PRESIDENT'S CLIMATE ACTION PLAN REVIEWED BY GSA

FROM:  GENERAL SERVICES ADMINISTRATION
President's Climate Action Plan R
Review of the President's Climate Action Plan
Senate Committee on Environment and Public Works
“Review of the President’s Climate Action Plan”

January 16, 2014

Good morning Chairman Boxer, Ranking Member Vitter, and Members of the Committee. I appreciate being invited here today to testify on this important topic.

Last year, the U.S. Government Accountability Office added climate change to its High Risk List, citing that it presents “a significant financial risk to the federal government.” According to the National Climatic Data Center, in 2012 weather and climate disaster events caused over $110 billion in damages, making it the second costliest year on record.

This Administration is committed to reducing the damage caused by climate change, and to preparing for its impacts, both in the long term as well as those we are already experiencing. In June 2013, the President reaffirmed this commitment with a Climate Action Plan that directs agencies to: cut carbon pollution; prepare for the impacts of climate change; and lead international efforts to address global climate change.

The U.S. General Services Administration (GSA) is one of the many Federal agencies doing its part to assist in this effort. As the landlord and caretaker of federal properties, GSA owns or leases 9,624 assets, which includes maintaining an inventory of more than 370 million rentable square feet of workspace, and preserving more than 481 historic properties. This large and diverse portfolio presents many opportunities for GSA to increase energy efficiency, reduce our contribution to climate change, save millions of dollars in energy costs and to plan and implement risk management.

As part of the President’s Climate Action Plan, GSA is improving the efficiency of our Federal buildings, identifying and preparing for climate risks, and working to ensure that we share lessons learned with our partner agencies.

Reducing Impact on Climate Change –

GSA reduces energy consumption across its portfolio through a variety of means. GSA leverages technology such as advanced metering, remote building analytics and smart building systems to uncover deeper energy savings opportunities. Advanced meters, which provide real time energy use information, have been installed in 450 buildings, representing 80% of GSA’s total electricity consumption metered. Continuous enhancements to the system, ongoing training of users, use of detailed historical data and expert modeling are all proven methods which are increasing energy efficiency at lesser cost.

GSA uses rapid building assessments to perform sophisticated energy audits that require no onsite work or new device installations. Such remote analytics have resulted in significant cost savings over traditional audits and have identified additional energy savings opportunities.

The President’s Climate Action Plan also highlights other important tools we can use to improve the efficiency of our buildings, including continued use of Energy Savings Performance Contracts (ESPCs). An ESPC engages the private sector in an agency’s efforts to achieve energy efficiency improvements. The private sector provides the upfront capital to make energy efficiency upgrades in a facility, and is paid by the Federal agency from the guaranteed energy savings under the contract. Once the contract ends, the agency continues to benefit from the reduced energy costs. In December 2011, the President challenged Federal agencies to enter into a combined $2 billion worth of ESPCs by December 31, 2013. GSA exceeded its own target of $175 million with $191 million in contracts awarded. These contracts, which range from 12 to 23 years in duration, are projected to reduce GSA’s annual energy consumption by 365 billion Btus, or about the amount of energy used in 3,380 single family homes per year, resulting in direct savings (lower utility payments) of $10.6 million per year.

The President’s Climate Action Plan sets new goals on the Federal use of Renewable Energy, increasing the current goal from 7.5 percent to 20 percent by 2020. In FY 2013, 46.1 percent of electricity procured or generated by GSA came from renewable sources (nearly 1,200 GWh). Over 24 GWh of this renewable electricity was generated at our own facilities. GSA expects to generate nearly 29 GWh per year once on-site renewable projects currently underway are fully operational. This amount of on-site renewable energy is enough to power nearly 2,600 homes.

Through the use of Green Button data, the President’s Climate Action Plan also highlights the importance of collecting data to promote better energy management. Green Button is an industry-led effort, in response to the Administration’s call-to-action, that looks to meet the challenge of providing electricity consumers with secure, easy to understand information on their energy usage. As directed in the December 2013 Presidential Memorandum on Federal Leadership in Energy Management, GSA will partner with the Department of Energy and Environmental Protection Agency to prepare and initiate a pilot Green Button initiative at Federal facilities. Following the pilot, DOE, in coordination with EPA, is required to issue guidance on use of the Green Button standard at Federal facilities. GSA will leverage the Green Button standard within its federal facilities to increase the ability to manage energy consumption, reduce greenhouse gas emissions, and meet sustainability goals.

