s shared

management systems. The measure is used as a proxy for the impact our systems have on those agency programs.

The most current U.S. Government Manual is the official source for the federal universe of agency programs. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The FY 2003 target of 191 was carried forward from the FY 2003 Performance

Plan. Even though internally we had set our targets to be higher than the FY 2002 Actual, we had not updated the target

in the FY 2004 Plan due to the misunderstanding that published targets cannot be changed. This measure counts the

number of agency programs that use OGP shared systems and the total is a roll-up on the usage of different systems within

OGP. The number of agency programs that use OGP shared management systems has increased slightly from FY 2002.

But since the total universe for this roll-up measure is difficult to determine, and the measure does not provide an accurate

picture of the users satisfaction rate with the OGP shared systems, this is not a meaningful measure that reflects

OGP's work. For FY 2004 we will drop this measure and focus on program-level measures that are better indicators of

OGP's program accomplishments.

PERFORMANCE GOAL

Increase sharing of management systems to allow for better decision-making, accountability and cost avoidance. 

MEASURE 

Measure Number of agency programs that use OGP shared management systems to support decision making. 

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 378 191 386

PERFORMANCE GOAL

Implement PMA for competitive sourcing (identifying and competitively sourcing or directly converting 

commercial functions).

MEASURE 

Percentage of OGP Federal Activities Inventory Reform (FAIR) Act Inventory competed or directly converted.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 0% 10% 31%

DESCRIPTION OF THE MEASURE: The 2000 FAIR Act Inventory identified commercially competitive functions that affected

64 FTEs within OGP. This measure calculates the percentage of those FTEs that were involved in competitive sourcing

competitions or direct conversions during FY 2003. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: OGP studied 39 out of 64 FTEs on its 2000 FAIR Act Inventory that resulted

in outcomes for FY 2003. The functions of the FPDS and the Federal Acquisition Institute were outsourced in FY 2003,

by competition and direct conversion, respectively. A total of 20 FTEs were affected as a result. 

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

PERFORMANCE GOAL RESULT

Achieve 55th percentile ranking in the Gallup Q12 Survey. Goal Met

Increase participation at OGP supported educational venues and Goal Met

activities to increase workforce efficiency. 

Develop competency based assessment process for GSA Goal Not Met

acquisition workforce.

PERFORMANCE GOAL

Achieve 55th percentile ranking in the Gallup Q12 Survey.

MEASURE 

Percentage ranking in the Gallup Q12 Survey.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 34th Percentile 63rd Percentile 55th Percentile 74th Percentile

DESCRIPTION OF THE MEASURE: The Gallup Q12 Survey measures associate engagement within an organization. 

To determine how well an organization compares with data points in the Gallup database, the percentile ranking is

used as a standard performance indicator. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: During FY 2002 and FY 2003, several OGP organizations experienced

significant staffing changes due to the FAIR Act Inventory competitions and other major reorganizations. These efforts

had an unfavorable impact on associate morale, and for that reason, OGP set its FY 2003 target for the 55th percentile.

However, the FY 2003 Q12 results were better than expected and reassured us that despite the ongoing internal

changes, our associates were resilient, committed to GSA and engaged. We credit these results to the hard working

efforts of our managers and their effective handling of hard choices about outsourcing, direct conversions and

displacing associates. 

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DESCRIPTION OF THE MEASURE: OGP facilitates and supports a wide array of educational and training opportunities 

government-wide. This is a shared measure to which all OGP programs contribute results.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: OGP has made it a priority to help Federal agencies build a highly skilled

and knowledgeable workforce, and encourages innovative solutions toward more productive work environments. 

We are helping to build a government-wide community of Government administrative services professionals, who are

leading the Government’s efforts to improve these services. OGP will continue to develop and facilitate training opportunities for Federal associates that provide for all facets of professional and personal growth. All program areas in OGP

provide assistance to customer agencies in establishing career enhancement opportunities and have outreach plans to

increase participation. We forge collaborative efforts with other governments and educational institutions, and develop

internet-based training to benefit the Federal community. OGP also works with other Federal agencies and industry

to establish government-wide professional standards in the acquisition and information technology fields. 

One example of our success in increasing participation is the Federal Acquisition Online University, which had an 

FY 2003 target of attaining 30,000 students accessing online courses, and an actual achievement of 34,644 students.

Other OGP educational venues include the annual Travel and Transportation Conferences and Workshops, IT Manager

Training (IRMCO, STAR and CIO University), and the Federal Advisory Training (Federal Advisory Committee Act).

PERFORMANCE GOAL

Increase participation at OGP supported educational venues and activities to increase workforce efficiency.

MEASURE 

Number of participants at OGP supported educational venues and activities.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 47,500 38,000 48,995

PERFORMANCE GOAL

Develop a competency-based assessment process for GSA acquisition workforce.

MEASURE 

Number of GSA Job Series 1102 (Contract Specialist) workforce who complete the competency assessment process.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A N/A 250 159

DESCRIPTION OF THE MEASURE: The measure was designed to measure the quality of participation in the Applied Learning

Center (ALC) by GSA associates in Job Series 1102 (Contract Specialist). The ALC is a pilot project that provides for

competency/skill assessment of the acquisition workforce and will aid in GSA’s goal to develop a fully qualified and

competent acquisition workforce. 

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DISCUSSION OF FY 2003 TARGET VS. RESULTS: The original target was based on a projected sample size of 300 participants

selected at random under the ALC Pilot contract. The sample size was reduced to 254 participants and 159 participants

responded, a response rate of 62.5 percent. The corresponding 159 pilot participants represented approximately 13

percent of GSA’s Series 1102 workforce. We missed this target due to several reasons. OGP does not believe there was

widespread management support for the pilot, which caused some associates to opt out. Comments from associates

indicated that they were not given enough time to devote to the pilot. Some associates commented that work or other

priorities interfered with their ability to participate in the pilot. However, this was an early measure for the pilot and

is not currently being used because of changes in program goals. The current measure is “Number of GSA 1102s who

participate in the competency assessment process pilot.” The reason for the change is that the word “complete”

conveyed a different definition for each participant. GSA participants could “complete” the pilot project at varying

points depending on several factors. Completion of the pilot project was not intended to mean 100 percent completion

of every assessment item in the pilot, which the first measure seems to imply. Once the ALC is fully developed with

additional competencies, the results should identify skill gaps and provide indicators of the competencies of our

acquisition workforce. The limited development of the pilot cannot do this yet. “Participation,” as used in the revised

measure, is more meaningful than “completion.” New measures are in development for a fully functional ALC.

PERFORMANCE GOAL

Develop a competency-based assessment process for GSA acquisition workforce.

MEASURE 

Percentage of GSA 1102’s who fully qualify under Clinger Cohen.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 24% 35% 38.02%

DESCRIPTION OF THE MEASURE: The GS-1102 qualification standard requires grade 12s and below to have a degree or 24

hours credit in specific disciplines in the acquisition area. At grade 13 and higher, there are additional 11 training

classes as required by GSA. As a matter of policy, GSA does not consider any GS-1102 to fully meet the Clinger Cohen

qualification standard unless they have a degree, the 24 hours credit and all GSA specified training. This measure is

designed to determine GSA’s level of compliance with the qualification standard under Clinger Cohen. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: OGP has exceeded the compliance level of 27.5 percent and the 35 percent

target, representing solid progress for GSA’s acquisition workforce in becoming Clinger Cohen compliant. Some of the

reasons for its progress this year include the retirement of some of the legacy acquisition workforce, subsequent hiring

of college graduates and continued efforts by Services and Regions to educate and train members of the acquisition

workforce.

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

FEDERAL AGENCY

PERFORMANCE GOAL RESULT

Provide accessible vendor product information to federal agencies in Goal Met

support of Section 508 procurement requirements to achieve an IT 

environment accessible to all citizens. 

Work with OPM to increase the percentage of federal employees Goal Met

who telework.

PERFORMANCE GOAL

Provide accessible vendor product information to Federal agencies to support Section 508 procurement requirements

to achieve an IT environment accessible to all citizens.

MEASURE 

Number of vendors with templates on the buy accessible database.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 22 320 400 520

DESCRIPTION OF THE MEASURE: GSA IT Accommodations Division established a buy accessible database for vendor

product accessibility templates. The availability of these templates is important for the implementation of Section 508

as they are used by agencies in their research for products that are accessible by the disabled. The database enables

Federal agencies to fulfill accessibility needs when acquiring new IT products. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: As of the end of FY 2003, OGP exceeded its target by more than 30 percent.

Because of the early success in meeting this goal, OGP increased its internal target for the year from 400 to 500. 

This increased target has been met, as a result of numerous presentations to FSS schedule holders at FSS-sponsored events,

and increased participation in conferences, exhibits and outreach activities (Web Casts, panel participation, etc.)

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DESCRIPTION OF THE MEASURE: Telework is considered as one of the key components that leads to high performance,

high quality workplaces. As a federal center of expertise for telework and alternative offices, OGP works with OPM

to promote, develop and refine the telework program for the Federal workforce. Such collaborative results include the

establishment and ongoing improvement of the Federal government’s key telework Web site, the establishment and

co-leadership of the network of agency telework coordinators, and co-development of a new Web-based telework

training module. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: OPM’s formal government-wide survey results and customer feedback have

shown that the federal telework program plays a major role in workforce recruitment and retention. Joint efforts

between GSA and OPM include the establishment and ongoing improvement of the federal government’s key telework

Web site, the establishment and co-leadership of the network of agency telework coordinators and co-development of

a new Web-based telework training module and have resulted in increased telework implementation. Those efforts

also include quarterly meetings of the two agencies' senior management, development of a telework Web site and

development of two on-line training modules. 

PERFORMANCE GOAL

Work with the Office of Personnel management (OPM) to increase the percentage of federal employees 

who telework.

MEASURE 

Percentage of federal employees who telework.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A 2.6% 4.2% 5.0% 5.0%

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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

the activities of GSA and its associates.

OCSC PERFORMANCE HIGHLIGHTS

USA SERVICES: USA Services is the result of the merger of

three major programs, each of which has been providing

comprehensive access to federal information and services

within its particular medium: FirstGov.gov (for Web

services); the National Contact Center at 1-800-FED-INFO

(for telephone and e-mail services); and the Federal Citizen

Information Center in Pueblo, Colorado (for publications).

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

effecting significant government efficiencies and budget

savings. These benefits will be achieved by creating a

single point of contact for citizens where information for

all federal agencies can be refined, consolidated and

disseminated. 

By partnering with other government agencies, USA

Services is improving citizen customer service. It is also

developing, through collaborative efforts, governmentwide standards in customer service, performance metrics

and best practices for customer service. 

Although the savings encouraged by USA Services cannot

yet be quantified, given its recent origin, there is evidence

that elements of this initiative do produce savings.

There are 580 instances of federal government

organizations using FirstGov.gov search services as their

primary engine mechanism. Conservatively estimated,

this saves $36,000 per implementation since it allows the

client agency to avoid the expense of purchasing search

engine software for each Web site individually. 

This equates to a savings of $21 million in FY 2003.

ENTERPRISE-WIDE MARKETING: A complete redesign of the

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

quarter of FY 2003. This effort entailed the complete

restructuring of the site, reorganizing roughly 5,000-plus

content items. The redesigned site simplifies navigation

so that it is more intuitive and permits the crossreferencing of offerings and information that spans more

than one Service or Office. The Web site now better

serves GSA business lines and is better targeted to the

needs of GSA customers.

OFFICE OF C ITI ZEN SERVICES AND COMMUNICATIONS

OCSC
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 86

OCSC Performance by GSA-wide Goals 

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

PERFORMANCE GOAL RESULT

Develop a single government face to citizens who need timely and Goal Met

consistent responses and information about government programs 

and enable the federal government to become more citizen-centric.

Increase access to government for all audiences. Goal Met

Provide expertise to improve Web site development and achieve Goal Met

common shared solutions for eGov initiatives.

Participate formally in the governance structure of all eGov and Goal Met

Homeland Security initiatives that have State/local implications.

Improve position of GSA as valuable information resource for all audiences. Goal Met

PERFORMANCE GOAL

Develop a single government face to citizens who need timely and consistent responses and information about government programs and enable the federal government to become more citizen-centric.

MEASURE 

Enhanced communication channels available government-wide.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A N/A 1 basic e-mail sys. 4

DESCRIPTION OF THE MEASURE: This measure tracks the widening availability of alternative methods for obtaining

government information. It includes the establishment of 1) e-mail and 2) fax response and management systems. 

USA Services is also creating a 3) a postal mail channel and 4) developing government-wide Frequently Asked Questions

(FAQ) system.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: During FY 2003, OCSC was able to implement four enhanced communication

channels, which included Web sites, toll-free contact center, publication distribution center and basic email system.

During FY 2003, the vision of an integrated “front-door” to the federal government became a reality. OCSC’s Federal

Citizen Information Center (FCIC) added e-mail, fax and postal mail channels to its existing Web and telephone

services. Citizens can now access information and services from government through whatever means they desire.

These services are available via Internet Web sites (FirstGov.gov, Pueblo.gsa.gov and ConsumerAction.gov), the

telephone (1-800-FED INFO), e-mail (from a Web form located on FirstGov.gov), fax (1-877-881-4297) and postal mail

(FedInfo, Pueblo, CO 81009). 

OCSC
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 87

Centralization of those communication channels ensures excellent citizen services by providing timely e-mail and fax

responses. The Administration’s USA Services eGov initiative utilizes the infrastructure provided by FCIC. With these

advances, FCIC has enabled USA Services to meet its initial goals. Additionally, under the USA Services banner, FCIC

is now providing contact center services to the Department of State, the Fish and Wildlife Service and the Office of

Surface Mining of the Department of Interior. 

In support of the development of a government-wide FAQ system, the FAQ section of the FirstGov.gov Web site has

been expanded, a prototype government-wide FAQ search service using the FirstGov search engine is being tested,

and an inter-agency FAQ working group is meeting regularly to address the technology and organizational issues that

must be resolved before a true integrated government-wide FAQ system can be established. 

PERFORMANCE GOAL

Develop a single government face to citizens who need timely and consistent responses and information about 

government programs, and enable the federal government to become more citizen-centric.

MEASURE 

Agency participation in signed Partnership Agreements (PA) and Reimbursable Agreements (RA).

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A N/A 10 PA

3 RA

10 PA

3 RA

(Estimate)

DESCRIPTION OF THE MEASURE: This measure involves working with upper level managers throughout the federal government to forge partnerships to develop a government-wide citizen-centric approach. It also involves making available

a wide array of shared services for use by agencies on a reimbursable basis. Shared services include hosting, portal

support, search support and more.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: There are two reimbursable agreements with the FCIC to provide partial

funding on a reimbursable basis for FirstGov.gov and the DOL for GovBenefits.gov. Several additional reimbursable

agreements are being developed and look favorable to becoming signed agreements with other agencies for

reimbursable services related to Web support. 

OCSC
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 88

DESCRIPTION OF THE MEASURE: The number of multi-channel contacts with the public consist of the total toll free calls

handled by the Federal Citizen Information Center’s National Contact Center (NCC), FirstGov.gov and other Office of

Citizen Services’ Web sites page views, printed publications ordered from the NCC and all public inquiries via 

e-mail and fax.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: FY 2003 was the first full year in operation for the reorganized FCIC. 

Strong growth in citizen usage of the FirstGov.gov Web site during FY 2003 enabled FCIC to greatly surpass the

original goal of 144 million public contacts.

PERFORMANCE GOAL

Increase access to government for all audiences through the use of Web sites, a call center, e-mail, publications and

all forms of media.

MEASURE 

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

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

23.2M 40.8M 59.1M 144.0M 209.7M

PERFORMANCE GOAL

Provide expertise to improve Web site development and achieve common shared solutions for eGov initiatives.

MEASURE 

Tax dollars saved by federal agencies as a result of shared Web infrastructure and services.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A $9M $18M $21M

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

and hosting solution. This infrastructure allows other agencies to realize on average an estimated $36,000 implementation cost savings as well as making available certain software licensing agreements that are owned by FirstGov.gov.

DISCUSSIONS OF FY 2003 TARGET VS. RESULTS: There are 580 instances of federal government organizations using

FirstGov.gov search services as their primary search engine mechanism. OGP conservatively estimates that this saves

$36,000 per implementation, since it avoids the expense of purchasing search engine software for each Web site

individually. This equates to a savings of $21 million in FY 2003.

OCSC
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 89

DESCRIPTION OF THE MEASURE: Develop products and help federal managers identify, measure and achieve a high payoff

in eGov by promoting practices used in state governments and other governments. Create a community of

representatives of all governments in support of the eGov initiatives. Support the President’s eGov priorities including

Homeland Security.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: The OIS identified 12 of the 24 eGov initiatives with significant State/local

implications. OIS is actively participating in six of the 12 eGov initiatives: GovBenefits, Recreation One-stop, USA

Services, Geospatial One-stop, eGrants and eVital. OIS is also participating in the development and use of the federal

enterprise architecture, which is integral to the governance structure of the initiatives.

OIS Leadership: 

Established Government without Boundaries Pilot, which developed the interoperability approach for Recreation

One-stop across all governments. Result: Citizens can find recreational opportunities from all level of governments

from one place.

Established partnership between Los Angeles County and GovBenefits to offer local content and resources through

the GovBenefits Portal. Result: citizens can learn about benefits available from all levels of government.

Worked with USA Services to create a multi-channel gateway for citizens, with access to state and local as well as

federal information. Helped direct a Pew Foundation survey of citizens' preferences in contacting federal, state and

local governments. Result: Citizens have a single source of government information regardless of access mode

(Internet, e-mail, phone or mail).

Helped Geo-spatial One-stop establish intergovernmental Board of Directors. Result: Important geospatial data

maintained by federal, state and local governments, is shared and used by all for a wide variety of government

applications including Homeland Security. 

Provided assistance in linking pilot projects for verification of birth and death records to state and local stakeholders.

Result: Citizens benefit from the intergovernmental management of birth and death records under the eVital initiative (that promotes the public health, safety and security of all citizens). 

Recruited local participation in Grant Application Pilot. Result: State and local governments can find $300 billion in

grant opportunities in one place. 

PERFORMANCE GOAL

Participate formally in the governance structure of all eGov and Homeland Security initiatives that have state/local

implications.

MEASURE 

Number of eGov initiatives with state/local implications where the OIS is part of the governance structure.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A N/A 6 of 12 6 of 12

OCSC
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 90

DESCRIPTION OF THE MEASURE: Develop products and help federal managers identify, measure and achieve a high payoff

in eGov by promoting practices used in state governments and other national governments. Create a community of

representatives of all governments in support of the eGov initiatives. Support the President’s eGov priorities, including

Homeland Security.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Ninety-two percent (or 11 of 12) of the initiatives OCSC identified as having

intergovernmental implications have state and local government involvement. OCSC’s FY 2003 target was 75 percent

of the initiatives. The 11 initiatives are GovBenefits, Recreation One-stop, Geospatial One-stop, eVital, eGrants,

Business Gateway, IRS Free-Filing, Expanding Electronic Tax Products for Business, SAFECOM, Disaster Management

and USA Services. In addition to the initiatives that have formal OIS involvement, there are five other initiatives that

involve state and local governments. OCSC provided support and outreach to the following projects using our

extensive network of State and local government IT managers:

IRS Free Filing includes 37 States and the District of Columbia in its eFile system;

Expanded Electronic Tax Products for Business developed and tested a proof-of-concept for an electronic version

of Form 8850 with a select group of employers, partners and states; and is planning a Virtual Fed/State Payroll Tax

workshop to assist employers with federal and state tax requirements;

SAFECOM is developing grant guidance for wireless communications grants to state, tribal and local organizations

and standards that will enable interoperability at all levels of government;

Business Gateway integrated state and federal Employer Identification Number eApplication in a pilot with Georgia

and Illinois;

USA Services is reaching out to state, local and international governments to participate in FirstGov.gov particularly

OCSC’s management of the government to government (G2G) gateway and pilot projects designed to link all state

and local Web sites with FirstGov.gov; and

Disaster management registered over 7,000 DisasterHelp.gov users in six months and more than 130 Defense

Medical Information System (DMIS) operating groups (with several states considering statewide implementation).

PERFORMANCE GOAL

Participate formally in the governance structure of all eGov and Homeland Security initiatives that have state/local

implications.

MEASURE 

Desired level of state, local and international participation in federal IT projects.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A N/A 75% 92%

OCSC
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 91

DESCRIPTION OF THE MEASURE: The measure captures the number of occurrences that an Internet user visits a page 

within the GSA.gov Web site. This measure is an indicator to the site’s usefulness. As the site becomes more useful

and valuable, one would expect more activity, thus an increase in the number of page views.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Creation of a new interim homepage and improved content identification and

navigation at the top levels of the old GSA.gov site, launched in the first quarter of FY 2003, improved basic

functionality. The changes elicited positive comments from site visitors, and the number of page views increased at a

higher than expected rate following the launch of the remediated site. 

PERFORMANCE GOAL

Improve the position of GSA as valuable information resource for all audiences.

