a

GAO

United States General Accounting Office

Report to the Committee on Government 

Reform, House of Representatives, and 

the Committee on Governmental Affairs, 

U.S. Senate

April 2003 FEDERAL 

PROCUREMENT

Spending and 

Workforce Trends

GAO-03-443
Federal agencies procured more than $235 billion in goods and services 

during fiscal year 2001, reflecting an 11 percent increase over the amount 

spent 5 years earlier. Further growth in contract spending, at least in the 

short term, is likely to increase given the President’s request for additional 

funds for defense and homeland security, agencies’ plans to update their 

information technology systems, and other factors. Overall, contracting for 

goods and services accounted for about 24 percent of the government’s 

discretionary resources in fiscal year 2001. As shown in the figure below, 

acquisition is central to the missions of several agencies. 

Federal agencies are taking advantage of the streamlined acquisition 

processes that were developed in the 1990s, including relying on contracts 

awarded by other federal agencies to obtain goods and services. The 

increase in the use of this acquisition method is driven largely by purchases 

of information technology and by professional, administrative, and 

management support services. Similarly, agencies are increasingly using 

purchase cards for many of their low dollar value procurements. 

Over the last decade, the federal acquisition workforce has had to adapt to 

changes in staffing levels, workloads, and the need for new skill sets. 

Procurement reforms have required contracting specialists to have a greater 

knowledge of market conditions, industry trends, and the technical details of 

the commodities and services they procure. A priority at most agencies we 

reviewed was attracting and retaining the right people with the right skills to 

successfully address the increasingly complex actions expected in the 

future. Many agencies have made progress with strategic human capital 

planning efforts. 

We reviewed 10 agencies that represent over 90 percent of the federal 

government’s acquisition spending. All agencies provided comments on 

our report and concurred with our analyses. 

Acquisition of Goods and Services as a Percent of Agencies’ Discretionary Budget 

Resources, Fiscal Year 2001 

The federal government, comprised 

of more than 60 agencies and 

nearly 1.7 million civilian workers, 

acquires most of its goods and 

services through contracts. Recent 

changes in what the government 

buys, its contracting approaches 

and methods, and its acquisition 

workforce have combined to create 

a dynamic acquisition environment. 

Many of these recent changes 

enhance contracting efficiency and 

offer a number of benefits, such as 

reduced administrative burdens. 

However, GAO’s past work has 

found that if these changes are not 

accompanied by proper training, 

guidance, and internal controls, 

agency procurements may be at 

greater risk. 

While effectively managing 

contracts is always a key 

management responsibility, this 

responsibility is more acute in 

those agencies that rely heavily 

on acquisitions to accomplish 

their missions. 

The goal of this report is to 

identify for Congress, the 

administration, and accountability 

organizations those procurementrelated trends and challenges that 

may affect federal agencies. 

Specifically, GAO analyzed recent 

federal procurement patterns, 

the use of various procurement 

methods, and changes in the 

acquisition workforce. 

www.gao.gov/cgi-bin/getrpt?GAO-03-443.

To view the full report, including the scope 

and methodology, click on the link above. 

For more information, contact Bill Woods at 

(202) 512-4841. 

Highlights of GAO-03-443, a report to 

the Committee on Government Reform, 

House of Representatives, and the 

Committee on Governmental Affairs, 

U.S. Senate 

April 2003

FEDERAL PROCUREMENT 

Spending and Workforce Trends 
Page i GAO-03-443 Spending and Workforce Trends

Contents

Letter 1

Results in Brief 3

Trends in Federal Procurement Spending Patterns 5

Emerging Trends in Procurement Methods and Approaches 10

Acquisition Workforce and Workload Trends 20

Conclusions 24

Agency Comments and Our Evaluation 24

Appendixes

Appendix I: Scope and Methodology 26

Appendix II: Section 1–Department of Defense 32

Section 2–Department of the Air Force 42

Section 3–Department of the Army 51

Section 4–Department of the Navy 60

Appendix III: Department of Agriculture 69

Appendix IV: Department of Energy 79

Appendix V: Department of Health and Human Services 89

Appendix VI: Department of Justice 99

Appendix VII: Department of the Treasury 109

Appendix VIII: Department of Transportation 119

Appendix IX: Department of Veterans Affairs 129

Appendix X: General Services Administration 139

Appendix XI: National Aeronautics and Space Administration 149

Tables Table 1: Agency Use of the Federal Supply Schedule Program 13

Table 2: Changes in the Extent Agencies Used FAR Part 12 to 

Acquire Commercial Items, Fiscal Years 1997 through 

2001 18

Table 3: Federal Acquisition Personnel and Workload 21

Table 4: Information on Data Elements 28

Figures Figure 1: Federal Contract Spending, Fiscal Year 2001 6

Figure 2: Percent of Contract Dollars Spent on Services in 

Fiscal Year 2001 7
Contents

Page ii GAO-03-443 Spending and Workforce Trends

Figure 3: Acquisition of Goods and Services as a Percent 

of Agencies’ Discretionary Budget Resources, 

Fiscal Year 2001 9

Figure 4: Amount Spent Using the Federal Supply Schedule, 

Fiscal Year 1997 through Fiscal Year 2001 12

Figure 5: Governmentwide Use of Purchase Cards 15

Figure 6: Purchase Card Use in Fiscal Year 2001 16

Figure 7: Performance-Based Service Contracting in 

Fiscal Year 2001 (by dollar value) 19

Figure 8: Retirement Eligibility of Current 

Acquisition Workforce 23

Abbreviations

CPDF Central Personnel Data File

DOD Department of Defense

DOE Department of Energy

DOJ Department of Justice

DOT Department of Transportation

FAA Federal Aviation Administration

FAR Federal Acquisition Regulation

FPDC Federal Procurement Data Center

FPDS Federal Procurement Data System

FSS Federal Supply Schedule

GSA General Services Administration

GWAC governmentwide acquisition contract

HHS Department of Health and Human Services

IT information technology

NASA National Aeronautics and Space Administration

OMB Office of Management and Budget

USDA Department of Agriculture

VA Department of Veterans Affairs

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Page 1 GAO-03-443 Spending and Workforce Trends

United States General Accounting Office

Washington, D.C. 20548

A

April 30, 2003 Letr

The Honorable Tom Davis

Chairman

The Honorable Henry A. Waxman

Ranking Minority Member

Committee on Government Reform

House of Representatives

The Honorable Susan M. Collins

Chairman

The Honorable Joseph I. Lieberman

Ranking Minority Member

Committee on Governmental Affairs

United States Senate

The federal government, one of the largest and most complex organizations 

in the world, is comprised of more than 60 agencies and about 1.7 million 

civilian workers. The fiscal year 2002 federal budget included more than 

$1 trillion in discretionary budget resources,1

 which can be applied to fund 

agency operations including the acquisition of goods and services. 

Agencies acquire most of their goods and services through contracts that 

specify the government’s needs or requirements, the cost or price agreed 

upon by the government and the supplier, and other terms and conditions.

Beginning in the early 1990s, a number of factors emerged that created a 

dynamic and challenging acquisition environment with ramifications that 

are just beginning to be recognized. First, acquisition personnel 

increasingly purchase services, such as information technology or 

management support. Second, Congress passed several significant pieces 

of reform legislation, including the Federal Acquisition Streamlining Act of 

1

 Discretionary budget resources reflect the budget amount that an agency is appropriated 

for a current fiscal year plus the budget authority that the agency carries over from prior 

fiscal years.
Page 2 GAO-03-443 Spending and Workforce Trends

19942 and the Clinger-Cohen Act of 1996,3 to provide agency procurement 

officials with greater flexibility and tools to acquire goods and services 

more efficiently. Third, the end of the Cold War and efforts to reduce the 

size of government led to significant acquisition workforce reductions in 

many agencies, most notably the Department of Defense (DOD). These 

reductions, coupled with procurement reforms, have placed increasing 

demands on the acquisition workforce. For example, contracting 

specialists must have a greater knowledge of market conditions, industry 

trends, and the technical details of the commodities and services 

they procure.

This report is part of our effort to provide Congress, the administration, 

and accountability organizations with insights into how these factors 

contribute to the acquisition challenges federal agencies face. To do so, we 

analyzed (1) recent federal procurement patterns, (2) the use of various 

procurement approaches and methods, and (3) changes in the acquisition 

workforce and contracting actions. Our analysis covers the 5-year period 

that includes fiscal year 1997 through fiscal year 2001, the latest year for 

which complete data were available, and focuses on the 10 federal agencies 

that spent the most on contracts during fiscal year 2001.

We compiled this information from various sources, including the General 

Services Administration’s (GSA) Federal Procurement Data System 

(FPDS), which is the government’s repository for federal contract 

information; the Office of Management and Budget’s (OMB) MAX Budget 

Information System, which is used to collect, validate, analyze, model, and 

publish federal budget information; the Office of Personnel Management’s 

Central Personnel Data File (CPDF), which is the government’s human 

resources reporting system; agency officials; and Inspector General 

reports. We did not verify these data independently. Unless otherwise 

noted, all data in the report are reflected in constant fiscal year 2001 

2

 P.L. 103-355, Oct. 13, 1994. The Federal Acquisition Streamlining Act of 1994 authorized, 

among other things, federal agencies to enter into multiple award, task- and delivery-order 

contracts for goods and services. These contracts provide agencies with a great deal of 

flexibility in buying goods or services while minimizing the burden on government 

contracting personnel to negotiate and administer contracts.

3

 P.L. 104-106, Feb. 10, 1996. The Clinger-Cohen Act of 1996 authorized, among other things, 

the use of multiagency contracts and governmentwide acquisition contracts to facilitate 

purchases of information technology-related products and services such as network 

maintenance and technical support, systems engineering, and integration services.
Page 3 GAO-03-443 Spending and Workforce Trends

dollars. More information on our scope and methodology may be found in 

appendix I.

This report does not reflect changes in agency missions, organizational 

structures, budgets, contracting actions, or personnel resulting from the 

creation of the Department of Homeland Security. This department, 

established on January 24, 2003, combined 22 federal agencies specializing 

in various missions, such as law enforcement, border security, biological 

research, computer security, and disaster mitigation. With an anticipated 

budget of almost $40 billion and an estimated 170,000 employees, the 

department is expected to be the third largest federal agency, with the 

potential for some of the government’s most extensive acquisition 

requirements.

Results in Brief Federal agencies procured more than $235 billion in goods and services 

during fiscal year 2001, reflecting an 11 percent increase over the amount 

spent 5 years earlier. Additionally, federal agencies spent almost $14 billion 

using purchase cards in fiscal year 2001. Further growth in contract 

spending, at least in the short term, is likely given the President’s request 

for additional funds for defense and homeland security, agencies’ plans to 

update their information technology systems, and other factors. Overall, 

contracting for goods and services accounted for about 24 percent of the 

government’s discretionary resources in fiscal year 2001; however, for the 

four agencies that spent the most, contracting accounted for between 

34 percent and 73 percent of discretionary resources.

Federal agencies continue to take advantage of streamlined acquisition 

processes, relying, for example, on contracts awarded by other federal 

agencies to obtain goods and services. The use of one such acquisition tool, 

GSA’s Federal Supply Schedule, more than tripled from fiscal years 1997 

through 2001 to about $14.4 billion. This growth was driven largely by 

purchases of information technology and professional, administrative, and 

management support services. Similarly, agencies are using purchase cards 

for many of their low dollar value procurements. Purchase card use 

increased 160 percent during the 5-year period we studied, to $13.8 billion 

in fiscal year 2001. According to our recent reviews, agencies may have 

missed opportunities to take full advantage of the benefits offered by these 

methods and other contracting approaches, such as performance-based 

service contracting, because of inadequate guidance and training, a weak 

internal control environment, limited performance measures, and data that 

agencies can use to make informed decisions.
Page 4 GAO-03-443 Spending and Workforce Trends

During the last decade, the federal acquisition workforce has had to adapt 

to changes in staffing levels, workloads, and the need for new skill sets. 

Governmentwide data indicate that the acquisition workforce has declined 

by about 5 percent over the 5-year period we studied,4

 and changes in the 

acquisition workforce have been accompanied by changes in the types of 

actions being managed. The total number of contracting actions processed 

in fiscal year 2001 decreased 6 percent from fiscal year 1997 levels.5

 Our 

analysis indicates that while most agencies are processing fewer smaller 

actions—those valued under $25,000—most agencies are also managing an 

increased number of larger actions.

Addressing human capital issues in acquisition is not just a matter of the 

size of the workforce. Agencies must also have the right people with the 

right skills to successfully meet the increasingly complex demands 

expected in the future. Meeting this human capital challenge has become a 

priority at most of the agencies we reviewed, and agencies have made 

progress in their strategic planning efforts. The need for planning is 

underscored by the fact that all agencies face the prospect of losing many 

of their skilled acquisition personnel over the next 5 years—with a 

significant portion of the government’s acquisition workforce becoming 

eligible to retire by fiscal year 2008.

4

 This decline continues a trend beginning in the early 1990s. Overall, the acquisition 

workforce declined 22 percent from 1991 to 2001.

5

 A contract action is defined as any action to obtain supplies or services from sources 

outside the federal government that obligates or de-obligates funds, including the award of 

the contract; an order against an existing indefinite-delivery contract, basic ordering 

agreement, or federal schedule contract; or a modification of a contract or order such as 

a funding action, a change order, a termination, or a cancellation.
Page 5 GAO-03-443 Spending and Workforce Trends

Trends in Federal 

Procurement Spending 

Patterns

Federal agencies spent more than $235 billion in fiscal year 2001 to buy 

goods and services ranging from weapon systems and medical equipment 

to information technology services and the operation of government 

facilities. This is an 11 percent increase over the amount spent in 1997. This 

growth is expected to continue as federal agencies address emerging 

threats and acquire enhanced information technology.

The significance of contracting in the federal government is reflected by 

the sheer magnitude and the degree to which contracting consumes 

agencies’ discretionary resources. Overall, contracting for goods and 

services accounted for about 24 percent of the government’s discretionary 

resources in fiscal year 2001. However, contract spending consumed 

between 34 percent and 73 percent of the discretionary resources available 

to the four largest acquisition spending federal agencies.

Recent Growth in Federal 

Procurement

Federal contracting increased by 11 percent during the 5-year period we 

studied, from about $213 billion in fiscal year 1997 to over $235 billion in 

fiscal year 2001.6

 As shown in figure 1, DOD is the largest agency in terms 

of contracting dollars spent, accounting for about two-thirds of the 

government’s total spending on goods and services. In fiscal year 2001, 

DOD contracted for more than $152.6 billion of goods and services, or 

more than twice the amount spent by the next nine largest federal agencies 

combined. The three military departments—the Air Force, Army, and 

Navy—individually spend more than the largest civilian agency, the 

Department of Energy (DOE).

6

 Federal agencies spent about $140 billion on services and about $81 billion on goods 

for contracts valued at more than $25,000. FPDS does not provide similar information for 

contracts valued at $25,000 or less.
Page 6 GAO-03-443 Spending and Workforce Trends

Figure 1: Federal Contract Spending, Fiscal Year 2001

Note: GAO analysis of data provided by FPDS and FAA.

From fiscal years 1997 through 2001, purchases of goods increased by 

17 percent. This was due in large measure to DOD’s increased spending on 

weapon systems and other defense-related items. Overall, however, 

agencies continued to purchase far more services than goods. Purchases 

of services grew by about 11 percent, as agencies modernized their 

information systems and obtained various professional, administrative, and 

management support services. Nine of the 10 agencies we reviewed 

increased their spending on services. The other agency, the National 

Aeronautics and Space Administration (NASA), experienced a 4 percent 

decrease, reflecting significant reductions in spending for research and 

development and for professional, administrative, and management 

support services. As shown in figure 2, agencies varied in the degree to 

which they contracted for services. For example, DOE spent more than 

98 percent of its contract dollars on services in fiscal year 2001, while the 

Department of Agriculture’s (USDA) spending for services accounted for 

only about 30 percent of its acquisition spending.7

7

 These figures represent total contracting actions over $25,000.

Source: FPDS and FAA.

5%

•

65%

•

Department of Defense, 

$152.6 billion

30%

Other nine agencies in our

review, $70.1 billion

Agencies outside our review

that also report to FPDS, 

$12.5 billion

•
Page 7 GAO-03-443 Spending and Workforce Trends

Figure 2: Percent of Contract Dollars Spent on Services in Fiscal Year 2001

Note: GAO analysis of data provided by FPDS and FAA for actions exceeding $25,000.

The degree to which individual agencies contract for services underscores 

the importance of ensuring that service acquisitions are managed properly. 

For example, we noted in May 2001 that some service procurements were 

not being conducted efficiently, putting taxpayer dollars at risk.8 Last year, 

we reported that leading commercial companies had taken a strategic 

approach to acquiring services, which in turn resulted in significant cost 

savings and service improvements.9

 Taking a strategic approach involves a 

range of activities—from developing a better picture of what the company 

is spending on services, to taking an enterprisewide approach to procuring 

services, to developing new ways of doing business. Based in part on our

8 Contract Management: Trends and Challenges in Acquiring Services, GAO-01-753T

(Washington, D.C.: May 22, 2001).

9 Best Practices: Taking a Strategic Approach Could Improve DOD’s Acquisition of 

Services, GAO-02-230 (Washington, D.C.: Jan. 18, 2002).

0 20 40 60 80 100

DOE

HHS

NASA

DOT

GSA

DOJ

Treasury

DOD

VA

USDA

Source: FPDS and FAA.
Page 8 GAO-03-443 Spending and Workforce Trends

report, the National Defense Authorization Act For Fiscal Year 2002 

required that DOD develop enhanced data collection and management 

processes for services acquisitions.10 Additionally, as will be discussed in 

greater detail in the next section, Congress and the administration are 

encouraging the use of performance-based approaches to acquiring 

services as a way of improving the acquisition of services.

Acquisition Activity Varies 

by Agency

Agencies rely to various degrees on private vendors to provide the 

goods and services needed to carry out their missions and support their 

operations. Overall, contracting for goods and services accounted for 

24 percent of the government’s discretionary resources in fiscal year 2001. 

For four agencies included in our review—DOE, NASA, GSA, and DOD—

the acquisition function is central to accomplishing their mission-related 

goals. About 76 percent of DOE’s funds, for example, are spent on the 

management and operation of over 30 government-owned laboratories and 

other nuclear facilities. NASA contracts account for about 72 percent of its 

discretionary budget resources, and one of GSA’s primary missions is to 

help federal agencies procure goods and services. However, spending on 

contracts accounted for less than 23 percent at each of the other six 

agencies in our review, as shown in figure 3.

10 P.L. 107-107, section 801, Dec. 28, 2001.
Page 9 GAO-03-443 Spending and Workforce Trends

Figure 3: Acquisition of Goods and Services as a Percent of Agencies’ 

Discretionary Budget Resources, Fiscal Year 2001

Note: GAO analysis of data provided by FPDS, OMB, and FAA.

Further Growth in Contract 

Spending Is Likely

Further growth in contract spending, at least in the short term, is likely 

given the President’s request for additional funds for defense and 

homeland security, agencies’ plans to update their information technology 

systems, and other factors. For example, the President’s fiscal year 2004 

budget request reflects steady increases in DOD’s discretionary budget 

authority, as well as increases in the budgets of other agencies involved in 

homeland security. Additionally, the President’s budget request reflects 

increased investment in information technology both for new systems and 

for related support.

Further, the administration’s emphasis on competitive sourcing could 

increase agencies’ reliance on services provided by the private sector. 

Competitive sourcing in the federal government is conducted under 

guidance provided in OMB Circular A-76, which outlines procedures for 

0 20 40 60 80 100

HHS

DOT

USDA

DOJ

Treasury

VA

Governmentwide

DOD

GSA

NASA

DOE

Source: FPDS, OMB, and FAA.
Page 10 GAO-03-443 Spending and Workforce Trends

determining whether to perform a commercial activity with government 

employees or by contract. Additionally, the circular provides policy for 

standardizing how and when an agency competes a commercial activity 

with the private sector. OMB’s current 2-year goal is to compete 15 percent 

of the federal government’s commercial-type positions. This effort could 

result in significant increases in the number of service contracts, given that 

in the past the private sector has won over half of the competitions.

Emerging Trends in 

Procurement Methods 

and Approaches

The past decade has seen the emergence of several procurement trends 

that have changed the way the government acquires goods and services, 

as Congress and the administration have sought ways to simplify the 

acquisition process, shorten procurement times, reduce administrative 

burdens and costs, and improve acquisition outcomes. In particular, federal 

agencies are increasingly relying on contracts awarded by other federal 

agencies to obtain goods and services and have turned to using government 

purchase cards for many of their low dollar value procurements. The 

growth in these procurement methods has been dramatic, and is apparent 

in nearly every agency we reviewed. Additionally, agencies have begun to 

increase their use of commercial contracting methods and performancebased acquisition approaches.

As we have reported previously, taking full advantage of these methods and 

approaches requires that agencies have adequate guidance and training, a 

strong internal control environment, and data that can be used by agency 

management to make informed decisions.11 Our work at selected agencies 

has found that these conditions have not always been present, thereby 

contributing to agencies missing opportunities to achieve savings, reduce 

administrative burdens, and improve acquisition outcomes.

