The General Services Administration's Federal Acquisition Service (FAS) saw a 4.6 percent jump in revenues between 2007 and 2008, the agency's acting administrator told the Senate Appropriations Committee.

"After three years of cost cutting, a protracted hiring freeze and a major realignment of staff out of the Assisted Acquisition Service portfolio to other parts of FAS and GSA, we are beginning to realize benefits," said Paul Prouty, acting administrator of GSA.

FAS logged $9.3 billion in revenues in 2008. FAS does not receive congressional appropriations. Instead it relies on revenues from fees charged to other federal agencies that use GSA contracts.

Prouty said the boost in revenues will now help GSA tackle challenges created by "years of cost cutting and reorganization."

"Major IT investments have been deferred, and staffing levels were reduced across all organizations," Prouty said. "GSA must now begin to strategically invest in the FAS infrastructure and workforce to ensure a successful future."

In the short term, FAS will invest in electronic business intelligence tools to track customer buying patterns, Prouty said. "Business intelligence will improve our ability to help customers make better procurement decisions, which will result in more efficient use of federal funds and more effective government," he said.

FAS will also complete a Lean Six Sigma study of its operations to improve its use of staff and create more cost savings, he said. Prouty expects the process to generate savings starting in fiscal 2010.

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