MEASURE 

Number of GSA.gov Web site page views.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 34M 37M 45M

PERFORMANCE GOAL

Improve the position of GSA as a valuable information resource for all audiences.

MEASURE 

Percent of recommended improvements and management reforms implemented.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 57% 93% 93%

DESCRIPTION OF THE MEASURE: In accordance with the recommendations of the GSA Enterprise-wide Marketing Study,

OCSC conducted research and analyses on six GSA customer needs and coordinated a GSA marketing strategy;

developed agency-wide marketing plans and provided marketing services for FirstGov.gov, USA Services, gsa.gov and

other eGov initiatives. They produced improved management tools and practices so as to better position GSA to

increase its customer base and improve the services provided. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: In the past year OCSC managed and directed the implementation by the GSA

Marketing Council of five of the remaining six recommendations made in the Enterprise-wide Marketing Study issued in

January 2002. As a result, GSA.gov is now an effective marketing tool, a uniform branding policy for GSA products and 

services has been established, and GSA is well on the path toward implementation of enterprise-wide customer relationship

management (CRM). In the coming year, OCSC will work to institutionalize the work of the GSA Marketing Council, act as

the agency sponsor for implementation of the CRM system and enhance the use and customer satisfaction with GSA.gov.

OCSC
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 92

The complete redesign of GSA.gov began in the second quarter of FY 2003 and was launched in September 2003. This

effort entailed the complete restructuring of the entire site, touching and reorganizing roughly 5,000-plus content items.

The redesigned site simplifies navigation so that it is more intuitive, permits cross-referencing of offerings and information

that span more than one Service or Office, improves the regional presence on the portal, and presents a crisper, more upto-date visual design. Market research and usability testing guided the redesign; the site now better serves GSA business lines

and is targeted to the needs of GSA customers. More extensive market data and Web statistics will provide expanded result

measurements, guide further refinements to the site, and support ongoing work on other aspects of GSA’s Web presence.

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

A FEDERAL AGENCY

PERFORMANCE GOAL RESULT

Disseminate strategic information messages to all audiences. Goal Met

PERFORMANCE GOAL

Disseminate strategic information messages to all audiences.

MEASURE 

Move strategic messages to industry standards.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A N/A 33.3% Positive 

33.3% Neutral 

33.3% Negative 

28.7%

65.8%

5.5%

DESCRIPTION OF THE MEASURE: The OCSC uses the Gross Impact Media Analyses Tool to measure its strategic messages

with industry standards. This tool allows agencies to measure success in communicating their strategic messages by using

an average of researched and reviewed stories for positive, neutral, or negative reporting. A determination is made of

the value and success of each article and an average for the quarter is calculated to derive the reported target numbers.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: OCSC is pleased that it is continuing to exceed its target goals for neutral and

negative media coverage for each quarter in FY 2003. The results provide evidence of the effectiveness of its media

relations and issue management activities. This quarter OCSC has used press conferences, interviews, news releases

and other tools to meet its obligations to effectively communicate with external audiences and GSA associates.

From events such as the USA Services rollout to press conferences involving the proposed debarment of MCI, OCSC

continues to consistently manage issues to achieve the best results. Surpassing its goal for neutral stories by nearly 100

percent reflects OCSC’s successful efforts to respond to reporters in a timely fashion with the facts, despite potential

negative coverage. There’s no way to measure how many neutral stories might have been negative had OCSC not been

proactive in managing its messages by getting GSA's side of the story out early. Keeping negative press coverage to a

mere 5 percent (400 percent below the target goals) speaks volumes about OCSC’s success, considering GSA's involvement in so many volatile and sensitive issues. The industry recognizes there will be some negative stories no matter

what you do. GSA’s negative messages are considerably fewer than the industry standard.

OCSC
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 93

The enactment of the Chief Human Capital Officers Acthas enhanced the mission of the OCPO. This act

instructed each agency to designate a Chief Human

Capital Officer (CHCO) who would “advise and assist the

head of the agency in carrying out the agency’s

responsibilities for selecting, developing, training and

managing a high-quality, productive workforce.” As

GSA’s CHCO, OCPO is emphasizing the following

functions.

Setting the workforce development strategy;

Assessing workforce characteristics and future needs

based on the Agency’s mission and strategic plan;

Aligning the Agency’s HR policies and programs with

organization mission, strategic goals and performance

outcomes.

OCPO PERFORMANCE HIGHLIGHTS: GSA was ranked fourth

out of 28 large agencies in the “Best Places to Work in the

Federal Government” survey conducted by the

Partnership for Public Services. The partnership compiled

the rankings based on the responses of more than

100,000 federal employees to questions about their

overall job satisfaction. Researchers found that many top

agencies have clear and concise missions, are relatively

small and have much of their workforce in regional centers away from Washington. The rankings also measured

such facets as effective leadership, performance-based

rewards, family-friendly culture and benefits. The report

can be viewed online at www.bestplacestowork.org.

COMPETITIVE SOURCING: In addition to the work done

directly on the Human Capital initiative of the PMA,

OCPO also provided major support to the Competitive

Sourcing initiative. OCPO obtained Voluntary Separation

Incentive Payment (VSIP) authority and Voluntary Early

Retirement Authority (VERA) for GSA in FY 2003. 

The major initiatives throughout GSA are as follows:

The outsourcing of work done by trades and crafts

positions in the PBS required significant involvement

of HR staff during FY 2003. PBS identified approximately 460 positions throughout the country for

conversion in FY 2003. Utilizing VSIP (“buyout”) and

VERA (“early out”) authorizations, OCPO and PBS

were able to minimize adverse impacts on many

affected associates. As a result, less than 50 associates

were subjected to involuntary separation.

FSS Customer Services Support Center in the

Heartland Region, and the OCFO Indian Trust

Accounting Division in Central Office conducted full

cost studies of the functions in those organizations.

OCPO provided support to develop the organization

structure, classify positions for the most efficient

organization, brief associates on their rights and benefits and brief union representatives on the progress of

the initiatives.

FTS conducted a streamlining study of their national

financial operations function. OCPO provided support in

a variety of areas including briefing associates, advising

management on organization options and preparing FTE

for the potential of involuntary separations.

OCPO supported the Office of Government-wide

Policy’s direct conversions of the Federal Acquisition

Institute and the FPDS to contract performance.

OFFICE OF THE CHIEF PEOPLE OFFICER

OCPO
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 94

OCPO Performance By GSA-Wide Goals

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

PERFORMANCE GOAL RESULT

Improve the value of GSA’s OnLine University (OLU). Goal Not Met

Develop and implement strategies to address skill gaps in Goal Met

Mission Critical Occupations (MCO).

Rank in the 75th percentile in the Gallup Q12 survey. Goal Met

Develop a stronger linkage between organizational and Goal Met

individual performance.

PERFORMANCE GOAL

Improve the value of GSA’s OLU.

MEASURE 

Percent increase in elective registrations from FY 2000 baseline.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

2276 Baseline 182% 18% 15% -36%

DESCRIPTION OF THE MEASURE: OLU is a virtual campus that offers a variety of mandatory and elective training opportunities to GSA associates. OLU is the most cost-effective tool in GSA to deploy learning to all associates. OCPO has

worked with its business partners to identify and develop curriculum to add to the OLU course selections. Courses are

geared towards helping associates better contribute to the achievement of GSA’s mission and goals. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: FY 2003 has been a challenging year for OLU. In January 2003, GSA made

the decision to migrate OLU to OPM’s intra-governmental eLearning platform, “GoLearn”, in support of the President's

eGov initiative. GSA anticipated being able to offer new eLearning products and services to associates. With features

like Search & Select, eBooks, a course-development tool and access to a wide array of high quality eLearning content,

GSA was positioning itself to provide enhanced 24/7 learning opportunities to all associates. On April 15, 2003, the

new GSA OLU went live, featuring over 1,200 off-the-shelf courses as well as several GSA-specific courses that had

previously been in development. 

GSA has experienced major problems affecting reporting, operations and service delivery. The vendor has been unable

to produce standard usage reports, the CIO decided not to use the site for mandatory IT security training due to

numerous missed deadlines for content development, and many users have complained about difficult site navigation.

In the first half of 2003, GSA stopped marketing OLU to GSA associates in order to reduce transition problems; in fact,

associates were required to stop training by April 15 and then start again after that date.

OCPO
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 95

GSA has reported these problems to OPM and OMB, and will continue to work with OPM to correct them. GSA is very

pleased with the support OPM has provided to correct the problems. However, the inevitable result has been a reduction in course registrations. There were 1,361 registrations prior to the transition, and registration reports have been

unavailable since that time. GSA estimates no more than 2,500 total FY 2003 registrations by the end of the fiscal year.

PERFORMANCE GOAL

Develop and implement strategies to address skill gaps in MCOs.

MEASURE 

Number of mission critical occupations studied.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A N/A 4 4

DESCRIPTION OF THE MEASURE: A skill gap is the difference between the actual skill and the desired skill. GSA will begin

measuring the skill gaps in its MCOs when it has completed the process of identifying desired and existing skills for

each MCO. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: GSA has identified four MCOs – acquisition, financial management, real estate

and IT. Progress was made in all MCO’s. 

ACQUISITION: The Office of Acquisition Policy implemented an ALC proof of concept to assess the strengths and

weaknesses of GSA’s acquisition workforce in basic skills, pre-solicitation skills, and pre-and-post award skills, using

both simulated and real life scenarios. A pilot program was administered to a cross-section of 159 associates between

September 2002 and May 2003. Analysis of the pilot results is still underway; however, the following skill gaps were

identified: understanding sourcing, contract administration planning and evaluation, and decision-making related to

contracting costs and pricing. The pilot contractor has concluded that the ALC provides a means to identify skill gaps,

a jump-start towards earning college credits, and a platform to drive change in the workforce through re-skilling;

reduces cycle time for assimilating new employees and the learning of new skills; and creates a vital link between

demonstrated knowledge and performance. Within the next year the ALC team will develop the remaining knowledge

areas, develop GSA mandatory classes, and increase the number of college credits available. GSA is now contracting

with an independent evaluator to assess the validity and reliability of results, review content of questions, and present

a final report to the Board of Directors. If approved, the ALC will go live in September 2004 to all of GSA’s acquisition

workforce.

FINANCIAL MANAGEMENT: An electronic skill gap analysis is currently underway for the financial occupations of

Accounting/Accounting Technician (Job Series 0510/0525), Financial Administration and Program Management (Job

Series 0501), and Budget Analyst (Job Series 0560). This analysis is based on competencies from the Joint Financial

Management Improvement Program, CFO Council and the OPM MOSAIC Study in their “HR Manager” program.

Participants will assess their own ability to perform in these competencies. The results will be used by the OCFO to

identify developmental opportunities for associates and determine the skill gaps within GSA’s financial workforce.

OCPO
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 96

REAL ESTATE: PBS is conducting a major reorganization that includes the assessment of associates’ competencies to

perform in three significant areas: asset management, building management and customer service. PBS has identified

a cross-organizational need and has already begun sending associates to project management training; this year they

will send 1,000 associates and plan to continue sending more next year.

IT: GSA partnered with OPM to conduct focus groups to develop competency models in all ten IT specialty areas.

In August 2002, the OCIO’s office administered an electronic survey to all GS-14s, 15s and Senior Executives in the IT

community, based upon competencies developed by the OCIO Council. The results indicated that development is

needed in the areas of leadership and management, program and project management and IT security. In May 2003,

OCPO partnered with the OCIO to conduct an electronic survey given to all 2210-series associates and selected other

occupations working on IT efforts. The final report is completed and under review. The consensus among the GSA

IT community is that program and project management is of critical importance as GSA IT associates evolve from

specialists to generalists. GSA anticipates that the final reports of the survey will substantiate this, among other areas

in need of development.

PERFORMANCE GOAL

Rank in Gallup’s 75th percentile in the annual GSA Associate Engagement Survey.

MEASURE 

Percentile rank in the Gallup Q12 survey which measures the culture of the agency.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

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

DESCRIPTION OF THE MEASURE: The Gallup Q12 survey grand mean score discriminates top-performing workplaces

from average and low-performing ones. The 75th percentile distinguishes an agency as a world class organization.

The grand mean score measures engagement at the work team level, and scores for individual items indicate an

associate’s level of engagement. According to Gallup, organizations and work teams that score at or above the 75th

percentile are considered world-class workplaces. 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. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: GSA implemented the Gallup Q12 Survey agency-wide in FY 2002 and will

continue administering the survey on an annual basis to all GSA associates. GSA has successfully achieved its FY 2003

target – reaching the 75th percentile – one year ahead of schedule by successfully employing the following strategies

to promote more consistent and fulfilling performance across the Agency:

Identifying Q12 champions representing good practices, work teams and managers based on the results of the

previous Q12 surveys.

Promoting these champions in articles, Web sites and in other communication channels throughout the agency.

Pilot testing the Gallup “StrengthsFinders” program.

Results for individual Services and Offices are available upon request.

OCPO
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 97

DESCRIPTION OF THE MEASURE: This measure tracks the implementation of new performance appraisal systems that 

link performance appraisals to organizational performance metrics for executives, managers, supervisors and all other

GSA associates. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: GSA implemented a new Senior Executive Service performance management

system in October 2002. The new system covers all senior executives and identifies both individual and organizational

performance elements in each senior executive’s performance plan. GSA’s six strategic goals are identified as the 

critical elements in each senior executive’s performance plan, to directly link and align organizational performance to

support of each of the agency-wide strategic goals. Each executive’s supervisor, in consultation with the executive,

establishes both individual and organizational performance goals that support the achievement of the agency-wide goals.

PERFORMANCE GOAL

Develop a stronger linkage between organizational and individual performance.

MEASURE 

Percentage of associates who have a new performance appraisal system developed linking appraisals to 

performance metrics.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A N/A 100% executives 100% executives

OCPO
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 98

The OCIO mission includes creating a secure ITenvironment, optimizing IT investments using

portfolio management and establishing GSA-wide

enterprise architecture. 

OCIO PERFORMANCE HIGHLIGHTS

ELECTRONIC GOVERNMENT: OCIO is GSA’s lead for the PMA

government-wide initiative “Expanding Electronic

Government.” The five eGov projects for which GSA has

the lead serve both internal and external customers. 

The five projects include eAuthentication, eTravel,

Integrated Acquisition, Federal Asset Sales and USA

Services. These projects will enable citizens and businesses

to conduct business with trust via eAuthentication; aid

federal employees to readily plan, book and account for

travel; facilitate businesses’ transactions with the federal

government via Integrated Acquisition; facilitate sales 

of federal assets for the best value; and link citizens

inquiries to the right government agency for improved 

citizen service.

OFFICE OF CHIEF INFORMATION OFFICER

OCIO
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 99

DESCRIPTION OF THE MEASURE: This measure describes how well GSA is mitigating high-risk vulnerabilities in its

computer systems. As the high-risk vulnerabilities are discovered, OCIO seeks to remedy these vulnerabilities within

30 days, tracking them to ensure that they are.

DISCUSSION OF FY 2003 TARGET VS. RESULT: This year’s target of 100 percent was successfully met. This was accomplished

through the diligence of security officers and network and system administrators throughout GSA. A variety of highrisk vulnerabilities were manifested through security advisories and vulnerability scanning. This resulted in various

patching efforts due to viruses/worms, Web servers and e-mail server vulnerabilities and router vulnerabilities. It also

included tightening up technical controls through reconfiguration of servers.

OCIO Performance By GSA-Wide Goals

GSA-WIDE GOAL 2: ACHIEVE RESPONSIBLE ASSET MANAGEMENT

PERFORMANCE GOAL RESULT

Provide a secure IT environment. Goal Met

PERFORMANCE GOAL

Provide a secure IT environment.

MEASURE 

Percentage of high-risk vulnerabilities resolved within the 30-day of report.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 83% 100% 100%

OCIO
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 100

PERFORMANCE GOAL

Improve IT Capital Planning and Investment Control and Implementation.

MEASURE 

Percentage of major IT investment projects that are within 10 percent of planned cost and schedule.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 82% 100% 87%

DESCRIPTION OF THE MEASURE: This measure provides for monitoring the cost, schedule, performance and overall project

assessment for all of GSA’s major IT investments. It is important to monitor these investments because they are critical

to the business operations of the Agency and provide the electronic tools needed to support those business operations. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: During the entire second quarter of FY 2003, OCIO remained at an increased

level of 87 percent of its major IT investments being within 10 percent of cost and schedule. In the first two months of

the third quarter (through May 2003), OCIO has been at 80 percent and 83 percent, respectively. The reason for this

decrease in the level or achievement is that reporting on all of the investments was not received. When a report is not

received, those investments are rated as a presumptive assessment of not being within 10 percent of cost and schedule.

To remedy this situation, OCIO is making a concerted and very directed effort to ensure that all reports are received

from the SSOs on all major IT investments so that the overall assessment can reflect the actual status. Based upon this

effort and the current status of investments, OCIO is projecting that we will achieve a level of 87 percent by the end of

the fiscal year. Target will be missed because most of the major investments for the eGov initiatives are not within 

10 percent of cost and schedule. These initiatives have not received the required funding from partner agencies and,

as a result, are not within planned cost. This has also negatively impacted the planned schedule for these initiatives.

OCIO currently does not anticipate that this situation will change significantly before the end of the fiscal year.

GSA-WIDE GOAL 3: OPERATE EFFICIENTLY AND EFFECTIVELY

PERFORMANCE GOAL RESULT

Improve capital planning and Investment control and implementation. Goal Not Met

Improve capital Planning and Investment Control and Implementation Goal Not Met

for the five GSA-led eGov initiatives. 

Provide secure, reliable, and cost-effective IT infrastructure services. Goal Not Met

OCIO
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 101

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 60% 100% 60%

DESCRIPTION OF THE MEASURE: GSA is leading five of the 24 OMB eGov initiatives. The five GSA led initiatives are

Integrated Acquisition Environment, eAuthentication, eTravel, Federal Asset Sales and USA Services. GSA assesses

its five eGov initiatives on at least a monthly basis to ensure that the initiatives stay within 10 percent of cost and

schedule goals. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: GSA eGov Initiatives have made great strides towards the PMA goals. In less

than two years OCIO has eAuthentication and Integrated Acquisition available for use. The weak performance of

achieving both cost and schedule goals is largely due to availability of funding, timeliness of external approvals and

the scope and complexity of the projects. The joint program office has maintained costs and ensured reasonable use

of all resources; with no overspending that is common in many new program areas. Every initiative has made progress,

but some projects need to be re-baselined in FY 2004 due to changes in scope and funding. 

PERFORMANCE GOAL

Provide secure, reliable, cost-effective IT infrastructure services.

MEASURE 

Percentage of satisfied customers.

PERFORMANCE GOAL

Improve delivery of services to citizens, businesses and government agencies by leading interagency eGov investments.

MEASURE 

Percentage of eGov initiatives IT investment projects that are within 10 percent of planned cost and schedule.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

N/A N/A 84% 95% 86%

DESCRIPTION OF THE MEASURE: The OCIO provides a number of IT infrastructure services, such as a wide area network

and e-mail, to the GSA Services, Staff Offices and Regions. The degree of customer satisfaction is represented as a

percentage of customers who rate the service and support as “highly effective”. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Based on the results of the OCIO-conducted survey of GSA associates who

use services provided by OCIO in FY 2003, customer satisfaction was 86 percent. This was a small improvement over

the FY 2002 score of 84 percent. In written comments, associates indicated questions with remote access. As a result,

OCIO is undertaking a review of the remote access provided to associates in GSA. Depending on associates' needs

and location, associates may use dial-in, Virtual Private Network and eDSL for remote access. OCIO plans to develop

a series of steps to better assist associates in the use of the range of remote access capabilities. These steps may include

additional education in the use of remote access, an intranet site to list the steps needed to use remote access and

wider publication of the remote access help desk phone number. If these steps are successful, the overall satisfaction

score should improve in FY 2004.

OCIO
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 102

The OCFO is responsible for financial managementwithin the GSA. The OCFO develops overall

agency policies and procedures for budget

administration, 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.

OCFO Performance By GSA-Wide Goals

GSA-WIDE GOAL 3: OPERATE EFFICIENTLY AND EFFECTIVELY

PERFORMANCE GOAL RESULT

Increase the percentage of vendor invoices received electronically Goal Not Met

by EDI through the Internet.

Increase the percentage of vendor payments by electronic media Goal Met

such as EFT and purchase card.

OFFICE OF CHIEF FINANCIAL OFFICER

OCFO
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 103

DESCRIPTION OF THE MEASURE: Encourage electronic invoices via the Internet by placing clauses in GSA contracts and orders,

and by continued marketing to vendors.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: During FY 2003 OCFO challenged itself with what it realized might be a

difficult to reach performance level of 50 percent by yearend. Although unable to quite reach its FY 2003 goal, OCFO

has continued to make progress from 39 percent in October 2002 to 44 percent at year-end. OCFO has continually

discussed with contracting officers and vendors the advantage and availability of electronic invoicing via the Web. 