11 Reports discussing challenges faced by individual agencies can be found in section V of 

appendixes II through XI. Procurement reports specific to purchase cards and the use of the 

federal supply schedule can be found in section V of appendix X (GSA).
Page 11 GAO-03-443 Spending and Workforce Trends

Agencies’ Use of Contracts 

Awarded by Other Agencies

Federal agencies are increasingly using contracts and acquisition services 

offered by other agencies, a fact that is most notably demonstrated in the 

growth of GSA’s Federal Supply Schedule and governmentwide acquisition 

contracts (GWAC). These interagency contracts are being used in a 

variety of situations, from those in which a single agency provides limited 

contracting assistance to a more comprehensive approach in which 

the provider agency’s contracting officer handles all aspects of the 

procurement. Agencies charge users of these contracts a fee to cover 

administrative expenses. GSA’s schedule program enables federal agencies 

to quickly acquire goods and services, thereby helping them to, among 

other objectives, reduce lead times and lower administrative costs. GSA 

does this by awarding contracts to vendors and making these contracts 

available for use by other agencies.12 GWACs are intended to facilitate 

purchases of information technology-related products and services, such 

as network maintenance and technical support, systems engineering, and 

integration services.13

12 GSA does not require contractors to compete against one another to receive schedule 

contracts. Rather, GSA negotiates contracts, including pricing and other terms, with all 

contractors who meet the qualification standards for the schedule. Generally, contracting 

officers may place orders for products against the schedule without having to solicit 

competitive quotes or determine fair and reasonable prices, thereby allowing them to fulfill 

their agencies’ needs quickly and easily. However, for purchases above a certain threshold, it 

is advantageous for the ordering office to seek a price reduction and consider additional 

contractors. Further, for service contracts that are valued at more than $2,500 and require a 

statement of work, GSA established special ordering procedures under the schedules 

program that require agency personnel to solicit quotes from at least three contractors and 

evaluate the mix and price of the labor categories being offered, among other things.

13 The sponsoring agency awards the contract, and other agencies order from it. GWACs 

have been operated at the Departments of Commerce and Transportation and at NASA, 

GSA, and the National Institutes of Health. See Contract Management: Interagency 

Contract Program Fees Need More Oversight, GAO-02-734 (Washington, D.C.: July 25, 

2002). However, as of 2002, the Department of Transportation no longer sponsors a GWAC.
Page 12 GAO-03-443 Spending and Workforce Trends

As shown in figure 4, sales under the schedule program have more than 

tripled over the past 5 years, increasing from $4.3 billion in fiscal year 1997 

to about $14.4 billion in fiscal year 2001. Agency officials at each of the 

agencies we reviewed reported increases in their use of the schedules 

program over the past 5 years, driven largely by increased purchases of 

information technology and professional, administrative, and management 

support services.

Figure 4: Amount Spent Using the Federal Supply Schedule, Fiscal Year 1997 

through Fiscal Year 2001

Note: GAO analysis of data provided by FPDS and FAA for actions exceeding $25,000.

Dollars in billions

0

4

8

12

16

1997 1998

Fiscal year

1999 2000 2001

Total

Source: FPDS and FAA.

Goods

Services
Page 13 GAO-03-443 Spending and Workforce Trends

As shown in table 1, DOD and GSA, the largest users of the schedules 

program, accounted for about 75 percent of schedule sales in fiscal year 

2001. GSA’s increased share is largely attributable to the growth of GSA’s 

Federal Technology Service, which places orders under the schedule for 

information technology services and equipment on behalf of other federal 

agencies. However, orders placed by the Federal Technology Service are 

counted as spending by GSA, rather than as spending by the federal agency 

that will ultimately receive the service or equipment.

Table 1: Agency Use of the Federal Supply Schedule Program

Source: FPDS and FAA.

Notes: GAO analysis of data provided by FPDS and FAA for actions exceeding $25,000.

Dollars in millions, shown in constant fiscal year 2001 dollars.

a

VA officials noted that in addition to figures reflected in table 1, VA’s prime vendors for 

pharmaceuticals and medical/surgical supplies make extensive use of the schedule program to satisfy 

VA’s requirements.

Agency officials also reported that their use of GWACs increased 

considerably over the 5-year period between fiscal years 1997 and 2001. For 

example, USDA reported an increase from about $5.1 million to $44 million, 

and Treasury reported an increase from $92 million to $155 million. 

Officials at the other eight agencies we reviewed reported that they also 

increased their use of GWACs; however, they could not provide detailed 

GWAC information because this spending was not an integral part of their 

management information systems. While GSA officials indicated that they 

Fiscal year

Agency 1997 2001

Change

 (percent)

DOD $1,853 $6,489 250

GSA 498 4,274 758

VAa 783 668 -15

DOJ 234 470 101

Treasury 94 324 245

DOT 167 242 45

NASA 32 179 459

HHS 42 159 279

DOE 41 136 232

USDA 38 129 239

Governmentwide 4,324 14,436 234
Page 14 GAO-03-443 Spending and Workforce Trends

have not modified the FPDS to collect specific information on GWAC 

spending, several officials at other agencies stated that they either are 

collecting or will begin to collect additional information on their agencies’ 

GWAC use.

While use of these interagency contracting methods can allow agencies to 

meet their needs quickly, our past work has shown that agencies are not 

adequately adhering to guidelines on competition.14 Further, recent agency 

Inspector General reports noted that DOD, VA, and NASA personnel did not 

consistently follow procedures intended to promote competition or ensure 

fair and reasonable prices when using these interagency contract methods 

to acquire information technology services, medical equipment, or research 

and development projects.15

Purchase Cards Purchase card spending has increased significantly governmentwide. 

This program provides federal agencies a low-cost and efficient means 

for quickly obtaining goods and services directly from vendors. 

Under the Federal Acquisition Regulation, the commercial purchase card is 

now the preferred method of paying for micropurchases.16 The purchase 

card may also be authorized to be used in greater dollar amounts and may 

be used to make payments under existing contracts. 

14 Contract Management: Not Following Procedures Undermines Best Pricing Under GSA’s 

Schedule, GAO-01-125 (Washington, D.C.: Nov. 28, 2000).

15 For more information, see DOD’s Inspector General reports Multiple Award Contracts 

for Services, Report No. D-2001-189 (Washington, D.C.: Sept. 30, 2001) and Acquisition: 

Contract Actions Awarded to Small Businesses, Report No. D-2003-029 (Washington, D.C.: 

Nov. 25, 2002); VA’s Inspector General report Evaluation of the Department of Veterans 

Affairs Purchasing Practices, 01-01855-75 (Washington, D.C.: May 15, 2001); NASA’s 

Inspector General report Multiple-Award Contracts, IG-01-040 (Washington, D.C.: 

Sept. 28, 2001).

16 The Federal Acquisition Streamlining Act of 1994 established a micropurchase threshold 

of $2,500.
Page 15 GAO-03-443 Spending and Workforce Trends

As figure 5 shows, governmentwide purchase card use increased 

from $5.3 billion in fiscal year 1997 to $13.8 billion in fiscal year 2001—a 

160 percent rise. Increases in purchase card use in the agencies we 

reviewed ranged from 45 percent to 344 percent.

Figure 5: Governmentwide Use of Purchase Cards

Note: GAO analysis of FPDS data.

Dollars in billions

0

5

10

15

1997 1998 1999 2000 2001

Fiscal year

Source: FPDS.
Page 16 GAO-03-443 Spending and Workforce Trends

As figure 6 shows, agencies used purchase cards to varying degrees. 

DOD was the largest user of purchase cards, spending about $6.1 billion 

in fiscal year 2001. VA was the largest civilian agency user of the 

purchase card program, spending about $3.8 billion. VA officials noted 

that due to VA’s organizational structure17 and its continuous need for 

disposable medical and surgical supplies, purchase cards are one of 

VA’s key procurement techniques and are used extensively as a payment 

mechanism. 

Figure 6: Purchase Card Use in Fiscal Year 2001

Note: GAO analysis of data provided by FPDS and FAA.

17 In 2002, VA planned to spend about $22 billion to provide approximately 4.2 million 

veterans and family members with health care through 163 VA hospitals and more than 

850 outpatient clinics nationwide.

Dollars in billions

0

1

2

3

4

5

6

7

NASA

GSA

Treasury

DOE

HHS

DOT

DOJ

USDA

VA

DOD

Source: FPDS and FAA.
Page 17 GAO-03-443 Spending and Workforce Trends

During the past 2 years, we found that significant internal control 

weaknesses in several agency purchase card programs allowed 

cardholders to make fraudulent, improper, abusive, or questionable 

purchases that resulted in lost, missing, or misused government property.18

Agencies are responding to the recommendations that we and others have 

made regarding internal control weaknesses. For example, the Navy has 

reduced the number of cardholders by more than 50 percent, from 59,000 

in June 2001 to 25,000 by March 2002, thus improving the likelihood of 

effective program management.19 Additionally, DOD has begun 

implementing new training and approval processes. For example, DOD 

implemented automated controls during fiscal year 2002 to help with 

monitoring credit limits, cardholder reconciliation, and approving officials’ 

review of monthly statements. Further, OMB requires that agencies provide 

quarterly reports on their efforts to improve the management oversight 

of government-issued purchase and travel cards.

Use of Streamlined 

Procedures to Acquire 

Commercial Items

In recent years, there has been a significant increase in agencies’ use of 

streamlined procedures to acquire commercial items. Many procurement 

reform advocates have recommended that federal agencies purchase 

commercial items to save money and reduce acquisition time, rather than 

pay companies to develop unique items for the government’s use. The 

Federal Acquisition Streamlining Act established a preference for the 

acquisition of commercial items.20 Because commercial items are subject 

to competitive market forces, they may be acquired using streamlined 

solicitation and evaluation procedures generally provided for under part 12 

of the Federal Acquisition Regulation (FAR).21 For example, contracting 

officers may reduce the time needed to solicit bids and award contracts by 

combining certain steps in the solicitation process, using streamlined 

evaluation techniques, and eliminating certain administrative requirements.

18 Government Purchase Cards: Control Weaknesses Expose Agencies to Fraud and Abuse, 

GAO-02-676T (Washington, D.C.: May 1, 2002).

19 Purchase Cards: Navy Vulnerable to Fraud and Abuse but Is Taking Action to Resolve 

Control Weaknesses, GAO-03-154T (Washington, D.C.: Oct. 8, 2002).

20 P.L. 103-355, sections 8104 and 8203, Oct. 13, 1994. 

21 Agencies also acquire commercial items using other procurement methods, such as the 

Federal Supply Schedule program and purchase cards, or they may use other simplified 

procedures provided for under the FAR.
Page 18 GAO-03-443 Spending and Workforce Trends

In fiscal year 2001, the purchase of commercial items using FAR part 12 

procedures accounted for 19 percent of the spending for goods and 

services by federal agencies, up from 9 percent 5 years earlier. From 

fiscal year 1997 through fiscal year 2001, governmentwide use of part 12 

procedures increased by 148 percent. As shown in table 2, 9 of the 10 

agencies in our review increased their use of part 12 procedures by at least 

100 percent. 

Table 2: Changes in the Extent Agencies Used FAR Part 12 to Acquire Commercial 

Items, Fiscal Years 1997 through 2001

Source: FPDS and FAA.

Note: All dollar figures have been converted to constant 2001 dollars.

a

USDA officials indicated that this decrease was a result of reclassifying certain items 

as noncommercial.

Performance-Based Service 

Contracting

Significant growth in service contracts has led Congress and the 

administration to encourage greater use of performance-based service 

contracting to achieve greater cost savings and better outcomes. Under 

performance-based approaches, the contracting agency specifies the 

outcome or result it desires and lets the contractor decide how best to 

achieve the desired outcome. Performance-based contracts offer 

significant benefits, such as encouraging contractors to innovate and find 

cost-effective ways of delivering services. In fiscal year 2001, agencies 

Dollars in millions

Fiscal year

Agency 1997 2001

Change

 (percent)

DOE $33 $273 727

VA 491 2,796 469

Treasury 177 981 454

DOT 297 1,595 437

DOJ 234 1,187 407

HHS 85 418 392

NASA 225 794 253

DOD 11,597 26,378 127

GSA 2,121 4,301 103

USDAa 768 311 -60

Governmentwide 16,704 41,417 148
Page 19 GAO-03-443 Spending and Workforce Trends

reported that 24 percent of their eligible service contracts, by dollar value, 

were considered performance based.

There was wide variation in the extent to which agencies used 

performance-based contracts. As figure 7 shows, 3 of the 10 agencies in our 

review fell short of OMB’s goal that 10 percent of their eligible service 

contracts be performance based in fiscal year 2001.22

Figure 7: Performance-Based Service Contracting in Fiscal Year 2001 

(by dollar value)

Note: GAO analysis of data provided by FPDS for actions over $25,000.

a

DOE and VA officials stated that their internal data systems report a higher use of performance-based 

contracting in fiscal year 2001 than the data in FPDS. For example, DOE officials believed 77 percent 

of their eligible contracts were performance based, while VA officials believed their agency’s figure 

should be about 11 percent.

b

Figure reflects data for DOT only; FAA could not provide performance-based service contracting data 

because it was not an integral part of its management information systems.

22 For fiscal year 2002, OMB established a goal that 20 percent, by dollar value, of eligible 

service contracts over $25,000 be performance based.

0

10

20

30

40

50

60

70

NASA

DOE

DOD

DOTHHS

DOJ

GSA

USDA

Treasury

VA

Governmentwide 

FY 2001Goal

a

b

a

Source: FPDS.

Percent of eligible contracts considered performance based
Page 20 GAO-03-443 Spending and Workforce Trends

We recently found that some agencies achieved only mixed success 

in incorporating four basic performance-based attributes into their 

contracts.23 These attributes include describing desired outcomes rather 

than how the services should be performed, setting measurable 

performance standards, describing how the contractor’s performance 

will be evaluated, and establishing positive and negative incentives, as 

appropriate. Our review raised questions as to whether agencies have an 

adequate understanding of performance-based contracting and how to take 

full advantage of this approach. Agency officials themselves pointed to the 

need for better guidance on performance-based contracting and better 

criteria for identifying which contracts should be called “performance 

based.” In response to our recommendations, the Office of Federal 

Procurement Policy is developing new guidance to help agencies improve 

their use of performance-based contracting.

Acquisition Workforce 

and Workload Trends

Over the last decade, the federal acquisition workforce has had to adapt 

to changes in staffing levels, workloads, and the need for new skill sets. 

Procurement reforms have placed unprecedented demands on the 

acquisition workforce. For example, contracting specialists are required 

to have a greater knowledge of market conditions, industry trends, and 

the technical details of the commodities and services they procure. 

Governmentwide data indicate that in fiscal year 2001 both the number of 

acquisition workforce employees24 and the number of contract actions 

declined slightly from fiscal year 1997 levels. However, the extent to which 

these changes occurred varied from agency to agency. Ensuring that 

agencies will have the right people with the right skills to successfully meet 

the increasingly complex demands expected in the future has become a 

priority at most of the agencies we reviewed. While agencies still face many 

hurdles, our recent work has found that most agencies have taken steps to 

address their strategic human capital planning challenges.25

23 Contract Management: Guidance Needed for Using Performance-Based Service 

Contracting, GAO-02-1049 (Washington, D.C.: Sept. 23, 2002).

24 There is no widely accepted definition of what constitutes the federal acquisition 

workforce, and agency definitions vary greatly. For this report, GAO defined the acquisition 

workforce as agency personnel in 14 occupation codes, which include contracting officers, 

purchasing officers, and procurement clerical support. The occupation codes we used to 

define the acquisition workforce may be found in appendix I.

25 Acquisition Workforce: Status of Agency Efforts to Address Future Needs, GAO-03-55

(Washington, D.C.: Dec. 18, 2002).
Page 21 GAO-03-443 Spending and Workforce Trends

Current Acquisition 

Workforce

As of September 2001, the federal acquisition workforce included about 

103,000 individuals, reflecting an overall 5 percent decline from 1997 levels. 

As shown in table 3, changes in the acquisition workforce varied by agency; 

for example, 6 of the 10 agencies we reviewed lost between 2 percent and 

9 percent of their acquisition workforces, while the other 4 agencies 

increased their acquisition workforces by between 8 percent and 

11 percent. DOD experienced the largest personnel decrease in its 

acquisition workforce, declining by 9 percent to just over 68,500 personnel.

Table 3: Federal Acquisition Personnel and Workload

Source: OPM, FPDS, and FAA.

Changes in the acquisition workforce have been accompanied by changes 

in the types of actions being managed. The total number of contract actions 

processed in fiscal year 2001 decreased 6 percent from fiscal year 1997 

levels. As shown in table 3, our analysis indicates that while most agencies 

are processing fewer smaller actions—those valued at less than $25,000—

most agencies are also managing an increased number of larger actions. 

Agencies have made far greater use of purchase cards for making their 

smaller dollar purchases, which accounts for the declining rate of smaller 

dollar actions. While we have not evaluated how these changes have 

affected federal agencies as a whole, the DOD Inspector General noted 

Acquisition workforce Changes in contract actions, fiscal years 1997 through 2001

Agency

Total

Sept. 2001

Percent

change in

workforce since

fiscal year 1997

Change in total

contract actions

(percent)

Change in contract

actions exceeding

$25,000 (percent)

Change in contract

actions $25,000

or less (percent)

Governmentwide 103,053 -5 -6 26 -7

DOD 68,513 -9 5 27 4

USDA 5,703 -6 -79 25 -81

DOE 1,449 10 4 19 -3

GSA 2,743 11 -75 68 -82

HHS 2,490 9 -29 44 -31

DOJ 1,457 -2 -11 26 -13

NASA 1,246 -4 -38 -12 -50

DOT 1,514 -7 -37 27 -48

Treasury 2,561 8 12 15 11

VA 2,562 -6 29 -12 30
Page 22 GAO-03-443 Spending and Workforce Trends

in 2000 that the increased contract workload was adversely affecting 

contract oversight by creating imbalances and backlogs in closing out 

completed contracts.

Agencies Showing Progress 

in Strategic Human Capital 

Planning Efforts

The changes in staffing levels and workload come at a time when the role 

of the government’s acquisition staff is changing considerably. Federal 

agency officials expect their acquisition personnel to analyze business 

problems and help develop strategies in the early stages of the acquisition 

process. Industry and government experts recognize that a key to making a 

successful transformation toward a more sophisticated acquisition 

environment is having the right people with the right skills. To accomplish 

this, leading public organizations in the United States and abroad have 

found that strategic human capital management must be the centerpiece of 

any serious change management initiative.26 Strategic management of 

human capital is a key governmentwide initiative in the President’s 

Management Agenda.

One aspect of strategic human capital planning is succession planning, 

where an agency identifies its future needs in terms of workforce skills and 

numbers. Our prior work has shown that when workforce reductions do 

not consider future needs—such as a staff reduction at DOD during the 

1990s—the result is a workforce that is not balanced with regard to 

experience and skill sets.27 The need for planning is underscored by the fact 

that, similar to human capital challenges across a variety of occupation 

categories, all agencies face the prospect of losing many of their skilled 

acquisition personnel over the next 5 years. As shown in figure 8, about 

38 percent of acquisition personnel governmentwide are either already 

eligible to retire or will be eligible by September 30, 2007. At DOD and 

DOE—the two largest contracting agencies in our review—39 percent of 

the acquisition workforce will be eligible to retire by fiscal year 2008; at the 

other eight agencies, between 30 to 36 percent of their current workforces 

will be eligible to retire.

26 For additional information, see Exposure Draft: A Model of Strategic Human Capital 

Management, GAO-02-373SP (Washington, D.C.: Mar. 15, 2002) and OPM’s Workforce 

Planning Model (http://www.opm.gov/worforceplanning/wpfmodel.htm).

27 See Contract Management: Trends and Challenges in Acquiring Services, GAO-01-753T

(Washington, D.C.: May 22, 2001) and Human Capital: Major Human Capital Challenges at 

the Departments of Defense and State, GAO-01-565T (Washington, D.C.: Mar. 29, 2001).
Page 23 GAO-03-443 Spending and Workforce Trends

Figure 8: Retirement Eligibility of Current Acquisition Workforce

Notes: GAO analysis of data from OPM’s Central Personnel Data File.

Percentages do not add to 100 due to rounding.

Our recent reviews of how agencies are addressing their future acquisition 

workforce needs found that all of the agencies we reviewed have made 

progress.28 For example, the agencies have either published or drafted 

human capital strategic plans for their overall workforces or for their 

acquisition workforces, and some are revamping training, recruitment, and 

retention programs to address future workforce needs. However, these 

agencies have encountered challenges, in part due to shifting priorities, 

missions, and budgets that make it difficult to predict with any certainty 

the specific skills and competencies their acquisition workforces will need. 

Further, many agencies simply lack good data on their workforces, such as 

size and location, knowledge and skills, and attrition and retirement rates. 

This information is critical to mapping out the current condition of the 

workforce and deciding what needs to be done to ensure that each agency 

has the right mix of skills and talent for the future.

28 Acquisition Workforce: Status of Agency Efforts to Address Future Needs, 

GAO-03-55 (Washington, D.C.: Dec.18, 2002) and Acquisition Workforce: Department 

of Defense’s Plans to Address Workforce Size and Structure Challenges, GAO-02-630

(Washington, D.C.: Apr. 30, 2002).

Source: OPM.

43%

20%

38%

•

Eligible after FY 2011

Currently eligible or eligible

by FY 2008 

• Eligible FY 2008 through FY 2011

•
Page 24 GAO-03-443 Spending and Workforce Trends

Conclusions Effectively managing federal contracts is essential to ensuring that the 

more than $235 billion spent annually through contracts provides highquality goods and services that meet the users’ needs in a timely fashion. 