Taken together, these efforts have led to a significant reduction in GSA’s energy use intensity and greenhouse gas emissions. In FY 2013, GSA achieved a cumulative reduction in energy usage per square foot of 24.8 percent,1 ahead of statutory targets. Since Fiscal Year 2011, these reductions have saved $192.7 million in avoided direct energy costs.2 Also, in FY 2013, GSA achieved an approximately 50 percent reduction in greenhouse gas emissions, exceeding our FY 2020 target.3 That is the equivalent of more than 60,000 homes powered for one year.

Preparing for the Impacts of Climate Change –

GSA is also preparing for the potential impacts of climate change as part of the President’s Climate Action Plan. While it is impossible to predict the precise occurrence and costs of each and every climate risk, it is imperative to develop a robust risk management approach.

One such area of focus has been preparing for future floods. GSA is actively coordinating with the U.S. Army Corps of Engineers (USACE), U.S. Global Change Research Program (USGCRP), Federal Emergency Management Agency (FEMA), National Oceanic and Atmospheric Administration (NOAA), and Federal Interagency Floodplain Management Task Force to incorporate the most recent and relevant flood-risk reduction strategies into GSA’s operations. We are in the process of updating GSA’s internal floodplain management guidance and are taking into consideration updated FEMA floodplain maps and additional guidance on using climate projections.

GSA is also working to boost the resilience of buildings and infrastructure. We are in the process of prioritizing our most mission critical and vulnerable facilities, looking into cost-effective climate-resilient investments, and investigating solutions that reduce both climate change risks and greenhouse gas emissions. A pilot project is currently in place to incorporate climate risk reduction factors into a new land port of entry facility. GSA will take lessons learned from this pilot and share with other agencies.

We believe these efforts will ensure GSA, and the Federal government broadly, is more prepared to address the long-term consequences of climate change.

Conclusion –

The President’s Climate Action Plan represents a commitment to reduce and respond to the impacts of climate change. As a major landholding agency of the Federal government, GSA plays an important role in mitigating and preparing for these adverse effects. Through improved energy efficiency and risk planning, we hope to continue to make progress on both of these critical efforts.

I am pleased to be here today, and I am happy to answer any questions you may have. Thank you.

GSA ADMINISTRATOR'S STATEMENT ON PROPERTY REDEVELOPMENT BEFORE HOUSE COMMITTEE

FROM:  U.S. GENERAL SERVICES ADMINISTRATION
Federal Triangle South: Redeveloping Underutilized Federal Property
Statement of Dan Tangherlini
Administrator, General Services Administration
Before the House Committee on Transportation and Infrastructure,
Subcommittee on Economic Development, Public Buildings, and Emergency Management
November 19, 2013

Introduction

 Good morning Chairman Barletta, Ranking Member Carson and Members of the Subcommittee. Thank you for inviting me to appear before you today.

At a time when budgets are tightening across the government, the mission of GSA to provide value to the government and the American people is more important than ever before. The savings and services we provide allow our partner agencies to focus their important resources on their critical missions. However, the fact is that in the current fiscal environment, reduced budgets are having an undeniable effect on the public infrastructure.

Today’s hearing looks to explore increased utilization of public-private partnerships, both at GSA and across government. In a very real way, GSA’s Public Buildings Service is a public-private partnership. Approximately 92 percent of the revenue in the Federal Buildings Fund is invested right back in to the private sector. These funds pay private sector landlords for existing lease obligations, private sector service companies to operate and maintain our buildings, and private sector design and construction firms to repair and construct our buildings.

At GSA, we are dealing with a building inventory that includes some of the oldest buildings in the country, buildings that not only need repairs to keep them in working order, but often require renovations to ensure that they are up to the standards of 21st century government.