In FY 2004 the implementation of 3GS, for FTS will significantly improve the migration of invoicing to an 

electronic format.

PERFORMANCE GOAL

Increase the percentage of vendor invoices received electronically by EDI or through the Internet.

MEASURE 

Percentage of vendor invoices received electronically by EDI or through the Internet.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

12% 24% 38% 50% 44%

PERFORMANCE GOAL

Increase the percentage of vendor payments made by electronic media such as EFT and purchase card.

MEASURE 

Percentage of electronic invoices paid by electronic means such as EFT and purchase credit card.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

71% 79% 79% 81% 88%

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 2003 TARGET VS. RESULTS: During FY 2003 OCFO was able to exceed its goal of 81 percent through

continued aggressive efforts to explain to its vendors the benefits of receiving their payments electronically and actively

seeking to enroll them in the electronic payment programs. 

OCFO
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 104

GSA-WIDE GOAL 4: ENSURE FINANCIAL ACCOUNTABILITY

PERFORMANCE GOAL RESULT

Meet all requirements to maintain a clean opinion on GSA’s Goal Met

financial statements.

Eliminate material weaknesses for financial and non-financial Goal Met

components as reported under federal managers financial 

integrity act (fmfia). 

PERFORMANCE GOAL

Meet all requirements to maintain a clean opinion on GSA’s financial statements. 

MEASURE 

Receive a clean opinion on financial statements.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

100% 100% 100% 100% 100%

DESCRIPTION OF THE MEASURE: GSA is required by legislation to produce annual financial statements and to have those

statements audited by an independent auditor. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: On December 12, 2003, GSA received a clean opinion on its FY 2003

financial statements.

OCFO
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 105

PERFORMANCE GOAL

Eliminate material weaknesses and reportable conditions for financial and non-financial components as reported

under Federal Managers Financial Integrity Act (FMFIA).

MEASURE 

Number of internal control material weaknesses found in financial and non-financial components.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

0 0 0 0 0

DESCRIPTION OF THE MEASURE: A control weakness is material if it:

Significantly impairs fulfillment of an agency or component’s mission.

Deprives the public of needed services.

Violates statutory or regulatory requirements.

Significantly weakens safeguards against waste, loss, unauthorized use or misappropriation of funds, property, or

other assets.

Results in a conflict of interest.

Merits the attention of the agency head/senior management, the Executive Office of the President, or the relevant

congressional oversight committee.

Is of a nature that omission from the report could reflect adversely on the actual or perceived management integrity

of the agency. 

DISCUSSION OF FY 2003 TARGET VS. RESULTS: No material weakness issues were identified in FY 2003. GSA recognizes the

FMFIA requirements as a continuing process for evaluating, improving and reporting on our management controls. 

OCFO
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 106

The Office of Small Business Utilization (OSBU) isGSA's advocate for small, minority, veteran,

HUBZone and women business owners. Established by

the Small Business Act of 1953, as amended by Public

Law 95-507, SBU promotes increased access to GSA's

nationwide procurement opportunities by nurturing

entrepreneurial opportunities, outreach and training.

SBU PERFORMANCE HIGHLIGHTS

Small Business Utilization 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 GSA

Federal Supply Service, the GSA Federal Technology

Service and the GSA Public Buildings Service as well as

GSA Central Office.

SIGCOM is one example of how the Office of Small

Business Utilization provides entrepreneurial opportunities to small businesses. SIGCOM, an employee-owned

small business headquartered in Greensboro, North

Carolina, provides “turnkey” security and communications solutions to the federal government primarily

through its robust GSA Federal Supply Schedule.

SIGCOM participates on several schedules including 58I

for Professional Audio/Video Telecommunications and

Security Solutions, Schedule 70 for General Purpose

Commercial Information Technology Equipment,

Software and Services, and Schedule 84 for Total

Solutions for Law Enforcement, Security, Facilities

Management, Fire, Rescue, Clothing, Marine Craft and

Emergency/Disaster Response.

SIGCOM has developed relationships with many

Department of Defense and civilian government customers

and has developed a long-standing relationship with the

U.S. Coast Guard. On March 20, 2003, SIGCOM received

a $730,000 award from the U.S. Coast Guard to engineer

and install a secure video teleconferencing (VTC) network

that allows commanders and other U.S. Coast Guard staff

to establish face-to-face calls, from or to, any of seven

sites throughout the United States. Since this network

was bought with Homeland Security funds and will be

used in a mission-critical environment, SIGCOM will

“secure” the video calls with military encryption devices.

OFFICE OF SMALL BUSINESS UTILI ZATION 

OSBU
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 107

OSBU Performance By GSA-wide Goals

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.

PERFORMANCE GOAL

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

MEASURE 

Percent of contracting opportunities provided to small business.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

40.3% 40.1% 44.35% 40.0% TBD

DESCRIPTION OF THE MEASURE: The Small Business Administration 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 total target represents the consolidation of these targets.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: This measure reflects overall program performance. It is the only measure

counted in the determination of whether GSA meets the GSA-wide goal. Numbers presented in the FY 2003 Actual

column are preliminary and subject to verification within GSA as well as by the Small Business Administration.

Overall, GSA expects to achieve its goal for FY 2003 based on preliminary data. The SBU has worked diligently to

secure senior staff (Central Office and Regional) commitment to achievement of the small business goal by selling SBU’s

vision and providing updates on progress in meeting or exceeding the small business goal. In addition, individual SBU

Associates are assigned responsibility for the performance of each Service and small business program. SBU provides

timely information on small business program activities (policy and regulatory) to the Regions and Services. SBU

participates in numerous outreach activities that make it possible for the small business community to meet with 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 Federal

Supply Schedule contractors.

OSBU
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 108

The Office of Performance Improvement (OPI)provides advice to the Administrator, the Deputy

Administrator on major policies and procedures related to

GSA performance. Additionally, the Office is responsible

for overseeing the development and execution of GSA’s

competitive sourcing program.

OPI PERFORMANCE HIGHLIGHTS

COMPETITIVE SOURCING: The Office of Performance

Improvement has ensured that the rules and regulations

that guide the competitive sourcing program are adhered

to in a timely and effective manner by providing assisted

services such as OMB Circular A-76 training, project management and policy assistance for every organization conducting a competitive study or directly converting

positions. Competitive sourcing requires an enormous

amount of collaboration among the various Services and

Offices throughout GSA. The Office of Performance

Improvement ensures that all aspects of the competitive

sourcing process are well understood and implemented

successfully. During FY 2003, the Office of Performance

Improvement worked with the Federal Technology

Service to enable them to complete 3 streamlined competitions in Chicago, Atlanta and Philadelphia. We assisted

the Federal Supply Service in the completion of the standard

competition of the National Customer Service Center in

Kansas City. Additionally, the Office worked with the

Office of the Chief Financial Officer on the competition

of the Indian Trust Accounting Division which could

not be completed by year-end due to contractor’s nonperformance.

OPI in conjunction with the Competitive Sourcing

Exeutive Committee and Competitive Sourcing Working

Group has worked toward meeting the President’s management goal of conducting 5 studies a year and

reviewing as many commercial positions as possible over

a number of years. As a result OPI has worked to

develop on behalf of all of the agency’s business units, a

long-term Competitive Sourcing Plan that outlines the

agency’s proposed activities through fiscal year 2007. 

OFFICE OF PERFORMANCE IMPROVEMENT

OPI
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 109

OPI Performance by GSA-Wide Goals

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

PERFORMANCE GOAL RESULT

Meet OMB targets for the competition and/or direct conversion Goal Met

of commercial FTE’s as reported on GSA’s FAIR Act Inventory.

PERFORMANCE GOAL

Meet OMB targets for the competition and/or direct conversion of commercial FTE’s as reported on GSA’s 

FAIR Act Inventory.

MEASURE 

Number of FTE’s studied/direct converted and dollars saved.

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL

398 FTE 703 FTE 1122 FTE

$2.185M $1.905M TBD

DESCRIPTION OF THE MEASURE: FTE are the Full Time Equivalents included in completed studies or direct converted. We

are still developing a valid methodology to compute dollars saved.

DISCUSSION OF FY 2003 TARGET VS. RESULTS: Four of the five Competitive Sourcing Studies, scheduled for FY 2003, were

completed. The fifth study was not completed due to contractor’s non-performance. A total of 1,122 FTE were

reviewed or direct converted, in excess of the target of 703 FTE. Valid cost saving estimates, however, are not

available at this time. 

OPI
P ERFORMANCE S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 110
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 U.S. General

Services Administration’s financial statements for fiscal year 2003. GSA is a

service organization for the entire federal

government; acquiring and providing goods,

services and facilities to support the needs of

other federal agencies – and now state and

local governments. Approximately 13,000

GSA associates support over one million

federal workers located in 8,000 governmentowned and leased buildings in 2,000 U.S.

communities and overseas. 

GSA’s financial capabilities are proven. We routinely

handle a tremendous business volume of transactions. As

of September 30, 2003, GSA had funds to carry out our

mission and had appropriate controls in place to ensure the

agency did not exceed our budgetary authority. Aside from

Financial management within GSA, we are developing

overall agency policies, guidelines, and procedures for

budget administration, financial reporting, and financial

management systems.

Our financial statements, which are integral to our performance and accountability report, have received an unqualified opinion from our auditors for the 16th consecutive

year. This clean bill of financial health is particularly important to GSA because of our agency’s strong commitment to

accounting to the taxpayers for the funds we have been

provided. 

During this latest fiscal year we have

made some significant accomplishments:

GSA has begun to drive the linkage

between performance and budgeting

through its “Performance Management

Process" (PMP); a new strategic planning,

budget and performance process cycle.

The PMP brings together strategic

business planning, human capital

requirements, information technology

investments and performance measures,

all focused on continually improving GSA’s service to

our Federal customers. We are leading GSA in an

agency-wide effort to improve setting of performance

plans, goals and measures, as well as a communication

strategy to ensure that all associates understand its

importance and how it supports the accomplishment of

GSA's mission.

Our financial system, “Pegasys,” became GSA’s official

accounting system of record on October 1, 2002. With

built-in data quality at the start of the transaction, we

are working together to fulfill the GSA’s accounting and

financial management information requirements in

order to continue providing timely, accurate and useful

financial information. 

With the accelerated reporting timeframes mandated by

OMB, our associates were challenged to redefine and

streamline work processes in order to produce timely,

reliable financial information to measure and affect

performance in a real-time environment. 

F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 113

Letter from the Chief Financial Officer

Continued on following page

Kathleen Turco
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 114

We revised the GSA credit card policy, strengthening

management controls by requiring approving officials to conduct monthly statement reviews resulting

in a nearly 100 percent review of cardholder statements. We reduced the delinquency rate on agency

travel card from a high of 3 percent to 1 percent. We

also earned the agency 100 percent of the rebate

($325 thousand against $33 million in purchases) by

closely monitoring our financial data and working

with the contractor to ensure full receipt of rebate. 

We have begun an Activity Based Costing initiative to

determine our baseline costs. Anytime we look at

choices, make decisions, or embark on a new

venture we will use these measures. These measures

will help us know where we are so that we can

appreciate our achievements when we get there.

GSA is committed to strategies for improving our financial

management, centered on maintaining unqualified audit

opinions, eliminating material internal control weaknesses,

meeting new and accelerated reporting requirements and

implementing eGovernment initiatives. With our core

values we will strive to remain a “world class” organization,

committed to effective and efficient management of our

resources, implementing the President’s Management

Agenda, and meeting future challenges.

Kathleen M. Turco

Chief Financial Officer

December 18, 2003
F INANCIAL S ECTION

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December 18, 2003

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 2003 and 2002 Financial Statements

Technology Fund). However, as of September 30, 2003,

PwC issued a qualified opinion on the effectiveness of

internal controls over financial reporting, and reported two

instances of non-compliance with laws and regulations.

In its qualified opinion on the effectiveness of internal

controls over financial reporting, PwC identified a material

weakness concerning GSA’s need to strengthen monitoring

controls surrounding the Agency’s financial management

systems. During their testing of internal controls, PwC

noted that certain monitoring controls were not clearly

defined or were not implemented timely. Specifically, PwC

noted a number of issues involving key reconciliations

including a lack of policies and procedures for the

performance of key reconciliations, a lack of sufficient

documentation and evidence of supervisory review, and

several instances in which key reconciliations were not

completed timely.

In addition to the material weakness noted above, PwC

identified four reportable conditions concerning GSA’s need

to (1) further strengthen network and application security

controls, (2) improve development, implementation, and

change controls over GSA’s financial applications, (3)

improve controls over transferring substantially complete

construction in process projects, and (4) improve

Independent Auditor’s Report

This memorandum transmits PricewaterhouseCoopers

LLP’s (PwC) report on its Fiscal Years 2003 and 2002

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 audits of GSA’s Fiscal Years

2003 and 2002 financial statements. 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.”

PwC issued unqualified opinions on GSA’s Fiscal Years 2003

and 2002 consolidated and combined financial statements

and the financial statements of individual funds (Federal

Buildings Fund, General Supply Fund, and the Information
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 116

contracting practices in the Federal Technology Service

(FTS) Office of IT Solutions. PwC also disclosed two

instances of non-compliance with laws and regulations

concerning (1) contracting practices in the FTS Office of IT

Solutions, and (2) non-compliance with the Federal

Financial Management Improvement Act (FFMIA), as it

relates to GSA’s compliance with Federal financial systems.

OIG Evaluation of PwC’s Audit Performance

To ensure the quality of the audit work performed, we

conducted a review of PwC’s audit of GSA’s Fiscal Years

2003 and 2002 financial statements. 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 working papers related to assessing

internal controls over GSA’s financial reporting

process and GSA’s Electronic Data Processing

systems; and

Performed other procedures we deemed

necessary.

PwC is responsible for the attached auditor’s report dated

December 12, 2003 and the conclusions expressed therein.

We do not express opinions on GSA’s financial statements

or internal control or on whether GSA’s financial

management systems substantially complied with 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 2003

Annual Performance and Accountability Report. Last year,

GSA established a process for verifying and ensuring the

reliability of the internal controls over the data supporting

the reported performance measures. Based on this plan, a

schedule was developed for the review of all Services’ and

Staff Offices’ performance measures. This review was

successfully implemented for the Federal Supply Service.

However, for Fiscal Year 2003, GSA examined only the

internal controls over data supporting the performance

measures for the Federal Technology Service. The

established process to review the performance measure

data for all Services and Staff Offices on a rotational basis

was not implemented. The failure to verify and ensure the

reliability of performance measure data is an internal

control weakness and is thus a reportable condition.

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.

Independent Auditor’s Report
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Independent Auditor’s Report
F INANCIAL S ECTION

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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
F INANCIAL S ECTION

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December 3, 2003

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

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 (OMB) Bulletin No. 01-02, “Audit Requirements for

Federal Financial Statements”, related to performance

measures. 

Results of Audit

The results of our testing indicated that the Office of the

CFO did not implement an established process to examine

the Services’ and Staff Offices’ FY 2003 performance

measure data on a rotational basis in order to verify and

ensure its reliability. The failure to verify and ensure the

reliability of performance measure data is an internal

controls weakness and is thus a reportable condition.

According to OMB Bulletin No. 01-02, reportable conditions

are matters coming to the auditor’s attention that, in the

auditor’s judgment, should be communicated because they

represent significant deficiencies in the design or operation

of an internal control that could adversely affect the organization’s ability to record, process, summarize, and report

performance information.

In our reviews of GSA’s FYs 2000 and 2001 internal controls

over performance measure data, we identified a reportable

condition regarding the need for the Office of the CFO to

verify and ensure the reliability of the data supporting the

performance measures. In response, the Office of the CFO

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 (FY) 2003

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 (PwC) performed the audit of GSA’s FY 2003

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 system of internal controls

concerning the existence and completeness of data

supporting performance measures. To obtain an understanding of the controls in place, we examined current GSA

Government Performance and Results Act (GPRA) reporting

policy and interviewed Office of the Chief Financial Officer

(CFO) officials regarding compliance with the policy. We

also reviewed documentation provided by CFO officials that

demonstrated that internal controls were in place and operational. However, our procedures were not designed to

provide assurance on specific internal controls related to

individual reported performance measures. Therefore, we

do not provide an opinion on specific controls. 
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 131

developed an action plan in FY 2001 that described the

process that would be used to assess controls over performance measure data. Surveys were issued to Agency

managers assessing the adequacy of controls and procedures over performance measure data. Also, the Office of

the CFO reviewed the controls over the Public Buildings

Service’s (PBS) performance measure data. However, we

recommended that the Office of the CFO needed to establish a plan for implementing the review process in other

Services’ and Staff Offices’.

In FY 2002, we found that the Office of the CFO established

a plan for implementing a review process to ensure the

adequacy of internal controls over performance measure

data. This process was successfully tested in the Federal

Supply Service and a schedule was developed for the

review of other Services’ and Staff Offices’ performance

measures. Since the Office of the CFO had adhered to our

recommendations, we considered the reportable condition

to be resolved. However, we discovered that this year the

Office of the CFO only examined the Federal Technology

Service’s (FTS) internal controls over performance measure

data and had not implemented the established process to

review performance measure data for all Services’ and Staff

Offices’ on a rotational basis.

Specifically, the Office of the CFO issued a survey to FTS

managers to assess the adequacy of controls over FY 2003

performance measure data and conducted a review of FTS

performance measures. In the Office of the CFO’s assessment of FTS performance data, it was reported that financial measurement data comes from Pegasys, which has

controls in place to ensure the reliability of data. Also, FTS

feeder systems that provide input into Pegasys are accredited and certified, are in the process of becoming so, or

have interim authority to operate. It was also reported that

the roles and responsibilities for performance measures are

clearly codified, and controls and procedures for data

collection are in place to ensure the performance measure

data is verifiable and valid.

Although FTS performance measure data was examined in

FY 2003, the Office of the CFO did not implement its plan

to examine performance measure data in four other Staff

Offices. According to the Office of the CFO personnel,

performance measure data was not examined in these other

Staff Offices because of staffing limitations. We confirmed

that surveys were issued this past summer to Agency

managers in Staff Offices. We were also informed that

staffing will increase to assess the adequacy of controls and

procedures over FY 2004 Performance Measures. 

We recognize that progress has been made towards implementing a process to ensure the adequacy of internal

controls over performance measures data. However, we

believe the process needs to be fully implemented by

reviewing performance measure data in Staff Offices. The

lack of progress in implementing this internal control

represents a reportable condition. 
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 132

GENERAL SUPPLY FUND:

INFORMATION TECHNOLOGY FUND:

FEDERAL BUILDINGS FUND:

CONSOLIDATING STATEMENTS OF NET COST

For the Fiscal Years Ended September 30, 2003 and 2002

(Dollars in Millions)

Revenues: 

Building Operations - Government Owned 

Building Operations - Leased

Expenses:

Building Operations - Government Owned 

Building Operations - Leased

Net Income From (Cost of) Continuing Operations

Transferred Operations: (Note 13)

Revenues - Federal Protective Service

Expenses - Federal Protective Service

Net Income From (Cost of) Transferred Operations

Net Income From (Cost of) Operations

Revenues:

Supply Operations

Vehicle Acquisition and Leasing

Commercial Acquisition

Other Programs

Expenses: 

Supply Operations

Vehicle Acquisition and Leasing

Commercial Acquisition

Other Programs

Net Income From (Cost of) Operations

Revenues:

Network Services

IT Solutions

Expenses:

Network Services

IT Solutions

Net Income From (Cost of) Operations

2003 2002

$ 3,805 

4,067 

3,071 

3,985 

816 

83 

231 

(148)

668 

967 

1,701 

551 

50 

956 

1,660 

427 

81 

145 

1,098 

7,589 

1,102 

7,598 

(13)

$ 3,598 

3,844 

2,961 

3,751 

730 

191 

467 

(276)

454 

870 

1,560 

475 

29 

874 

1,467 

410 

27 

156 

954 

6,137 

896 

6,173 

22 

Principal Financial Statements
LESS: INTRA-GSA ELIMINATIONS:

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 14)

Net Income From (Cost of) Operations

Revenues

Expenses

Revenues

Expenses

Net Income From (Cost of) Operations

2003 2002

323 

27 

3 

329 

152 

752 

(880)

528 

555 

19,736 

19,789 

$ (53)

283 

23 

3 

272 

161 

67 

(191)

431 

457 

17,536 

17,069 

$ 467 

The accompanying notes are an integral part of these statements.