While managing spending effectively is always a key management 

responsibility, the need for effective management is more acute in agencies 

that rely heavily on acquiring goods and services to carry out their missions 

or support their operations.

Changes in what the government buys, its contracting approaches and 

methods, and its acquisition workforce combine to create a dynamic 

acquisition environment. The purpose of introducing or expanding 

streamlined purchase methods, such as GWACs, purchase cards, and 

supply schedules, was to enhance contracting efficiency, reduce 

administrative burdens, lower transaction costs, and shorten procurement 

times. However, our work has found that the lack of proper training, 

guidance, and internal controls can increase an agency’s procurement risk 

and lead to reduced public confidence. While agencies are taking 

corrective actions to address these concerns, many actions remain in the 

early stages of implementation.

Agency Comments and 

Our Evaluation

We requested comments on a draft of this report from each of the agencies 

we reviewed, as well as from the Office of Federal Procurement Policy. 

Each agency provided comments, generally via electronic mail. Agency 

officials concurred with our analyses and provided technical comments, 

which we incorporated as appropriate. 

Some agencies noted that their internal data systems contained 

procurement data that differed from that contained in the Federal 

Procurement Data System or contained workforce data that differed from 

that reflected in the Central Personnel Data File. For example, DOE and 

VA officials noted that their systems indicated higher use of performancebased contracting than the data contained in Federal Procurement Data 

System. We have noted these differences where appropriate in the report. 

Additionally, HHS and DOT officials noted that their definitions of their 

acquisition workforces differed from what we used. Because there is no 

commonly accepted definition of the acquisition workforce, we elected to 

use a consistent definition, as discussed in our scope and methodology, to 

better enable cross-agency comparisons. 
Page 25 GAO-03-443 Spending and Workforce Trends

We are sending copies of this report to the Director, Office of Management 

and Budget; the Administrator, Office of Federal Procurement Policy; the 

Secretaries of Agriculture, Defense, Energy, Health and Human Services, 

Transportation, Treasury, and Veterans Affairs; the Administrator of 

General Services; the Administrator, National Aeronautics and Space 

Administration; the Attorney General; and interested congressional 

committees. We will also provide copies to others on request. This report 

will also be available at no charge on GAO’s Web site at http://www.gao.gov.

Major contributors to this report were Don Bumgardner, Chad Holmes, 

Kevin Heinz, Robert L. Ackley, Julia Kennon, Gary Middleton, John W. 

Mingus, Jr., John Van Schaik, Greg Wilmoth, and Suzanne Melancon. 

If you have any questions about this report, please contact me at 

(202) 512-4841 or Timothy J. DiNapoli at (202) 512-3665.

William T. Woods

Director, Acquisition and Sourcing Management
Page 26 GAO-03-443 Spending and Workforce Trends

Appendix I

Scope and Methodology AAppenednxidexiIs

To identify spending, procurement methods, and acquisition workforce 

trends, we judgmentally selected 15 data elements. These elements are not 

intended to be all-inclusive or exhaustive; rather, they reflect data relevant 

to key issues and trends identified in prior GAO reports or that provide 

basic information valuable to understanding an agency’s procurement 

function and approach. We reviewed these elements with senior 

procurement officials at each of the agencies we reviewed; these officials 

generally agreed that such elements provided useful and relevant 

information for gauging their agencies’ procurement activities.

We obtained data on these elements from the General Services 

Administration’s Federal Procurement Data Center (FPDC), agency 

officials, and the Office of Management and Budget (OMB). FPDC 

administers the Federal Procurement Data System (FPDS), which is the 

federal government’s central database on contracting actions. FPDS 

contains detailed information on contracting actions over $25,000, 

including contract type, amount obligated, the types of goods or services 

purchased, and various vendor characteristics. FPDS contains less detailed 

information on actions of $25,000 or less. Because FPDC relies on federal 

agencies for procurement information, these data are only as reliable, 

accurate, and complete as the information reported by the agencies. We did 

not independently verify the information contained in the database. 

However, in 1998, FPDC conducted an accuracy audit, which showed that 

the average rate of accurate reporting in the FPDS database was 96 

percent. GAO used data from FPDS that covered the 5-year period fiscal 

year 1997 through fiscal year 2001, the last year for which complete data 

were available. We subsequently adjusted the data provided by DOD to 

FPDS to correct for a fiscal year 2001 reporting error.

We obtained additional information from agency procurement officials for 

certain data elements that were not readily available from FPDS, such as 

their agency’s use of governmentwide acquisition contracts. Additionally, 

we obtained data from the Federal Aviation Administration, which is not 

required to submit information to the FPDC.1

 We reflected this data in the 

governmentwide analyses, as well as in the Department of Transportation’s 

profile. We also asked each agency to provide a description of its key 

1

 The FPDC collects procurement data from approximately 60 executive branch agencies. 

The Federal Aviation Administration, the U.S. Postal Service, the legislative and judicial 

branches, and several other government entities are not required to report their 

procurement activities to the FPDC. 
Appendix I

Scope and Methodology

Page 27 GAO-03-443 Spending and Workforce Trends

procurement initiatives undertaken during the past 2 years. We did not 

independently verify the information provided or assess the degree to 

which agency-reported initiatives achieved their objectives.

We collected information on each agency’s discretionary resources from 

the Office of Management and Budget’s MAX Budget Information System, 

which is used to collect, validate, analyze, model, and publish federal 

budget information. Discretionary budget resources reflect the budget 

amount that the agency is appropriated for a current fiscal year plus the 

budget authority that the agency carries over from prior fiscal years. 

Unless otherwise noted, all figures were adjusted for inflation and 

represent constant fiscal year 2001 dollars.

To determine trends in the acquisition workforce, we analyzed data 

obtained from the Office of Personnel Management’s Central Personnel 

Data File (CPDF), which is the governmentwide human resources 

reporting system. The data we used reflect information on permanent 

employees reported to the CPDF as of September 30 of the particular year. 

The CPDF relies on agencies to ensure that the data are timely, accurate, 

complete, and edited in accordance with OPM standards. There is no 

standard definition of what constitutes an agency’s acquisition workforce, 

and agencies have defined their workforces in various ways. To provide 

consistency and comparability among agencies, we defined the acquisition 

workforce as those individuals serving in the following 14 occupation 

series:

1. GS-246: Industrial relations

2. GS-346: Logistics management

3. GS-511: Auditors

4. GS-1101: General business

5. GS-1102: Contracting series

6. GS-1103: Industrial property manager

7. GS-1104: Property disposal

8. GS-1105: Purchasing officer
Appendix I

Scope and Methodology

Page 28 GAO-03-443 Spending and Workforce Trends

9. GS-1106: Procurement clerical support

10. GS-1150: Industrial specialists

11. GS-1152: Production control

12. GS-1910: Quality assurance

13. GS-2003: Supply management

14. GS-2010: Inventory management

Table 4 provides additional information on the data elements we included 

in each agency’s profile.

Table 4: Information on Data Elements

Category/Description Notes/Comments

Acquisition spending

Figure 1: Procurement’s Relationship to 

Discretionary Spending, Fiscal Years 1997 

through 2001

To determine the extent that the agency’s discretionary budget resources could be 

accounted for by contracting, we divided the agency’s total contract obligations by 

the agency’s discretionary resources available for that year. We excluded the amount that 

the agency spent through purchase cards because we were unable to account for the 

extent that purchase cards were used to make payments on contracts. Excluding 

purchase card use provides a conservative estimate of the agency’s total contract 

spending and reduces the likelihood of double-counting.

Discretionary budget resources reflect the budget amount that the agency is appropriated 

for a current fiscal year plus the budget authority that the agency carries over from prior 

fiscal years. 

These data exclude contract actions of $25,000 or less and purchase card data.

Figure 2: Spending on Goods and Services, 

Fiscal Years 1997 through 2001

To determine the total amount spent on goods and services, we obtained the 

total amount spent for contracts over $25,000 on goods and services from fiscal year 

1997 through fiscal year 2001. Services consisted of the 21 service categories 

identified in FPDS, as well as construction and research and development. Goods 

reflected all other FPDS-required reporting categories.

 These data exclude contract actions of $25,000 or less and purchase card data.

Figure 3: Principal Types of Goods and 

Services in Fiscal Year 2001

To determine the principal types of goods and services contracted for by each agency, we 

used FPDS-reported data that identified how much each agency spent on specific goods 

and services in fiscal years 1997 and 2001. We identified the three types of goods and 

services that the agencies spent the most on during fiscal year 2001.

These data exclude contract actions of $25,000 or less and purchase card data.
Appendix I

Scope and Methodology

Page 29 GAO-03-443 Spending and Workforce Trends

Figure 4: Vendor Type, Fiscal Year 2001 To determine the contracts awarded to various types of vendors, we obtained FPDS data 

for fiscal year 2001 for six groups:

• Small disadvantaged business

• Other small business

• Large business

• Javits-Wagner-O’Day (JWOD) and nonprofit organizations. The JWOD program 

provides employment opportunities for Americans who are blind or have other severe 

disabilities.

• State/local government

• Other, which includes hospitals, foreign contractors, domestic contractors working 

outside the United States, educational institutions, and historically black colleges and 

universities and minority institutions.

In addition, we used FPDS data to determine the percentage of contracts awarded to 

women-owned businesses.

These data exclude contract actions of $25,000 or less and purchase card data.

Figure 5: Top Five Vendors, Fiscal Year 2001 Agency officials provided us with data on the five vendors they contracted with the most, 

by dollar value, in fiscal year 2001.

Procurement methods

Figure 6: Principal Contract Types Employed 

in Fiscal Year 2001

To determine the contract types used, we obtained FPDS data for four principal types 

of contracts used in fiscal year 2001. These types are: (1) firm fixed-price contracts; 

(2) other fixed-price contracts, which include fixed-price redetermination, fixed-priceeconomic price adjustment, and fixed-price incentive; (3) cost-type, which include costplus award fee, cost-no fee, cost sharing, cost-plus fixed fee, and cost-plus incentive fee; 

and (4) labor hours/time and materials contracts.

Cost-type contracts provide for payment of allowable incurred costs, to the extent 

prescribed in the contract. These contracts establish an estimate of total cost for the 

purpose of obligating funds and establish a ceiling that the contractor may not exceed 

(except at its own risk) without the approval of the contracting officer.

These data exclude contract actions of $25,000 or less and purchase card data.

Figure 7: Competition, Fiscal Year 2001 To determine the extent that agency officials competed their contracts over $25,000, 

we used FPDS data for fiscal year 2001. We graphically illustrated two categories: 

(a) competed contracts and (b) contracts that were not competed. The latter category 

included the following four groups:

• Contracts that were follow-ons to a competed action, which are those subsequent 

actions awarded to a particular contractor who had previously been awarded the initial 

contract under competitive procedures;

• Contracts not available for competition, which include utilities, contracts authorized or 

required by statute to be awarded to a designated source, sole source contracts 

awarded to certain small disadvantaged businesses, or actions where the agency has 

determined that there is no opportunity for competition, among other things; 

• Other, which includes actions for which data on competition were missing or not 

required to be entered, such as contracts awarded to Federal Prison Industries.

• Contracts that were eligible to be competed but which the agency chose not to compete.

These data exclude contract actions of $25,000 or less and purchase card data.

(Continued From Previous Page)

Category/Description Notes/Comments
Appendix I

Scope and Methodology

Page 30 GAO-03-443 Spending and Workforce Trends

Figure 8: Degree of Competition for 

Competed Contracts, Fiscal Years 1997 

through 2001

To determine the degree of competition for competed contracts, we calculated the value 

of contracts for which one offer was received and the value of contracts for which two or 

more offers were received.

These data exclude contract actions of $25,000 or less and purchase card data.

Figure 9: Extent the Federal Supply Schedule 

Is Used to Purchase Goods and Services, 

Fiscal Years 1997 through 2001

To determine the extent the federal supply schedule is used to purchase goods and 

services, we obtained FPDS data on orders and modifications under the federal supply 

schedule.

These data exclude contract actions of $25,000 or less and purchase card data.

Figure 10: Amount Spent Using Purchase 

Cards, Fiscal Years 1997 through 2001 

To determine the amount spent using purchase cards, we used the summary purchase 

card data included in FPDS annual reports. These reports also included data on the 

number of cards authorized by each agency. 

Figure 11: Commercial Item Purchases Using 

FAR Part 12 Procedures, Fiscal Years 1997 

through 2001

To determine the extent that agencies used FAR part 12 procedures to acquire 

commercial items, we obtained data from FPDS.

These data exclude contract actions of $25,000 or less and purchase card data.

Figure 12: Extent That Eligible Contracts are 

Performance Based, Fiscal Year 2001 (by 

dollar value)

To determine the extent that agencies used performance-based contracting, we obtained 

fiscal year 2001 data from FPDS regarding contracts the agencies identified as 

performance based. We then compared the reported value of performance-based 

contracts with the total value of contracts eligible for performance-based contracting. 

According to FAR part 37.102, performance-based methods are to be used to the 

maximum extent practicable for all services, except for: (1) construction, (2) utilities, 

(3) architect and engineering, or (4) services that are incidental to supply purchases. 

Eligible contracts exclude contracts for the services listed above and reflect contracts with 

a value of more than $25,000. Data for performance-based service contracts were 

available only for fiscal year 2001.

These data exclude contract actions of $25,000 or less and purchase card data.

Figure 13: Workforce Trends, Fiscal Years 

1997 through 2001

To determine workforce trends, we obtained data from OPM's Central Personnel Data 

File on all civilian full-time employees for the federal agencies that we reviewed. We used 

this data to identify the changes in the size of the total and acquisition workforces in the 

10 agencies we reviewed. We defined the acquisition workforce using the 14 occupation 

series described previously in this section.

Figure 14: Acquisition Workforce by Years of 

Federal Service

To determine the acquisition workforce years of federal service, we obtained data as 

reported to CPDF by September 2000. This data was displayed in increments of:

• Fewer than 5 years

• 5 to 10 years

• 10 to 20 years

• 20 years or more

(Continued From Previous Page)

Category/Description Notes/Comments
Appendix I

Scope and Methodology

Page 31 GAO-03-443 Spending and Workforce Trends

Source: GAO.

We reviewed each agency profile with senior agency procurement officials 

and incorporated their comments where appropriate.

We conducted this work between September 2002 and March 2003 in 

accordance with generally accepted government auditing standards.

Figure 15: Acquisition Workforce Retirement 

Eligibility

To determine the acquisition workforce retirement eligibility, we obtained data as reported 

to CPDF by September 2000. This data was displayed in increments of:

• Before fiscal year 2002

• Fiscal years 2002 through 2007

• Fiscal years 2008 through 2011

• After fiscal year 2011

(Continued From Previous Page)

Category/Description Notes/Comments
32 GAO-03-443 Federal Procurement

Appendix II: Section 1–Department of Defense

Agency Overview and Highlights

Mission: To support and defend the Constitution of the United States; provide for the common defense of the 

nation, its citizens, and its allies; and protect and advance U.S. interests around the world.

Significant departments

The following departments combine for the majority of Department of Defense’s (DOD) fiscal year 2001 total 

discretionary budget resources:

• The Army accounted for 25 percent.

• The Air Force accounted for 23 percent.

• The Navy accounted for 21 percent.

• Other defense agencies1

 account for 31 percent.

Spending

DOD’s discretionary resources increased by 10 percent from fiscal year 1997 through fiscal year 2001 and 

totaled $446.3 billion in fiscal year 2001. Over the 5-year period, the proportion of DOD’s discretionary 

resources spent under contracts remained stable at 34 percent.

• DOD’s purchases of goods have increased by 23 percent and totaled $66.1 billion in fiscal year 2001. 

Purchases of services for contracts over $25,000 increased by 7 percent over the 5-year period, accounting 

for more than 54 percent of DOD’s contracts, or about $77.0 billion, in fiscal year 2001.

• Over the 5-year period, DOD’s service spending was driven by increased spending for information 

technology (46 percent); professional, administrative, and management support (21 percent); and medical 

services (22 percent).

• Although slightly declining since fiscal year 1997, research and development contracts accounted for about 

28 percent, or $21.5 billion, of DOD’s total service spending in fiscal year 2001.

• Over the 5-year period, spending changed on the following goods: ships (128 percent) and aircraft 

(42 percent).

Procurement methods

DOD spent about $143.1 billion on contracts over $25,000 in fiscal year 2001, with firm fixed-price and other 

kinds of fixed-price contracts accounting for over 63 percent of DOD’s contract dollars.

• Since fiscal year 1997, the amount of contract dollars awarded under competitive procedures was about 

58 percent of DOD’s total contract dollars over $25,000.

• Purchase card use has increased by 169 percent over the 5-year period, totaling $6.1 billion in fiscal year 

2001. In fiscal year 2001, DOD authorized the use of 230,646 purchase cards.

• In fiscal year 2001, about 23 percent of DOD’s eligible contracts were performance based.

Workforce

DOD’s total workforce and acquisition workforce have declined by 9 percent since fiscal year 1997, continuing 

a decade-long decline that began in the early 1990s. DOD’s total workforce decreased to about 629,000 and the 

acquisition workforce decreased to about 69,000 in fiscal year 2001.

• Over 90 percent of DOD’s acquisition workforce has at least 10 years of federal service; by fiscal year 2008, 

39 percent will be eligible to retire.

1 (1) Defense Advanced Research Projects Agency, (2) Defense Commissary Agency, (3) Defense Contract Audit Agency, (4) Defense Security 

Service, (5) Defense Threat Reduction Agency, (6) Missile Defense Agency, (7) National Imagery and Mapping Agency, (8) Pentagon Force 

Protection Agency, (9) Defense Contract Management Agency, (10) Defense Finance and Accounting Service, (11) Defense Information Systems 

Agency, (12) Defense Intelligence Agency, (13) Defense Legal Services Agency, (14) Defense Logistics Agency, (15) Defense Security Cooperation 

Agency, (16) National Security Agency, and (17) Army Corps of Engineers.
33 GAO-03-443 Federal Procurement

Appendix II: Section 1–Department of Defense

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources, 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS and OMB.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

100

200

300

400

500

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

30

60

90
34 GAO-03-443 Federal Procurement

Appendix II: Section 1–Department of Defense

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

(percent)

Aircraft and airframe structural 

components $14,759.8 $10,368.4 42

Ships, small craft, pontoons, and 

floating docks 8,296.8 3,631.8 128

Communication and detection 

equipment 4,326.8 4,880.2 -11

Other goods 38,747.6 34,853.6 11

Total goods $66,131.0 $53,734.0 23

Services

Research and development 21,541.1 21,665.6 -1

Professional, administrative, and 

management support 11,428.1 9,411.5 21

Construction of structures and facilities 6,656.2 6,893.8 -3

Other services 37,385.1 34,006.3 10

Total services $77,010.5 $71,977.2 7

Total goods and services $143,141.5 $125,711.2 14
35 GAO-03-443 Federal Procurement

Appendix II: Section 1–Department of Defense

Figure 4: Vendor Type, Fiscal Year 2001

Notes: 2 percent of DOD’s vendors are women-owned businesses.

Other includes hospitals, foreign contractors, domestic contractors working outside the 

United States, and educational institutions, including historically black colleges and universities and 

minority institutions.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: DOD.

Dollars in billions

Vendor

Goods and services 

provided

Amount

 awarded

1. Lockheed Martin Weapons systems integration 

and IT $14.7

2. Boeing Aircraft, electronics, and IT $13.3

3. Newport News Shipbuilding Ship building and repair $5.9

4. Raytheon Company Guided missile systems, 

electronics, and IT $5.6

5. Northrop Grumman Aircraft, electronics, and IT $5.1

Other

JWOD/Nonprofit

Small disadvantaged 

business

Source: FPDS.

2%

5%

10%

Large business

71%

Other small business 12%
36 GAO-03-443 Federal Procurement

Appendix II: Section 1–Department of Defense

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

Figure 7: Competition, Fiscal Year 2001

a

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

b

Other includes actions for which data on competition were missing or not required to be entered, 

such as contracts awarded to Federal Prison Industries.

c

Contracts that were follow-on to a competed action are those subsequent actions awarded to the 

particular contractor who had previously been awarded the initial contract under competitive 

procedures.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Dollars in billions

Contract type

Amount

 spent

Percent of total

 amount spent

Firm fixed-price $73.1 51.0

Other fixed-price $17.5 12.2

Cost-type $41.3 28.9

Labor hours/time and materials $4.9 3.4

Otherb

Follow-on to competed actionc

Not available for competitiona

Source: FPDS.

4%

4%

6%

Competed

58% Not competed 28%

Competed

Not competed
37 GAO-03-443 Federal Procurement

Appendix II: Section 1–Department of Defense

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

All dollar figures have been converted to constant 2001 dollars.

Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods and 

Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in billions

Fiscal year

Amount spent on

 competed contracts

One offer

 (percent)

More than one

 offer (percent)

1997 $70.9 7.3 90.1

1998 $71.9 8.3 88.5

1999 $77.0 8.9 89.3

2000 $80.0 8.1 90.1

2001 $82.7 10.3 86.8

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

0

2

4

6

8
38 GAO-03-443 Federal Procurement

Appendix II: Section 1–Department of Defense

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Notes: In fiscal year 2001, DOD authorized the use of 230,646 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

2

4

6

8

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

5

10

15

20

25

30
39 GAO-03-443 Federal Procurement

Appendix II: Section 1–Department of Defense

Figure 12: Extent That Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

III. Workforce

Figure 13: Workforce Trends, Fiscal Years 1997 through 2001

Source: CPDF.