Unfortunately, in recent fiscal years, GSA has been unable to use the rent that we receive from our partner agencies to fund the high priority mission needs of partner Federal agencies and to make basic repairs to the public buildings we hold in trust. In fact, we are now faced with cuts that could force GSA to default even on our existing lease obligations. In the face of these continued challenges, I am committed to exploring all of GSA’s authorities to reduce the cost of real estate, meet our partner Federal agencies’ needs, and repair and maintain our public buildings

Savings at GSA

GSA partners with private industry to deliver needed space and service to our fellow agencies. Utilizing our consolidated buying power and real estate expertise, we are able to drive down the costs of leasing, operating, and maintaining the government’s real estate footprint. GSA negotiates leases that, on average, are more than 11 percent below market rates.

By aggregating the space needs of a variety of agencies, we are also able to aggressively utilize our public buildings. Nationally, GSA’s vacancy rate is 3.1 percent, far below the private sector average of 17.4 percent. If our vacancy rate was as high as the private sector’s, it would cost the taxpayers an additional $1 billion this year alone.

New Tools

Beyond our traditional, ongoing partnership with private industry, GSA is interested in further exploring the use of flexible authorities that do not require upfront appropriations. To that end, and with direction from Congress and this Committee in particular, this year, GSA used its authority under Section 111 of the National Historic Preservation Act to outlease the Old Post Office. We reached an agreement for the investment of $200 million in private sector funds in the restoration of this 114-year old federal building. This significant investment will allow us to convert the Old Post Office into a mixed-use development that will serve the local community, preserve the historic facility, and save taxpayer dollars. We also will receive a base rent of $250,000 per month, which escalates at the Consumer Price Index over the term of the 60-year lease. The funds that GSA receives from the Old Post Office lease can be used for repair and upkeep of historic federal buildings across GSA’s inventory, saving additional taxpayer dollars.

We are also actively exploring new approaches to leverage the value of our older, outdated buildings to get new, highly efficient space for our partner agencies. Across the country, we have put in motion several potential exchange projects, including the J. Edgar Hoover building here in Washington, D.C., and, of course, the project that is the subject of today’s hearing: Federal Triangle South.

Federal Triangle South

Federal Triangle South is a proposed exchange that looks to leverage the value of several buildings in southwest DC to fund new, highly efficient space for the agencies currently housed there. Right now, the buildings that comprise this area represent a significant challenge as well as an opportunity for both GSA and the agencies that occupy them.

The Cotton Annex is empty. The GSA Regional Office Building at 7th and D Streets Southwest is an inefficient and unattractive space that was not constructed with the modern realities of a mobile workplace in mind. The Department of Energy Building is another facility that does not accommodate its tenants’ needs for space or facility amenities and underutilizes the valuable land on which it sits. The Federal Aviation Administration buildings are in the best shape of any of these facilities, but they too are not equipped for the needs of a 21st century government agency.

On December 2, 2012, GSA issued a Request for Information to identify creative solutions to the challenges presented by these buildings, and on February 4, 2013, we received 10 responses. GSA has evaluated these responses and developed a strategy for how best to proceed, and we expect to issue a Request for Proposals in the near term.

We are excited with the prospect that GSA’s initiative to exchange some of our existing inefficient and outdated properties for facilities that better serve today’s needs will facilitate the District’s effort to transform the properties at Federal Triangle South to create a mixed-use neighborhood connecting the National Mall to the Southwest Waterfront as envisioned in the SW Ecodistrict Plan, a plan jointly developed by the National Capital Planning Commission, GSA, and 15 federal and District government partner agencies. We believe we can both provide for the 21st Century space needs of Federal employees and create a place in which people will want to work, live, play, and learn. By exchanging underperforming federal property for the upgrade and renovation of other federal facilities, we can help replace a cold, sterile, utilitarian, single use enclave with a vibrant, diverse, and special community of its own.

In Federal Triangle South, we will be able to reexamine how the federal government uses these buildings and also reassess how this space fits into the surrounding community. Furthermore, as we look to address the needs of our partner agencies, we also have important opportunities to contribute to the economic development and sustainability of the places they call home. As the committee has noted, Federal Triangle South is a great example of where this approach can be successful.

