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GAO: Agencies could have saved millions in Networx transition

Jan. 7, 2014 - 05:19PM   |  
By ANDY MEDICI   |   Comments

Agencies could have saved hundreds of millions of dollars by transitioning faster to the General Services Administration’s Networx contracts, according to a report released Jan. 6 by the Government Accountability Office.

GSA signed the Networx contracts in 2007, but agencies did not finish transitioning to the new contracts until 2013– 33 months longer than anticipated. The contracts offered savings around 28.4 percent on wireless management systems, application services and other products.

Agencies could have saved $329 million by transitioning to Networx on time and GSA could have saved $66 million in program costs, according to the GAO, but the agency lacked the proper expertise in its contracting and support workforce to make the shift in its original time frame.

GAO recommends in the report GSA work with the Office of Personnel Management to examine possible shortfalls in worker expertise and provide agencies with guidance on how to make a transition to a future contract easier.

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