Performance based

Source: FPDS.

23%

Not performance based 77%

Fiscal year

Total

 workforce

Acquisition

 workforce Percent

1997 691,931 74,890 10.8

1998 664,563 71,949 10.8

1999 645,990 69,408 10.7

2000 632,523 68,450 10.8

2001 628,915 68,513 10.9
40 GAO-03-443 Federal Procurement

Appendix II: Section 1–Department of Defense

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 years

10 to 20 years

Source: CPDF.

4%

6%

31%

20 years or more

59%

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

10%

20%

29%

After fiscal year 2011

41%
41 GAO-03-443 Federal Procurement

Appendix II: Section 1–Department of Defense

IV. Key Procurement Initiatives as Reported by Agency Officials

Improve the credibility and effectiveness of the acquisition and logistics support process.

• Change budgeting, procurement, program management, and logistics processes and policies to support 

implementation of evolutionary acquisition and reduce cycle time.

• Improve logistics responsiveness and supply chain integration to make DOD’s logistics system 

more efficient.

• Implement reforms to increase efficiency and effectiveness in the acquisition of services and improve 

support of socioeconomic programs.

Revitalize the quality and morale of the DOD acquisition workforce.

• Improve training and education by building a new learning environment designed to empower each DOD 

acquisition workforce member with more control over learning needs.

• Establish a life-cycle workforce management approach to the civilian workforce, including human capital 

strategic planning.

• Use new outreach and communication strategies to create better awareness and knowledge of acquisition 

initiatives. 

Improve the health of the defense industrial base.

• Establish a strategic approach to adopt commercial acquisition processes.

V. Key Procurement Reports

General Accounting Office

Sourcing and Acquisition: Challenges Facing the Department of Defense. GAO-03-574T. Washington, D.C.: 

March 19, 2003.

Major Management Challenges and Program Risks: Department of Defense. GAO-03-98. Washington, D.C.: 

January 2003.

Purchase Cards: Control Weaknesses Leave Army Vulnerable to Fraud, Waste, and Abuse. GAO-02-732. 

Washington, D.C.: June 27, 2002.

Acquisition Workforce: Department of Defense’s Plans to Address Workforce Size and Structure Challenges. 

GAO-02-630. Washington, D.C.: April 30, 2002.

Contract Management: DOD Needs Better Guidance on Granting Waivers for Certified Cost or Pricing 

Data. GAO-02-502. Washington, D.C.: April 22, 2002.

Purchase Cards: Continued Control Weaknesses Leave Two Navy Units Vulnerable to Fraud and Abuse. 

GAO-02-506T. Washington, D.C.: March 13, 2002.

Best Practices: Taking A Strategic Approach Could Improve DOD’s Acquisition of Services. GAO-02-230. 

Washington, D.C.: January 18, 2002.

DOD Systems Modernization: Continued Investment in the Standard Procurement System Has Not Been 

Justified. GAO-01-682. Washington, D.C.: July 31, 2001.

Contract Management: Not Following Procedures Undermines Best Pricing Under GSA’s Schedule. 

GAO-01-125. Washington, D.C.: November 28, 2000.

Acquisition Reform: DOD’s Guidance on Using Section 845 Agreements Could Be Improved. 

GAO/NSIAD-00-33. Washington, D.C.: April 7, 2000.

Contract Management: Few Competing Proposals for Large DOD Information Technology Orders.

GAO/NSIAD-00-56. Washington, D.C.: March 20, 2000.

Inspector General

Report Number D-2002-075—Controls Over the DOD Purchase Card Program, March 29, 2002.

Report Number D-2000-100—Contracts for Professional, Administrative, and Management Support 

Services, March 10, 2000.

Report Number D-2000-088—DOD Acquisition Workforce Reduction Trends and Impacts, February 29, 2000.
42 GAO-03-443 Federal Procurement

Appendix II: Section 2–Department of the Air Force

Agency Overview and Highlights

Spending

The Air Force’s total discretionary budget resources, after declining between fiscal years 1997 and 1999, 

increased by 8 percent between fiscal years 2000 and 2001 and totaled $101.1 billion in fiscal year 2001. Over 

the 5-year period, the proportion of the Air Force’s discretionary resources spent through contracts increased 

from 36 percent to about 40 percent.

• Since fiscal year 1997, Air Force spending has been driven by a 16 percent increase in the purchases of 

goods. In fiscal year 2001, service contracts remained steady at $20.9 billion, or about 53 percent of Air 

Force’s contracts over $25,000.

• Research and development contracts decreased by 7 percent during the 5-year period, totaling $8.9 billion in 

fiscal year 2001.

• The Air Force increased its combined purchases of aircraft components and related parts by 64 percent—

spending about $13.0 billion on these items in fiscal year 2001. In addition, the Air Force changed its 

spending in other categories: information technology services (94 percent); aircraft engines and related 

parts (71 percent); professional, administrative, and management support (15 percent); and repair of 

equipment (-41 percent).

Procurement methods

The Air Force spent about $40 billion through contracts over $25,000 in fiscal year 2001, with firm fixed-price 

and other kinds of fixed-price contracts accounting for about 62 percent of the Air Force’s total contract 

dollars.

• About 24 percent of the Air Force’s eligible service contracts are performance based.

• Purchase card spending increased by almost 200 percent over the 5-year period. In fiscal year 2001, 

the Air Force authorized the use of 79,762 purchase cards.

• The Air Force’s significant increase in its use of the federal supply schedule has been driven by purchases 

of services.

Workforce

The Air Force’s total workforce and acquisition workforce decreased by 9 percent from fiscal year 1999 

through fiscal year 2001.

• By fiscal year 2008, about 38 percent of the current acquisition workforce will be eligible to retire.
43 GAO-03-443 Federal Procurement

Appendix II: Section 2–Department of the Air Force

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources, 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS, OMB, and DOD.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

50

100

150

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

10

20

30
44 GAO-03-443 Federal Procurement

Appendix II: Section 2–Department of the Air Force

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

(percent)

Aircraft and airframe structural 

components $9,978.5 $6,259.9 59

Aircraft engines and related parts 2,205.7 1,292.7 71

Aircraft components and 

accessories 938.7 447.1 110

Other goods 5,515.1 8,068.3 -32

Total goods $18,638.0 $16,068.0 16

Services

Research and development 8,901.4 9,599.3 -7

Professional, administrative, and 

management support 2,887.8 2,509.5 15

Maintenance, repair, and rebuilding 

of equipment 1,599.0 2,709.0 -41

Other services 7,532.4 6,535.8 15

Total services $20,920.6 $21,353.6 -2

Total goods and services $39,558.6 $37,421.6 6
45 GAO-03-443 Federal Procurement

Appendix II: Section 2–Department of the Air Force

Figure 4: Vendor Type, Fiscal Year 2001

Notes: 1 percent of the Air Force’s vendors are women-owned businesses.

Other includes hospitals, foreign contractors, domestic contractors working outside the 

United States, and educational institutions, including historically black colleges and universities and 

minority institutions.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: DOD.

Dollars in millions

Vendor

Goods and services 

provided

Amount

 awarded

1. Lockheed Martin Aircraft, space 

systems, and IT $9,533.0

2. Boeing Aircraft, space 

systems, and IT $6,950.0

3. Northrop Grumman Aircraft, electronics, 

and IT $1,910.5

4. United Technologies Corporation Gas turbines and jet 

engines $1,803.3

5. Raytheon Company Guided missiles and 

electronics $1,767.8

Other

JWOD/Nonprofit

Small disadvantaged 

business

Source: FPDS.

3%

4%

8%

Large business

77%

Other small business 8%
46 GAO-03-443 Federal Procurement

Appendix II: Section 2–Department of the Air Force

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers for some data was either 

missing or not required to be reported.

Figure 7: Competition, Fiscal Year 2001

a

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

b

Other includes actions for which data on competition were missing or not required to be entered, 

such as contracts awarded to Federal Prison Industries.

c

Contracts that were follow-on to a competed action are those subsequent actions awarded 

to the particular contractor who had previously been awarded the initial contract under competitive 

procedures.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Dollars in billions

Contract type

Amount

 spent

Percent of total

amount spent

Firm fixed-price $21.2 53.5

Other fixed-price $3.3 8.3

Cost-type $11.4 28.7

Labor hours/time and materials $1.7 4.2

Otherb

Follow-on to competed actionc

Not available for competitiona

Source: FPDS.

3%

5%

13%

Competed

54%

Not competed 25%

Competed

Not competed
47 GAO-03-443 Federal Procurement

Appendix II: Section 2–Department of the Air Force

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

All dollar figures have been converted to constant 2001 dollars.

Figure 9: Extent the Federal Supply Schedule Is Used to Purchase Goods and 

Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in billions

Fiscal year

Amount spent on

competed contracts

One offer

 (percent)

More than one

 offer (percent)

1997 $18.7 8.5 88.0

1998 $19.4 8.5 87.0

1999 $20.2 8.4 90.2

2000 $20.1 7.4 91.6

2001 $21.1 7.5 90.9

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

0

0.5

1.0

1.5

2.0
48 GAO-03-443 Federal Procurement

Appendix II: Section 2–Department of the Air Force

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Notes: In fiscal year 2001, the Air Force authorized the use of 79,762 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

0.5

1.0

1.5

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

3

6

9
49 GAO-03-443 Federal Procurement

Appendix II: Section 2–Department of the Air Force

Figure 12: Extent That Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

III. Workforce

Figure 13: Workforce Trends, Fiscal Years 1997 through 2001

Source: CPDF.

Performance based

Source: FPDS.

24%

Not performance based 76%

Fiscal year

 Total

 workforce

Acquisition

 workforce Percent

1997 159,686 18,608 11.7

1998 154,379 17,854 11.6

1999 150,563 17,480 11.6

2000 145,560 17,101 11.8

2001 145,197 16,885 11.6
50 GAO-03-443 Federal Procurement

Appendix II: Section 2–Department of the Air Force

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 years

10 to 20 years

Source: CPDF.

6%

6%

32%

20 years or more

56%

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

10%

19%

28%

After fiscal year 2011

43%
51 GAO-03-443 Federal Procurement

Appendix II: Section 3–Department of the Army

Agency Overview and Highlights

Spending

The Army’s total discretionary budget resources decreased 4 percent from fiscal year 1997 to fiscal year 2001 

and totaled $113.1 billion in fiscal year 2001. The amount spent through contracts accounted for more than 

one-third of the Army’s discretionary resources in fiscal year 2001.

• Spending on goods increased by about 29 percent over fiscal year 1997 levels. In particular, the Army nearly 

tripled its spending on aircraft and increased its spending on ground vehicles by 66 percent.

• Spending on services increased by about 15 percent over the 1997 level, driven by a 55 percent increase in 

spending for professional, administrative, and management support contracts. Such contracts now account 

for 16 percent of the Army’s service contract spending, up from less than 12 percent in fiscal year 1997.

• The Army’s spending for research and development increased by about 8 percent over fiscal year 

1997 levels.

Procurement methods

Of the $37 billion the Army spent on contracts over $25,000 in fiscal year 2001, $21.7 billion, or 59 percent, was 

spent using firm fixed-price contracts.

• Between fiscal years 1997 and 2001, purchase card use increased 139 percent, to $2.5 billion in fiscal year 

2001. In fiscal year 2001, the Army authorized the use of 109,446 purchase cards.

• During the 5-year period, about 59 percent of the Army’s contract dollars were spent on competitively 

awarded contracts.

• In fiscal year 2001, 25 percent of the Army’s service contracts were performance based.

• The Army’s use of the federal supply schedule program increased by more than 190 percent over the 5-year 

period. This increase was driven primarily by the increased purchases of services, which rose from about 

$604 million in fiscal year 1997 to over $1.7 billion in fiscal year 2001.

Workforce

From fiscal year 1997 through fiscal year 2001, the Army’s total workforce and acquisition workforce 

decreased by 6 and 7 percent, respectively. Throughout this period, the acquisition workforce accounted for 

about 8 percent of the total workforce.

• In fiscal year 2001, 61 percent of the acquisition workforce had 20 years or more of federal service, while 

4 percent had fewer than 5 years of federal service.

• By fiscal year 2008, 40 percent of the current acquisition workforce will be eligible to retire.
52 GAO-03-443 Federal Procurement

Appendix II: Section 3–Department of the Army

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources, 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS, OMB, and DOD.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

50

100

150

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

10

20

30
53 GAO-03-443 Federal Procurement

Appendix II: Section 3–Department of the Army

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

(percent)

Ground effect vehicles, motor vehicles, 

trailers and cycles $2,923.4 $1,757.6 66

Communication and detection 

equipment 1,852.3 2,091.0 -11

Aircraft and airframe structural 

components 1,507.0 549.8 174

Other goods 8,270.3 6,881.7 20

Total goods $14,553.0 $11,280.1 29

Services

Research, development, test, and 

evaluation 5,848.6 5,417.3 8

Professional, administrative, and 

management support 3,608.3 2,332.7 55

Construction 3,097.0 3,426.0 -10

Other services 9,924.4 8,455.3 17

Total services $22,478.3 $19,631.3 15

Total goods and services $37,031.3 $30,911.4 20
54 GAO-03-443 Federal Procurement

Appendix II: Section 3–Department of the Army

Figure 4: Vendor Type, Fiscal Year 2001

Notes: 3 percent of Army’s vendors are women-owned businesses.

Other includes hospitals, foreign contractors, domestic contractors working outside the 

United States, and educational institutions, including historically black colleges and universities and 

minority institutions.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: DOD.

Dollars in millions

Vendor

Goods and services 

provided

Amount

 awarded

1. General Dynamics Combat vehicles and IT $1,940.9

2. Lockheed Martin Weapons systems 

integration, missiles, and IT $1,754.5

3. Raytheon Company Guided missiles, electronics, 

and IT $1,440.3

4. Boeing Aircraft, electronics, and IT $1,299.2

5. The Carlyle Group Combat vehicles and 

weapons $943.2

Other

JWOD/Nonprofit

Small disadvantaged 

business

2%

7%

13%

Large business

60%

Other small business

18%

Source: FPDS.
55 GAO-03-443 Federal Procurement

Appendix II: Section 3–Department of the Army

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

Figure 7: Competition, Fiscal Year 2001

a

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

b

Contracts that were follow-on to a competed action are those subsequent actions awarded to the 

particular contractor who had previously been awarded the initial contract under competitive 

procedures.

c

Other includes actions for which data on competition were missing or not required to be entered, 

such as contracts awarded to Federal Prison Industries.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Dollars in billions

Contract type Amount spent

Percent of total

 amount spent

Firm fixed-price $21.7 58.7

Other fixed-price $1.4 3.8

Cost-type $9.1 24.7

Labor hours/time and materials $1.7 4.6

Otherc

Follow-on to competed actionb

Not available for competitiona

Source: FPDS.

5%

6%

8%

Competed

58% Not competed 23%

Competed

Not competed
56 GAO-03-443 Federal Procurement

Appendix II: Section 3–Department of the Army

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

All dollar figures have been converted to constant 2001 dollars.

Figure 9: Extent the Federal Supply Schedule Is Used to Purchase Goods and 

Services, Fiscal Years 1997 through 2001

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in billions

Fiscal year

Amount spent on

 competed contracts

One offer

 (percent)

More than one

 offer (percent)

1997 $18.1 4.9 92.8

1998 $18.1 8.0 90.1

1999 $19.3 9.7 88.8

2000 $21.6 7.1 91.3

2001 $21.4 9.4 87.7

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

0

0.5

1.0

1.5

2.0
57 GAO-03-443 Federal Procurement

Appendix II: Section 3–Department of the Army

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Notes: In fiscal year 2001, the Army authorized the use of 109,446 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

1

2

3

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

2

4

6

8
58 GAO-03-443 Federal Procurement

Appendix II: Section 3–Department of the Army

Figure 12: Extent That Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

III. Workforce

Figure 13: Acquisition Workforce, Fiscal Year 1997 through Fiscal Year 2001

Source: CPDF.

Performance based

Source: FPDS.

25%

Not performance based 75%

Fiscal year

Total

 workforce

Acquisition

 workforce Percent

1997 226,457 18,025 8.0

1998 218,601 17,391 8.0

1999 212,816 16,780 8.0

2000 211,516 16,690 8.0

2001 212,046 16,731 8.0
59 GAO-03-443 Federal Procurement

Appendix II: Section 3–Department of the Army

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 years

10 to 20 years

Source: CPDF.

4%

5%

30%

20 years or more

61%

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

10%

21%

30%

After fiscal year 2011

39%
60 GAO-03-443 Federal Procurement

Appendix II: Section 4–Department of the Navy

Agency Overview and Highlights

Spending

The Navy’s total discretionary budget resources increased 12 percent from fiscal year 1997 to fiscal year 2001 

and totaled $95.3 billion in fiscal year 2001. The proportion of the Navy’s discretionary resources spent through 

contracts was about 45 percent in fiscal year 2001.

• From fiscal years 1997 through 2001, a 25 percent increase in spending for goods, coupled with a 6 percent 

decline in spending on services, resulted in the Navy spending nearly as much on goods as on services in 

fiscal year 2001. The principal causes of this shift were significant increases in spending on ships (up 

133 percent) and decreased spending on research and development (down 17 percent).

Procurement methods

The Navy relies on a mix of fixed-price and cost-type contracts to achieve its mission. For example, in 

fiscal year 2001, firm fixed and other kinds of fixed-price contracts accounted for more than 53 percent 

of the Navy’s total contract dollars, while another 42 percent was spent under cost-type contracts.

• In fiscal year 2001, more than half of the Navy’s contract dollars were awarded under noncompeted 

contracts. Further, 16 percent of the Navy’s competitively awarded dollars were made on contracts in 

which only 1 offer was received.

• The Navy’s use of the federal supply schedule program increased by more than 227 percent over the 5-year 

period. This increase was driven primarily by the increased purchases of services, which rose from 

about $132 million in fiscal year 1997 to over $1.1 billion in fiscal year 2001.

• Purchase card use has increased by 185 percent over the 5-year period. In fiscal year 2001, the Navy spent 

about $1.8 billion with 27,926 purchase cards.

• About 15 percent of Navy’s eligible service contracts were considered performance based in 

fiscal year 2001.

Workforce

Since fiscal year 1997, both the Navy’s total workforce and its acquisition workforce have declined by about 

10 percent, to about 176,000 and 15,000, respectively.

• In fiscal year 2001, more than 60 percent of the Navy’s acquisition workforce had 20 years or more of 

service; conversely, only 11 percent had fewer than 10 years of service.

• By fiscal year 2008, about 40 percent of the Navy’s acquisition workforce will be eligible to retire.
61 GAO-03-443 Federal Procurement

Appendix II: Section 4–Department of the Navy

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources for 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS, OMB, and DOD.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

50

100

150

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

10

20

30
62 GAO-03-443 Federal Procurement

Appendix II: Section 4–Department of the Navy

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

 (percent)

Ships, small craft, pontoons, and 

floating docks $8,245.7 $3,544.1 133

Aircraft and airframe structural 

components 3,068.2 3,415.5 -10

Guided missiles 1,357.7 1,918.9 -29

Other goods 7,482.5 7,254.9 3

Total goods $20,154.1 $16,133.4 25

Services

Research, development, testing, 

and evaluation 4,545.6 5,471.1 -17

Professional, administrative, and 

management support 4,133.9 4,330.1 -5

Equipment maintenance and repair 3,187.5 2,734.3 17

Other services 9,479.4 10,244.1 -7

Total services $21,346.4 $22,779.6 -6

Total goods and services $41,500.5 $38,913.0 7
63 GAO-03-443 Federal Procurement

Appendix II: Section 4–Department of the Navy

Figure 4: Vendor Type, Fiscal Year 2001

Notes: 2 percent of Navy’s vendors are women-owned businesses.

Other includes hospitals, foreign contractors, domestic contractors working outside the 

United States, and educational institutions, including historically black colleges and universities and 

minority institutions.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: DOD.

Dollars in millions

Vendor

Goods and services 

provided

Amount

 awarded

1. Newport News Shipbuilding Shipbuilding and repair $5,889.3

2. Boeing Aircraft, electronics, and IT $3,617.0

3. Lockheed Martin IT and systems integration $3,134.4

4. General Dynamics Submarines and ships $2,535.1

5. Northrop Grumman Aircraft, electronics, and IT $2,484.3

Other

JWOD/Nonprofit

Small disadvantaged 

business

Source: FPDS.

2%

5%

6%

Large business 76%

Other small business 11%
64 GAO-03-443 Federal Procurement

Appendix II: Section 4–Department of the Navy

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

Figure 7: Competition, Fiscal Year 2001

a

Contracts that were follow-on to a competed action are those subsequent actions awarded 

to the particular contractor who had previously been awarded the initial contract under competitive 

procedures.

b

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

c

Other includes actions for which data on competition were missing or not required to be entered, 

such as contracts awarded to Federal Prison Industries.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Dollars in billions

Contract type

Amount

 spent

Percent of total

 amount spent

Firm fixed-price $15.4 37.3

Other fixed-price $6.6 15.8

Cost-type $17.5 42.1

Labor hours/time and materials $0.9 2.2

Otherc

Follow-on to competed actiona

Not available for competitionb

Source: FPDS.

2%

3%

3%

Competed

46%

Not competed 46%

Competed

Not competed
65 GAO-03-443 Federal Procurement

Appendix II: Section 4–Department of the Navy

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

All dollar figures have been converted to constant 2001 dollars.

Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods and 

Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in billions

Fiscal year

Amount spent on

 competed contracts

One offer

 (percent)

More than one

 offer (percent)

1997 $19.3 10.5 87.9

1998 $19.0 9.8 87.0

1999 $20.7 12.0 87.0

2000 $21.3 13.0 85.2

2001 $19.4 16.0 81.7

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

0

400

800

1200

1600

2000
66 GAO-03-443 Federal Procurement

Appendix II: Section 4–Department of the Navy

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Notes: In fiscal year 2001, the Navy authorized the use of 27,926 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

0.5

1.0

1.5

2.0

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

2

4

6
67 GAO-03-443 Federal Procurement

Appendix II: Section 4–Department of the Navy

Figure 12: Extent That Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

III. Workforce

Figure 13: Acquisition Workforce, Fiscal Year 1997 through Fiscal Year 2001

Source: CPDF.

Performance based

Source: FPDS.

15%

Not performance based 85%

Fiscal year

Total

 workforce

Acquisition

 workforce Percent

1997 195,809 16,933 8.6

1998 188,251 16,157 8.6

1999 182,694 15,542 8.5

2000 177,819 15,051 8.5

2001 176,242 15,161 8.6
68 GAO-03-443 Federal Procurement

Appendix II: Section 4–Department of the Navy

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 years

10 to 20 years

Source: CPDF.

5%

6%

28%

20 years or more

61%

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

10%

21%

30%

After fiscal year 2011

39%
69 GAO-03-443 Federal Procurement

Appendix III: Department of Agriculture

Agency Overview and Highlights

Mission: To support agriculture production by ensuring a safe, affordable, nutritious, and accessible food 

supply; caring for agricultural, forest, and range lands; supporting sound development of rural communities; 

providing economic opportunities for farm and rural residents; expanding global markets for agricultural and 

forest products and services; and working to reduce hunger in America and throughout the world.

Significant components

The following components account for the majority of the Department of Agriculture’s (USDA) fiscal year 2001 

total discretionary budget resources:

• The Forest Service manages public lands in national forests and grasslands. In fiscal year 2001, the Forest 

Service accounted for 21 percent of USDA’s discretionary resources.

• Food and Nutrition Service provides better access to food and a more healthful diet through its food 

assistance programs and comprehensive nutrition education efforts. In fiscal year 2001, the Food and 

Nutrition Service accounted for 20 percent of USDA’s discretionary resources.

• Other key components, which combined to account for about 21 percent of USDA’s discretionary 

resources, include the Farm Service, the Rural Housing Service, and the Rural Development Service.

Spending

USDA’s discretionary resources increased by 18 percent between fiscal years 1997 and 2001 and totaled 

$23.5 billion in fiscal year 2001. Over the 5-year period, the proportion of USDA’s discretionary resources spent 

through contracts increased from 14 percent to about 16 percent. About 70 percent of USDA’s contract 

spending went for purchases of goods, while about 30 percent was spent on services.

• For contracts valued over $25,000, spending on goods increased by 53 percent from fiscal year 1997 through 

fiscal year 2001. This increase was driven by purchases of food-related products and nonmetallic crude 

materials, such as cereal grains. Overall, purchases of food accounted for nearly half of USDA’s contract 

spending.

• Similarly, spending on services increased by 44 percent over the same period, primarily as a result of 

increased purchases of services related to natural resources and conservation and property maintenance 

and construction.

• Since fiscal year 1997, USDA’s spending has increased significantly in the following categories: natural 

resources and conservation (152 percent), nonmetallic crude materials (145 percent), construction 

(43 percent), and food (40 percent).

Procurement methods

USDA spent about $3.7 billion through contracts in fiscal year 2001, with firm fixed-price and other kinds of 

fixed-price contracts accounting for about 99 percent of USDA’s contract dollars.

• Purchase card spending between fiscal years 1997 and 2001 quadrupled, rising from $140.2 million to 

$564.2 million. In fiscal year 2001, USDA authorized the use of 22,865 purchase cards.

• Spending on commercial items using FAR part 12 procedures increased by about 93 percent from 

fiscal years 1997 through 1999, but decreased by 79 percent from fiscal years 1999 through 2001. 

USDA officials indicated that this decrease was a result of USDA reclassifying certain items 

as noncommercial.

• In fiscal year 2001, 93 percent of USDA’s contracts over $25,000 were competed.

Workforce

USDA’s total workforce in fiscal year 2001 was slightly higher than its fiscal year 1997 level. Over the same 

period, its acquisition workforce decreased by about 6 percent, to about 5,700 personnel.

• By fiscal year 2008, 29 percent of USDA’s current acquisition workforce will be eligible to retire.
70 GAO-03-443 Federal Procurement

Appendix III: Department of Agriculture

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources, 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS and OMB.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

5

10

15

20

25

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

1

2

3
71 GAO-03-443 Federal Procurement

Appendix III: Department of Agriculture

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

(percent)

Food $1,840.7 $1,317.0 40

Nonmetallic crude materials 464.3 189.2 145

IT equipment 132.2 101.5 30

Other goods 148.8 84.5 76

Total goods $2,586.0 $1,692.2 53

Services

Natural resources and conservation 267.4 106.2 152

Maintenance, repair, or alteration of 

real property 174.2 110.9 57

Construction 147.2 210.5 -31

Other services 509.6 333.7 53

Total services $1,098.4 $761.3 44

Total goods and services $3,684.4 $2,453.5 50
72 GAO-03-443 Federal Procurement

Appendix III: Department of Agriculture

Figure 4: Vendor Type, Fiscal Year 2001

Notes: 4 percent of USDA’s vendors are women-owned businesses.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: USDA.

Dollars in millions

Vendor

Goods and 

services provided

Amount

 awarded

1. Archer Daniels Midland Grain and flour $136.5

2. IBM IT services and 

equipment $112.1

3. Cal Western Packaging Corp. Food oils $104.5

4. Cargill, Inc. Grain $102.9

5. Kalam Export Co. Grain $73.2

JWOD/Nonprofit

Small disadvantaged 

business

Source: FPDS.

1%

9%

Large business

51%

Other small business 39%
73 GAO-03-443 Federal Procurement

Appendix III: Department of Agriculture

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Figure 7: Competition, Fiscal Year 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

a

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

Dollars in billions

Contract type Amount spent

Percent of total

 amount spent

Firm fixed-price $3.2 86.0

Other fixed-price $0.5 13.0

Cost-type <$0.1 0.6

Labor hours/time and materials <$0.1 0.4

Not available for competitiona

Source: FPDS.

1%

5%

Competed 94%

Not competed

Competed

Not competed
74 GAO-03-443 Federal Procurement

Appendix III: Department of Agriculture

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

All dollar figures have been converted to constant 2001 dollars.

Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods and 

Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in billions

Fiscal year

Amount spent on

competed contracts

One offer

(percent)

More than one

offer (percent)

1997 $2.3 3.2 86.1

1998 $2.7 3.4 82.5

1999 $3.2 2.8 86.1

2000 $3.1 2.1 95.3

2001 $3.4 3.5 93.8

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

0

30

60

90

120

150

0
75 GAO-03-443 Federal Procurement

Appendix III: Department of Agriculture

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Note: In fiscal year 2001, USDA authorized the use of 22,865 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

0

150

300

450

600

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

0.5

1.0

1.5

2.0
76 GAO-03-443 Federal Procurement

Appendix III: Department of Agriculture

Figure 12: Extent That Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

III. Workforce

Figure 13: Workforce Trends, Fiscal Years 1997 through 2001

Source: CPDF.

Performance based

Source: FPDS.

9%

Not performance based 91%

Fiscal year

Total

 workforce

Acquisition

workforce Percent

1997 87,993 6,095 6.9

1998 86,260 5,796 6.7

1999 85,798 5,690 6.6

2000 85,921 5,685 6.6

2001 88,897 5,703 6.4
77 GAO-03-443 Federal Procurement

Appendix III: Department of Agriculture

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 years

10 to 20 years

Source: CPDF.

9%

10%

39%

20 years or more

42%

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

7%

19%

22%

After fiscal year 2011

52%
78 GAO-03-443 Federal Procurement

Appendix III: Department of Agriculture

IV. Key Procurement Initiatives as Reported by Agency Officials

Purchase Card Oversight: To strengthen its oversight of purchase card transactions, USDA officials 

reported that they are:

• scanning the USDA Purchase Card Management System database for questionable transactions and 

requesting USDA agencies to justify these transactions as appropriate;

• issuing revised regulations to tighten card use and oversight procedures—for example, employees who fail 

to reconcile their accounts within 60 days will have their cards deactivated; and

• forming an interagency working group to define criteria for both automated alerts and preformatted reports 

for agency use in identifying questionable transactions.

Performance-Based Service Contracting: USDA is emphasizing the use of performance-based service 

contracting procedures by using a monthly “report card,” which is furnished to senior management in each 

contracting activity’s headquarters. This report card addresses how well each USDA agency is doing in 

meeting established goals. In fiscal year 2002, USDA reported that more than 20 percent of its eligible service 

contracts were performance based, exceeding the governmentwide goal.

Integrated Acquisition System: USDA is working to deploy its first corporate procurement automation 

system to support electronic requisitioning and contract document generation. The system is expected to 

interface with USDA’s corporate financial system and help improve the timeliness and accuracy of USDA’s 

financial statements. The system is currently undergoing pilot testing in locations within two USDA agencies.

Workforce: To deal with the potential retirement of a large percentage of its skilled procurement workforce 

over the next few years, USDA is developing new regulations addressing classroom training, on-the-job 

experience, and education requirements for its acquisition workforce. USDA also recently added information 

on training resources and on-line classes to its procurement Web site’s home page.

V. Key Procurement Reports

General Accounting Office

Major Management Challenges and Program Risks: Department of Agriculture. GAO-03-96. 

Washington, D.C.: January 2003.
79 GAO-03-443 Federal Procurement

Appendix IV: Department of Energy

Agency Overview and Highlights

Mission: To foster a secure and reliable energy system that is environmentally and economically sustainable; 

to be a responsible steward of the nation’s nuclear weapons and nuclear materials; to clean up the 

department’s facilities; to lead in the physical sciences and advance the biological, environmental, and 

computational sciences; and to provide scientific instruments important to the Department of Energy (DOE).

Significant components

DOE groups its activities into three areas, which together comprised more than 90 percent of its fiscal year 

2001 total discretionary budget resources.

• National Nuclear Security Administration (NNSA) maintains and enhances the safety, reliability, and 

performance of the U.S. nuclear weapons stockpile, including the ability to design, produce, and test 

weapons, to meet national security requirements. NNSA also engages in nonproliferation activities and the 

operation of Navy reactors. In fiscal year 2001, NNSA accounted for 35 percent of DOE’s discretionary 

resources.

• Energy Programs include nondefense environmental management, scientific research and development 

regarding renewable energy resources and nuclear energy, the remediation and maintenance of uranium 

facilities, and nuclear waste disposal. In fiscal year 2001, Energy Programs accounted for 31 percent of 

DOE’s discretionary resources.

• Environmental and other defense activities include defense-related environmental restoration and 

waste management, nuclear waste disposal, facilities closure projects, and environmental management 

privatization. In fiscal year 2001, these activities accounted for 29 percent of DOE’s discretionary resources.

Spending

DOE’s discretionary resources rose by about 6 percent from fiscal year 1997 through fiscal year 2001 and 

totaled $25.5 billion in fiscal year 2001. DOE relies heavily on contracting to support its mission. For example, 

during the 5-year period, an average of 73 percent of its discretionary resources were spent on contracts. 

• In fiscal year 2001, about 98 percent of DOE’s contracts over $25,000 were spent on services, of which threequarters went to the management and operation of over 30 government-owned laboratories and nuclear 

facilities.

• DOE’s spending on natural resources and conservation services rose from $331.7 million in fiscal year 1997 

to $1.35 billion in fiscal year 2001, a 306 percent increase. This increase was mostly driven by three large 

contracts for the cleanup, removal, and disposal of hazardous substances.

• DOE ranks as one of the largest agencies in research and development contracting, spending almost 

$1.1 billion in fiscal year 2001.

Procurement methods

DOE has historically relied on cost-type contracts as its primary contracting vehicle. In fiscal year 2001, 

$17.4 billion of the $18.6 billion—or 93 percent—that DOE spent on contracts over $25,000 was spent on 

cost-type contracts. Nearly all of DOE’s contracts for managing and operating its laboratories and facilities 

were cost-type.

• DOE continues to increase the amount awarded under competed contracts. For example, in fiscal year 

2001, 64 percent of DOE’s contracts were competed.

• The use of purchase cards grew by an average of 12 percent annually from fiscal year 1997 through fiscal 

year 2001, and totaled approximately $220 million in fiscal year 2001. In fiscal year 2001, DOE authorized the 

use of 6,250 purchase cards.

Workforce

DOE’s total workforce, as well as its acquisition workforce, remained relatively stable from fiscal year 1997 

through fiscal year 2001. In fiscal year 2001, DOE’s total workforce was 15,997, with 1,449, or 9 percent, in the 

acquisition workforce.

• In fiscal year 2001, 57 percent of the acquisition workforce had 20 years or more of federal service, while 

7 percent had fewer than 5 years of federal service.
80 GAO-03-443 Federal Procurement

Appendix IV: Department of Energy

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources, 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS and OMB.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

10

20

30

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

5

10

15

20
81 GAO-03-443 Federal Procurement

Appendix IV: Department of Energy

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

(percent)

Nuclear reactor-related equipment $194.8 $275.1 -29

Containers, packaging, and packing 

supplies 18.3 0 NA

IT equipment 14.6 35.4 -59

Other goods 58.8 52.0 13

Total goods $286.5 $362.5 -21

Services

Operation of government-owned 

facilities 13,955.4 13,702.6 2

Natural resources and conservation 1,347.4 331.7 306

Research and development 1,096.5 912.8 20

Other services 1,896.1 1,697.3 12

Total services $18,295.4 $16,644.4 10

Total goods and services $18,581.9 $17,006.9 9
82 GAO-03-443 Federal Procurement

Appendix IV: Department of Energy

Figure 4: Vendor Type, Fiscal Year 2001

Notes: Less than 1 percent of DOE’s vendors are women-owned businesses.

Other includes hospitals, foreign contractors, domestic contractors working outside the 

United States, and educational institutions, including historically black colleges and universities and 

minority institutions.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: DOE.

Dollars in millions

Vendor

Goods and services 

provided

Amount

 awarded

1. University of California Management of national 

laboratories/research $3,916.9

2. Bechtel Management of national 

laboratories and 

environmental restoration 

site/design, construction and 

decontamination/

decommissioning studies $2,406.4

3. Westinghouse Management of national 

laboratories and waste 

isolation sites/research $1,727.6

4. Lockheed Martin Management of national 

laboratories/technical and 

research support $1,356.0

5. Battelle Management of national 

laboratories/compliance 

studies $1,105.4

Other

JWOD/Nonprofit

Small disadvantaged 

business

Source: FPDS.

1%

2%

11%

Large business

61%

Other small business

25%
83 GAO-03-443 Federal Procurement

Appendix IV: Department of Energy

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Percentages may not equal 100 due to rounding.

Figure 7: Competition, Fiscal Year 2001

a

Contracts that were follow-on to a competed action are those subsequent actions awarded to the 

particular contractor who had previously been awarded the initial contract under competitive 

procedures.

b

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Percentages may not equal 100 due to rounding.

Dollars in billions

Contract type

Amount

 spent

Percent of total

 amount spent

Firm fixed-price $0.4 2.2

Other fixed-price $0.5 2.6

Cost-type $17.4 93.5

Labor hours/time and materials $0.3 1.6

Follow-on to competed actiona

Not available for competitionb

Not competed

Source: FPDS.

4%

10%

23%

Competed 64%

Competed

Not competed
84 GAO-03-443 Federal Procurement

Appendix IV: Department of Energy

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Values for 2001 exceed 100 percent due to an adjustment of $260 million on existing contracts.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

All dollar figures have been converted to constant 2001 dollars.

Figure 9: Extent Federal Supply Schedule is Used to Purchase Goods and 

Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in billions

Fiscal year

Amount spent on

 competed contracts

One offer

 (percent)

More than one

 offer (percent)

1997 $9.3 20.1 67.6

1998 $8.9 19.0 71.3

1999 $9.6 16.6 70.6

2000 $10.3 16.6 76.8

2001 $11.9 22.0 80.2

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

0

40

80

120

160
85 GAO-03-443 Federal Procurement

Appendix IV: Department of Energy

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Note: In fiscal year 2001, DOE authorized the use of 6,250 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

0

80

160

240

320

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

0

50

100

150

200

250

300
86 GAO-03-443 Federal Procurement

Appendix IV: Department of Energy

Figure 12: Extent that Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases.

DOE officials noted that their internal procurement data system reported a significantly higher rate 

of performance-based contracting (77 percent) in fiscal year 2000.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

III. Workforce

Figure 13: Workforce Trends, Fiscal Year 1997 through Fiscal Year 2001

Source: CPDF.

Performance based

Source: FPDS.

24%

Not performance based 76%

Fiscal year

Total

 workforce

Acquisition

 workforce Percent

1997 16,752 1,319 7.9

1998 15,826 1,286 8.1

1999 15,498 1,315 8.5

2000 15,367 1,328 8.6

2001 15,997 1,449 9.1
87 GAO-03-443 Federal Procurement

Appendix IV: Department of Energy

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 years

10 to 20 years

Source: CPDF.

5%

7%

31%

20 years or more

57%

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

10%

18%

29%

After fiscal year 2011

43%
88 GAO-03-443 Federal Procurement

Appendix IV: Department of Energy

IV. Key Procurement Initiatives as Reported by Agency Officials

Contract Management: To address both pre-award and post-award contract administration issues, a 

Contract Administration Division was formed to provide guidance and seek out and resolve contract 

administration issues. During fiscal year 2002, the division conducted a review of over 50 internal DOE 

directives. As a result of this review, a significant number of directives will be revised, canceled, or 

consolidated in an effort to be more consistent with performance-based management principles.

Acquisition Career Development Program: To ensure that workforce skills stay current, DOE adopted the 

requirement for 80 hours of continuous learning every two years. As of the first quarter of 2002, 88 percent of 

the covered workforce met the certification requirements.

Electronic Procurement: To streamline and eliminate redundant processes and develop paperless solutions, 

DOE developed DOE/C-Web, a Web-based electronic small purchase system, and the Industry Interactive 

Procurement System (IIPS), a Web-based system for large contracts (over $100,000) to issue solicitations, 

receive proposals, conduct negotiations, and make awards via the Internet. The systems have allowed DOE to 

achieve the following results:

• 100 percent of all synopses and notices requiring posting in FedBizOpps were posted electronically 

through IIPS. The number of solicitations posted on IIPS increased from 88 in fiscal year 1999 to 

approximately 900 in fiscal year 2002.

• The number of transactions conducted via DOE/C-Web increased from approximately 1,800 in 

fiscal year 1998 to 2,743 in fiscal year 2002.

V. Key Procurement Reports

General Accounting Office

Department of Energy: Status of Contract and Project Management Reforms. GAO-03-570T. Washington, 

D.C.: March 20, 2003.

Major Management Challenges and Program Risks: Department of Energy. GAO-03-100. Washington, D.C.: 

January 2003.

Contract Reform: DOE Has Made Progress, but Actions Needed to Ensure Initiatives Have Improved 

Results. GAO-02-798. Washington, D.C.: September 13, 2002.

Department of Energy: Contractor Litigation Costs. GAO-02-418R. Washington, D.C.: March 8, 2002.

Inspector General

IG-0538–Management Challenges at the Department of Energy, December 21, 2001.

IG-0510–Use of Performance-Based Incentives at Selected Departmental Sites, July 9, 2001.

IG-0509–Integrated Planning, Accountability, and Budgeting System-Information System, June 28, 2001.
89 GAO-03-443 Federal Procurement

Appendix V: Department of Health and Human Services

Agency Overview and Highlights

Mission: The Department of Health and Human Services (HHS) is the United States government’s principal 

agency for protecting the health and welfare of all Americans.

Significant bureaus

The following bureaus account for the majority of HHS’ fiscal year 2001 discretionary budget resources:

• National Institutes of Health (NIH) is responsible for conducting scientific research regarding the nature 

and behavior of living systems to extend healthy life and reduce the burdens of illness and disability. In 

fiscal year 2001, NIH accounted for 36 percent of HHS’ discretionary resources.

• Administration for Children and Families is responsible for promoting the economic and social 

well being of families, children, individuals, and communities. In fiscal year 2001, the administration 

accounted for 21 percent of HHS’ discretionary resources.

• Other key bureaus: Food and Drug Administration, Centers for Medicare and Medicaid Services, 

Centers for Disease Control and Prevention, and Indian Health Service.

Spending

HHS’ discretionary budget increased by 47 percent from fiscal year 1997 through fiscal year 2001, and totaled 

$61 billion in fiscal year 2001. Over the 5-year period, the proportion of HHS’ discretionary resources spent 

under contracts decreased slightly, dropping from more than 9 percent in fiscal year 1997 to 8 percent in 

fiscal year 2001. 

• HHS relied heavily on services from fiscal years 1997 through 2001. Although HHS’ spending on goods 

increased 127 percent, from $159 million to $360 million during the 5-year period, spending on services 

increased 19 percent, from $3.3 billion to $3.9 billion, between fiscal years 1997 and 2001.

• HHS spent about $1.1 billion on research and development projects in fiscal year 2001, or about 27 percent 

of total contract spending. The amount spent on these projects remained relatively stable during the 5-year 

period.