F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 133

Continued from previous page
Principal Financial Statements

LIABILITIES AND NET POSITION

NET POSITION (NOTE 5):

ASSETS 

Intragovernmental Assets:

Funds with U.S. Treasury (Note 1-D)

Accounts Receivable - Federal, Net (Note 7)

Prepaid Expenses and Advances - Federal

Total Intragovernmental

Inventories (Note 1-E)

Accounts Receivable - Public, Net (Note 7)

Prepaid Expenses and Advances - Public

Other Assets

Property and Equipment (Notes 1-F,2,8):

Buildings

Leasehold Improvements

Telecommunications and ADP Equipment

Motor Vehicles

Other Equipment

Less: Accumulated Depreciation and Amortization

Subtotal

Land

Construction in Process

Total Property and Equipment

Total Assets

Intragovernmental Liabilities:

Accounts Payable and Accrued Expenses - Federal

Deferred Revenue and Advances - Federal

Intragovernmental Debt (Note 3)

Workers' Compensation Actuarial Liability (Note 1-J)

Other Intragovernmental Liabilities (Note 9)

Total Intragovernmental

Accounts Payable and Accrued Expenses - Public

Deferred Revenue and Advances - Public

Environmental and Disposals (Notes 6-B, 8-B)

Obligations Under Capital Leases (Note 2)

Annual Leave Liability (Note 1-H)

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

2003 2002 2003 2002

$ 4,639 

280 

15 

4,934 

3 

6 

- 

8 

20,522 

271 

- 

- 

73 

(9,349)

11,517 

1,185 

1,273

13,975 

$ 18,926 

$ 70 

41 

2,308 

130 

192 

2,741 

808 

15 

29 

285 

42 

- 

- 

141 

4,061 

14,820 

45 

14,865 

$ 18,926 

$ 458 

306 

1 

765 

229 

74 

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 

$ 428 

258 

8 

694 

157 

59 

12 

3 

- 

6 

- 

3,551 

100 

(1,143)

2,514 

- 

- 

2,514 

$ 3,439 

$ 22 

23 

- 

32 

6 

83 

142 

- 

- 

- 

16 

- 

- 

5 

246 

3,193 

- 

3,193 

$ 3,439 

$ 4,854 

270 

- 

5,124 

3 

6 

- 

19 

22,633 

307 

- 

- 

64 

(10,371)

12,633 

1,178 

722 

14,533 

$19,685 

$ 79 

33 

2,231 

111 

226 

2,680 

813 

13 

20 

277 

37 

- 

- 

209 

4,049 

15,599 

37 

15,636 

$19,685 

F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 134

The accompanying notes are an integral part of these statements.

CONSOLIDATING BALANCE SHEETS

As of September 30, 2003 and 2002

(Dollars in Millions)
INFORMATION

TECHNOLOGY FUND OTHER FUNDS

GSA CONSOLIDATED

TOTALS

2003 2002

LESS INTRA-GSA

ELIMINATIONS

2003 2002 2003 2002 2003 2002

$ 315 

1,467 

- 

1,782 

- 

34 

- 

10 

- 

- 

169 

- 

91 

(205)

55 

- 

30 

85 

$ 1,911 

$ 38 

176 

- 

11 

2 

227 

1,409 

- 

- 

- 

12 

- 

- 

1 

1,649 

262 

- 

262 

$ 1,911 

$ 226 

1,248 

8 

1,482 

- 

9 

- 

5 

- 

- 

167 

- 

95 

(186)

76 

- 

6 

82 

$ 1,578 

$ 23 

164 

- 

11 

2 

200 

1,104 

- 

- 

- 

11 

- 

- 

- 

1,315 

263 

- 

263 

$ 1,578 

$ 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 

$ 436 

4 

13 

453 

- 

22 

- 

3 

- 

- 

- 

- 

30 

(10)

20 

- 

33 

53 

$ 531 

$ 13 

45 

- 

19 

22 

99 

34 

- 

57 

- 

17 

39 

49 

8 

303 

131 

97 

228 

$ 531 

$ - 

16 

- 

16 

- 

- 

- 

35 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ 51 

$ 16 

35 

- 

- 

- 

51 

- 

- 

- 

- 

- 

- 

- 

- 

51 

- 

- 

- 

$ 51 

$ - 

21 

29 

50 

- 

- 

- 

15 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ 65 

$ 21 

44 

- 

- 

- 

65 

- 

- 

- 

- 

- 

- 

- 

- 

65 

- 

- 

- 

$ 65 

$ 6,099 

2,030 

18 

8,147 

232 

133 

6 

5 

22,633 

313 

169 

3,674 

340 

(11,806)

15,323 

1,178 

754 

17,255 

$25,778 

$ 142 

258 

2,231 

174 

280 

3,085 

2,407 

13 

65 

277 

84 

51 

37 

224 

6,243 

19,390 

145 

19,535 

$25,778 

$ 5,729 

1,769 

15 

7,513 

160 

96 

12 

4 

20,522 

277 

167 

3,551 

298 

(10,688)

14,127 

1,185 

1,312 

16,624 

$ 24,409 

$ 107 

229 

2,308 

192 

222 

3,058 

2,088 

15 

86 

285 

86 

39 

49 

154 

5,860 

18,407 

142 

18,549 

$ 24,409 

F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 135
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 136

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, 2003 and 2002

(Dollars in Millions)

Cumulative Results of Operations

Unexpended Appropriations

Net Position Beginning Balance

Prior Period Adjustment

Adjusted Net Position Beginning Balance

Net Income 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 Transferred 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

$ 13,932 

- 

13,932 

454 

385 

- 

52 

- 

(2)

- 

(1)

888 

433 

(385)

(3)

- 

45 

14,820 

45 

$ 14,865 

$ 3,193 

- 

3,193 

145 

- 

- 

24 

- 

9 

- 

(1)

177 

- 

- 

- 

- 

- 

3,370 

- 

$ 3,370 

$ 3,006 

- 

3,006 

156 

- 

- 

22 

- 

9 

- 

- 

187 

- 

- 

- 

- 

- 

3,193 

- 

$ 3,193 

$14,820 

45 

14,865 

668 

381 

- 

53 

- 

(323)

- 

- 

779 

373 

(381)

- 

- 

(8)

15,599 

37 

$15,636 

2003 2002 2003 2002

The accompanying notes are an integral part of these statements.

Principal Financial Statements
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 137

INFORMATION

TECHNOLOGY FUND OTHER FUNDS

GSA CONSOLIDATED

TOTALS

2003 2002

LESS INTRA-GSA

ELIMINATIONS

2003 2002 2003 2002 2003 2002

$ 263 

- 

263 

(13)

- 

- 

13 

- 

- 

- 

(1)

(1)

- 

- 

- 

- 

- 

262 

- 

$ 262 

$ 229 

- 

229 

22 

- 

- 

12 

- 

- 

- 

- 

34 

- 

- 

- 

- 

- 

263 

- 

$ 263 

$ 131 

97 

228 

(880)

839 

21 

46 

(5)

5 

3 

(1)

28 

872 

(839)

(23)

1 

11 

159 

108 

$ 267 

$ 13 

92 

105 

(191)

185 

29 

26 

(2)

4 

67 

- 

118 

194 

(185)

(4)

- 

5 

131 

97 

$ 228 

$ - 

- 

- 

(27)

- 

- 

27 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ - 

$ - 

- 

- 

(26)

- 

- 

26 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ - 

$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 

$ 17,180 

92 

17,272 

467 

570 

29 

86 

(2)

11 

67 

(1)

1,227 

627 

(570)

(7)

- 

50 

18,407 

142 

$ 18,549 
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 138

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, 2003 and 2002

(Dollars in Millions)

Budget Authority

Unobligated Balance, Net - Beginning Balance

Spending Authority:

Earned Income

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 Budgetary Resources

Obligations Incurred

Less: Spending Authority from Offsetting Collections and Adjustments

Obligated Balance, Net - Beginning Balance (Note 1-L) 

Less: Obligated Balance - Ending:

Accounts Receivable

Unfilled Customer Orders

Undelivered Orders

Accounts Payable

Outlays

Disbursements

Collections

Less: Offsetting Receipts

Net Outlays (Note 1-L)

FEDERAL 

BUILDINGS FUND 

2003 2002

$ 430 

3,429 

7,622 

144 

169 

(530)

(72)

11,192 

7,901 

2,731 

560 

11,192 

7,901 

(7,935)

832 

266 

1,757 

(2,158)

(904)

(241)

7,412 

(7,653)

- 

$ (241)

$ 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)

The accompanying notes are an integral part of these statements.

Principal Financial Statements
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 139

GENERAL 

SUPPLY FUND

INFORMATION

TECHNOLOGY FUND OTHER FUNDS

GSA CONSOLIDATED

TOTALS

$ - 

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)

$ - 

537 

3,661 

98 

9 

- 

- 

4,305 

3,770 

535 

- 

4,305 

3,770

(3,768)

(172)

303 

228 

(233)

(192)

(64)

3,605 

(3,669)

$ (64)

$ - 

796 

8,726 

1,121 

1,249 

- 

- 

11,892 

10,116 

1,776 

- 

11,892 

10,116 

(11,096)

(571)

1,456 

6,078 

(4,648)

(1,424)

(89)

8,428 

(8,517)

- 

$ (89)

$ - 

1,633 

7,120 

602 

393 

- 

- 

9,748 

8,952 

796 

9,748 

8,952 

(8,115)

(1,558)

1,248 

4,969 

(4,519)

(1,127)

(150)

7,120 

(7,270)

$ (150)

$ 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 

$ 221 

90 

322 

17 

9 

-

(14)

645 

544 

81 

20 

645 

544 

(348)

118 

4 

1 

(110)

(41)

168 

509 

(341)

(23)

$ 145 

2003 2002 2003 2002 2003 2002 2003 2002

$ 1,009 

5,237 

21,043 

1,507 

1,442 

(481)

(94)

29,663 

23,803 

5,109 

751 

29,663 

23,803 

(23,992)

327 

2,066 

8,442 

(7,688)

(2,568)

390 

21,190 

(20,800)

(2)

$ 388 

$ 651 

5,689 

18,725 

861 

580 

(530)

(86)

25,890 

21,167 

4,143 

580 

25,890 

21,167 

(20,166)

(780)

1,821 

6,955 

(7,020)

(2,264)

(287)

18,646 

(18,933)

(23)

$ (310)
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 140

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, 2003 and 2002

(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

2003 2002 2003 2002

$ 7,901 

(7,935)

52 

(1)

17 

(274) 

144

(1,240) 

(30)

(42)

(1,442)

908

- 

55 

963 

14 

(6)

8 

$ (454)

$ 4,446

(4,446)

24 

(9)

15

(504)

426 

(689)

- 

(20)

(787)

363 

262 

- 

625 

- 

2 

2 

$ (145)

$ 3,770 

(3,768)

22 

2

26 

(151)

98 

(717)

- 

(14)

(784)

332 

263 

8 

603 

- 

(1)

(1)

$ (156)

$ 7,990 

(8,072)

53 

428 

399 

(19)

(52)

(1,503)

(39)

(488)

(2,101)

1,063 

- 

(29)

1,034 

2 

(2)

- 

$ (668)

The accompanying notes are an integral part of these statements.

Principal Financial Statements
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 141

INFORMATION

TECHNOLOGY FUND OTHER FUNDS

GSA CONSOLIDATED

TOTALS

2003 2002

LESS INTRA-GSA

ELIMINATIONS

2003 2002 2003 2002 2003 2002

$10,116 

(11,096)

13 

(9)

(976)

(129)

1,121 

(25)

- 

3 

970 

24 

- 

(5)

19 

- 

-

- 

$ 13 

$ 8,952 

(8,115)

12 

2 

851 

(1,465)

602 

(26)

- 

(6)

(895)

22 

- 

- 

22 

- 

- 

- 

$ (22)

$ 1,251 

(378)

46 

(4)

915 

(16)

(7)

(6)

- 

(5)

(34)

10 

- 

- 

10 

- 

(11)

(11)

$ 880 

$ 544 

(348)

26 

(18)

204 

(14)

17 

(28)

(11)

31 

(5)

5 

- 

- 

5 

- 

(13)

(13)

$ 191 

$ - 

- 

27 

- 

27 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ 27 

$ - 

- 

26 

- 

26 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ 26 

$23,803 

(23,992)

109 

406 

326

(668)

1,488 

(2,223)

(39)

(510)

(1,952)

1,460 

262 

(34)

1,688 

2 

(11)

(9)

$ 53 

$ 21,167 

(20,166)

86 

(15)

1,072 

(1,904)

861 

(2,011)

(41)

(31)

(3,126)

1,267 

263 

63 

1,593 

14 

(20)

(6)

$ (467)
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 142

Notes to the Financial Statements

For the Fiscal Years Ended 

September 30, 2003 and 2002

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 General Services, 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:

Columbia Hospital For Women Direct Loan

Financing Account

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

seven General Fund accounts of which three are funded by

current year appropriations, two by no-year appropriations,

and two 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 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 143

Expenses, Disposal of Real and Related Personal Property

Expenses, Transportation Audits

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

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

Interest Receipts from Columbia Hospital for 

Women Direct Loan Financing 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

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 as

promulgated by the Federal Accounting Standards Advisory

Board (FASAB), and OMB Bulletin 01-09, "Form and

Content of Agency Financial Statements." The American

Institute of Certified Public Accountant’s (AICPA) Statement

on Auditing Standards No. 91, Federal GAAP Hierarchy,

established a hierarchy of GAAP for Federal financial statements as follows:

A. Federal Accounting Standards Advisory Board (FASAB)

Statements and Interpretations plus AICPA and Financial

Accounting Standards Board (FASB) pronouncements if

made applicable to Federal government entities by a FASAB

Statement or Interpretation;

B. FASAB Technical Bulletins and the following pronouncements if specifically made applicable to Federal government

entities by the AICPA and cleared by the FASAB: AICPA

Industry Audit and Accounting Guides and AICPA

Statements of Position;

C. AICPA Accounting Standards Executive Committee

(ACSEC) Practice Bulletins if specifically made applicable to

Federal government entities and cleared by the FASAB and

Technical Releases of the Accounting and Auditing Policy

Committee of the FASAB; and

D. Implementation guides published by the FASAB staff

and practices that are widely recognized and prevalent in

the Federal government. 
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 144

GSA's financial statements are prepared in accordance with

formats prescribed in OMB Bulletin 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 intra-governmental 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.

Lastly, 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 01-09, which requires

agencies to reconcile intra-governmental income, expense,

assets and liabilities, with all of its trading partners. GSA

limited its reconciliations to fiduciary transactions activity.

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, Statements of Financing,

Supplemental Statements of Operations and Supplemental

Statements of Cash Flows, 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. 

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

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 projects is

recognized under the percentage-of-completion method. In

the GSF, supply revenues are recognized as goods are

provided to customers, and motor vehicle revenues are

recognized based on rental agreements over the period

vehicles are dispatched. 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.

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.

Notes to the Financial Statements
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 145

D. Funds 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 recorded by GSA

in its core accounting system. Differences existing between

the total balance reported by GSA that were greater (less)

than those reported by the Department of the Treasury

at September 30, 2003, and 2002 were as follows

(Dollars in Millions):

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:

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-G). 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 $124 million and

$129 million at September 30, 2003 and 2002, respectively,

of which $25 million and $37 million were recorded

as liabilities in the Consolidating Balance Sheets.

At September 30, 2003 and 2002, the balance of Funds with

Treasury that were no longer available for expenditure

totaled $10 million and $3 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.

In accordance with Statement of Federal Financial

Accounting Standards (SFFAS) Number 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, 2003, 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 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):

2003 2002

Federal Buildings Fund $ (1) $ 20

General Supply Fund (6) 15

Information Technology Fund (12) (2)

Other Funds 26 -

Total $ 7 $ 33

2003 2002

Revolving Funds $ 124 $ 117

Appropriated and General Funds 154 128

Special Funds 143 147

Deposit Funds 41 27

Miscellaneous Receipt Funds 10 17

Total Other Funds $ 472 $ 436

FY 2003

FBF $ 999 $ 2,658 $ 1,197 $ 4,854

GSF (77) 535 - 458

ITF (1,461) 1,776 - 315

Others 151 74 247 472 

Total $ (388) $ 5,043 $ 1,444 $ 6,099 

FY 2002

FBF $ 1,027 $2,522 $ 1,090 $4,639

GSF (106) 534 - 428

ITF (571) 797 - 226

Others 146 81 209 436

Total $ 496 $3,934 $1,299 $5,729

OBLIGATED

BALANCE, NET 

UNOBLIGATED BALANCE

AVAILABLE UNAVAILABLE TOTAL
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 146

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 General

Supply Fund 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 Federal Buildings Fund, inventory balances consist

of operating supplies. In all other instances, inventory

balances reported are inventories held for sale. In the

General Supply Fund, $1 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 8)

Property and equipment purchases and additions in fiscal

years 2003 and 2002 of $10,000 or more and having 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 repair, alteration 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 Federal Buildings

Fund 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 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. In fiscal year 2003, GSA recorded

capitalized interest costs of $451,000 in the Construction in

Process account associated with debt provided by the U.S.

Treasury's Federal Financing Bank, as discussed in Note 3.

Interest capitalized in fiscal year 2002 amounted to $681,000.

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 fiscal year 2001, GSA implemented FASAB 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

Federal Buildings Fund, this minimum threshold is

$1 million. For all other funds, it is $250,000. 

Notes to the Financial Statements
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 147

G. Receipts from Disposal of Property 

and Equipment

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. Transfers in fiscal years 2003

and 2002 were $3 million and $2 million, respectively.

H. 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.

I. Supplemental Consolidating Statements of Cash

Flows (Unaudited)

These statements identify cash receipts and payments and

classify them into operating, financing and investing activities. This additional disclosure of information is intended to

help assess the ability to generate funds from current operations, to identify financing acquired from outside sources

and to identify the major non-operating (investing) uses of

funds. Cash, for the purposes of these schedules, equals

Funds with U.S. Treasury as defined in Note 1-D. 

J. 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 jobrelated 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. 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 fiscal year 2003

was calculated by DOL using a discount rate for 2004 of

3.84 percent and in 2004 and thereafter of 4.85 percent. At

the end of fiscal year 2002, the discount rate used for 2003

and thereafter was 5.20 percent. The actuarial liability

recorded by GSA totaled $174 million and $192 million as

of September 30, 2003 and 2002, respectively.

K. Statements of Net Cost

Revenues reported by GSA’s funds on the Statements of Net

Cost are primarily generated from intra-governmental sales

of goods and services. Each fund has established ratesetting 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 non-Federal 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. 
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 148

L. Statements of Budgetary Resources

The Combining Statements of Budgetary Resources (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

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.

For fiscal year 2003, the most significant of these items

were due to timing/cutoff differences. Adjustments were

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 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.

LEASING ARRANGEMENTS

As of September 30, 2003, GSA was committed to various

noncancellable operating leases primarily covering administrative office space and storage facilities maintained by the

Federal Buildings Fund (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):

Substantially all leased space maintained by the Federal

Buildings Fund is sublet to other Federal agencies at rent

charges based upon approximate commercial rates for

comparable space. The agreements covering the sublease

2

OPERATING LEASES

2004 $ 2,920

2005 2,609

2006 2,324

2007 2,069

2008 1,795

2009 and thereafter 8,222

Total minimum lease payments $19,939

CAPITAL LEASES

2004 $ 27

2005 28

2006 28

2007 28

2008 28

2009 and thereafter 340

Total minimum lease payments 479

Less: Amounts representing Interest 199

Executory Costs 3

Total obligations under capital leases $ 277

FISCAL YEAR TOTAL

OPERATING LEASES

CAPITAL LEASES

Notes to the Financial Statements
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 149

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 $3.6 billion and $3.4 billion for the fiscal

years ended September 30, 2003 and 2002, respectively.

Rent expense under all operating leases, including shortterm non-cancelable leases, was approximately $3.4 billion

and $3.2 billion in fiscal years 2003 and 2002, respectively.

The Consolidating Balance Sheets as of September 30, 2003,

and 2003, include capital lease assets of $319 million for

buildings. Aggregate accumulated amortization on such

structures totaled $75 million and $64 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.

DEBT FINANCING

A. Federal Buildings Fund

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 the

Department of the Treasury's Federal Financing Bank (FFB).

The Package System originally consisted of mortgage notes

where the same party arranged construction and financing.

GSA is not authorized to obtain any additional purchase

contract debt without congressional approval.

In fiscal years 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.

3

Starting in fiscal year 1991, GSA entered into several agreements to fund the purchase of land and construction of

buildings under the Federal Buildings Fund (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 fiscal years 2003 and 2002, the FFB made

advance payments on the behalf of GSA totaling $20 million

and $8 million, respectively. As of September 30, 2003 and

2002, $194 million and $214 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): 2004 - $56; 2005 - $65; 2006 -

$35; 2007 - $38; 2008 - $40; 2009 and beyond - $1,251.

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 fiscal years 2003 and 2002, the FFB made payments of

$1 million each year, in advance payments on the behalf of

GSA for this project. 

Aggregate maturities on debt related to the RRB are as

follows (dollars in millions): 2004 - $14; 2005 - $14; 2006 -

$16; 2007 - $16; 2008 - $18; 2009 and beyond - $668.
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 150

C. Schedules of Debt Arrangements

GSA’s outstanding debt arrangements in the Federal Buildings Fund at September 30, 2003 and 2002 were as follows 

(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 and

the Federal Employees Retirement System 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.