Conclusion

GSA is committed to meet the challenge we have been given by both President Obama and Congress to make the entire government more efficient. That will require changing the way our buildings work, but it also means shrinking the federal footprint and creating more sustainable space. The current fiscal stress means that we simply cannot afford to do business as usual. We must look for new ways to maximize the value of our assets. Working together with industry, we have a chance to shape a better, more efficient government for the 21st century, as well as fuel the transformation of a core area of Washington DC.

I thank the committee for the opportunity to testify today and look forward to answering your questions.

GSA MAKES NEARLY A MILLION SELLING BOSTON HARBOR LIGHTHOUSE

FROM:  U.S. GENERAL SERVICES ADMINISTRATION
Government Sells Boston Harbor Lighthouse for Nearly $1 Million
September 16, 2013

BOSTON - Today, the U.S. General Services Administration (GSA) announced it has found a new owner for the historic Graves Light in Boston Harbor. David Waller was officially awarded the lighthouse today and will take ownership within sixty days. GSA received an unprecedented $933,888 bid for the lighthouse, which is a record amount for any lighthouse ever sold in the United States.

As part of the National Historic Lighthouse Preservation Act (NHLPA) program, GSA offered the lighthouse to the public through an online auction. So far, more than 100 lighthouses have been sold or transferred out of federal ownership. Through this innovative program, proceeds from the public sales go back into the Coast Guard’s aid to navigation fund, a fund that pays for the equipment, maintenance, and resources (fog horns, lights, battery cells, solar panels, etc.) to continue preservation and maintenance of lighthouses that are still active and federal ownership. .”

"Lighthouses are an important part of our maritime history, both in New England and national heritage. Enthusiastic new owners like David Waller, help us ensure that these architectural treasures will be preserved without burdening taxpayers," said Robert Zarnetske, GSA Regional Administrator for New England.

The open and competitive public auction lasted 25 days between 10 different parties before bidding closed last Saturday. The property boasts 360-degree million dollar views that include the Boston skyline, the harbor, and the Atlantic Ocean. The new owner now possesses a truly historic maritime treasure and iconic property in Boston Harbor.

Graves Light, constructed in 1905 and designed by Royal Luther, is located on The Graves, the outermost island of the Boston Harbor Islands National Recreation Area, nine miles offshore from Boston. At 113 feet, it is the tallest lighthouse in the Port of Boston. The light is a striking conical structure with granite blocks on a granite foundation and includes interior keeper’s quarters.

Since 2000, in partnership with the U.S. Coast Guard and the National Park Service, GSA administers the federal program that transfers ownership of historic lighthouses to caretakers through the National Historic Lighthouse Preservation Act program. GSA also offers lighthouses for public sale at www.realestatesales.gov.

U.S. GENERAL SERVICES ADMINISTRATION SELLING FORMER ANTI-BALLISTIC MISSILE COMPLEX

FROM: GENERAL SERVICES ADMINISTRATION

GSA Public Auction Saves Taxpayer Dollars

The Stanley R. Mickelsen Safeguard Complex in North Dakota was the first U.S. anti-ballistic missile site. 
Former Stanley Mickelsen Safeguard Complex Up For Sale
Oct. 25, 2012GRAND FORKS, ND — The U.S. General Services Administration, in partnership with the Army Corps of Engineers, announced Wednesday that the public sale by auction of the former Stanley R. Mickelsen Safeguard Complex is now open. This property consists of five facilities that span 600 acres located in Cavalier, Ramsey, and Walsh Counties, North Dakota. Brokers, as well as other interested parties, are encouraged to view the properties in person during weekly GSA site tours and/or place a bid online.

"GSA’s mission is to make the government more efficient and to save money," said Sylvia Hernandez, Acting Regional Administrator for GSA’s Greater Southwest region. "Part of that mission is to effectively manage our real estate assets and dispose of underutilized properties so we can save taxpayer dollars." In the past year, GSA has sold or transferred more than 100 excess properties.