• From fiscal years 1997 through 2001, HHS experienced significant spending increases in three categories: 

medical, dental, and veterinary equipment (363 percent); professional, administrative, and management 

support (123 percent); and IT services (115 percent).

Procurement methods

HHS spent about $4.3 billion through contracts over $25,000 in fiscal year 2001. HHS relies on cost-type 

contracts as its primary contracting vehicle, accounting for 66 percent of these contract dollars.

• Purchase card spending increased by 258 percent over the 5-year period, from $95.2 million in fiscal year 

1997 to $341.2 million in fiscal year 2001.

• HHS’ significant increase in its use of the federal supply schedule has been driven by purchases of services, 

which increased from about $6 million to over $98 million, during the 5-year period.

Workforce

The total HHS workforce has been increasing, particularly at NIH and the Food and Drug Administration, due 

to bio-defense initiatives. This trend is expected to continue, given the current focus on combating the threat 

of biological or chemical terrorism.

• In fiscal year 2002, more than 80 percent of the acquisition workforce had more than 10 years of federal 

service; the majority has 20 years or more of service.

• By fiscal year 2008, about 33 percent of the current acquisition workforce will be eligible to retire.
90 GAO-03-443 Federal Procurement

Appendix V: Department of Health and Human Services

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources, 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS and OMB.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

25

50

75

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

1

2

3

4

5
91 GAO-03-443 Federal Procurement

Appendix V: Department of Health and Human Services

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

 (percent)

IT equipment $109.0 $81.6 34

Medical, dental and veterinary equipment, 

and supplies 87.0 18.8 363

Instruments and laboratory equipment 52.0 13.4 288

Other goods 112.1 45.2 148

Total goods $360.1 $159.0 127

Services

Research and development 1,157.5 1,133.2 2

Professional, administrative, and 

management support 957.8 428.6 123

IT services 790.1 366.8 115

Other services 1,027.4 1,368.0 -25

Total services $3,932.7 $3,296.6 19

Total goods and services $4,292.8 $3,455.6 24
92 GAO-03-443 Federal Procurement

Appendix V: Department of Health and Human Services

Figure 4: Vendor Type, Fiscal Year 2001

Notes: 6 percent of HHS’ vendors are women-owned businesses.

Other includes hospitals, foreign contractors, domestic contractors working outside the 

United States, and educational institutions, including historically black colleges and universities and 

minority institutions.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: HHS.

Dollars in millions

Vendor

Goods and services 

Provided

Amount

 awarded

1. SAIC Frederick, Inc. Operations and technical 

support services $192.9

2. Westat Research and development 

in physical, engineering, and 

life sciences $187.9

3. McCarthy Construction 

Company, Inc.

Construction of infectious 

disease lab $106.3

4. Research Triangle Institute Research and development 

in the social sciences and 

humanities $85.7

5. ACAMBIS Smallpox vaccine $2.0

Other

JWOD/Nonprofit

State/local government

Small disadvantaged 

business

Source: FPDS.

2%

9%

11%

14%

Large business

47%

Other small business 17%
93 GAO-03-443 Federal Procurement

Appendix V: Department of Health and Human Services

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Percentages may not add to 100 due to rounding.

Figure 7: Competition, Fiscal Year 2001

a

Contracts that were follow-on to a competed action are those subsequent actions awarded to a 

particular contractor who had previously been awarded the initial contract under competitive 

procedures.

b

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Dollars in billions

Contract type Amount spent

Percent of total

 amount spent

Firm fixed-price $1.2 28.3

Other fixed-price $0.1 2.2

Cost-type $2.8 65.7

Labor hours/time and materials $0.2 3.5

Follow-on to competed actiona

Not available for competitionb

Source: FPDS.

1%

7%

10%

Competed 82%

Not competed

Competed

Not competed
94 GAO-03-443 Federal Procurement

Appendix V: Department of Health and Human Services

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods and 

Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Fiscal year

Amount spent on

 competed contracts

One offer

 (percent)

More than one

 offer (percent)

1997 $2.2 25.6 73.7

1998 $2.5 23.1 74.2

1999 $3.1 22.1 69.4

2000 $3.1 20.9 77.7

2001 $3.5 30.3 66.9

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

0

50

100

150

200
95 GAO-03-443 Federal Procurement

Appendix V: Department of Health and Human Services

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Note: In fiscal year 2001, HHS authorized the use of 7,468 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

0

100

200

300

400

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

0

100

200

300

400

500
96 GAO-03-443 Federal Procurement

Appendix V: Department of Health and Human Services

Figure 12: Extent That Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

III. Workforce

Figure 13: Workforce Trends, Fiscal Years 1997 through 2001

Source: CPDF.

a HHS officials reported a total workforce of over 64,000 in fiscal year 2001. In part, the difference 

reflects CPDF's exclusion of more than 6,000 members of the United States Public Health Service 

Commissioned Corps, who provide health expertise in times of national and international 

emergencies. HHS did not provide data for fiscal years 1997 through 2000.

Performance based

Source: FPDS.

16%

Not performance based 84%

Fiscal year

Total

 workforce

Acquisition

 workforce Percent

1997 48,817a 2,281 4.7

1998 49,329a 2,248 4.6

1999 50,512a 2,395 4.8

2000 51,443a 2,443 4.7

2001 52,534a 2,490 4.7
97 GAO-03-443 Federal Procurement

Appendix V: Department of Health and Human Services

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 years

10 to 20 years

Source: CPDF.

12%

7%

33%

20 years or more

48%

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

11%

14%

22%

After fiscal year 2011

53%
98 GAO-03-443 Federal Procurement

Appendix V: Department of Health and Human Services

IV. Key Procurement Initiatives as Reported by Agency Officials

Reverse auctioning: Reverse auctioning is a process that allows many sellers to compete for the business of 

a single buyer. However, unlike a traditional auction, bid prices go down. HHS claimed cost savings of more 

than $1.3 million from fiscal year 2000 through 2001 using reverse auctioning techniques.

Performance-based service contracting: HHS officials reported significant increases in their use of 

performance-based contracting, including contracts with Medicare intermediaries and carriers.

V. Key Procurement Reports

General Accounting Office

Major Management Challenges and Program Risks: Department of Health and Human Services. 

GAO-03-101. Washington, D.C.: January 2003.

Medicare: Comments on HHS’ Claims Administration Contracting Reform Proposal. GAO-01-1046R. 

Washington, D.C.: August 17, 2001.

Medicare Contracting Reform: Opportunities and Challenges in Contracting for Claims Administration 

Services. GAO-01-918T. Washington, D.C.: June 28, 2001.

Medicare: Opportunities and Challenges in Contracting for Program Safeguards. GAO-01-616. 

Washington, D.C.: May 18, 2001.

Inspector General

Inspector General Report Number A-04-99-05561—-Audit of Medicare Administrative Costs Claimed by 

Blue Cross Blue Shield of Florida for Fiscal Years 1995 through 1998, July 31, 2002.
99 GAO-03-443 Federal Procurement

Appendix VI: Department of Justice

Agency Overview and Highlights

Mission: Enforcing laws in the public interest and protecting the public from criminal activity.

Significant bureaus

The following bureaus account for the majority of the Department of Justice’s (DOJ) fiscal year 2001 total 

discretionary budget resources:

• Office of Justice Programs develops programs that improve law enforcement’s ability to prevent and 

control crime, improve the criminal and juvenile justice systems, increase knowledge about crime and 

related issues, and assist crime victims. In fiscal year 2001, the office accounted for 24 percent of DOJ’s 

discretionary resources.

• Federal Bureau of Prisons seeks to provide safe, efficient, and humane correctional services and 

programs. In fiscal year 2001, the bureau accounted for 18 percent of DOJ’s discretionary resources.

• Federal Bureau of Investigation (FBI) conducts investigations and enforces federal laws. In fiscal year 

2001, the FBI accounted for 16 percent of DOJ’s discretionary resources.

• Other key bureaus: Immigration and Naturalization Service, Drug Enforcement Administration, and the 

U.S. Marshals Service.

Spending

DOJ’s discretionary resources increased 16 percent from fiscal year 1997 through fiscal year 2001 and totaled 

$26.4 billion in fiscal year 2001. Over the 5-year period, the proportion of DOJ’s discretionary resources spent 

under contracts increased slightly, rising from 15 percent in fiscal year 1997 to 17 percent in fiscal year 2001.

• For contracts valued over $25,000, spending on services increased 64 percent from fiscal year 1997 through 

fiscal year 2001. This growth was driven by increases in the following services: professional, administrative 

and management support services (128 percent); building construction (125 percent); information 

technology services (64 percent).

Procurement methods

DOJ spent about $3.9 billion on contracts over $25,000 in fiscal year 2001. DOJ relied on firm fixed-price and 

other kinds of fixed-price contracts as the agency’s primary contracting vehicles. On average from fiscal year 

1997 through fiscal year 2001, fixed-price contracts accounted for 85 percent of DOJ’s contract dollars.

• DOJ’s use of the federal supply schedule and contracts awarded by other agencies increased considerably 

during the 5-year period. For example, DOJ spent $234 million in fiscal year 1997 using the federal supply 

schedule; in fiscal year 2001, it had spent $470 million.

• Purchase card spending increased by 179 percent over the 5-year period, from $190.9 million in 

fiscal year 1997 to $533.4 million in fiscal year 2001. In fiscal year 2001, DOJ authorized the use of 

16,073 purchase cards.

• DOJ’s use of FAR part 12 to purchase commercial items grew more than 400 percent over the last 5 years. 

This increase was due to DOJ’s increased emphasis on (1) commercial purchases, and (2) more accurate 

reporting of data to FPDS.

Workforce

• From fiscal year 1997 through fiscal year 2001, DOJ’s total workforce increased by 11 percent—growing 

from about 110,000 to 123,000. However, DOJ’s acquisition workforce remained relatively stable, decreasing 

2 percent over the 5-year period.

• In fiscal year 2002, more than 85 percent of the acquisition workforce had 10 years or more of 

federal service.

• By fiscal year 2008, about 30 percent of the current acquisition workforce will be eligible to retire.
100 GAO-03-443 Federal Procurement

Appendix VI: Department of Justice

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources, 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS and OMB.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

10

20

30

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

1

2

3

4
101 GAO-03-443 Federal Procurement

Appendix VI: Department of Justice

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

 (percent)

IT equipment $495.0 $390.1 27

Furniture 121.3 128.4 -6

Communication and detection equipment 65.7 100.3 -34

Other goods 337.2 458.7 -26

Total goods $1,019.2 $1,077.5 -5

Services

IT services 723.0 441.7 64

Construction 568.6 252.9 125

Professional, administrative, and 

management support 537.2 235.2 128

Other services 1,066.2 835.8 28

Total services $2,895.0 $1,765.6 64

Total goods and services $3,914.2 $2,843.1 38
102 GAO-03-443 Federal Procurement

Appendix VI: Department of Justice

Figure 4: Vendor Type, Fiscal Year 2001

Notes: 4 percent of DOJ’s vendors are women-owned businesses.

Other includes hospitals, foreign contractors, domestic contractors working outside the 

United States, and educational institutions, including historically black colleges and universities and 

minority institutions.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: DOJ.

Dollars in millions

Vendor

Goods and services

 provided

Amount

 awarded

1. Hensel Phelps Construction Design and build correction 

facilities $441.8

2. Akal Security Services Guard services $348.4

3. Wackenhut Corrections Private jail service, 

management and operation $297.4

4. SAIC IT system development, 

maintenance, and 

administrative services $222.1

5. Dyncorp IT administrative support $179.8

Other

JWOD/Nonprofit

State/local government

Small disadvantaged 

business

Source: FPDS.

1%

1%

2%

12%

Large business

67%

Other small business 17%
103 GAO-03-443 Federal Procurement

Appendix VI: Department of Justice

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Percentages may not add to 100 due to rounding.

Figure 7: Competition, Fiscal Year 2001

a

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

Note: These figures include only orders and contracts for $25,000 or more; contracts under 

$25,000 and purchase cards are excluded.

Dollars in billions

Contract type

Amount

 spent

Percent of total

 amount spent

Firm fixed-price $2.9 74.2

Other fixed-price $0.4 11.2

Cost-type $0.3 7.6

Labor hours/time and materials $0.3 6.8

Not available for competitiona

Source: FPDS.

2%

11%

Competed 87%

Not competed

Competed

Not competed
104 GAO-03-443 Federal Procurement

Appendix VI: Department of Justice

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods and 

Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Fiscal year

Amount spent on

 competed contracts

One offer

 (percent)

More than one

 offer (percent)

1997 $2.4 9.8 89.1

1998 $2.5 8.2 90.7

1999 $2.8 6.9 92.1

2000 $2.6 11.3 87.6

2001 $3.4 8.2 91.0

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

0

100

200

300

400

500
105 GAO-03-443 Federal Procurement

Appendix VI: Department of Justice

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Notes: In fiscal year 2001, DOJ authorized the use of 16,073 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

0

150

300

450

600

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

0.5

1.0

1.5
106 GAO-03-443 Federal Procurement

Appendix VI: Department of Justice

Figure 12: Extent That Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

III. Workforce

Figure 13: Workforce Trends, Fiscal Years 1997 through 2001

Source: CPDF.

Performance based

Source: FPDS.

13%

Not performance based 87%

Fiscal year

Total

 workforce

Acquisition

 workforce Percent

1997 110,448 1,485 1.3

1998 117,380 1,529 1.3

1999 120,288 1,515 1.3

2000 121,272 1,496 1.2

2001 123,096 1,457 1.2
107 GAO-03-443 Federal Procurement

Appendix VI: Department of Justice

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 years

10 to 20 years

Source: CPDF.

4%

9%

34% 53% 20 years or more

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

6%

21%

24%

After fiscal year 2011

49%
108 GAO-03-443 Federal Procurement

Appendix VI: Department of Justice

IV. Key Procurement Initiatives as Reported by Agency Officials

Acquisition-related electronic government initiatives: Since October 2000, DOJ has implemented several 

e-government programs to improve its procurement processes. These programs include:

• Federal Business Opportunities, which is a GSA-managed Web-based system that provides for electronic 

notice of agency requirements and solicitations for contract opportunities. This system has been deployed 

departmentwide, and all DOJ synopses for contracts over $25,000 are now posted to that site.

• Central Contractor Registration is a Web-based governmentwide database of vendor information.

DOJ is the administrator for two programs used to track contractor performance:

• Contractor Past Performance System: an electronic federal report card collection system that is used to 

collect and record past performance information for subsequent use in determining contractor eligibility 

and selection.

• Past Performance Information Retrieval System: A Web-enabled application that allows the retrieval 

of contractor past performance information from various databases.

Departmentwide guidelines for evaluating candidates for GS-1102 contract specialist 

positions: Over the last 5 years, guidelines were issued to bureau personnel officers for evaluating candidates 

for GS-1102 contract specialist positions. Key elements include new education standards and certification 

processes.

V. Key Procurement Reports

General Accounting Office

Major Management Challenges and Program Risks: Department of Justice. GAO-03-105. Washington, D.C.: 

January 2003.

Information Technology: INS Needs to Strengthen Its Investment Management Capability. GAO-01-146. 

Washington, D.C.: December 29, 2000.

Border Patrol: Procurement of MD 600N Helicopters Should Be Reassessed. GGD-00-201. Washington, D.C.: 

September 29, 2000.

Inspector General

Report Number 02-32–Federal Bureau of Prisons Management of Construction Contracts, August 2002.

Report Number 01-16–Justice’s Reliance on Private Contractors for Prison Services, July 31, 2002.
109 GAO-03-443 Federal Procurement

Appendix VII: Department of the Treasury

Agency Overview and Highlights

Mission: To promote a stable economy, manage the government’s finances, and safeguard federal financial 

systems and our nation’s leaders.

Significant bureaus

The following bureaus account for the majority of Treasury’s fiscal year 2001 total discretionary 

budget resources:

• Internal Revenue Service (IRS)—responsible for determining, assessing, and collecting tax revenue in 

the United States. In fiscal year 2001, the IRS accounted for 51 percent of Treasury’s total discretionary 

budget resources.

• U.S. Customs Service—responsible for enforcing laws to safeguard U.S. borders against the illegal entry 

of goods and of regulating legitimate commercial activity. In fiscal year 2001, Customs accounted for 

20 percent of Treasury’s total discretionary budget resources.

• Other key bureaus—the U.S. Mint, the Secret Service, and the Bureau of Alcohol, Tobacco, and Firearms.

Spending

Treasury’s total discretionary budget resources increased by 32 percent from fiscal year 1997 through 

fiscal year 2001 and totaled $19.7 billion in fiscal year 2001. Over the same period, the amount spent 

through contracts increased slightly, both in real terms and as a share of Treasury’s discretionary resources. 

For example, in fiscal year 1997, contract obligations accounted for about 14 percent of Treasury’s 

discretionary resources; by fiscal year 2001, contract obligations accounted for 17 percent.

• For contracts valued over $25,000, spending on services increased by 71 percent from fiscal year 1997 

through fiscal year 2001, while spending on goods increased by 44 percent. Treasury’s spending on goods 

increased significantly during fiscal year 1999; this was attributed to (1) the U.S. Mint’s development of the 

“state quarters” program, (2) the Secret Service’s upgrade in hand weapons, and (3) preparation for 

Y2K-related incidents.

• Since fiscal year 1997, Treasury experienced significant spending increases in four categories: information 

technology (IT) equipment (181 percent), communication detection equipment (144 percent), 

administrative and management support services (138 percent), and IT services (81 percent).

Procurement methods

Treasury has changed its procurement approach in several key areas since fiscal year 1997:

• Treasury’s use of contracts awarded or administered by other agencies has doubled over this period and 

accounted for about 16 percent of Treasury’s contract obligations in fiscal year 2001.

• After increasing by about 53 percent from fiscal years 1997 through 1999, purchase card use 

remained relatively stable through fiscal year 2001. In fiscal year 2001, Treasury authorized the use of 

16,558 purchase cards.

Workforce

Treasury’s workforce size has remained relatively stable over the 5-year period. Between fiscal years 1997 

through 2001, Treasury’s total workforce grew about 2 percent from about 156,000 employees to almost 

159,000. Treasury’s acquisition workforce represents about 1.5 percent of its total workforce.

• In fiscal year 2001, 47 percent of the acquisition workforce had 20 years or more of federal service, while 

only 4 percent of the workforce had fewer than 5 years of service.

• By fiscal year 2008, approximately 30 percent of Treasury’s acquisition workforce will be eligible to retire.
110 GAO-03-443 Federal Procurement

Appendix VII: Department of the Treasury

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources, 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS and OMB.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

6

12

18

24

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

0.5

1.0

1.5

2.0
111 GAO-03-443 Federal Procurement

Appendix VII: Department of the Treasury

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

 (percent)

IT equipment $619.5 $220.5 181

Ores and minerals 189.5 363.3 -48

Communication and detection equipment 148.2 60.6 144

Other goods 434.7 323.4 34

Total goods $1,391.9 $967.8 44

Services

IT & telecommunications 851.2 469.2 81

Professional, administrative, and 

management support 416.5 174.7 138

Maintenance, repair, and rebuilding 

of equipment 87.4 137.3 -36

Other services 377.5 234.2 61

Total services $1,732.6 $1,015.4 71

Total goods and services $3,124.4 $1,983.2 57
112 GAO-03-443 Federal Procurement

Appendix VII: Department of the Treasury

Figure 4: Vendor Type, Fiscal Year 2001

Notes: 5 percent of Treasury’s vendors are women-owned businesses.

Other includes hospitals, foreign contractors, domestic contractors working outside the 

United States, and educational institutions, including historically black colleges and universities and 

minority institutions.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: Department of the Treasury.

Dollars in millions

Vendor

Goods and services 

provided

Amount

 awarded

1. Computer Sciences Corporation IT systems development $217.3

2. TRW IT services $144.3

3. IBM IT and telecommunication 

services $76.5

4. Lockheed Martin Aircraft components and 

engine services $72.8

5. Olin Brass Non-ferrous metal $70.5

Other

JWOD/Nonprofit

Small disadvantaged 

business

Source: FPDS.

1%

2%

11%

Large business

67%

Other small business 19%
113 GAO-03-443 Federal Procurement

Appendix VII: Department of the Treasury

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Totals may not add to 100 due to rounding.

Figure 7: Competition, Fiscal Year 2001

a

Contracts that were follow-on to a competed action are those subsequent actions awarded to the 

particular contractor who had previously been awarded the initial contract under competitive 

procedures.

b

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Dollars in billions

Contract type

Amount

 spent

Percent of total

 amount spent

Firm fixed-price $2.1 68.5

Other fixed-price $0.3 8.9

Cost-type $0.6 18.2

Labor hours/time and materials $0.1 4.2

Follow-on to competed actiona

Not available for competitionb

Source: FPDS.

5%

1%

Competed

Not competed

86%

8%

Competed

Not competed
114 GAO-03-443 Federal Procurement

Appendix VII: Department of the Treasury

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

All dollar figures have been converted to constant 2001 dollars.

Figure 9: Extent the Federal Supply Schedule Is Used to Purchase Goods and 

Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in billions

Fiscal year

Amount spent on

 competed contracts

One offer

 (percent)

More than one

 offer (percent)

1997 $1.5 3.5 75.6

1998 $2.3 4.1 62.7

1999 $2.8 8.4 58.1

2000 $2.4 6.6 68.8

2001 $2.7 10.8 74.1

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

0

50

100

150

200

250

300

350
115 GAO-03-443 Federal Procurement

Appendix VII: Department of the Treasury

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Notes: In fiscal year 2001, Treasury authorized the use of 16,558 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

0

50

100

150

200

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

0.5

1.0

1.5
116 GAO-03-443 Federal Procurement

Appendix VII: Department of the Treasury

Figure 12: Extent That Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

III. Workforce

Figure 13: Workforce Trends, Fiscal Years 1997 through 2001

Source: CPDF.