4

2003 2002 

PURCHASE CONTRACT DEBT:

Dual System:

Participation certificates held by the Federal Financing Bank, due at various dates from June 26, 2004, 

through November 15, 2004, at interest rates ranging from 8.472 percent to 9.162 percent. $ 28 $ 79 

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 9

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 1,454 1,462 

PENNSYLVANIA AVENUE DEBT:

Ronald Reagan Building, mortgage loans due November 2, 2026, at interest rates ranging from 

5.073 percent to 8.323 percent 746 758 

TOTAL GSA DEBT $ 2,231 $ 2,308

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 government-wide costs incurred as a result of GSA’s operations.

Notes to the Financial Statements
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 151

B. Civil Service Retirement System

At the end of fiscal year 2003, the Civil Service Retirement

System (CSRS), a defined benefit plan, covered 38.3 percent

of GSA employees. 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

fiscal years 2003 and 2002 amounted to $28 million and

$34 million, respectively.

C. Federal Employees Retirement System

On January 1, 1987, the Federal Employees Retirement

System (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, 2003, 61.1 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 11 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 fiscal years 2003 and 2002, GSA

(employer) contributions to FERS (23.3 percent of base pay

for law enforcement employees and 10.7 percent for all

others) totaled $53 million and $50 million, respectively.

Additional GSA contributions to the TSP totaled $21 million

and $20 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 6.2 percent of gross

pay (up to $87,000) to SSA's Old-Age, Survivors and

Disability Insurance (OASDI) program in calendar year

2003. Additionally, GSA makes matching contributions for

all employees of 1.45 percent of gross pay to the Medicare

Hospital Insurance program in calendar year 2003. Only 0.6

percent of GSA's employees are covered exclusively by

these programs. Payments to these programs in fiscal years

2003 and 2002 amounted to $47 million and $45 million,

respectively.

SCHEDULE OF UNFUNDED BENEFIT COSTS

Amounts recorded in fiscal year 2003, and 2002, in accordance with SFFAS Number 5 for post-employment benefits

are as follows (Dollars in Millions):

2003

FBF $ 16 $ 22 $ 38

GSF 8 9 17

ITF 4 5 9

Other Funds 8 8 16

Total $ 36 $ 44 $ 80 

2002

FBF $ 15 $ 22 $ 37

GSF 7 9 16

ITF 4 4 8

Other Funds 7 7 14

Total $ 33 $ 42 $ 75

PENSION

BENEFITS

HEALTH/LIFE

INSURANCE TOTAL

2003

2002
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 152

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 Federal Buildings Fund (FBF), General Supply Fund

(GSF), Information Technology Fund (ITF), Working Capital

Fund (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.

5 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

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, 2003, and 2002, balances

reported as unexpended appropriations were as follows

(Dollars in Millions):

COMMITMENTS AND CONTINGENCIES

A. Commitments

In addition to future lease commitments discussed in Note

2, 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 $7.7 billion in

fiscal year 2003 and $7.0 billion in 2002.

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.

6

2003 2002

Unobligated Balances:

Available $ 59 $ 77

Unavailable 20 7

Undelivered Orders, Net 66 58 

Total Unexpended Appropriations $ 145 $ 142

Notes to the Financial Statements
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 153

CONTINGENCIES COVERED BY GSA FUNDS

As of September 30, 2003 and 2002, GSA recorded liabilities

in total of $99 million and $102 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. These balances are reported as

Other Liabilities on the Consolidating Balance Sheets.

In addition, GSA had another $122 million and $220 million

in contingencies at September 30, 2003 and 2002, 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.

CONTINGENCIES COVERED BY THE JUDGMENT FUND

In most 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 $46 million and $59 million in

fiscal years 2003 and 2002, respectively, of Environmental

and Disposals and Other Liabilities for contingencies, which

will require funding exclusively through the Judgment

Fund. Of those amounts, $45 million and $57 million result

from several environmental cases outstanding at the end of

fiscal years 2003 and 2002, 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 $104 million to

$3.5 billion at September 30, 2003 and ranged from

$110 million to $3.5 billion at September 30, 2002. 

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 $76 million and $50 million in fiscal years 2003 and

2002, respectively. Of these amounts $46 million and

$38 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 contacts in dispute. The balance of claims

paid on behalf of GSA do not require reimbursement to the

Judgment Fund.
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 154

NONCURRENT NOTES RECEIVABLE

CURRENT:

ACCOUNTS AND NOTES RECEIVABLE

For the Fiscal Years Ended September 30, 2003 and 2002

(Dollars in Millions)

7

Accounts Receivable - Billed

Accounts Receivable - Unbilled

Allowance for Doubtful Accounts

Subtotal Current Receivables

(Net of Allowance of $35 million and 

$31 million in 2003 and 2002, respectively)

Total Accounts and Notes Receivable

FEDERAL 

BUILDINGS FUND 

GENERAL 

SUPPLY FUND

2003 2002 2003 2002

$ 220 

134 

(68)

286 

- 

$ 286 

$ 105 

277 

(2)

380 

- 

$ 380 

$ 127 

195 

(5) 

317 

- 

$ 317 

$ 143 

164 

(31)

276 

- 

$ 276 

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 0.0 percent to 12.6 percent.

Notes to the Financial Statements
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 155

INFORMATION

TECHNOLOGY FUND OTHER FUNDS

GSA CONSOLIDATED

TOTALS

2003 2002

LESS INTRA-GSA

ELIMINATIONS

2003 2002 2003 2002 2003 2002

$ 128 

1,373 

- 

1,501 

- 

$ 1,501 

$ 97 

1,160 

- 

1,257 

- 

$ 1,257 

$ 23 

3 

(4)

22 

- 

$ 22 

$ 27 

3 

(4)

26 

- 

$ 26 

$ - 

16 

- 

16 

- 

$ 16 

$ - 

21 

- 

21 

- 

$ 21 

$ 399 

1,801 

(37)

2,163 

- 

$ 2,163 

$ 471 

1,471 

(77)

1,865 

- 

$ 1,865 
Notes to the Financial Statements

F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 156

B. Cleanup Costs

In GSA's Federal Buildings Fund, 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 Federal Accounting Standards

Advisory Board's Statements of Federal Financial

Accounting Standards (SFFAS) Numbers 5 and 6,

Accounting for Liabilities of the Federal Government and

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

$20 million and $29 million for Environmental and

Disposals costs as of September 30, 2003, and 2002, 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 6.

PROPERTY AND EQUIPMENT

A. Summary of Balances

Balances in GSA's Property and Equipment accounts subject to depreciation as of September 30, 2003, and 2002, are

summarized below (Dollars in Millions):

8

Buildings

Leasehold Improvements

Telecom and ADP Equipment

Motor Vehicles

Other Equipment

Total

$ 20,522 

277 

167 

3,551 

298 

$ 24,815 

$ 9,080 

238 

130 

1,094 

146 

$ 10,688 

$ 11,442 

39 

37 

2,457 

152 

$ 14,127 

$12,560 

42 

32 

2,521 

168 

$15,323 

$10,073 

271 

137 

1,153 

172 

$11,806 

$22,633 

313 

169 

3,674 

340 

$27,129 

Cost

Accumulated

Depreciation

Net Book

Value Cost

Accumulated

Depreciation

Net Book

Value

2003 2002
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 157

OTHER LIABILITIES

As of September 30, 2003, and 2002, 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 $ 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 $ 93 $ 6 $ 1 $ - $ 100

Installment Purchase Liabilities 112 - - - 112

Pensions for Former Presidents - - - 8 8

Unamortized Rent Abatements 4 - - - 4

Total $209 $ 6 $ 1 $ 8 $224

2002

Other Intragovernmental Liabilities:

Workers’ Compensation Due to DOL $ 25 $ 6 $ 2 $ 4 $ 37

Deposits Held in Suspense - - - 18 18

Payments Due to the Judgment Fund 167 - - - 167

Total $ 192 $ 6 $ 2 $ 22 $ 222

Other Liabilities:

Contingencies $ 99 $ 5 $ - $ - $ 104

Installment Purchase Liabilities 38 - - - 38

Pensions for Former Presidents - - - 8 8

Unamortized Rent Abatements 4 - - - 4

Total $ 141 $ 5 $ - $ 8 $ 154

TOTAL GSA

FBF GSF ITF OTHERS CONSOLIDATED

2003

2002
UNFUNDED LIABILITIES

As of September 30, 2003, and 2002, 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 fiscal years 2003 and 2002, 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

fiscal years 2003 and 2002, include unfunded balances

totaling $84 million and $103 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.

NON-ENTITY ASSETS

As of September 30, 2003, and 2002, 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):

11

10 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 fiscal year

2004, which displays actual results for fiscal year 2002, the

Office of Management Budget (OMB) modified the data that

GSA reported to the U.S. Treasury. These modifications

were made so that fiscal year 2002 results would be more

comparative to the future estimated effects of implementing

the Homeland Security Act. As a result, estimated amounts

being transferred to DHS were deducted from the original

amounts reported by GSA. This affected balances reported

under GSA’s FBF as Budgetary Resources by $653 million,

Obligations Incurred by $643 million, Unobligated Balance

by $10 million and Outlays by $396 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, 2002. Additional reconciling

differences are caused by the presentation style of the

President’s Budget, which excludes Budgetary Resources

12

2003 2002

Funds with U.S. Treasury $ 87 $ 61

Accounts Receivable - Public 1 -

Prepaid Expenses - Federal 17 14

Total $ 105 $ 75

F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 158

Notes to the Financial Statements
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 159

and Unobligated Balances in expired annual appropriated

funds but are appropriately included in the CSBR in the

Other Funds group. Such amounts totaled $32 million and

$29 million, respectively, in fiscal year 2002. 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):

The FedCIRC leads a Federal partnership to address

computer security related incidents. This Center operates

with a staffing level set at 25, and funding of $11 million

from appropriations. 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. 

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 fiscal year 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 on the

Statements of Net Cost. PBS, through the FBF, continues to

bill and collect rent revenues from its customers to cover all

building-related services, including security costs. A portion

of these rent resources for security was the source of funds

transferred to DHS as unobligated balances. The FBF will

continue to provide transfers to DHS as the primary source

of FPS funding at least through fiscal year 2004. Such

funding transfers are reported on the Statements of Changes

in Net Position as a reduction in Net Results of Operations.

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 $11,722 $11,066 $4,305 $4,304 $9,748 $9,743 $ 645 $598 $26,420 $25,711 $ 709 

Obligations Incurred 7,901 7,300 3,770 3,770 8,952 8,914 544 532 21,167 20,516 651 

Unobligated Balance 3,821 3,765 535 534 796 829 101 70 5,253 5,198 55 

Obligated Balance 1,039 1,063 (106) (121) (571) (601) 146 142 508 483 25 

Outlays (241) (616) (64) (52) (150) (149) 168 155 (287) (662) 375 

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

Protective Service (FPS) and the Federal Computer Incident

Response Center (FedCIRC), were transferred to the new

Department of Homeland Security (DHS) in accordance

with this law, effective as of March 1, 2003. 

The FPS, formerly a program of the Public Buildings

Service, with operations funded through the Federal

Buildings Fund (FBF), has a staffing level of approximately

1,450 employees and a fiscal year 2003 budget of $439

million. 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. 

13
The initial (unaudited) impact in fiscal year 2003 can be

seen as the FPS program activity after the transfer to DHS

generated $186 million revenues and $412 million of

expenses. Accordingly, the net income recognized in the

FBF for fiscal year 2003, was significantly higher than fiscal

year 2002, primarily due to this impact. However, coupled

with a transfer of $275 million of unobligated balances, the

ultimate affect on the Net Results of Operations of the FBF

was not material.

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 (unaudited) impact on fiscal year 2003 financial

results can bee 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):

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

provide 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

made disbursements to the states and approved localities of

all but $400 thousand of the appropriated balance in fiscal

year 2003. 

Additional funding related to the purposes of this Act were

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 fiscal year 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. 

14

F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 160

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

Notes to the Financial Statements
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 161

FTS CONTRACTING ERRORS

During fiscal year 2003, GSA's Office of Inspector General

(OIG) performed an audit and provided a draft audit report

that identified contracting improprieties in three regional

offices of the Federal Technology Service's IT Solutions

Program. Included in the report was the identification of

reimbursable contracts executed through the ITF that were

for non-IT related services. As the ITF was only established

to provide IT program-related services, this constituted a

violation of law. Amounts that have been determined to be

inappropriate revenue and expenses in the ITF totaled

$10.6 million and $65.2 million in fiscal years 2003, and

2002, respectively. As the OIG audit was limited to three of

GSA's 11 regional offices, the possibility exists that certain

amounts of contract activity in the other regional offices

may also have been improperly processed through the ITF.

Future audits and program evaluations will determine the

extent of any further amounts in this regard.

15
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 162

Deferred Maintenance 

As of the end of fiscal year 2003, 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 45 years old, and only 25 percent of these

buildings have had extensive modernization. This has led to

a large inventory of capital Repair and Alteration (R&A)

work items of which approximately $5.7 billion has not yet

been addressed by an ongoing PBS R&A project. For fiscal

year 2004, GSA has requested new obligational authority of

approximately $1.0 billion for the R&A program.

Required Supplementary Information

Intra-Governmental Balances

For fiscal year 2003, the following schedule identifies major customers of GSA's Intra-governmental revolving funds and the

associated amount of sales representing over 80 percent of GSA's total consolidated revenues (Dollars in Millions):

AGENCY AMOUNT

Department of the Army $ 3,002

Department of the Navy 2,531

Department of the Air Force 2,231

Department of Justice 2,091

Department of the Treasury 1,251

Judiciary 1,007

Dept. of Health and Human Services 740

Social Security Administration 623

Department of Defense 587

Department of the Interior 535

Department of State 502

Department of Agriculture 477

Department of Transportation 433

Total $ 16,010
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 163

The following schedule reflects accounts receivable balances owed to GSA as of September 30, 2003, from the major

customers of GSA's Intra-governmental revolving funds, representing over 80 percent of GSA's total consolidated accounts

receivable (Dollars in Millions):

GSA reported $3,047 million of intra-governmental liabilities on its Balance Sheet as of September 30, 2003. Of that balance,

the significant elements comprising over 80 percent of the total included borrowings from the Department of the Treasury

- $2,231 million (see Note 3); Workers’ Compensation liabilities administered by the Department of Labor - $31 million; and

Judgment Fund reimbursements due the Department of the Treasury - $206 million.

AGENCY AMOUNT

Department of the Army $ 432

Department of the Navy 364

Department of the Air Force 341

Department of Defense 181

Department of Justice 136

Depart. of Health and Human Services 48

Department of State 47

Civil Corps of Engineers 44

Environmental Protection Agency 41

Total $ 1,634
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 164

Supplemental Consolidating Statements

EXPENSES:

OTHER RESULTS OF OPERATIONS:

OPERATING REVENUES:

SUPPLEMENTAL CONSOLIDATING STATEMENTS OF OPERATIONS

For the Fiscal Years Ended September 30, 2003 and 2002

(Dollars in Millions) (Unaudited)

Building Rents and Services 

Sales of Supplies

Information Technology Services

Motor Vehicle Services

Reimbursements

Other

Total Operating Revenues

Cost of Supply Sales

Personnel Salaries and Benefits

Rent 

Information Technology

Motor Vehicles

Contracted Services

Depreciation and Amortization

Utilities

Operating Supplies

Interest

Travel and Transportation

Shipping Expenses

Workers' Compensation Actuarial Expense

Other Expenses 

Total Operating Expenses

Net Income From (Cost of) Operations

Appropriations Used

Non-Exchange Revenue

Imputed Financing Provided By Others

Transfers of Assets and Liabilities, Net

Transfers and Reclassifications of Earnings

Other

Net Results of Operations

INFORMATION

TECHNOLOGY FUND

2003 2002

$ - 

- 

8,686 

- 

- 

1 

8,687 

- 

152 

17 

8,493 

- 

- 

24 

- 

2 

1 

5 

- 

- 

6 

8,700 

(13)

- 

- 

13 

- 

- 

(1) 

$ (1)

$ - 

- 

7,091 

- 

- 

- 

7,091 

- 

148 

15 

6,869 

- 

- 

22 

- 

1 

- 

5 

- 

- 

9 

7,069 

22 

- 

- 

12 

- 

- 

- 

$ 34 

FEDERAL 

BUILDINGS FUND 

GENERAL 

SUPPLY FUND

2003 2002 2003 2002

$ 7,627 

- 

- 

- 

- 

6 

7,633 

- 

586 

3,182 

- 

- 

1,894 

908 

277 

54 

187 

27 

- 

(5)

69 

7,179 

454 

385 

- 

52 

(2)

- 

(1)

$ 888 

$ - 

1,801 

- 

1,047 

- 

421 

3,269 

1,517 

250 

49 

- 

371 

208 

363 

- 

302 

- 

7 

48 

1 

8 

3,124 

145 

- 

- 

24 

9 

- 

(1)

$ 177 

$ - 

1,634 

- 

1,039 

- 

261 

2,934 

1,368 

226 

32 

- 

399 

145 

332 

- 

160 

- 

7 

50 

(1)

60 

2,778 

156 

- 

- 

22 

9 

- 

- 

$ 187 

$ 7,951 

- 

- 

- 

- 

4 

7,955 

- 

566 

3,366 

- 

- 

1,785 

1,063 

306 

45 

180 

21 

- 

3 

(48)

7,287 

668 

381 

- 

53 

(323)

- 

- 

$ 779 
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 165

OTHER FUNDS

LESS INTRA-GSA GSA CONSOLIDATED TOTALS

ELIMINATIONS

2003 2002 2003 2002

2003

Amount % of Revenues Amount % of Revenues

2002

$ - 

- 

- 

- 

352 

1 

353 

- 

255 

26 

- 

- 

244 

10 

- 

5 

- 

8 

- 

- 

685 

1,233 

(880)

839 

21 

46 

5 

(2)

(1)

$ 28 

$ - 

- 

- 

- 

301 

8 

309 

- 

235 

26 

- 

- 

230 

5 

- 

2 

- 

7 

- 

- 

(5)

500 

(191)

185 

29 

26 

4 

65 

- 

$ 118 

$ 84 

19 

104 

9 

311 

1 

528 

19 

- 

84 

104 

9 

320 

- 

- 

- 

- 

- 

- 

- 

19 

555 

(27)

- 

- 

27 

- 

- 

- 

$ - 

$ 75 

17 

114 

8 

217 

- 

431 

17 

- 

75 

114 

8 

225 

- 

- 

- 

- 

- 

- 

- 

18 

457 

(26)

- 

- 

26 

- 

- 

- 

$ - 

$ 7,867 

1,782 

8,582 

1,038 

41 

426 

19,736 

1,498 

1,223 

3,374 

8,389 

362 

1,917 

1,460 

306 

354 

181 

41 

48 

4 

632 

19,789 

(53)

1,220 

21 

109 

(309)

(2)

(3)

$ 983 

39.9 %

9.0 

43.5 

5.3 

0.2 

2.1 

100.0 

7.6 

6.2 

17.1 

42.5 

1.8 

9.7 

7.4 

1.6 

1.8 

0.9 

0.2 

0.2 

-

3.2 

100.3 

(0.3) 

6.2 

0.1 

0.5 

(1.6) 

-

-

5.0 %

$ 7,552 

1,617 

6,977 

1,031 

84 

275 

17,536 

1,351 

1,195 

3,180 

6,755 

391 

2,044 

1,267 

277 

217 

187 

46 

50 

(6)

115 

17,069 

467 

570 

29 

86 

11 

65 

(1)

$ 1,227 

43.1 %

9.2 

39.8 

5.9 

0.5 

1.5 

100.0 

7.7 

6.8 

18.1 

38.5 

2.2 

11.7 

7.2 

1.6 

1.2 

1.1 

0.3 

0.3 

- 

0.6 

97.3 

2.7 

3.2 

0.2 

0.5 

- 

0.4 

- 

7.0 %
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 166

Supplemental Consolidating Statements

SUPPLEMENTAL CONSOLIDATING STATEMENTS OF CASH FLOWS

For the Fiscal Years Ended September 30, 2003 and 2002

(Dollars in Millions) (unaudited)

FEDERAL 

BUILDINGS FUND 

GENERAL 

SUPPLY FUND

2003 2002 2003 2002

CASH FLOWS FROM INVESTING ACTIVITIES:

CASH FLOWS FROM FINANCING ACTIVITIES:

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

SUPPLEMENTAL SCHEDULE OF FINANCING AND INVESTING ACTIVITIES:

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income From (Cost of) Operations

Adjustments to Net Income From (Cost of) Operations -

Depreciation and Amortization

Non-Exchange Revenues

Other Adjustments and Write-offs 

(Gain) Loss on Disposal of Equipment

Changes in Current Assets and Liabilities -

(Increase)/Decrease

Accounts Receivable, Net

Inventories

Prepaid Expenses and Advances to Others

Increase/(Decrease)