The auction consists of five sites including a Missile Site Radar site and four Remote Site Launch sites. The MSR site offers approximately 431 acres including about 201 acres of vacant land that includes a chapel, a community center, an office building and more totaling more than
258,000 square feet. The Missile Site Radar Building, also known as "The Pyramid," is the focal point of the MSR site.

The four RSL sites are located in Ramsey, Cavalier, and Walsh Counties. Each site offers 35-40 acres that include an access sentry station, remote launch operations building and sprint missile launch stations. All missiles have been removed from the site and the missile silos were
closed.

This sale represents a unique opportunity to acquire a "piece of history." SRMSC is the United States first anti-ballistic missile complex developed to preserve the country’s capability against Soviet nuclear missile attacks. Certain tactical facilities were built of hardened concrete to accomplish specific war fighting functions that are unique in design and architectural features. No other examples of these tactical facilities were constructed in the free world, making the SRMSC a distinctive and significantly architectural style. The site became operational in 1975 and was deactivated in 1976.

U.S. GENERAL SERVICES ADMINISTRATION AIMS TO SAVE MONEY THROUGH INNOVATIVE TECHNOLOGIES

LEFT:  As Acting Administrator of the U.S. General Services Administration (GSA), Daniel M. Tangherlini serves a vital role in President Obama’s agenda to build a more sustainable, responsible and effective government for the American people. GSA is responsible for improving the government’s workplace by managing assets, delivering maximum value in acquisitions, preserving historic property, and implementing technology solutions.

　
FROM: GENERAL SERVICES ADMINISTRATION
GSA Tests Innovative Building Technologies, Aims for Savings

Emerging technologies increase efficiency and reduce costs in federal buildings

September 26, 2012
WASHINGTON — The U.S. General Services Administration released two new reports today as part of the Green Proving Ground program, unveiling technologies that reduce energy use in federal buildings and have significant savings potential if widely implemented. GSA works with the Department of Energy’s National Laboratories to test the viability of energy efficient technologies that can be installed in buildings across the country. GSA is also announcing today that it will test and evaluate 12 additional sustainable building technologies in GSA’s federal buildings.

The technologies for the Green Proving Ground program are selected for their potential to help reduce operating costs and to meet the sustainability goals in President Obama’s Executive Order on environmental, energy and economic performance.

"This innovative program is another example of GSA leading the way for the federal government," said Dorothy Robyn, Commissioner of GSA’s Public Buildings Service. "By testing the effectiveness of these technologies, GSA is finding new ways that federal buildings across the nation can save both energy and taxpayer dollars."

The two studies released today include an evaluation of responsive lighting systems and plug load control.

The Responsive Lighting study evaluated the performance of new workstation-specific lighting systems. The study was conducted in five federal buildings in California and Nevada that represented a diverse set of agencies, occupancy patterns, work styles, and lighting. Results showed energy savings that ranged from approximately 27 to 63 percent over baseline conditions depending on the work space’s normal use. Lighting accounts for 39 percent of electricity costs in office buildings.

The Plug Load Control study evaluated advanced power strips (APS) in eight GSA buildings in the MidAtlantic region. These power strips save energy by controlling plug-in devices according to a schedule or based on a given device crossing a power threshold. Results showed the APS’ schedule based capability to be highly effective, reducing plug loads at workstations by 26 percent, and nearly 50 percent in kitchens and printer rooms. This technology could significantly reduce costs, as plug-loads account for roughly 25 percent of total electricity consumed within office buildings.

GSA is also announcing today that it will test and evaluate 12 additional emerging sustainable building technologies in select federal facilities. Results from these evaluations will continue to increase performance of GSA’s buildings by reducing operational costs, increasing environmental efficiency, and assisting industry in deploying new technologies and practices into the broader market. This year’s technologies include wireless lighting controls, LED luminaires, glazing retrofit coatings, wireless pneumatic thermostats, solar thermal collectors and water saving landscape irrigation systems.

GSA owns and leases 9,600 buildings across the country and has the real estate portfolio needed to broadly test and install these technologies.