Performance based

Source: FPDS.

7%

Not performance based 93%

Fiscal year

Total

 workforce

Acquisition

 workforce Percent

1997 155,916 2,374 1.5

1998 153,603 2,400 1.6

1999 155,137 2,378 1.5

2000 156,694 2,412 1.5

2001 158,660 2,561 1.6
117 GAO-03-443 Federal Procurement

Appendix VII: Department of the Treasury

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 Years

10 to 20 Years

Source: CPDF.

4%

5%

44%

20 years or more

47%

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

7%

18%

23%

After fiscal year 2011

52%
118 GAO-03-443 Federal Procurement

Appendix VII: Department of the Treasury

IV. Key Procurement Initiatives as Reported by Agency Officials

Performance-based Service Contracting (PBSC): To increase its use of PBSC methods, Treasury 

developed PBSC training and a handbook, presented information on PBSC to all bureaus, and worked with 

bureaus on individual procurements. Procurement officials at Treasury stated that these efforts resulted in 

increasing Treasury’s use of performance-based contracts to 20 percent in fiscal year 2002.

Improving procurement system reviews: Treasury developed the Acquisition Management Assistance 

Review program to assess three key areas (people, process, and tools) to determine the health of Treasury’s 

procurement systems.

Procurement Intern Program: Because its acquisition workforce is aging, Treasury developed a 

procurement intern program to identify and develop new talent for the bureaus.

V. Key Procurement Reports

General Accounting Office

Major Management Challenges and Program Risks: Department of the Treasury. GAO-03-109. 

Washington, D.C.: January 2003.

Acquisition Workforce: Status of Agency Efforts to Address Future Needs. GAO-03-55. Washington, D.C.: 

December 18, 2002.

IRS Contracting: New Procedure Adds Price or Cost as a Selection Factor for Task Order 

Awards. GAO-03-218. Washington, D.C.: December 10, 2002.

Business Systems Modernization: IRS Needs to Better Balance Management Capacity with System 

Acquisition Workload. GAO-02-356. Washington, D.C.: February 28, 2002.

Inspector General

OIG-02-074—General Management: The Mint Leased Excessive Space For Its Headquarters Operation, 

March 29, 2002.
119 GAO-03-443 Federal Procurement

Appendix VIII: Department of Transportation

Agency Overview and Highlights

Mission: To ensure a fast, safe, efficient, accessible, and convenient transportation system that meets our 

vital national interests and enhances the quality of life of the American people, today and into the future.

Significant administrations

Two administrations account for the majority of the Department of Transportation’s (DOT) fiscal year 2001 

total discretionary budget resources:

• The Federal Aviation Administration (FAA) regulates civil aviation to promote safety and fulfill the 

requirements of national defense; encourages and develops civil aeronautics, including new aviation 

technology; operates a common system of air traffic control and navigation for both civil and military 

aircraft; implements programs to control aircraft noise and other environmental effects of civil aviation; and 

regulates U.S. commercial space transportation. In fiscal year 2001, the FAA accounted for 41 percent of 

DOT’s total discretionary budget resources.

• The United States Coast Guard (USCG) is responsible for maritime search and rescue, recreational 

boating safety, vessel traffic management, at-sea enforcement of living marine resource laws and treaty 

obligations, at-sea drug and illegal migrant interdiction, and port security. In fiscal year 2001, the USCG 

accounted for 15 percent of DOT’s total discretionary budget resources.

• Other key organizations: Federal Transit Administration and Federal Highway Administration.

Spending

DOT’s discretionary resources decreased 28 percent from $51.8 billion in fiscal year 1997 to $37.3 billion in 

fiscal year 2001. This was due largely to changes brought about by the Transportation Equity Act for the 

21st Century (TEA-21).1

 TEA-21, which was enacted in June 1998, shifted a significant amount of discretionary 

funds to mandatory spending categories. While discretionary resources decreased during the 5-year period, 

the amount spent through contracts increased by 26 percent. In fiscal year 2001, the DOT spent almost 

$5.6 billion, or 15 percent of its discretionary resources, through contracting.

• Spending on goods decreased by 29 percent from fiscal year 1997 to fiscal year 2001, while spending on 

services increased 49 percent. In fiscal year 2001, 85 percent of the amount spent through contracts over 

$25,000 was for services.

Procurement methods

DOT relies on a mix of contract types to achieve its mission; slightly more than half of DOT’s fiscal year 2001 

contracts were fixed-price, while more than a quarter were cost-type. Another 14 percent were labor hours or 

time and materials contracts.

• In fiscal year 2001, 19 percent of DOT’s service contracts were performance based.

• In fiscal year 2001, DOT authorized the use of 21,728 purchase cards.

• The amount spent using FAR part 12 procedures increased from $297 million in fiscal year 1997 to 

$1.6 billion in fiscal year 2001, a 437 percent increase.

Workforce

In fiscal year 2001, DOT’s total workforce was 64,509, a 2 percent increase from fiscal year 1997. About 

2 percent of the total workforce was made up of the acquisition workforce, which decreased by 7 percent 

during the 5-year period, from 1,634 in fiscal year 1997 to 1,514 in fiscal year 2001.

• In fiscal year 2001, 56 percent of the acquisition workforce had 20 years or more of federal service, while 

5 percent had fewer than 5 years of service.

• By fiscal year 2008, approximately 36 percent of DOT’s acquisition workforce will be eligible to retire.

1 P.L. 105-178, June 9, 1998.
120 GAO-03-443 Federal Procurement

Appendix VIII: Department of Transportation

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources, 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS, OMB, and FAA.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

15

30

45

60

Source: FPDS and FAA.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

1.5

3.0

4.5

6.0
121 GAO-03-443 Federal Procurement

Appendix VIII: Department of Transportation

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS and FAA.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

 (percent)

Ships, small craft, pontoons, and 

floating docks $183.9 $214.4 -14

Communication and detection equipment 97.6 203.0 -52

IT equipment 69.3 355.0 -80

Other goods 438.8 332.4 32

Total goods $789.6 $1,104.8 -29

Services

Professional, administrative, and 

management support 1,093.8 1,004.9 9

IT Services 597.7 455.1 31

Construction of structures and facilities 490.1 330.9 48

Other services 2,285.8 1,213.0 88

Total services $4,467.4 $3,003.9 49

Total goods and services $5,257.0 $4,108.7 28
122 GAO-03-443 Federal Procurement

Appendix VIII: Department of Transportation

Figure 4: Vendor Type, Fiscal Year 2001

Notes: 5 percent of DOT’s vendors are women-owned businesses.

Other includes hospitals, foreign contractors, domestic contractors working outside the 

United States, and educational institutions, including historically black colleges and universities and 

minority institutions.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: DOT and FAA.

Dollars in millions

Vendor

Goods and services 

provided

Amount

 awarded

1. Lockheed Martin Planning and integration of 

air traffic control systems 

and IT support services $472.6

2. Raytheon Air traffic management 

systems $299.4

3. Invision Technologies Explosives detection 

systems $240.0

4. Huntleigh USA Corp. Airport security and 

screening services $158.0

5. Globe Aviation Services Corp. Aviation, security, terminal 

and ground-support 

functions $151.9

Other

JWOD/Nonprofit

State/local government

Small disadvantaged 

business

Source: FPDS and FAA.

1%

1%

2%

15%

Large business

57% Other small business 24%
123 GAO-03-443 Federal Procurement

Appendix VIII: Department of Transportation

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS and FAA.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

Figure 7: Competition, Fiscal Year 2001

a

Contracts that were follow-on to a competed action are those subsequent actions awarded to the 

particular contractor who had previously been awarded the initial contract under competitive 

procedures.

b

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Dollars in billions

Contract type

Amount

 spent

Percent of total

 amount spent

Firm fixed-price $2.8 53.3

Other fixed-price $0.3 4.9

Cost-type $1.4 26.6

Labor hours/time and materials $0.7 13.7

Follow-on to competed actiona

Not available for competitionb

Not competed

Source: FPDS and FAA.

1%

7%

19%

Competed 73%

Competed

Not competed
124 GAO-03-443 Federal Procurement

Appendix VIII: Department of Transportation

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

FAA could not provide data for the number of offers on competed contracts and is not represented 

in this chart.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

All dollar figures have been converted to constant 2001 dollars.

Figure 9: Extent the Federal Supply Schedule is Used for Purchases of Goods 

and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in billions

Fiscal year

Amount spent on

 competed contracts

One offer

 (percent)

More than one

 offer (percent)

1997 $1.5 8.9 84.4

1998 $1.5 5.8 92.3

1999 $1.4 5.6 92.4

2000 $1.5 4.7 93.0

2001 $1.8 8.6 88.6

Source: FPDS and FAA.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

100

200

300

400

0
125 GAO-03-443 Federal Procurement

Appendix VIII: Department of Transportation

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Notes: In fiscal year 2001, DOT authorized the use of 21,728 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

0

100

200

300

400

Source: FPDS and FAA.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

0.5

1.0

1.5

2.0
126 GAO-03-443 Federal Procurement

Appendix VIII: Department of Transportation

Figure 12: Extent That Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases. 

FAA could not provide the amount spent on performance-based service contracting because this 

data was not an integral part of its management information systems.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

III. Workforce

Figure 13: Workforce Trends, Fiscal Years 1997 through 2001

Source: CPDF.

Performance based

Source: FPDS.

19%

Not performance based 81%

Fiscal year

Total

 workforce

Acquisition

 workforce Percent

1997 63,110 1,634 2.6

1998 63,745 1,572 2.5

1999 63,051 1,470 2.3

2000 62,520 1,458 2.3

2001 64,509 1,514 2.3
127 GAO-03-443 Federal Procurement

Appendix VIII: Department of Transportation

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 Years

10 to 20 Years

Source: CPDF.

5%

5%

34%

20 Years or more

56%

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

10%

19%

26%

After fiscal year 2011

45%
128 GAO-03-443 Federal Procurement

Appendix VIII: Department of Transportation

IV. Key Procurement Initiatives as Reported by Agency Officials

Security: To support the current security crisis within our country after September 11, 2001, DOT: (1) helped 

stand up the Transportation Security Administration (TSA) by assisting in creating a TSA Acquisition 

Management System, developing a standard set of TSA contract provisions and clauses, and providing 

operational support in the solicitation and award of TSA contracts; and (2) continues to address security 

issues relating to controlling access to sensitive information and background checks on contractor personnel 

in positions where sensitive information or national security interests are present.

Procurement Performance Management System: DOT continues its major initiative to improve 

procurement performance by implementing DOT’s procurement performance management program. 

This program assists managers in targeting areas for improvement based on the results of specified 

metrics chosen for their importance to the administration, DOT management, or DOT customers.

V. Key Procurement Reports

General Accounting Office

Major Management Challenges and Program Risks: Department of Transportation. GAO-03-108.

Washington, D.C.: January 2003.

National Airspace System: Status of FAA’s Standard Terminal Automation Replacement System. 

GAO-02-1071. Washington, D.C.: September 17, 2002.

National Airspace System: FAA’s Approach to Its New Communications System Appears Prudent, but 

Challenges Remain. GAO-02-710. Washington, D.C.: July 15, 2002.

FAA Alaska: Weak Controls Resulted in Improper and Wasteful Purchases. GAO-02-606. Washington, D.C.: 

May 30, 2002.

Coast Guard: Budget and Management Challenges for 2003 and Beyond. GAO-02-538T. Washington, D.C.: 

March 19, 2002.

Coast Guard: Progress Being Made on Deepwater Project, but Risks Remain. GAO-01-564. Washington, D.C.: 

May 2, 2001.

National Airspace System: Persistent Problems in FAA’s New Navigation System Highlight Need for 

Periodic Re-evaluation. GAO/RCED/AIMD-00-130. Washington, D.C.: June 12, 2000.

Inspector General

FI-2002-092–FAA Oversight of Cost Reimbursable Contracts, May 8, 2002.

FI-2002-089–DOT’s Information Technology Omnibus Procurement Program (ITOP), April 15, 2002.

FI-2001-057–FRA E-Mail System Replacement Contracts, May 3, 2001.

FI-2000-125–Inactive Obligations on Contracts, September 25, 2000.

AV-2000-127–Technical Support Services Contract: Better Management Oversight and Sound Business 

Practices Are Needed, September 28, 2000.
129 GAO-03-443 Federal Procurement

Appendix IX: Department of Veterans Affairs

Agency Overview and Highlights

Mission: To restore the capability of those who suffered harm during their military service; to ensure a 

smooth transition as veterans return to civilian life in their communities; to honor and serve all veterans for 

the sacrifices they made on behalf of the nation; to contribute to the public health, socioeconomic well being, 

and history of the nation.

Significant administrations

The following administrations account for nearly all of the Department of Veterans Affairs’ (VA) fiscal year 

2001 total discretionary budget resources.

• Veterans Health Administration is responsible for medical care, education, and research, and serves as 

medical backup to the Department of Defense. In fiscal year 2001, VHA accounted for 89 percent of VA’s 

discretionary resources.

• Veterans Benefits Administration provides benefits and services to veterans and their dependents, 

including compensation and pensions, education benefits, loan guarantees, and insurance.

• National Cemetery Administration provides burial benefits to veterans and eligible dependents and 

Presidential Memorial Certificates to deceased veterans’ next of kin.

Spending

VA’s discretionary resources rose by about 20 percent from fiscal years 1997 through fiscal year 2001 and 

totaled $26.5 billion in fiscal year 2001. In fiscal year 2001, contract obligations accounted for 22 percent, or 

$5.9 billion, of VA’s discretionary resources.

• VA spends almost half of its contract dollars on medical and dental equipment and supplies. Since 

fiscal year 1997, spending for these supplies has grown by 92 percent due in large part to an increase in 

patient workload.

• Spending on services grew by about 14 percent, largely driven by increased spending for information 

technology (226 percent) and medical services (24 percent).

Procurement methods

VA relies heavily on firm fixed-price contracts. In fiscal year 2001, $3.9 billion—or 91 percent—of the 

$4.3 billion that VA obligated for contracts over $25,000 was obligated on firm fixed-price contracts.

• Purchase card spending increased from $855 million in fiscal year 1997 to $3.8 billion in fiscal year 2001, 

a 344 percent increase. In fiscal year 2001, VA authorized the use of 34,090 purchase cards.

• VA spent $3.4 billion, 79 percent of total contracting dollars, on competed contracts in fiscal year 2001. VA 

typically received two or more offers on more than 90 percent of its competed contracts.

Workforce

At 202,414 personnel in fiscal year 2001, VA’s total workforce was about the same level as fiscal year 1997. VA’s 

acquisition workforce decreased by 6 percent from its fiscal year 1997 level and totaled about 2,562 personnel 

in fiscal year 2001.

• In fiscal year 2001, 52 percent of the acquisition workforce had 20 years or more of federal service, while 

5 percent had fewer than 5 years of federal service.
130 GAO-03-443 Federal Procurement

Appendix IX: Department of Veterans Affairs

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources, 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS and OMB.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

10

20

30

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

0.5

1.0

1.5

2.0

2.5
131 GAO-03-443 Federal Procurement

Appendix IX: Department of Veterans Affairs

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

 (percent)

Medical, dental and veterinary equipment, 

and supplies $2,130.8 $1,109.9 92

IT equipment 185.8 245.0 -24

Food 18.1 17.9 1

Other goods 132.7 191.8 -31

Total goods $2,467.4 $1,564.6 58

Services

Medical services 522.7 420.3 24

IT services 326.6 100.1 226

Utilities and housekeeping services 271.5 250.7 8

Other services 707.7 830.4 -15

Total services $1,828.5 $1,601.5 14

Total goods and services $4,295.9 $3,166.0 36
132 GAO-03-443 Federal Procurement

Appendix IX: Department of Veterans Affairs

Figure 4: Vendor Type, Fiscal Year 2001

Notes: 5 percent of VA’s vendors are women-owned businesses.

Other includes hospitals, foreign contractors, domestic contractors working outside the 

United States, and educational institutions, including historically black colleges and universities and 

minority institutions.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: Department of Veterans Affairs.

Dollars in millions

Vendor

Goods and services 

provided

Amount

 awarded

1. Amerisource Corp. Health care products $1,600.0

2. Datatrack Information Services IT services $68.1

3. General Electric Co. Health care equipment $49.8

4. Integic Corp. IT services $46.1

5. GRC International, Inc. IT services $31.9

Other

JWOD/Nonprofit

State/local government

Small disadvantaged 

business

Source: FPDS.

1%

1%

3%

10%

Large business

70%

Other small business 15%
133 GAO-03-443 Federal Procurement

Appendix IX: Department of Veterans Affairs

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Figure 7: Competition, Fiscal Year 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

a

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

Dollars in billions

Contract type

Amount

 spent

Percent of total

 amount spent

Firm fixed-price $3.9 90.7

Other fixed-price $0.4 9.1

Cost-type <$0.1 0.1

Labor hours/time and materials <$0.1 0.1

Not available for competitiona

Source: FPDS.

4%

17%

Competed 79%

Not competed

Competed

Not competed
134 GAO-03-443 Federal Procurement

Appendix IX: Department of Veterans Affairs

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

All dollar figures have been converted to constant 2001 dollars.

Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods and 

Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in billions

Fiscal Year

Amount spent on

 competed contracts

One offer

 (percent)

More than one

 offer (percent)

1997 $2.3 7.6 91.1

1998 $2.1 5.9 92.2

1999 $2.0 4.7 93.8

2000 $3.1 7.0 91.7

2001 $3.4 5.3 93.1

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

0

250

500

750

1000
135 GAO-03-443 Federal Procurement

Appendix IX: Department of Veterans Affairs

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Notes: in fiscal year 2001, VA authorized the use of 34,090 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

1

2

3

4

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

1

2

3
136 GAO-03-443 Federal Procurement

Appendix IX: Department of Veterans Affairs

Figure 12: Extent That Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

VA officials stated that their internal data system reported a higher use of performance-based 

contracting in fiscal year 2001. These officials believed their agency's figure should be about 

11 percent.

III. Workforce

Figure 13: Workforce Trends, Fiscal Years 1997 through 2001

Source: CPDF.

Performance based

Source: FPDS.

0.1%

Not performance based 99.9%

Fiscal year

Total

 workforce

Acquisition

 workforce Percent

1997 202,414 2,737 1.4

1998 198,890 2,610 1.3

1999 195,847 2,574 1.3

2000 196,643 2,488 1.3

2001 202,041 2,562 1.3
137 GAO-03-443 Federal Procurement

Appendix IX: Department of Veterans Affairs

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 years

10 to 20 years

Source: CPDF.

5%

8%

35%

20 years or more

52%

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

7%

23%

28%

After fiscal year 2011

42%
138 GAO-03-443 Federal Procurement

Appendix IX: Department of Veterans Affairs

IV. Key Procurement Initiatives as Reported by Agency Officials

Computer, hardware and software procurement: VA requires that computer hardware and software 

vendors offer products to VA at a cost equal to or lower than those offered any other customers. Prices that are 

found to be too high are required to be lowered before they are accepted. According to VA officials, this 

initiative resulted in savings of $33 million in the period of June through October 2002. The prices paid by VA 

over this time period average 21.6 percent below the vendors’ GSA Federal Supply Schedule prices for the 

same items.

Vocational rehabilitation and employment service national acquisition strategy: To address concerns 

related to contracting for services in the field, a task force developed the National Acquisition Strategy to 

provide uniform prices and services at the 58 Veterans Benefit Administration regional offices. In September 

2002 VA awarded 249 performance-based service contracts using a uniform format. According to VA officials, 

over 95 percent of the awards went to small businesses, veteran-owned businesses, and service-disabled, 

veteran-owned businesses.

Joint contracting between VA and DOD: In March 2001 VA had 34 joint contracts for pharmaceuticals 

between VA and DOD. In November 2002, that number more than doubled, to 76. In addition, there are 

18 pending joint contracts for pharmaceuticals, vital sign monitors, and radiation therapy equipment.

VA Federal Supply Schedule Program: The VA Federal Supply Schedule Program was expanded in late 

2000, to include professional health care services. This schedule is open to all federal agencies and provides 

for temporary contract services of surgeons, specialists, nurses, radiologists, pharmacists, and dentists. 

Recently, allied health services (nursing assistants, pharmacy technicians, and dental assistants) were added 

to this schedule.

V. Key Procurement Reports

General Accounting Office

Major Management Challenges and Program Risks: Department of Veterans Affairs. GAO-03-110. 

Washington, D.C.: January 2003.

VA and DOD Health Care: Factors Contributing to Reduced Pharmacy Costs and Continuing Challenges. 

GAO-02-969T. Washington, D.C.: July 22, 2002.

VA and Defense Health Care: Potential Exists for Savings through Joint Purchasing of Medical and 

Surgical Supplies. GAO-02-872T. Washington, D.C.: June 26, 2002.

DOD and VA Pharmacy: Progress and Remaining Challenges in Jointly Buying and Mailing Out Drugs. 

GAO-01-588. Washington, D.C.: May 25, 2001.

VA Laundry Service: Consolidations and Competitive Sourcing Could Save Millions. GAO-01-61. 

Washington, D.C.: November 30, 2000.