Accounts Payable and Accrued Expenses

Deposit Fund Liability

Deferred Revenue and Advances From Others

Other Liabilities

Total Adjustments

Net Cash Provided by (Used in) Operating Activities

Proceeds from Sales of Property and Equipment

Payments Received from Notes Receivable, Net

Capital Expenditures

Other

Net Cash (Used in) Provided by Investing Activities

Principal Payments Under Capital Lease Obligations

Additional Appropriated Capital, Net

Principal Payments on Long-Term Debt

Financing Sources Provided By Others

Receipts Transferred Out, Net

Net Cash Provided by (Used in) Financing Activities

Net Increase (Decrease) in Funds with U.S. Treasury

Funds with U.S. Treasury at Beginning of Year

Funds with U.S. Treasury at End of Year

Total Interest Paid

Property and Equipment Acquired Under Capital Lease Obligations

Property Acquired Under Long-Term Financing Arrangements

$ 454 

908 

- 

55 

- 

42 

(1)

(1)

23 

- 

(15)

10 

1,021 

1,475 

- 

- 

(1,240)

(5)

(1,245)

(10)

430 

(92)

52 

(1)

379 

609

4,030

$ 4,639

$ 171

$ 26

$ 8

$ 145 

363 

- 

- 

78 

(63)

(75)

13 

27 

- 

24 

3 

370 

515 

183 

- 

(689)

(3)

(509)

- 

- 

- 

24 

- 

24 

30 

428 

$ 458 

$ - 

$ - 

$ - 

$ 156 

332 

- 

32 

79 

11 

(11)

- 

- 

- 

4 

(24)

423 

579 

184 

- 

(717)

(4)

(537)

- 

- 

- 

22 

- 

22 

64 

364 

$ 428 

$ - 

$ - 

$ - 

$ 668 

1,063 

- 

- 

(23)

10 

- 

15 

114 

- 

(10)

27 

1,196 

1,864 

- 

- 

(1,503)

(7)

(1,510)

(14)

373 

(104)

53 

(447)

(139)

215 

4,639 

$ 4,854 

$ 166 

$ 80 

$ 27
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 167

INFORMATION

TECHNOLOGY FUND OTHER FUNDS

GSA CONSOLIDATED

TOTALS

2003 2002

LESS INTRA-GSA

ELIMINATIONS

2003 2002 2003 2002 2003 2002

$ (13)

24 

- 

- 

(1)

(244)

- 

8 

320 

- 

12 

1 

120 

107 

- 

- 

(25)

(6)

(31)

- 

- 

- 

13 

- 

13 

89 

226 

$ 315 

$ - 

$ - 

$ - 

$ 22 

22 

- 

- 

- 

268 

- 

- 

14 

- 

(118)

(40)

146 

168 

- 

- 

(26)

(4)

(30)

- 

- 

- 

12 

- 

12 

150 

76 

$ 226 

$ - 

$ - 

$ - 

$ (880)

10 

21 

- 

- 

4 

- 

(4)

(6)

12 

(8)

14 

43 

(837)

- 

- 

(6)

- 

(6)

- 

867 

- 

46 

(34)

879 

36 

436 

$ 472 

$ - 

$ - 

$ - 

$ (191)

5 

29 

- 

- 

17 

- 

(12)

11 

(1)

15 

(33)

31 

(160)

- 

12 

(28)

1 

(15)

- 

206 

(7)

26 

(35)

190 

15 

421 

$ 436 

$ - 

$ - 

$ - 

$ (27)

- 

- 

- 

- 

5 

- 

29 

(5)

- 

(9)

- 

20 

(7)

- 

- 

- 

(20)

(20)

- 

- 

- 

27 

- 

27 

- 

- 

$ - 

$ -

$ - 

$ - 

$ (26)

- 

- 

- 

- 

3 

- 

(2)

(3)

- 

17 

- 

15 

(11)

- 

- 

- 

(15)

(15)

- 

- 

- 

26 

- 

26 

- 

- 

$ - 

$ - 

$ - 

$ - 

$ (53)

1,460 

21 

- 

54 

(298)

(75)

3 

460 

12 

27 

45 

1,709 

1,656 

183 

- 

(2,223)

4 

(2,036)

(14)

1,240 

(104)

109 

(481)

750 

370 

5,729 

$ 6,099 

$ 166 

$ 80 

$ 27 

$ 467 

1,267 

29 

87 

79 

335 

(12)

(11)

51 

(1)

(131)

(87)

1,606 

2,073 

184 

12 

(2,011)

3 

(1,812)

(10)

636 

(99)

86 

(36)

577 

838 

4,891 

$ 5,729 

$ 171 

$ 26 

$ 8 
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 168

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 Multiple Award Schedules (MAS) program, a significant number of Multiple Award Contracts (MACs), and the

City Pair Airline contracts. Although our specific concerns

vary somewhat depending on the contracting program or

vehicle, management challenges in this area generally

center around 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 prenegotiated prices and pay

the contractors directly for their purchase. GSA administers

over 110 schedules that produced sales of $22 billion in

FY 2002; and the volume is expected to continue to grow. 

Our Office 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 preaward 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. Preaward 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. 

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 then, as needs are identified for

specific tasks and products, agencies compete the

task/delivery orders among the contract holders. The use

of multiple award contracts 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

Management Challenges Identified by the Inspector General
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 169

City Pair Airline Contracts; 

Section 508 Compliance

Other significant procurement activities at GSA include the

annual award of the City Pair airline contracts, and the

implementation of the provisions of Section 508 of the

Rehabilitation Act across agency procurements. In addition

to below market fares, the City Pair program provides

Federal travelers’ several advantages over commercial

restricted coach fares, including unrestricted and fully

refundable fares, no penalties for cancellations or schedule

changes, and stable fare prices. We believe the evaluation

process could be improved by, among other things,

applying certain private sector practices, and that savings

could be increased by education efforts in the area of

dual fares.

Section 508 of the Rehabilitation Act requires Federal

departments or agencies to give disabled employees and

members of the public access to information that is comparable to the access available to those without disabilities.

GSA has compliance and implementation responsibilities in

a number of areas, including for electronic and information

technology procurements (EIT). GSA’s implementation

efforts in this area are progressing. 

OIG Work Completed

Previously, our office completed a review of FSS’s

contracting for services under MAS contracts, which showed

that FSS is supporting Federal Acquisition Regulation

changes that will require agencies using the services schedules to attempt to obtain better-than-negotiated pricing on

large procurements. We also completed a review of the

operations of FSS’ Hardware SuperStore. We found that

FSS’ efforts to improve contracting have yet to alleviate MAS

pricing concerns. In 2001, we issued an OIG white paper,

reporting that FSS is not consistently negotiating most

favored customer prices, many MAS contract extensions are

accomplished without adequate price analysis, and available tools are not being used effectively to negotiate better

MAS prices.

In FY 2002, our office completed a review of FSS’ assessments of contractor responsibility for its MAS contracts. We

found that while FSS strives to assure that prospective MAS

contractors qualify under the Federal Acquisition Regulation

responsibility standards, improvements are needed in its

core analysis of relevant offeror information, contract file

documentation, and utilization of available resources.

To obtain a greater depth of knowledge of how customers

are using professional services contracts under GSA's

Federal Supply Service Multiple Award Schedule (MAS)

Program, we distributed surveys to contracting officials in

four customer agencies. On July 31, 2003, we issued a

report to the FSS Commissioner outlining the survey results.

The 5,589 surveys sought information on whether task

orders were placed on a ceiling/not to exceed price (time

and materials) basis or a firm-fixed price basis and other

information including whether additional discounts were

obtained from the established GSA price. While GSA establishes fair and reasonable ceiling prices when awarding

MAS contracts, the program is designed to provide customer

agencies the opportunity to seek better prices when

defining their specific task order requirements.

We received 1,976 responses pertaining to services task

orders, totaling $2.4 billion. Only one-third of these orders

were priced on a firm-fixed price basis. Twenty-nine

percent reflected prices better than established GSA prices.

Although our survey results show that agencies are not

frequently using Blanket Purchase Agreements (BPA),

81 percent of the task orders that were issued under a BPA

reflected better pricing. However, only 40 percent of the

task orders exceeding the Maximum Order Threshold and

54 percent of the task orders exceeding $10 million

reflected better pricing. As a result, FSS should continue to

assist customer agencies through training and marketing

efforts, particularly in the areas of competition, price

analysis, and contract type, in order to improve the ability

of contracting officials to effectively award task orders.
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 170

Supplemental Information and 

Other Reporting Requirements

In FY 2003, our office concluded that the $1 billion FSS City

Pair Program is an economical approach to obtaining airline

services for the federal traveler. While FSS continually

strives to improve the Program to obtain the best value

possible, it should also consider applying private sector

practices, such as cost per mile and percentage discount,

when evaluating offers for over 5,000 city pairs. Also, to

increase savings, travel management center contractors and

federal travelers should be made aware of the benefits of

maximizing the use of dual fares associated with 2,400 city

pair markets. Furthermore, accurate, timely, and measurable data is paramount to the success of the program, thus

FSS must ensure the receipt of data from airlines, banks,

and travel management centers.

In FY 2003, our office found that GSA has taken considerable action to implement the requirements of Section 508 of

the Rehabilitation Act, to enable people with disabilities to

have comparable access to data and information as those

without disabilities. To further promote the intent of this

evolving area, GSA recently expanded its Section 508

guidance, training, and Web site initiatives. The agency has

referenced 508 in procurement vehicles, provided training

for the Federal and contracting community, maintained the

governmentwide 508 Web site, promoted accessible Web

sites, and issued internal guidance for Agency implementation of Section 508. Even with these actions, we identified

issues such as electronic and information technology (EIT)

procurements not appropriately addressing Section 508,

limited accessible EIT product information in GSA’s Webbased ordering system, and accessibility errors in Agency

Web sites. Agency-wide guidance and industry outreach,

coupled with enhanced regional training, should improve

508 understanding and compliance.

Agency Actions

We are participating with FSS on 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 Offices of Acquisition

Policy, General Counsel, FSS acquisition, and the Office of

Inspector General. 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. 

GSA continues to work with an interagency committee to

develop a best practices guide, “7 Steps to PerformanceBased 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.

This year, the Agency conducted a study of FSS and FTS

operations related to information technology 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.

FSS is working to improve the City Pair Program. This is

being accomplished through applying best practices,

educating the travel management centers and federal

traveler on the benefits of the City Pair Program, and

obtaining accurate, complete and timely data to monitor the

program.
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 171

OIG Work in Proces or Planned

Recognizing that service contracts under the MAS Program

is the fastest growing procurement program in GSA (over

$12.7 billion in FY 2002), we will be conducting additional

work to assess how customer agencies are crafting individual unique task orders awarded under the contracts. 

We have initiated a review of the Travel Management

Centers (TMC) Industrial Funding Fee (IFF) and whether the

controls are in place to ensure that the submissions are

accurate, complete, and timely.

We will also review On-line procurement with eBuy, GSA’s

Electronic Request for Quotes Web site to determine if it is

sufficiently used by both contractors and Federal agencies

to be considered successful.

GSA streamlined its supply operations by consolidating its

distribution centers at two locations. Recently, the Western

Distribution Center moved to a more modern facility with

an updated material handling system. The estimated

savings through efficiencies and technology were estimated

at $9 million. A similar redesign is anticipated at the Eastern

Distribution Center. Our review of the effect of consolidation of Distribution Centers found that many shipments are

costing more to transport and are taking longer to deliver

since customer orders must be shipped longer distances

than in prior years. An assessment of the validity of the estimated savings for the upgrades and modernization of the

Western Distribution Center is currently underway.

CONTRACT MANAGEMENT

ISSUE: GSA increasingly accomplishes its mission by using

contractors to provide client services and products. In fiscal

year 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.

Last year, we introduced the concern that Contract

Administration deficiencies are more frequently being

raised in our audits. We now believe however, that the

issue is broader than just administering existing contracts.

Based on our recent audit work, we have a growing list of

signs that management of the contract process is a matter of

increased concern.

In our briefings to GSA senior management, we have

emphasized that effective contract management starts with

complete acquisition planning; relies on sound source

selection criteria to select only the best contractors; requires

clear and concise contract language; demands well trained

contract administrators; and needs well defined work or

task order requirements, including milestone plans with

positive and negative incentives, and more importantly,

assertive action to get wayward contracts promptly on track.

There is a heightened need for enhanced actions as GSA’s

contracting workload continues to increase at a rapid rate.

While many GSA contracts are well crafted and properly

administered, we are finding weaknesses more often.

As elements of a number of unrelated audits performed

over recent years, we have observed certain trends that

cause us to be concerned with contract management. Some

points we have 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 are poorly

crafted, milestone plans are 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.
Supplemental Information and 

Other Reporting Requirements

F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 172

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.

Agency Actions

Immediately after our briefing to senior management, the

GSA Administrator directed the Senior Procurement

Executive to form a Project Action Team to assess the

systemic causes surrounding these issues. The team is

currently being assembled. 

OIG Work Planned

We have included several reviews on our Draft FY 2004

Audit Plan that will address contract management concerns.

Among these are: the Administrative Measurement and

Improvement Program, whereby FSS can evaluate the

quality of contract negotiations and awards and act accordingly to correct problem areas; the eModification Pilot

Program, being developed by FSS to assist procurement

contracting officers to process certain types of contract

modifications; and the Acquisition Management Program,

which is to produce a ‘report card’ that evaluates vendor

performance. Our audits will evaluate the adequacy and

effectiveness of these new programs. In addition, we will

review FTS’ Management of Contract Employees to determine if FTS is doing an effective job, exercising proper

oversight, assuring employees possess proper qualifications

and education and that they have appropriate security clearances. Overall, 15 procurement-related major assignments

are contemplated.

INFORMATION TECHNOLOGY

ISSUE: With the increased development and implementation

of new Information Technology (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, including personal

employee data, financial data, and contractors’ proprietary

information. Management challenges related to systems’

requirements and performance 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 eGov

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 Commercial-Off-The-Shelf (COTS)

software packages. COTS solutions offer agencies the
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 173

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 our office have shown this to be the case with

GSA’s new accounting system, Pegasys, the foundation of

which is a COTS financial management product. Pegasys is

to replace the National Electronic Accounting and Reporting

(NEAR) system as GSA’s financial system of record. During

FY 2001, the Office of the Chief Financial Officer 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. 

INFORMATION TECHNOLOGY SECURITY: The Federal

Information Security Management Act 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 second

annual GISRA Information Security program evaluation, we

found that GSA has made progress with the establishment

of a new Security Division within the Office of the Chief

Information Office, which has (1) issued security guidelines,

(2) drafted revisions to the Agency-wide policy on IT

security, and (3) taken steps to correct security weaknesses

identified in GSA’s Program Level Plan of Action and

Milestones. However, an Agency-wide plan for implementing GSA’s IT Security Program has not been provided

to system owners to ensure that systems continue to

operate as intended, Agency assets are protected, and

privacy is assured. In addition, revisions to GSA’s Agencywide IT Security Policy are needed to provide a basis for

effective management and implementation of an Agencywide IT security program. To achieve the intent of GISRA,

the Office of the CIO must effect a national cybersecurity

strategy, including measures to identify and document an

enterprise architecture; continuous assessments of threats

and vulnerabilities; implementation of security controls and

remediation efforts; identification and authentication of

users; and system configuration management. 

OIG Work Completed

Since FY 1998, our office has performed a number of ITrelated reviews. Most recently, we completed our review

of PBS’ Systems Development Center, where we focused on

how PBS was managing and monitoring the Center and

identified lessons learned after this alternative approach for

IT project management was terminated after a three year

period. We concluded that this initiative was not successful

because insufficiently defined requirements were used as

criteria for generating proposals, and blanket purchase

agreements did not identify performance measures, incentives for contractor performance, or penalties for not

meeting PBS’ IT requirements. 

Agency Actions

In January 2003, the CIO 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 have recently been provided to the Office of

Management and Budget as required by statute. 

The CFO is working with the Office of Acquisition Policy to

determine ways to introduce performance-based

contracting methods into the Pegasys contracting process.

Additionally, the CFO has taken positive steps to gain better

control over the development and implementation process,

and has engaged Government consultants and commercial

sources to assist in the identification of steps that can be

taken to gain better control over the cost and timeliness of

the project.
Supplemental Information and 

Other Reporting Requirements

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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 174

GSA is drafting an addition to the Federal Acquisition

Regulation to ensure that security requirements are built

into IT purchases. The regulation will require security plans

and security training for contractors.

OIG Work in Process

The Design and Development of FTS’ 3GS financial system

is intended to manage the process whereby GSA acts as a

broker between Federal agencies and commercial firms to

provide regulatory compliant support, project management

and funds management. Our review is focusing on whether

the requirements and design goals are being met.

We are currently reviewing the modernization of the FSS-19

acquisition and inventory system. We are looking to see if

FSS achieved performance improvements with its initiative

to provide more ‘on line’ and electronic Data Interchange

capabilities in the primary system that supports worldwide

procurement and supply functions.

In our review of FedBizOpps – an FSS managed system that

provides public access to Federal business opportunities –

we will determine if GSA has been successful at ensuring

electronic postings of solicitations to the Internet and if the

system meets user needs. 

OIG Work Planned

We will evaluate GSA’s contingency planning procedures

for IT systems to ensure the system can be recovered

quickly and effectively following a service disruption or

disaster. We will also review the status of GSA’s

eAuthentication Initiative that provides common authentication services and infrastructure and enterprise architecture

support for eGov initiatives. Finally, we will assess GSA’s

progress in implementing improvements to the Federal

Procurement Data System, a repository for statistical

information on Federal contracting maintained by GSA. 

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. 

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.

Our 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. 

DATA INTEGRITY: In passing the Government Performance

and Results Act of 1993 (Results Act), Congress emphasized

that the usefulness of agencies’ performance data depends,

to a large degree, on the reliability and validity of those

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.

OIG Work Completed

We have conducted several recent reviews specifically

designed to test management controls. In addition, controls

evaluations were part of broader examinations of Agency

programs and functions, many of which utilize the charge

cards for purchases, travel or fleet services. From these

reviews, we concluded that, although there has been

improvement, management is not consistently applying
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 175

controls that will help deter fraud and misuse. We continue

to find charge card use to circumvent procurement regulations and acquire unauthorized goods and services. 

Another review completed, PBS use of Brokerage Contracts

for Lease Acquisition Services, looked at control issues

regarding financial accountability, procurement integrity

and the perception of fair and open competition, as well as

contract administration issues. We noted deficiencies in the

financial, ordering, and administrative aspects of these

contracts and presented a summary of our observations and

lessons learned in a report to management.

Agency Actions

GSA’s Chief Financial Officer (CFO) is aware of the importance of adequate controls for charge card transactions and

has worked with our 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. As a result, we have

seen a substantial reduction of fraud stemming from

card use.

OIG Work in Process

We are currently reviewing the purchase and travel card

controls in several regions to assess the practices of

approving officials and the cardholders whose transactions

they are to review, and we are evaluating the controls

over refunds by the banks awarded contracts under the

SmartPay Program. 

We have in process a review of the accuracy and completeness of data in the Inventory Reporting Information System

used to manage the Repair and Alteration Program. In

addition, we recently started looking at GSA’s lease administration practices to ensure that leasing actions are in the

best interests of the government and responsive to tenant

needs. A review of the Construction Program that will

include an assessment of controls over PBS construction

projects is on-going. 

OIG Work Planned

In fiscal year 2004 we plan to determine whether financial

controls over the FEDSIM Program are effective and operating efficiently to meet objectives. This Program provides

information technology goods and services to Federal

Agencies worldwide on a cost reimbursable basis. We will

also review controls over FTS Budgetary accounts as well as

controls over proceeds from sales of vehicles. Finally, our

review of Construction Prospectus Controls will focus on

guidelines used to determine which costs relate to a

prospectus and which costs are excluded.

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 Federal

Buildings Fund generates annual revenue of about

$7 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. 
Supplemental Information and 

Other Reporting Requirements

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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 176

OIG Work Completed

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, and to 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

In response to our observations in Audit of the Public

Buildings Service’s Asset Business Plans, PBS provided 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. 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 nonperforming. 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. 

In response to other audit reviews, management has developed a PBS-wide Environmental System to address our

recommendations that it 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.

OIG Work in Process or Planned

Based on an overview of the Repair and Alteration Program

recently completed, we will be focusing on whether GSA

has adequate criteria in place to make decisions on which

buildings are to be given priority for Repair and Alteration

projects. PBS implemented the Portfolio Restructuring

Initiative to assess, re-classify, and restructure its inventory

of buildings based on criteria which includes whether the

buildings are income producing or not. Our review will

focus on how effective PBS is in implementing the initiative

and if it is investing its resources in strong income

producing assets.

As noted elsewhere, we are reviewing the integrity of the

data in the Inventory Reporting Information System to

ensure that management bases its decisions on accurate and

complete building inventory data. 

The largest source of income to the Federal Buildings Fund

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. PBS redesigned

its policy for charging rent to customer agencies in FY 1997.

We will determine if the current pricing methodology

provides a fair basis for charging rent, cover expenses,

target funds for reinvestment in the inventory, and represent

an efficient business process. 
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 177

The construction excellence program was established to

help PBS improve the management of its construction

program. A current audit is assessing whether PBS’s

construction excellence program is achieving its objective of

completing major R&A projects timely and with minimal

changes. This project will compliment the audit of

construction excellence as it pertained to new construction

that is currently being performed.

