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GSA overhaul of delivery system to save $500 million

Jan. 31, 2014 - 11:53AM   |  
By ANDY MEDICI   |   Comments
GSA will no longer operate large warehouses, one of the changes it is instituting to save money on deliveries. / GSA

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The General Services Administration is overhauling the way it delivers goods and supplies to agencies, according to a Jan. 30 blog post by Federal Acquisition Service Commissioner Tom Sharpe.

The agency will no longer own and operate large warehouses to store goods before they ship and will instead partner with private companies to have the items sent directly to agencies.

Sharpe said the move would simplify the acquisition process and have $500 million over the next five years. The agency operates warehouses across the country and retail operations around the world.

“This model is costly, cumbersome and no longer the most efficient or effective approach to supporting our federal partners,” Sharpe said.

He said the agency will also rely heavily in the future on its strategic sourcing initiative to help leverage federal spending to save money on products

“We have a responsibility to provide our partner agencies with the savings and resources they need to fulfill their missions. However, as the needs and resources available to these agencies change, we must adjust to the realities of this new federal marketplace,” Sharpe said.

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