Inspector General

01-00504-9–Summary Report–Combined Assessment Program Reviews at Veterans Health Administration 

Medical Facilities (January 1999–March 2001), October 10, 2001.

01-01855-75–Evaluation of the Department of Veterans Affairs Purchasing Practices, May 15, 2001.

9R3-E99-037–Audit Of The Department Of Veterans Affairs Purchase Card Program, February 12, 1999.

8D2-E01-002–Audit of VA Procurement Initiatives For Computer Hardware, Software, and Services 

(PCHS/PAIRS) and Selected Information Technology Investments, January 22, 1998.
139 GAO-03-443 Federal Procurement

Appendix X: General Services Administration

Agency Overview and Highlights

Mission: To provide policy leadership and expertly managed space, products, services, and solutions, at the 

best value, to enable federal agencies to accomplish their missions.

Significant services

The following services account for the majority of the General Services Administration’s (GSA) fiscal year 

2001 total discretionary budget resources.

• Federal Technology Service (FTS) provides information technology solutions and network services to 

support federal agencies. In fiscal year 2001, FTS accounted for 46 percent of GSA’s total discretionary 

budget resources.

• The Public Building Service (PBS) oversees the construction, development, and maintenance of federal 

buildings and manages the leasing of commercial office space. In fiscal year 2001, PBS accounted for 

51 percent of GSA’s total discretionary budget resources.

• Federal Supply Service (FSS) provides agencies with numerous supplies and services, including 

commercial products, professional services, vehicle acquisition and leasing, and travel and transportation 

services. FSS manages the Federal Supply Schedule program, which provides federal agencies with access 

to more than 4 million products and services and coordinates the governmentwide travel and purchase card 

programs. The FSS accounts for none of GSA’s discretionary resources, because the service is financed by a 

revolving fund. With a revolving fund, the FSS obtains most of its funding from the fees paid by other 

agencies to buy from the FSS program.

Spending

GSA’s discretionary resources increased by 38 percent from fiscal year 1997 through fiscal year 2001 and 

totaled $19.3 billion in fiscal year 2001. Over the 5-year period, the proportion of GSA’s discretionary resources 

spent under contracts increased from 59 percent to about 64 percent. GSA relies heavily on service contracts, 

which accounted for more than 80 percent of all contracts over $25,000 in fiscal year 2001.

• For contracts valued over $25,000, spending on services increased by 75 percent from fiscal year 1997 

through fiscal year 2001. Spending on goods increased by 13 percent.

• The increase in service spending was driven by increased purchases of IT services, which grew from 

$594.0 million in fiscal year 1997 to $4.7 billion in fiscal year 2001. GSA’s increased share is largely 

attributable to the growth of GSA’s Federal Technology Service. However, orders placed by the Federal 

Technology Service are counted as spending by GSA, rather than spending by the federal agency that will 

ultimately receive the service or equipment.

• Since fiscal year 1997, GSA’s spending has undergone significant increases in the following categories: 

IT and telecommunication services (691 percent), motor vehicles (24 percent), IT equipment (19 percent), 

and lease of facilities (17 percent).

Procurement methods

GSA spent about $11.7 billion through contracts in fiscal year 2001, with firm fixed-price and other kinds of 

fixed-price contracts accounting for over 90 percent of GSA’s contract dollars.

• Purchase card spending doubled since fiscal year 1997, and totaled nearly $160 million in fiscal year 2001. In 

fiscal year 2001, GSA authorized the use of 3,776 purchase cards.

Workforce

GSA’s total workforce has remained relatively stable over the 5-year period, at about 14,100. Over this same 

period, its acquisition workforce has increased by more than 10 percent.

• More than 91 percent of GSA’s acquisition workforce has more than 10 years of federal service; by fiscal 

year 2008, 34 percent will be eligible to retire.
140 GAO-03-443 Federal Procurement

Appendix X: General Services Administration

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources, 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS and OMB.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

5

10

15

20

25

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

4

8

12
141 GAO-03-443 Federal Procurement

Appendix X: General Services Administration

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

 (percent)

IT equipment $876.6 $734.3 19

Motor vehicles 850.0 688.2 24

Furniture 206.7 182.1 14

Other goods 372.8 441.4 -16

Total goods $2,306.1 $2,046.0 13

Services

IT & telecommunications 4,697.4 594.0 691

Lease of facilities 2,199.4 1,873.4 17

Utilities and housekeeping 816.5 1,218.3 -33

Other services 1,633.1 1,649.6 -1

Total services $9,346.4 $5,335.3 75

Total goods and services $11,652.5 $7,381.3 58
142 GAO-03-443 Federal Procurement

Appendix X: General Services Administration

Figure 4: Vendor Type, Fiscal Year 2001

Notes: 4 percent of GSA’s vendors are women-owned businesses.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: GSA.

Dollars in millions

Vendor

Goods and services 

provided

Amount

 awarded

1. American Management Systems IT and management 

services $1,479.8

2. Leers Weinzapfel Associated Architectural design $690.2

3. SAIC IT $326.3

4. DaimlerChrysler Corporation Automobiles and parts/

supplies $320.7

5. Ben Fitzgerald Real Estate Rental estate services $204.0

JWOD/Nonprofit

Small disadvantaged 

business

Source: FPDS.

2%

12%

Large business

61% Other small business 25%
143 GAO-03-443 Federal Procurement

Appendix X: General Services Administration

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Percentages may not add to 100 due to rounding.

Figure 7: Competition, Fiscal Year 2001

a

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

Note: These figures include only orders and contracts for more than $25,000; contracts for $25,000 

or less and purchase cards are excluded.

Dollars in billions

Contract type Amount spent

Percent of total

 amount spent

Firm fixed-price $7.4 63.7

Other fixed-price $3.2 27.1

Cost-type $0.5 3.4

Labor hours/time and materials $0.7 5.7

Not available for competitiona

Source: FPDS.

2%

6%

Competed

Not competed

92%

Competed

Not competed
144 GAO-03-443 Federal Procurement

Appendix X: General Services Administration

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

All dollar figures have been converted to constant 2001 dollars.

Figure 9: Extent the Federal Supply Schedule Is Used to Purchase Goods and 

Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Fiscal year

Amount spent on

 competed contracts

One offer

 (percent)

More than one

 offer (percent)

1997 $6.3 27.2 71.4

1998 $6.9 28.9 70.0

1999 $6.5 25.7 72.1

2000 $8.8 4.5 94.1

2001 $10.6 2.8 95.5

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

0

1

2

3

4

5
145 GAO-03-443 Federal Procurement

Appendix X: General Services Administration

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Notes: In fiscal year 2001, GSA authorized the use of 3,776 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

0

40

80

120

160

200

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

0

2

4

6
146 GAO-03-443 Federal Procurement

Appendix X: General Services Administration

Figure 12: Extent That Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

III. Workforce

Figure 13: Workforce Trends, Fiscal Years 1997 through 2001

Source: CPDF.

Performance based

Source: FPDS.

11%

Not performance based 89%

Fiscal year

Total

 workforce

Acquisition

 workforce Percent

1997 14,148 2,475 17.5

1998 14,064 2,489 17.7

1999 14,021 2,631 18.8

2000 14,081 2,732 19.4

2001 14,102 2,743 19.5
147 GAO-03-443 Federal Procurement

Appendix X: General Services Administration

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 years

10 to 20 years

Source: CPDF.

4%

5%

41%

20 years or more

50%

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

9%

18%

25%

After fiscal year 2011

48%
148 GAO-03-443 Federal Procurement

Appendix X: General Services Administration

IV. Key Procurement Initiatives as Reported by Agency Officials

Construction Brain Trust. The Construction Brain Trust was implemented in fiscal year 2001 to reduce 

the time, cost and complexity of the construction contracting process. The membership consists of 

representatives from GSA policy offices, GSA regions, and construction-related associations, surety 

companies, and law firms.

Agency-wide performance-based contracting program. To improve GSA’s use of performance-based 

contracts, it established a Web site and developed additional training materials, such as the Seven Steps to 

Performance-based Service Acquisition Guide, for use by its acquisition personnel.

Applied Learning Center. This initiative was implemented in 2001. The long-term goal of the center is to 

assist acquisition professionals perform their jobs, identify skill gaps, and broaden the knowledge base of 

acquisition professionals into areas such as budget, finance, and program management.

V. Key Procurement Reports

General Accounting Office

Contract Management: Government Faces Challenges in Gathering Socioeconomic Data on Purchase Card 

Merchants. GAO-03-56. Washington, D.C.: December 13, 2002.

Acquisition Workforce: Status of Agency Efforts to Address Future Needs. GAO-03-55. Washington, D.C.: 

December 18, 2002.

Acquisition Workforce: Agencies Need to Better Define and Track the Training of Their Employees. 

GAO-02-737. Washington, D.C.: July 29, 2002.

Contract Management: Interagency Contract Program Fees Need More Oversight. GAO-02-734. 

Washington, D.C.: July 25, 2002.

Contract Management: Roles and Responsibilities of the Federal Supply Service and Federal Technology 

Service. GAO-02-821R. Washington, D.C.: June 7, 2002.

Telecommunications: GSA Action Needed to Realize Benefits of Metropolitan Area Acquisition Program. 

GAO-02-325. Washington, D.C.: April 4, 2002.

Contract Management: Not Following Procedures Undermines Best Pricing Under GSA’s Schedule. 

GAO-01-125. Washington, D.C.: November 28, 2000.

Inspector General

Special Report on FSS’s Multiple Award Schedule Pricing Practices, August 24, 2001.

Report Number A995288–Audit of Federal Technology Service’s Use of Multiple Award Indefinite Delivery 

Indefinite Quantity Contracts, September 19, 2000.

Report Number A995175–Audit of the Federal Protective Service’s Contract Guard Program, March 28, 2000.
149 GAO-03-443 Federal Procurement

Appendix XI: National Aeronautics and Space Administration

Agency Overview and Highlights

Mission: To develop human exploration of space, advance and communicate scientific knowledge, and 

research and develop aeronautics and space technologies.

Significant components

Two accounts account for the majority of the National Aeronautics and Space Administration’s (NASA) fiscal 

year 2001 total discretionary budget resources:

• Science, Aeronautics and Technology (SAT) provides funds for research and development in the offices 

of Space Science, Earth Science, Biological and Physical Research, and Aerospace Technology, respectively. 

SAT also funds academic programs that NASA has established in elementary and secondary schools, as well 

as research conducted at more than 100 universities in the United States. In fiscal year 2001, SAT accounted 

for 44 percent of NASA’s discretionary resources.

• Human Space Flight (HSF) primarily provides funds for the construction and operation of the 

international space station and the operation of the space shuttle program. Other programs include 

developing expendable launch vehicles, improving space communications and data systems, and providing 

safety and mission support. HSF also provides for the design, repair, rehabilitation, and modification of 

facilities and construction of new facilities. In fiscal year 2001, HSF accounted for 45 percent of NASA’s 

discretionary resources.

Spending

NASA’s discretionary resources decreased by about 6 percent from fiscal year 1997 through fiscal year 2001, 

totaling $15.8 billion in fiscal year 2001. The amount spent through contracts decreased slightly, both in real 

terms and as a share of NASA’s discretionary resources. Nevertheless, NASA relies on contracts to achieve its 

mission to a greater extent than most federal agencies.

• NASA contracts primarily for services. Of NASA’s $11 billion spent on contracts over $25,000 in fiscal year 

2001, about $9.6 billion—or 86 percent—were for services, including operating various government-owned 

facilities, providing professional and administrative support, and conducting research and development 

activities. Overall, NASA’s spending for services declined by 7 percent between fiscal years 1997 and 2001, 

though there were significant variations in individual service categories.

Procurement methods

NASA uses a variety of methods in carrying out its procurement functions.

• Due to the nature of the items and services needed to carry out its mission, NASA relies heavily on 

cost-type contracts; 83 percent of contract obligations over $25,000 for fiscal year 2001 were made 

under cost-type contracts. 

• NASA spent slightly more than half of its contracts over $25,000 on competed contracts, a relatively lower 

percentage than other federal agencies. For those contracts it competes, NASA receives two or more bids 

nearly 90 percent of the time.

• NASA reports that 64 percent of eligible service contracts were performance based in fiscal year 2001.

• NASA’s use of purchase cards grew since fiscal year 1997, but accounts for a small percentage of its budget 

resources.

• While NASA generally acquires government-unique items, it increased its purchases using FAR part 12 

procedures from $225 million in fiscal year 1997 to about $794 million in fiscal year 2001.

Workforce

The size of NASA’s workforce remained relatively stable from fiscal year 1997 through fiscal year 2001, 

decreasing by about 4 percent. NASA’s acquisition workforce, which represented about 7 percent of its total 

workforce, experienced a similar trend.

• In fiscal year 2001, 56 percent of the acquisition workforce had 20 years or more of federal service, while 

only 3 percent had fewer than 5 years of service.

• By fiscal year 2008, approximately 33 percent of NASA’s acquisition workforce will be eligible to retire.
150 GAO-03-443 Federal Procurement

Appendix XI: National Aeronautics and Space Administration

I. Spending

Figure 1: Procurement’s Relationship to Discretionary Budget Resources, 

Fiscal Years 1997 through 2001

Notes: Discretionary budget resources reflect the budget amount that an agency is appropriated for 

a current fiscal year plus the budget authority that the agency carries over from prior fiscal years.

Total contract obligations exclude purchase card use.

All dollar figures have been converted to constant 2001 dollars.

Figure 2: Spending on Goods and Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: OMB and FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Total contract obligations

Total discretionary budget resources

0

5

10

15

20

Source: FPDS.

Dollars in billions

Fiscal year

1997 1998 1999 2000 2001

Goods

Services

0

3

6

9

12
151 GAO-03-443 Federal Procurement

Appendix XI: National Aeronautics and Space Administration

Figure 3: Principal Types of Goods and Services in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Totals may not add due to rounding.

All dollar figures have been converted to constant 2001 dollars.

Dollars in millions

Fiscal year

Goods 2001 1997

Change

 (percent)

Space vehicles $1,158.6 $1,080.6 7

IT equipment 110.0 245.8 -55

Engines, turbines, and components 43.0 81.7 -47

Other goods 223.7 516.9 -57

Total goods $1,535.3 $1,925.0 -20

Services

Research, development, testing, and 

evaluation 2,738.0 3,669.0 -25

Professional, administrative, and 

management support 2,716.1 3,157.8 -14

Operation of government-owned facilities 1,989.2 1,432.9 39

Other services 2,182.5 1,811.4 20

Total services $9,625.8 $10,071.1 -4

Total goods and services $11,161.0 $11,996.1 -7
152 GAO-03-443 Federal Procurement

Appendix XI: National Aeronautics and Space Administration

Figure 4: Vendor Type, Fiscal Year 2001

Notes: 3 percent of NASA’s vendors are women-owned businesses.

Other includes hospitals, foreign contractors, domestic contractors working outside the 

United States, and educational institutions, including historically black colleges and universities and 

minority institutions.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

Figure 5: Top Five Vendors, Fiscal Year 2001

Source: NASA.

Dollars in millions

Vendor

Goods and services 

provided

Amount

 awarded

1. United Space Alliance Operation and maintenance 

of multi-purpose space 

systems $1,658.6

2. Boeing Space shuttle orbiter 

production, modification and 

operation $951.7

3. Lockheed Martin Aeronautics, space systems, 

systems integration and 

technology services $608.3

4. Lockheed Martin Space 

Operations

Space-related support 

services including project 

management, systems 

engineering and integration, 

and IT $493.6

5. Thiokol Corp. Propulsion motors $377.7

Other

JWOD/Nonprofit

Small disadvantaged 

business

Source: FPDS.

2%

7%

7%

Large business

67%

Other small business

17%
153 GAO-03-443 Federal Procurement

Appendix XI: National Aeronautics and Space Administration

II. Procurement Methods

Figure 6: Principal Contract Types Employed in Fiscal Year 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Figure 7: Competition, Fiscal Year 2001

a

Contracts not available for competition are for utilities, contracts authorized or required by statute 

to be awarded to a designated source, sole source contracts awarded to certain small 

disadvantaged businesses, or actions where the agency has determined that there is no 

opportunity for competition, among other things.

b

Contracts that were follow-on to a competed action are those subsequent actions awarded to the 

particular contractor who had previously been awarded the initial contract under competitive 

procedures.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Dollars in billions

Contract type

Amount

 spent

Percent of total

 amount spent

Firm fixed-price $1.6 14.6

Other fixed-price $0.3 2.6

Cost-type $9.2 82.6

Labor hours/time and materials <$0.1 0.2

Follow-on to competed actionb

Not available for competitiona

Source: FPDS.

2%

4%

44%

Competed

50%

Not competed

Competed

Not competed
154 GAO-03-443 Federal Procurement

Appendix XI: National Aeronautics and Space Administration

Figure 8: Degree of Competition for Competed Contracts, Fiscal Years 1997 

through 2001

Source: FPDS.

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

Percentages do not add to 100 as information on the number of offers was either missing or not 

required to be reported.

All dollar figures have been converted to constant 2001 dollars.

Figure 9: Extent the Federal Supply Schedule is Used to Purchase Goods and 

Services, Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Dollars in billions

Fiscal year

Amount spent on

 competed contracts

One offer

 (percent)

More than one

 offer (percent)

1997 $5.7 10.5 84.3

1998 $5.4 10.0 85.6

1999 $5.6 8.0 90.0

2000 $5.4 7.2 90.5

2001 $5.6 8.2 89.4

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

Services

Goods

Total

0

50

100

150

200
155 GAO-03-443 Federal Procurement

Appendix XI: National Aeronautics and Space Administration

Figure 10: Amount Spent Using Purchase Cards, Fiscal Years 1997 through 2001

Notes: In fiscal year 2001, NASA authorized the use of 4,258 purchase cards.

All dollar figures have been converted to constant 2001 dollars.

Figure 11: Commercial Item Purchases Using FAR Part 12 Procedures, 

Fiscal Years 1997 through 2001

Notes: These figures include only orders and contracts for more than $25,000; contracts for 

$25,000 or less and purchase cards are excluded.

All dollar figures have been converted to constant 2001 dollars.

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

0

25

50

75

100

Source: FPDS.

Dollars in millions

Fiscal year

1997 1998 1999 2000 2001

0

250

500

750

1000
156 GAO-03-443 Federal Procurement

Appendix XI: National Aeronautics and Space Administration

Figure 12: Extent That Eligible Contracts Are Performance Based, 

Fiscal Year 2001 (by dollar value)

Notes: Based on FAR 37.102, performance-based methods should be used to the maximum 

extent practicable for all services, except for construction, utilities, architect and engineering, 

or services that are incidental to supply purchases.

These figures include only orders and contracts for more than $25,000; contracts for $25,000 or 

less and purchase cards are excluded.

III. Workforce

Figure 13: Workforce Trends, Fiscal Years 1997 through 2001

Source: CPDF.

Performance based

Source: FPDS.

36%

Not performance based 64%

Fiscal year

Total

 workforce

Acquisition

 workforce Percent

1997 19,614 1,293 6.6

1998 18,505 1,228 6.6

1999 18,055 1,177 6.5

2000 18,670 1,241 6.6

2001 18,879 1,246 6.6
157 GAO-03-443 Federal Procurement

Appendix XI: National Aeronautics and Space Administration

Figure 14: Acquisition Workforce by Years of Federal Service

Figure 15: Acquisition Workforce Retirement Eligibility

Fewer than 5 years

5 to 10 years

10 to 20 years

Source: CPDF.

3%

4%

37%

20 years or more

56%

Before fiscal year 2002

Fiscal years 2008 through 2011

Fiscal years 2002 through 2007

Source: CPDF.

8%

19%

25%

After fiscal year 2011

48%
158 GAO-03-443 Federal Procurement

Appendix XI: National Aeronautics and Space Administration

IV. Key Procurement Initiatives as Reported by Agency Officials

Risk-based acquisition management: To reduce the incidence and severity of impacts arising from 

unforeseen programmatic events, NASA recently developed this process to integrate risk principles when 

developing the acquisition strategy, selecting sources, choosing contract type, structuring fee incentives, and 

conducting contractor surveillance.

Award term contracting: NASA is using this approach to reward contractor performance by enabling 

contract extension for excellent performance and reduced costs. In addition to profit, a continuing 

relationship becomes a prime motivator for the contractor.

Evaluate and Improve Performance-Based Service Contracting: NASA has initiated an 

agencywide awareness program and training sessions for government and contractor employees relating 

to performance-based service contracting.

V. Key Procurement Reports

General Accounting Office

Major Management Challenges and Program Risks: National Aeronautics and Space Administration. 

GAO-03-114. Washington, D.C.: January 2003.

Space Station: Actions Under Way to Manage Cost, but Significant Challenges Remain. GAO-02-735. 

Washington, D.C.: July 17, 2002.

NASA: Compliance With Cost Limits Cannot Be Verified. GAO-02-504R. Washington, D.C.: April 10, 2002.

Inspector General

IG-03-003–NASA Contracts for Professional, Administrative, and Management Support Services, 

October 16, 2002.

IG-02-027–NASA’s Contract Audit Follow-up System, September 30, 2002.

IG-02-011–Review of Performance-Based Service Contract Quality Assurance Surveillance Plans, 

June 24, 2002.

IG-02-011–International Space Station Spare Parts Costs, March 22, 2002.

IG-02-002–Restructuring of the International Space Station Contract, November 8, 2001.

IG-01-027–Acquisition of the Space Station Propulsion Module, May 21, 2001.

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