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. 

Since 1998, the OIG has consistently cited human capital

management as one of the major management challenges

facing GSA. Additionally, Congress and the General

Accounting Office (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. 

OIG Work Completed

To establish a benchmark regarding whether GSA’s efforts

are enough to acquire the skills and talent needed to

respond to a rapidly changing, increasingly competitive

business environment, we looked at other Federal agencies’

self-assessment reports, suggested by GAO to identify

current and future human capital needs to pursue agency

missions. The assessments by the other agencies not only

demonstrate senior level commitment, but also map out, in

an objective fashion, the agencies’ human capital requirements to meet current and future demographic and

performance challenges. In our Advisory Report on GSA’s

Human Capital Management, we encouraged GSA to

proceed with the human capital assessment suggested

by GAO. 

We also reviewed GSA’s process for classifying activities

required under the Federal Activities Inventory Reform

(FAIR) Act. In our Audit of GSA’s Inventorying Process for

the Federal Activities Inventory Reform Act we encouraged

GSA to be more accurate and consistent than it had been in

the 2001 reporting cycle, where Regional, Service and Staff

Office subjectivity created inconsistencies that impacted the

final reporting to the Office of Management and Budget.

From our best practices effort, we also identified an organizational realignment as well as other tools that could assist

GSA with not only its FAIR Act activities, but also with the

President’s Management Agenda initiatives.

The Audit of Compliance with Qualification Standards for

Acquisition Personnel Within the Federal Technology Service

identified several instances whereby FTS contracting

personnel were promoted without having the proper

education and/or experience requirements as set forth in

the Clinger-Cohen Act of 1996. Recommendations were

issued to the Commissioner of FTS and Deputy Associate

Administrator for Acquisition Policy, both of whom

concurred with the findings and recommendations. The

exact corrective action is still being considered.
Supplemental Information and 

Other Reporting Requirements

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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 178

Agency Actions

GSA has moved on several fronts to meet identified human

capital challenges. For example, GSA’s World Class

Workforce (WCW) has met or exceeded its targets for hiring

new employees over the past two years. The WCW also

has a number of initiatives regarding employee orientation,

engaging existing employees, and developing leaders

within GSA. 

In its efforts to more accurately and consistently inventory

its activities, GSA has issued general and specific guidance

on a number of points identified in our audit report. It also

has established a competitive sourcing team to oversee each

Service’s inventory and report on any discrepancies or variances, and it established the Office of Performance

Improvement that will oversee the competitive sourcing

initiatives for GSA.

OIG Work in Process or Planned

We have in process an audit of Acquisition Workforce

Qualifications in the Federal Supply Service to determine if

GSA is effectively implementing the qualification provisions

required by the Federal Acquisition Reform Act.

PROTECTION OF FEDERAL FACILITY

AND PERSONNEL

ISSUE: Providing a safe, healthful, and secure environment

for over 1 million workers and the visitors to over 8,300

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 Federal Protective Service (FPS) was

transferred from GSA to the Department of Homeland

Security (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 for obtaining services such as basic security

for buildings, contract guards, law enforcement, background suitability determinations for contractors (including

Child Care), pre-lease 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.

OIG Work Completed

Since 1996, the OIG has issued more than 25 audit reports

and special alert reports addressing various aspects of the

physical security program. The results, especially in our

earlier efforts, frequently reported systemic operating shortcomings. Some of the areas covered by these reviews were

contract security guards, countermeasures, child care center

security, access to Government facilities, intelligence

sharing, facility risk assessments, and clearance processes

for contract personnel. At the same time, we performed

more than 170 related investigations. GSA management has

been responsive to our findings and has implemented many

corrective actions and enhancements. Our office and GSA

management, however, are aware that the safety and
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 179

security programs still face many challenges – challenges

that have been greatly expanded in nature and dimension

by the terrorist attacks of September 11, 2001. In 2002, at

the request of the Administrator and senior PBS managers,

we conducted a major reevaluation of the measures FPS has

taken over the past several years to strengthen and upgrade

building security systems. We reported that GSA had materially improved the operational status of security equipment

countermeasures installed at Federal facilities nationwide.

Our follow-up review of the Contract Guard Program found

a marked increase in the numbers of security personnel,

however management and administrative issues still hamper

program effectiveness. We also tested the Federal Security

Risk Manager (FSRM) Program, concluding that the program

is on the right course, but it needs refinement and individuals need to be trained better in its use. In anticipation of

the FPS transfer to DHS, we prepared a report summarizing

critical operational issues identified in numerous past OIG

reports, as well as forward looking issues impacting GSA

and DHS. We subsequently met with the Inspector General

of DHS and his staff to discuss these transition issues.

Agency Actions

As part of the FPS transition to the new department, a

Memorandum of Agreement (MOA) has been drafted,

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 FSRM, a risk assessment methodology that addresses potential threats to

Federal facilities. This methodology, which may be

adopted as the standard for all Federal agencies, 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 nation-wide 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. 

OIG Work in Process or Planned

We are currently reviewing the adequacy of management

controls to ensure that background suitability checks are

implemented for contractor employees before they are

allowed to work in GSA controlled facilities. We are also

looking to see if GSA has developed and implemented a

comprehensive emergency response plan that will help

protect GSA employees and ensure continuity of operations

in time of crises.

We plan to determine whether the operating procedures

detailed in the Memorandum of Agreement between GSA

and FPS/DHS result in GSA getting the full scope of

required security services necessary to ensure the safety of

Federal employees housed at GSA-controlled facilities. 

Our planned review of Building Access Through Smart

Cards aims to determine if the implementation of GSA’s

new credential identification card program achieves its

stated program objectives and if the Program is being

implemented consistently throughout the nation.
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 180

Debt Management

Outstanding debt from non-Federal sources

decreased from $18.5 million at fiscal year-end

2002 to $17.5 million at fiscal year-end 2003. The

amount of delinquent debt decreased from $13.1 million to

$10.2 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, 2002, to September 30, 2003, the GSA Finance Centers

referred approximately $18.5 million of delinquent nonFederal claims to the U.S Treasury Department for crossservicing collection activities. Collections on non-Federal

claims during this period exceeded $268 million.

Administrative offsets resulted in additional collections of

$6.6 million. GSA also collects non-Federal claims using

Pre-Authorized Debits (PAD’s). From October 1, 2002, to

September 30, 2003, 145 PAD’s totaling $128,581 were

processed. Also, during this period, $3.9 million was

collected on four audit related claims. 

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 our Public Buildings Service

(PBS) and Federal Technology Service (FTS) Accounts

Payable Division associates. We are working with the FMS

to remove all non-paying claims over two years old from

open receivables. This gives us a clearer picture of our

outstanding workload and helps us concentrate on

collectible receivables. We have implemented a 100-day

plan to review delinquent accounts and contact debtors,

especially those approaching two years old, on a quarterly

basis. A substantial number of these claims have been

researched and either collected or written off. We also hold

meetings with some of our 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.

Supplemental Information and 

Other Reporting Requirements
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FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 181

The Prompt Payment Act along with the Debt

Collection Improvement Act of 1996 requires the

payment of commercial obligations for supplies and

services timely using electronic funds transfer (EFT). GSA

reviews and modifies, if needed, its procedures continuously to ensure prompt payment utilizing EFT. We have

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

preceding three fiscal years is as follows:

In accordance with Public Law 107-300, The Improper

Payments Information Act, GSA has begun a risk analysis

review to identify and estimate any improper and erroneous

payments by business line. This review will position GSA

to adequately respond to all requirements within the Public

Law and the subsequent guidance issued by the Office of

Management and Budget for fiscal year 2004.

GSA’s Recovery Audit Program, which identifies overpayments and the failure to take deductions on payments to

commercial vendors, was successfully expanded to include

a review of the agency’s contracting activities. 

Cash and Payments Management

FY 2001 FY 2002 FY 2003

Total Number of Invoices Paid 1,169,664 1,197,817 1,298,134

Total Dollars Disbursed $14.1 Billion $15.9 Billion $19.1 Billion

Total Dollars of Interest Penalties $1,658,447 $1,025,381 $1,690,335 

Interest Paid per Million Disbursed $122.00 $105.00 $95.00 

Percentage of Invoices Paid On Time 91% 91% 93%

Percentage of Invoices Paid Late 6% 7% 1%

Percentage of Invoices Paid Electronically 79% 81% 88%
F INANCIAL S ECTION

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 182

During FY 2003, GSA began the implementation of

Public Law 107-300, The Improper Payments

Information Act. The GSA Office of Finance has

retained the services of a contractor to conduct a

Management Control Review and Improper Payments

Information Act of 2002 Review. These reviews will focus

on an erroneous payment risk analysis of each GSA

business line/program to determine and estimate the

amount of potential improper and erroneous payments for

each business line/program. The scope of work includes:

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 and supporting documentation of

each business line/program and reporting of findings and

recommendations; performing an analysis of the sampled

items of each business line/program to determine if it is

highly susceptible to erroneous payments; reporting on

those business line/programs that are highly susceptible to

erroneous payments; estimating the annual amount of erroneous payments in the business lines/programs that are

susceptible to significant erroneous payments; developing

recommendations to reduce erroneous payments; and

recommending acceptable goals to reduce erroneous

payments, ways to measure such goals and a reporting

mechanism to ensure progress toward the stated goals.

All programs will be statistically sampled to identify

programs that are highly susceptible to erroneous payments

and that meet the $10M and 2.5 percent threshold established by OMB. Given our experience at this time, GSA

officials don’t anticipate any programs meeting the

threshold amount. If programs are identified that are

subject to significant risk of erroneous payments, GSA will

meet with the related program official to develop a plan

and target for reducing erroneous payments. A correction

action plan will be developed based on knowledge of the

accounting processes and systems, impact on overall risk,

cost of implementing and maintaining the risk treatment,

and the level of effort required to implement and sustain

the risk treatment. The risk assessment is expected to be

complete by January 2004. The correction action plans,

baseline, and improved targets for the next three years will

be completed by February 2004. Currently, GSA is not

required to report any business lines (programs) under

OMB Circular A-11. 

Erroneous Payments Management

Supplemental Information and 

Other Reporting Requirements
Appendices

A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 185

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 Standard General Ledger addresses external

reporting requirements and assists in the consolidated

federal financial statements. During the first year of full

operation Pegasys has facilitated the implementation of a

3 day monthly close. Pegasys also surpasses the legacy

system by executing the annual close in 8 workdays.

DATA FROM LARGE COMPUTER SYSTEMS

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 by

monthly downloads, System for Tracking and Administering

Real Property (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. 

GSA is in the process of replacing the existing FPDS system

and expects to bring the new system on-line by the end of

calendar 2003. The new system will be Web-based and is

designed to greatly improve the speed and accuracy of

government sales data. The new system will address the

time lag currently between the close of the fiscal year and

the availability of final data for the fiscal year and will

provide current quarterly reporting.

STAR: The STAR is a Windows based application providing

the user direct on-screen access to the database for

updating PBS real property data and retrieving this data via

standard and ad hoc reports. The STAR system incorporates

many industry standard business practices. With the initial

implementation of STAR, PBS experienced data accuracy

problems resulting from data conversion and staff

unfamiliar with the process for maintaining data. To correct

the shortcomings of STAR, PBS took a number of positive

actions to improve data in real estate and billing systems,

maintain data quality and provide accurate information for

real estate management. 

DATA FROM MANUAL OR SMALL FEEDER

COMPUTER SYSTEMS

IRIS/PMT: The Inventory Reporting Information

System/Project Manager’s Toolbox (IRIS/PMT) is a GSA

system used to manage PBS repair and alterations and new

construction programs, plus a large number of construction

related reimbursable projects. The GSA system is well

documented and there are current written procedures for

collecting and reporting the data used for the performance

measures. 
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 186

EUAS: The Energy Usage and Analysis System (EUAS)

gathers utility cost and consumption information from

Pegasys. The EUAS Center verifies and tracks data from

hard copy utility bills and samples a subset of the building

inventory to ensure accuracy and correct billing rates.

Regional energy coordinators review monthly billing data

and building managers certify data. Utility usages that fall

outside of tolerances are reviewed and certified for

payment. Discrepancies are reported back to the EUAS

center for correction with utility companies. Through these

processes, the PBS is confident that the data in the EUAS

system is extremely accurate.

TOPS: The Telecommunications Ordering and Pricing

System (TOPS) is a system, which automates the local

telecommunications service business process – including

ordering, billing and reconciliation of telecommunications

services. The purpose of the system is decreased paperwork, faster processing and increased customer agency

satisfaction. TOPS allows federal agencies to order telephone equipment and services on-line on a nationwide

basis. This automated systems cuts order handling and

processing time and cuts the cost of the entire process of

delivering telecommunication products. TOPS is currently

undergoing certification and accreditation by the Office of

the Chief Information Officer. 

OMIS: Office of Information Technology Integration

Management Information System (OMIS) is an operational

system that provides an assortment of project financial

capabilities to include project tracking, employee

timesheets, project billings, project expense tracking,

project fiscal reporting and management tools/reports.

OMIS provides 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 system

of financial record. 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 Industry Partners and FEDSIM

clients. OMIS, in conjunction with TOS, provides a full suite

of contracting, finance, and project management capabilities

for FEDSIM management, FEDSIM clients and FEDSIM

industry partners.

TOS: The Tracking and Ordering System (TOS) 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. Future

upgrades will be based on business model requirements,

improved reporting and management requirements,

operating efficiencies and customer and business partner

requirements.

Appendix 1: Data Sources
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 187

ITSS/ITOMS: IT SolutionsShop /Integrated Task Order

Management System (ITSS/ITOMS) provides for electronic

acceptance of commodities and services, and computes and

posts financial transaction associated with order funding

and order payment. ITSS is an on-line 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, 7 days a week, for the

geographically dispersed federal clients use in ordering IT

products and services from their desktops. ITOMS is the

financial management system for ITSS orders; it 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. Both

systems are currently undergoing certification and accreditation by the Office of the Chief Information Officer. 

METROPOLITAN AREA ACQUISITION (MAA) STATUS TRACKING

TOOL: The MAA Status Tracking Tool is a Lotus-Notes application. It was designed originally to help with project

management in implementing the Metropolitan Area

Acquisition, 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) AND THE FEDERAL

SUPPLY SCHEDULE COST RECOVERY SYSTEMS: 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.

TRANSPORTATION ACCOUNTS RECEIVABLE AND PAYABLE

SYSTEMS (TARPS): TARPS provides performance data for

measures aimed at cost recoveries resulting from audits of

Federal Supply Service transportation billings.

REQUISITIONING, ORDERING AND DOCUMENTATION SYSTEM

(ROADS): Captures contract pricing for vehicles for FSS.

Security for this system is maintained by limited access and

password protection.

FEDERAL DISPOSAL SYSTEM (FEDS): Data for FSS transferred

and donated property is obtained from this system. 

FEDERAL SUPPLY SERVICE SALES AUTOMATION SYSTEM: Data

for sales proceeds is obtained from this system.

BENCHMARK DATA FROM EXTERNAL SOURCES

BOMA: The industry benchmarks are from the Building

Owners and Managers Association (BOMA). BOMA is an

advocacy group for the real estate industry, a federation of

94 local associations whose members own or manage more

than 6 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. 
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 188

SIOR: Industry benchmark data is obtained from the Society

of Industrial and Office Realtors (SIOR). 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 reflects

local market conditions, or are unavailable for a market.

LMI: The Logistics Management Institute (LMI) is a private

non-profit organization that provides management

consulting, research, and analysis to governments and other

non-profit organizations. LMI’s participation as a data

provider expands PBS’s effort to validate STAR data.

LMI employs several filters and data verification methods

after preliminary results are collected from STAR. Regional

offices are given the opportunity to re-check the final

posted data for inaccuracies. The resulting lease data that

is collected is valid with a reasonable degree of certainty. 

DATA OBTAINED UNDER CONTRACT

GALLUP: Customer satisfaction measures for the Public

Buildings Service are all 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 us with percentile information. 

MITRETEK SYSTEMS: The periodic comparisons of commercial rates and those charged customers under the FTS2001

telecommunications programs are performed by. Mitretek

has developed specialized computer models to analyze

telecommunications costs.

Appendix 1: Data Sources
GSA embarked on an aggressive performance improvement initiative in FY 2003. It revisited existing performance goals and measures and carefully

refined them and in some cases added to them to help better manage its business goals. In this report, actual performance was measured against the

performance measures and targets in the FY 2004 Performance Plan, not the FY 2003 Performance Plan itself. Dollars in million (M).

A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 189

Appendix 11: Summary Chart of Goals and Measures

Improve annual ordering

official satisfaction. 

PBS

Improve customer 

satisfaction level in owned

space surveyed. PBS

Keep the cost for new 

GSA leased office space 

at or below each of the

four market ranges 

being tracked. PBS

Improve customer 

satisfaction level in lease

space surveyed. PBS

Improve customer 

satisfaction scores. PBS

Maintain a 90% tenant 

satisfaction rating in newly

constructed buildings. 

PBS

Increase value to the 

customer; provide creative

solutions, innovative 

services and products. 

FSS

Increase customer 

satisfaction, indicating

progress in service 

delivery at best value. 

FTS

Foster competition to 

benefit federal agencies by

promoting quality services

at lower prices. FTS

Assist customers in 

achieving savings in the

acquisition of products 

and services. (Network

Services - Long Distance)

FTS

Percent of ordering officials

that are highly satisfied in

their business dealings with

PBS.

Percent of tenants that rate

PBS-owned and operated

services as satisfactory or

better.

Cost for leased space relative

to the market. (weighted

average for 4 categories) 

Percent of customer 

satisfaction in leased 

space tenants.

Realty services 

satisfaction survey.

Improve customer 

satisfaction in newly 

constructed buildings.

Growth in Federal agency

usage of FSS programs. 

Percent of customers

indicating satisfaction on

annual customer survey. 

Percent of task and delivery

orders subject to fair

opportunity process.

Cumulative cost savings

below commercial 

discounted services. 

SVS 

DTS

FRS 

ATM 

IPS

N/A

83%

N/A

80%

N/A

86%

$22.5B

27.8%

76%

N/A

N/A

59%

84%

11.0%

82%

N/A

89%

$22.6B

0.5%

N/A

70%

N/A

66%

85%

14.0%

84%

N/A

90%

$27.3B

20.8%

73.6%

70%

$32.8M

$32.8M

68%

85%

14.25%

85%

70%

90%

$28.3B

3.66%

75%

80%

$543.5M

$186.5M 

$171.0M 

$142.0M 

$42.0M 

$2.0M 

72%

89%

7.41%

89%

85%

90%

$33.8B

23.8%

79.5%

86%

$574.1M

$184.0M

$143.4M

$179.7M

$44.4M

$22.6M

Goal Met

Goal Met

Goal 

Not Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL RESULTS

PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 190

Assist customers in achieving

savings in the acquisition of

products and services.

(Network Services – Regional

Telecommunications) FTS

Ensure adoption of Federal

Premier Lodging Program

(FPLP) within the 77 target

markets to meet federal

travelers’ needs, reducing

overall government 

spending. OGP

Move federal agencies to

commercial payment processes for mail to drive

agencies to be more 

strategic in their operations.

(percent) OGP

Move federal agencies to

commercial payment processes for mail to drive

agencies to be more 

strategic in their operations.

(dollars) OGP

Expand use of performance-based contracting to

increase government 

efficiency. OGP

Support authentication

needs for eGov initiatives. 

OGP

Facilitate the consistent 

use of XML for federal

eGov initiatives. OGP

Increase the number of

agency programs using

OGP-facilitated performance measures. OGP

Develop a single government face to citizens who

need timely and consistent

responses & information

about government programs

& enable the federal government to become more

citizen-centric. OCSC

Cost savings in major metro

areas.

Dollar savings to government

over corporate rate.

Percent of federal mail

payments to USPS through

commercial processes.

Dollar value of payments

to USPS made through 

commercial processes.

Percent of GSA contract

dollars reported as

performance-based

contracts.

Number of eGov initiatives

with completed authentication needs assessment and

determined solution sets.

Number of eGov initiatives

using the gateway or 

common solution.

Number of eGov 

initiatives adopting XML 

recommendations.

Number of agency programs

that use OGP-facilitated 

performance measures.

Enhanced communication

channels available 

government-wide.

Agency participation 

in signed Partnership 

Agreements (PA) and

Reimbursable Agreements (RA).

$.25M

N/A

16%

N/A

N/A

N/A

N/A

N/A

58

N/A

N/A

$3.0M

N/A

15%

N/A

15%

N/A

N/A

N/A

218

N/A

N/A

$33.5M

$5.03M

17%

$165M

9%

6

2

3

380

N/A

N/A

$46.0M

$24.8M

20%

$190M

30%

22

6

5

330

1 basic 

e-mail 

system

10 PA

3 RA

$42.1M

$33.6M

16%

$163.6M

24%

13

3

9

398

4

10 PA

3 RA

Goal 

Not Met

Goal Met

Goal 

Not Met

Goal 

Not Met

Goal 

Not Met

Goal 

Not Met

Goal 

Not Met

Goal Met

Goal Met

Goal Met

Goal Met

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL RESULTS

Appendix 11: Summary Charts of Goals and Measures

PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS continued
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 191

Increase access to 

government for all 

audiences. OCSC

Provide expertise to

improve Web site development and achieve common

shared solutions for eGov

initiatives. OCSC

Participate formally in the

governance structure of 

all eGov and Homeland

Security initiatives that have

State/local implications. 