GSA OFFICIAL TESTIFIES TO SENATE COMMITTEE THAT MILIONS OF DOLLARS ARE BEING SAVED

FROM: GENERAL SERVICES ADMINISTRATION

GSA Announces Reforms and Savings at Senate Hearing
Sept. 13, 2012

WASHINGTON — Today, U.S. General Services Administration Acting Administrator Dan Tangherlini appeared before the Senate Committee on Homeland Security and Governmental Affairs to discuss GSA’s ongoing reform efforts and recommendations resulting from his ongoing Top to Bottom review of the agency’s operations.

"In this time of shrinking budgets, GSA’s mission of delivering savings has never been more important," said GSA Acting Administrator Tangherlini. "It is our responsibility to make every taxpayer dollar count, and I am confident that the reforms that are underway at GSA will help us do exactly that. These reform efforts continue to support the Obama administration’s priority of giving the American people the most effective and efficient government possible."

Tangherlini, named Acting Administrator in April, immediately called for a Top to Bottom review of all agency operations, to increase accountability, efficiency, and cost savings. In the past five months, GSA has identified and eliminated wasteful spending, operational redundancies and improved agency operations to deliver better value for taxpayers and savings across the government. Tangherlini has also installed new senior leadership by naming Dr. Dorothy Robyn as the agency’s new commissioner for the Public Buildings Service.

In addition, in line with President Obama’s Campaign to Cut Waste, GSA is taking steps to reduce Federal Acquisition Service contracting and service fees for federal agencies. The agency is also moving to consolidate financial, personnel and technology operations.

Millions in New Savings by Cutting Contracting Fees:

GSA’s Top to Bottom review found that several fees assessed by the Federal Acquisition Service (FAS) on purchases made by other agencies could be reduced below their current levels without a negative impact on the operations of FAS. Therefore, Tangherlini has announced a new interagency group to review and develop recommendations on the overall fee structure for contracts and services provided by FAS, including fee reductions to help agencies reduce administrative costs.

Consolidation of Budget, Technology and Human Resources Organizations:

The Top to Bottom review also identified an opportunity to consolidate key agency functions such as budget, human resources, and technology which will improve performance and cost effectiveness. Tangherlini has already ordered the consolidation of all budget, finance and accounting personnel under the chief financial officer, increasing transparency, accountability, and oversight on GSA spending. This action will give Congress and taxpayers a better understanding of how and where agency funds are used. GSA will also better manage information technology investment, systems development and maintenance, and increase access to agency data by consolidating all IT personnel, budgets, and systems under the Chief Information Officer. In addition, GSA will consolidate hiring responsibilities and human capital management personnel and operations under the Chief People Officer which will increase visibility into hiring decisions and increase efficiencies by eliminating redundancy within the various parts of GSA.

Initial Reforms Save Millions:

In just five months, GSA has already made significant progress in streamlining operations and saving taxpayer dollars. After putting in place strong policies and controls on spending, travel and events, the agency is projected to save the American taxpayer more than $11 million by eliminating nearly 50 conferences and cutting travel. The agency has also implemented savings ideas gathered from GSA employees totaling $5.5 million.

In an effort to improve the agency’s performance award system to ensure awards are given for exemplary service that goes above and beyond expected levels of performance, Tangherlini took a hard look at bonuses at GSA, and has already reduced Senior Executive Service bonuses substantially. GSA will go further in the next months by reducing the budget for all performance awards across the agency. Additionally, Tangherlini has instituted a targeted hiring freeze across the agency.

GSA also froze federal travel reimbursement rates across the government for the first time in a decade. GSA announced that it will comprehensively review the methodology used to determine those rates and form a Federal Advisory Committee to provide a forum for expert industry advice. GSA anticipates that this will help federal agencies avoid an estimated $20 million in travel costs next year.

GSA SAYS GOVERNMENT CAN SAVE MONEY USING CLOUD EMAIL

U.S. GENERAL SERVICES ADMINISTRATION
GSA Announces Cloud Email Services for Federal Government

Blanket purchase agreements streamline cloud transition, saves taxpayer dollarsAugust 30, 2012

WASHINGTON — Today, the U.S. General Services Administration announced that it is now offering cloud based email services, making it easier for government agencies to move to cost saving cloud services. Through 20 blanket purchase agreements awarded to 17 businesses today, federal, state, local and tribal governments will have access to cloud based email services. Cloud based email services supports the Obama Administration’s mandates and initiatives to bring cloud services into the federal government and reduce federal data centers, which save taxpayer dollars.

