There are also several management challenges that FTS faces. As a non-mandatory service provider, FTS must devote increased resources to its marketing efforts. Requirements of the Clinger Cohen Act force agencies to seriously consider their IT purchases and report carefully on all systems. FTS must ensure that the services it sells meet the needs of government agencies who must comply with the Act. FTS is currently authorized only to sell to the Federal government.
Legislation permitting sales to state and local governments is desired.
The government Smart Card is being introduced through a partnership by the General Services Administration and the U.S. Navy. It is the size of a credit card that contains a single chip with a microprocessor and memory. It can be used in multiple applications, eliminating the need to carry a pocketful of single purpose cards. Eventually, every Federal employee will carry one card that can be used for purposes such as security, ID authentication, building access, travel, Internet purchasing, networking and database access, computer system access, property accountability, E-mail and document processing, emergency medical information, and many other administrative and financial functions. According to promotional materials provided by FTS, the government Smart Card reduces the reliance on inefficient, uncoordinated, and obsolete databases and replaces those databases with a portable one that can be instantly accessed at any Federal location.