OCSC

Improve position of GSA 

as valuable information

resource for all audiences. 

OCSC

Meet OMB targets for study

and/or direct conversion 

of commercial FTE’s as

reported on GSA FAIR Act

Inventory. OPI

Reduce the cost escalation

rate for repair and alterations projects to 1%. PBS

Increase overall potential

revenue. PBS

Increase Funds from

Operations. PBS

Reduce the amount of nonrevenue producing space 

to 10.4% in the government

owned inventory in 

FY 2004. PBS

Reduce the amount of nonrevenue producing space in

the leased inventory. PBS

Increase the percentage of

government-owned assets

with an ROI of at least 6%.

PBS

Number of multi-channel

contacts with public per

year.

Tax dollars saved by Federal

agencies as of result of

shared Web infrastructure

and services.

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.

Process improvements 

and management reforms

implemented.

Number of GSA.gov Web 

site page views.

Number of FTE positions

studied. 

Dollars saved.

Percent of cost escalation on

repair and alteration projects.

Percent of potential revenue

received.

Funds from Operations.

Percent of non-revenue producing space in government

owned inventory.

Percent of non-revenue producing space in leased

inventory.

Percent of governmentowned assets with an ROI

of at least 6 percent.

23.2M

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

$1.18B

12.2%

3.3%

N/A

40.8M

N/A

N/A

N/A

N/A

N/A

N/A

(1%)

92.4%

$1.35B

11.8%

2.7%

N/A

59.1M

$9M

N/A

N/A

57%

34M

398 FTE

$2.185M

3%

92.7%

$1.39B

11.8%

3.1%

54%

144.0M

$18M

6 of 12

75%

93%

37M

703 FTE

$1.905M

1%

93.0%

$1.44B 

11.5%

3.0%

62%

209.7M

$21M

6 of 12

92%

93%

45M

1,122 FTE

N/A

0.5%

93.8%

$1.48B

11.1%

2.1%

64%

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL RESULTS

PROVIDE BEST VALUE FOR CUSTOMER AGENCIES AND TAXPAYERS continued

ACHIEVE RESPONSIBLE ASSET MANAGEMENT
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 192

Increase the percentage of

government-owned assets

achieving a positive FFO

(Funds from Operations). 

PBS

Provide a secure IT

environment. CIO

Provide cleaning services in

office and similarly serviced

space at a cost of 3.9%

below private sector 

benchmarks. PBS

Provide maintenance services in office and similarly

serviced space at a cost of

3% or more below private

sector benchmarks. PBS

Provide utilities in office

and similarly serviced space

at a cost of 30% or more

below private sector 

benchmarks. PBS

Increase the percentage 

of construction projects 

on schedule to 84% in 

FY 2004. PBS

Reduce the cost escalation

rate for construction 

projects. PBS

All new buildings to be

LEED certified. PBS

Improve the percentage 

of repair and alteration

projects on schedule to

84% in FY 2004. PBS

Reduce operating costs. 

FSS

Provide timely and effective

telecommunications service.

FTS

Percent of governmentowned assets achieving a

positive FFO. 

Percent of high-risk vulnerabilities resolved within the

30-day of report.

Cleaning costs in office and

similarly serviced space.

Maintenance costs in office

and similarly serviced space.

Utility costs in office and

similarly serviced space.

Percent of construction

projects completed on

schedule. 

Percent of escalation on 

prospectus projects.

Improve percentage of new

buildings LEED registered. 

Percent of R&A construction 

projects on schedule.

Operating cost per 

$100 business volume.

Average number of days 

to complete contract 

modifications for FTS2001

and for crossover.

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

$1.88

N/A

N/A

N/A

5%

7%

30%

75%

6%

N/A

75%

$2.20

N/A

74%

83%

5%

7%

34%

78%

7%

N/A

87%

$1.76

FTS - 35

Xover 38

82%

100%

4%

6%

32%

80%

4%

100%

83%

$1.73

FTS - 36

Xover -54 

73%

100%

1.3%

6%

30%

68%

.6%

15%

79%

$1.47

FTS - 25

Xover 19

Goal 

Not Met

Goal Met

Goal 

Not Met

Goal Met

Goal 

Not Met

Goal 

Not Met

Goal Met

Goal 

Not Met

Goal 

Not Met

Goal Met

Goal Met

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL RESULTS

ACHIEVE RESPONSIBLE ASSET MANAGEMENT continued

OPERATE EFFICIENTLY AND EFFECTIVELY

Appendix 11: Summary Charts of Goals and Measures
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 193

Improve acquisition

processes and methods to

reduce time to award for

local telecommunications. 

FTS

Provide timely and effective

service delivery. 

FTS

Improve acquisition

processes and methods to

reduce time to award task

orders for IT solutions. 

FTS

Provide competitive prices

to customers. 

FTS

Improve clarity of OGP

policies, regulations and

guidelines to increase 

efficiency of government

management and 

operations. OGP

Increase sharing of management systems to allow

for better decision-making,

accountability and cost

avoidance. OGP

Implement President’s

Management Agenda for

competitive sourcing 

(identifying and competitively sourcing or directly

converting commercial

functions). OGP

Increase the percentage of

vendor invoices received

by Electronic Data

Interchange through the

Internet. CFO

Increase the percentage of

vendor payments by electronic media such as EFT

and purchase card. CFO

Average number of days 

to complete contract 

modifications. 

Percent of time negotiated 

completion date for local

network service is met 

or bettered.

Percent of negotiated award

dates for services and

commodities that are met or

bettered.

Percent of dollar savings

between Independent

Government Cost Estimates

(IGCE) and award amounts.

Number of significant 

regulations and guidelines

updated.

Number of agency programs

that use OGP shared management systems to support

decision-making. 

Percent of OGP Fair Act 

inventory competed or

directly converted.

Percent of electronic invoices

received.

Percent of invoices paid 

electronically.

N/A

N/A

N/A

N/A

N/A

N/A

N/A

12%

71%

N/A

N/A

N/A

N/A

3

N/A

N/A

24%

79%

43

N/A

91%

5.5%

20

378

0%

38%

79%

60

85%

90%

6%

38

191

10%

50%

81%

38

90%

91%

7.3%

101

386

31%

44%

88%

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal 

Not Met

Goal Met

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL RESULTS

OPERATE EFFICIENTLY AND EFFECTIVELY continued
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 194

Improve Capital Planning

and Investment control and

implementation process. 

CIO

Improve Capital Planning

and Investment control and

implementation for the 5

GSA led eGov initiatives. 

CIO

Provide secure, reliable

and cost effective IT

infrastructure services. CIO

Ensure accurate forecasting

and cost management to

leverage operations and

optimize pricing. FSS

Includes direct operating

expense, procurement

support, supply 

distribution and rent.

Includes all costs of

operations, prior year

adjustments and 

depreciation.

Increase business volume. 

FTS

Achieve net operating

results to increase retained

earnings in IT fund for

future capital investment. 

FTS

Implement business

process efficiencies to

reduce cost of delivering

products. FTS

Ensure full cost recovery of

operations. FTS

Meet all requirements to

maintain a clean opinion

on GSA’s financial 

statements. CFO

Percent of major IT investment projects that are within

10% of planned cost and

schedule.

Percent of the major 5 GSA 

led eGov initiatives IT 

investment projects that 

are within 10% of planned

cost and schedule. 

Percent of customer

satisfaction.

Planned vs. Actual Cost.

Direct cost as percent of 

revenue (revenue is total

sales figure).

Total cost as percent of 

revenue.

Percent of growth in

business. (revenue) 

Net Operating Results.

Direct Operating Expenses 

as a percent of Gross Margin.

Contribution Index. 

Receive clean opinion on

financial statements. 

N/A

N/A

N/A

2.38%

7.9%

94.8%

N/A

N/A

N/A

N/A

100%

N/A

N/A

N/A

0.16%

7.6%

97.1%

N/A

N/A

N/A

N/A

100%

82%

60%

84%

7.15%

6.9%

97%

14.6%

$34.01M

59%

1.58

100%

100%

100%

95%

0% +/- 3%

7.3%

97%

9.1%

$14.96M

49%

1.09

100%

87%

60%

86%

5%

6.7%

97%

22.5%

$0.92M

64.4%

1.06

100%

Goal 

Not Met

Goal 

Not Met

Goal 

Not Met

Goal 

Not Met

Goal Met

Goal Met

Goal Met

Goal 

Not Met

Goal 

Not Met

Goal 

Not Met

Goal Met

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL RESULTS

OPERATE EFFICIENTLY AND EFFECTIVELY continued

ENSURE FINANCIAL ACCOUNTABILITY

Appendix 11: Summary Charts of Goals and Measures
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 195

Eliminate material 

weaknesses for financial

and non-financial

components under

FMFIA. OCFO

Improve customer 

productivity scores. PBS

Recruit, hire, develop and

retain a highly skilled

workforce. FTS

Achieve 55th percentile

ranking in the Gallup Q12

Survey. OGP

Increase participation at

OGP supported educational

venues and activities to

increase workforce 

efficiency. OGP

Develop a competencybased assessment process

for GSA acquisition 

workforce. OGP

Improve the value of 

GSA’s OnLine University. 

OCPO

*Develop and implement

strategies to address skill

gaps in Mission Critical

Occupations (MCO). 

OCPO

Rank in the 75th percentile

in the Gallup Q12 survey. 

OCPO

Develop a stronger linkage

between organizational and

individual performance. 

OCPO

Zero internal control material

weaknesses. (financial and

non-financial components)

Improve Realty Transaction

Survey, Productivity.

Percent of IDPs updated

annually and documented.

Average number of training

hours completed in mission 

critical areas of acquisition, 

technology, business and

project management.

Performance ranking in the

Gallup Q12 Survey.

Number of participants at

OGP supported educational

venues and activities.

Number of GSA 1102s 

who complete competency 

assessment process.

Percent of GSA 1102’s who

fully qualify under Clinger

Cohen. 

Percent Increase registrations. 

Reduce Gaps in MCO’s.

Increase grand total mean

score from the 67th to the

75th percentile.

Develop new performance

appraisal system linking

appraisals to performance

metrics.

0

N/A

N/A

N/A

N/A

N/A

N/A

N/A

2276

Baseline

N/A

N/A

N/A

0

N/A

N/A

N/A

34th

Percentile

N/A

N/A

N/A

182%

N/A

N/A

N/A

0

N/A

81%

38

63rd

Percentile

47,500

N/A

24%

18%

N/A

67TH

N/A

0

67%

90%

50

55th

Percentile

38,000

250

35%

15%

4

67th

100%

Execs

0

62%

87%

42

74th

Percentile

48,995

159

38%

-36%

4

75th

100%

Execs

Goal Met

Goal 

Not Met

Goal 

Not Met

Goal Not

Met

Goal Met

Goal Met

Goal 

Not Met

Goal Met

Goal 

Not Met

Goal Met

Goal Met

Goal Met

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL RESULTS

ENSURE FINANCIAL ACCOUNTABILITY continued

MAINTAIN A WORLD-CLASS WORKFORCE AND WORLD-CLASS WORKPLACE

* This measure reflects overall program performance. It is the only measure counted in the determination of whether GSA meets the GSA-wide goal. Numbers 

presented in the FY 2003 Actual column are preliminary and subject to verification within GSA as well as by the Small Business Administration.
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 196

Improve energy reduction

in standard facilities to

27.5% below the FY 1985

baseline in FY 2004. PBS

Increase customer agency

support of governmentwide socioeconomic goals.

FSS

Achieve and maintain an

appropriate level of 

procurements with small

business. FTS

Provide accessible vendor

product information to federal agencies to support

Section 508 procurement

requirements to achieve an

IT environment accessible

to all citizens. OGP

Work with OPM to increase

percent of federal employees who telework. OGP

Disseminate strategic 

information messages to 

all audiences. OCSC

Meet or exceed goal of

providing contracting

opportunities to small 

businesses. OSBU

Percent of reduction in

energy consumption from

FY 1985 baseline.

Percent of socioeconomic

business volume.

Percent of procurements

with small business as

compared to total prime

contracts.

Number of vendors with

templates on the “Buy

Accessible” database.

Percent of federal employees 

who telework.

Move strategic messages 

to industry standards.

Achieve or exceed GSA-wide

small business procurement

goals.

20%

30.55%

36%

N/A

N/A

N/A

40.3%

18.4%

33.10%

30%

22

2.6%

N/A

40.1%

22.5%

33.73%

37%

320

4.2%

N/A

44.35%

25.0%

33%

31%

400

5.0%

33% 

Positive

33%

Neutral

33%

Negative

40.0%

18.6%

33.24%

35%

520

5.0%

28.7%

Positive

65.8%

Neutral

5.5%

Negative

TBD

Goal 

Not Met

Goal Met

Goal Met

Goal Met

Goal Met

Goal Met

TBD

PERFORMANCE GOALS PERFORMANCE MEASURES

FY 2000

ACTUAL

FY 2001

ACTUAL

FY 2002

ACTUAL

FY 2003

TARGET

FY 2003

ACTUAL RESULTS

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

Appendix 11: Summary Charts of Goals and Measures
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 197

Appendix 111: Acronyms and Abbreviations

3GS 3rd Generation System

AAPC Accounting and Auditing Policy Committee

ACSEC Accounting Standards Executive Committee

ADP Automated Data Processing

AICPA American Institute of Certified Public Accountants

ALC Applied Learning Center

ATM Asynchronous Transfer Mode

BCA Board of Contract Appeals

BOMA Building Owners and Managers Association

BPA Blanket Purchase Agreement

BRM Business Reference Model

CFO Chief Financial Officer

CHCO Chief Human Capital Officer

CIO Chief Information Officer

CONUS Continental United States

COTS Commercial off the shelf

CRM Customer Relationship Management

CSBR Combining Statement of Budgetary Resources

CSRS Civil Service Retirement System

DHS Department of Homeland Security

DMIS Defense Medical Information System

DOD Department of Defense

DOJ Department of Justice

DOL Department of Labor

DTS Dedicated Transmission Service
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 198

eAcquisition Electronic Acquisition

eApplication Electronic Application

eAuthentication Electronic identity proofing of individuals and businesses,

based on risk of online services used

eBooks Electronic Books

eBuy A Web-based tool that facilitates the RFQ for services and

products offered by GSA Federal Supply Contractors

EDI Electronic Data Interchange

eDSL Enterprise Digital Subscriber Line

eFile IRS electronic filing system

EFT Electronic Fund Transfer

eGov Electronic Government

eGrants Electronic Grant application

EHRI Enterprise Human Resources Integration

EIT Electronic information technology

eLearning Web-based training courses

eLibrary Online source for GSA and VA Federal Supply Schedule 

contract award information

E-RA eAuthentication Risk Assessment

eRulemaking Provides the ability for citizens and small businesses to 

participate in the federal rulemaking process via the Web

eSystems Electronic Systems

eTravel A Web-based service for travel planning and authorization 

of reimbursement

EUAS Energy Usage and Analysis System 

EuroUSN United States Navy based in Europe

eVital System for common electronic processing of birth and death 

record information.

FAC Federal Acquisition Counsel

FAIR Federal Activities Inventory Reform

FAIRS Federal Aviation Interactive Reporting Systems

FAQ Frequently Asked Questions

FAR Federal Acquisition Regulations

FASAB Federal Accounting Standards Advisory Board

FASB Financial Accounting Standards Board

Appendix 111: Acronyms and Abbreviations
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 199

FBF Federal Building Fund

FCIC Federal Citizen Information Center

FCICF Federal Consumer Information Center Fund

FECA Federal Employees Compensation Act

FedBizOpps Federal Business Opportunities

FedCIRC Federal Computer Incident Response Center

FEDS Federal Disposal System

FEDSIM Federal Systems Integration and Management Center

FERS Federal Employees Retirement System

FFB Federal Financing Bank

FFMIA Federal Financial Management Improvement Act

FFO Funds From Operations

FICA Federal Insurance Contribution Act

FMFIA Federal Manager's Financial Integrity Act

FMS Financial Management Service

FOIA Freedom of Information Act 

FPDS Federal Procurement Data Base

FPLP Federal Premier Lodging Program

FPS Federal Protective Service

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 Equivalency

FTS Federal Technology Service

FY Fiscal Year

G2G Government to Government

GAAP Generally Accepted Accounting Principles

GAO General Accounting Office

GISRA Government Information Security Reform Act

GPDS General Services Administration Procurement Data System

GPRA Government Performance and Results Act

GSA General Services Administration
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 200

GSF General Supply Fund

GT Georgia Institute of Technology

GWAC Government-wide Acquisition Contract

HAVA Help America Vote Act

HAZMAT Hazardous Materials

HR Human Resource

HUBZone Historically Underutilized Business Zones

IAE Integrated Acquisition Environment

ICD Interagency Contracts Directory

IDP Individual Development Plan

IFF Industrial Funding Fee

IGCE Independent Government Cost Estimate

IPS Internet Protocol Service

IRIS/PMT Inventory Reporting Information System/Project Manager’s

Toolbox

IRMCO Interagency Resources Management Conference

IRS Internal Revenue Service

IT Information Technology

ITF Information Technology Fund

ITIPS Information Technology Investment Portfolio System

ITOMS Integrated Task Order Management System

ITS IT Solutions

ITSS IT Solutions Shop

LEED Leadership in Energy and Environmental Design

LLP Limited Liability Partnership

LMI Logistics Management Institute 

MAA Metropolitan Area Acquisition

MAC Multiple Award Contract

MAS Multiple Award Schedule

MCO Mission Critical Occupation

Appendix 111: Acronyms and Abbreviations
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 201

MD & A Management Discussion and Analysis

MFC Most-favored customer

MOA Memorandum of Agreement

MOBIS Management, Organizational & Business Improvement 

Services

MOSAIC Multipurpose Occupational Systems Analysis Inventory –

Closed-Ended

N/A Not Available

NARA U.S. National Archives and Records Administration

NCC National Contact Center

NEAR National Electronic Accounting and Reporting 

NIB/NISH National Institute for the Blind/National Institute for the 

Severely Handicapped

NOR Net Operating Results

OASDI Old-Age, Survivors and Disability Insurance

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

OCSC Office of Citizen Services and Communications

OE Operating Expenses

OFPP Office of Federal Procurement Policy

OGC Office of General Counsel

OGP Office of Governmentwide Policy

OIG Office of Inspector General

OIRA Office of Information and Regulatory Affairs

OIS Office of Intergovernmental Solutions

OLU On-line University

OMAS Official Mail Accounting System

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

OSBU Office of Small Business Utilization
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 202

PA Partnership Agreements

PAD Pre-Authorized Debits

PADC Pennsylvania Avenue Development Corporation

PART Program Assessment Rating Tool

PBC Performance Based Contracting

PBS Public Building Service

PBSA Performance Based Service Actions

PBX Private Branch Exchange

PIB Procurement Information Bulletin

PKI Public Key Infrastructure

PMA President’s Management Agenda

PMP Performance Management Process

PMT Performance Measurement Tool

PWC PricewaterhouseCoopers

Q & A Question and Answers

R & A Repair and Alteration

RA Reimbursable Agreements

RFQ Request for Quote

RISC Regulatory Information Services Center

ROADS Requisitioning, Ordering and Documentation System

ROCIS RISC/OIRA Consolidated Information System

ROE Return on Equity

ROI Return on Investment

RRB Ronald Reagan Building

SAFECOM Initiative to address the need for better technology and 

network systems

SBA Small Business Administration

SBU Small Business Utilization

SDLC Systems Development Life Cycle

SFFAS Statement of Federal Financial Accounting Standards

SGL Standard General Ledger

Appendix 111: Acronyms and Abbreviations
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 203

SIOR Society of Industrial and Office Realtors

SOP Standard Operating Procedure

SSA Social Security Administration

SSO Services and Staff Offices

STAR System for Tracking and Administering Real Property

SVS Switch Voice Service

TARPS Transportation, Accounts Receivable and Payable Systems

TBD To Be Determined

TMC Travel Management Centers

TOPS Telecommunications Ordering and Pricing System

TOS Tracking and Ordering System

TSP Thrift Savings Plan

USAF United States Air Force

USPS United States Postal Service

VERA Voluntary Early Retirement Authority

VSIP Voluntary Separation Incentive Payment

VTC Video Teleconferencing

WCF Working Capital Fund

WCW World Class Workforce

XML Extensible Markup Language
A PPENDICES

FY 2003 ANNUAL PERFORMANCE AND ACCOUNTABILITY REPORT 204
This report is available through our Website 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/
U.S. General Services Administration

1800 F Street, NW

Washington, DC 20405

www.gsa.gov