"GSA has added another excellent option for agencies looking to rapidly move their email to the cloud to save time, resources and taxpayer dollars," said Mary Davie, Acting Commissioner of GSA’s Federal Acquisition Service. "Our innovative cloud solutions are another example of how GSA offers the best value, low cost services that help agencies serve the American people."

GSA is offering these email services through a blanket purchase agreement with the cloud service providers, which allows for simplified ways of fulfilling recurring needs for these services. Transitioning to a cloud solution lowers the cost of email by up to 50 percent annually and saves $1 million for every 7,500 email boxes. Cloud computing provides flexible platforms that enable increased efficiency, agility, and innovation.

Last year, GSA was the first federal agency to move to a cloud based email system, saving $2 million dollars to date. Over the next five years, GSA will see another 50 percent savings with an estimated $15 million reduction in IT costs.

GSA’s award of these cloud email service contracts allows vendors to provide government entities with email, cloud-based office automation, electronic records management, migration services, and integration services.

President Obama has asked government agencies to leverage cloud services to become more efficient. The implementation of 25 Point Federal IT Reform Plan, and "Cloud First" mandates require federal agencies to consider cloud-based solutions the new default IT solution.

GSA has awarded 20 blanket purchase agreements to 17 cloud service providers, 4 of which are small businesses. The businesses that received these contracts are:

Accenture Federal Services LLC, Autonomic Resources LLC, CGI Federal Inc., Ciracom Inc., Computer Sciences Corporation, Dell Federal Systems L.P., DLT Solutions, General Dynamics Information Technology Inc., Harris IT Service Corporation, IBM Global Business Services, Lockheed Martin, Onix Networking Corp, Science Applications International Corporation, Smartronix Inc., Systems Research and Applications Corporation, Technosource LLC, and Unisys.

GSA SAYS IT SAVED OVER $11 MILLION WITH TRAVEL AND CONFERENCE REFORMS

FROM: GENERAL SERVICES ADMINISTRATION

GSA Saves More Than $11 Million in Initial Travel and Conference Reforms

August 27, 2012

WASHINGTON — Today, the U.S. General Services Administration announced that the agency is projected to save more than $11 million in taxpayer dollars through an initial set of policies implemented in April 2012 by the new head of the agency, Dan Tangherlini, to cut travel and conference costs. A financial audit showed that since April 2012 and through the rest of the fiscal year, more than $11 million has been saved in meetings, conferences, trainings and travel costs. This is just one step in the ongoing top to bottom review of all agency operations.

"Four months ago we began a rigorous top to bottom review of all agency operations. We've made significant cuts in travel and conference spending and these savings are just the beginning," said GSA Acting Administrator Tangherlini. "We are deepening our commitment to promoting efficiency, driving steeper bargains, delivering better value, and creating greater opportunities for savings here at GSA and across the government."

To date, GSA has cancelled 47 conferences and implemented strong oversight to ensure that all travel and events are limited to necessary and essential functions. Tangherlini has consolidated oversight of conference and travel expenses in the new Office of Administrative Services.

Recently, Tangherlini also cut $500,000 in executive bonuses and instituted a hiring freeze across the agency through the end of the fiscal year while his review of all agency operations is underway.

The new leadership at GSA will continue to make changes to make the agency more accountable, transparent, and efficient as part of the ongoing top to bottom review.

COMPANY WILL PAY $1 MILLION TO SETTLE ALLEGED TRADE AGREEMENT ACT VIOLATIONS

FROM: U.S. DEPARTMENT OF JUSTICE
Monday, July 9, 2012
Telecommunications Firm to Pay Us $1 Million to Settle Alleged Violations of the Trade Agreements Act.

ADC Telecommunications Inc. will pay the United States $1 million to resolve allegations that the company submitted false claims to federal agencies when it sold telecommunications goods manufactured in countries prohibited by the Trade Agreements Act (TAA).  

From October 2005 through December 2008, ADC manufactured and sold telecommunications hardware, such as communication modems, extender modules and shelf adapters to various federal agencies through its General Services Administration (GSA) Multiple Award Schedule contract.   This settlement resolves allegations disclosed by the company that it knowingly manufactured and sold products from countries such as China that do not have reciprocal trade agreements with the United States and are not on the list of designated countries.   The client government agencies included a number of federal agencies, including the Departments of Defense, Homeland Security and Interior.
Compliance with the TAA is required by GSA Multiple Award Schedule

contracts.   Goods purchased under these contracts must be manufactured in one of a list of designated countries deemed to trade fairly with the United States.

“Protecting the federal procurement process is central to the mission of the Department of Justice,” said Stuart Delery, Acting Assistant Attorney General for the Department of Justice’s Civil Division.   “It is incumbent upon contractors that supply products to federal agencies to abide by the legal requirements designed to protect U.S. trade interests.”

“This settlement demonstrates this office’s commitment to ensure that products sold to the government are made in countries that respect and adhere to our nation’s trade policies,” said Ronald C. Machen Jr., the U.S. Attorney for the District of Columbia.   “We expect all companies who do business with the United States to understand and comply with the laws that govern their transactions.”

GSA Inspector General Brian Miller stated “We appreciate ADC's cooperation in the OIG’s investigation of this matter.”

This matter was jointly handled by the GSA Office of the Inspector General, the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Columbia.

CLOUD COMPUTING, THE NEXT IT REVOLUTION

FROM:  U.S. GENERAL SERVICES ADMINISTRATION
Statement of Dr David McClure "The Next IT Revolution? Cloud Computing Opportunities and Challenges"

STATEMENT OF

Dr. David McClure

Associate Administrator

Office of Citizen Services and Innovative Technologies

General Services Administration

BEFORE THE

HOUSE SCIENCE, SPACE AND TECHNOLOGY COMMITTEE

SUBCOMMITTEE ON TECHNOLOGY AND INNOVATION

September 21, 2011
"The Next IT Revolution? Cloud Computing Opportunities and Challenges"
Chairman Quayle and Members of the Subcommittee:
Thank you for the opportunity to appear before you today to discuss the General Service
Administration's (GSA) leadership role in ongoing efforts to enable and accelerate adoption of cloud computing across the federal government. Cloud adoption is a critical component of the Administration’s plan to improve management of the government’s IT resources. The reforms underway are enabling agencies to use information more efficiently and effectively, delivering improved mission results at lower cost.

Cloud computing offers a compelling opportunity to substantially improve the efficiency, agility and performance of the federal information technology portfolio. It allows agencies to pay only for the resources they use in response to fluctuating demand, avoid the expenses of building and maintaining costly IT infrastructure, and control the appropriate level of security for data and applications. Cloud computing is also a key technology for achieving cost effective IT. In fact, agencies have already started to realize numerous benefits as they begin to adopt cloud computing across their programs. These include cost reduction, faster deployment of systems and applications, increased productivity, greater flexibility and scalability and improved self-service capabilities. As agencies consolidate and virtualize their data centers, cloud provides an ideal path forward to achieve needed results while substantially lowering costs – an essential focus given federal budget constraints.

GSA is playing a leadership role in facilitating easy access to cloud-based solutions from
commercial providers that meet federal requirements, enhancing agencies’ capacity to analyze viable cloud computing options that meet their business and technology modernization needs, and reducing barriers to safe and secure cloud computing. We are developing new cloud computing procurement options with proven solutions that leverage the government’s buying power, ensuring effective cloud security and standards are in place to lower risk, and identifying and leveraging government-wide uses of cloud computing solutions such as email.

These are highlighted on our web page Info.Apps.gov, which provides useful information about cloud computing and available solutions. The Administration’s efforts to apply rigor to information technology management and foster cloud adoption is framed by several key guidance documents and policies, including the OMB 25 Point Implementation Plan to Reform Federal Information Technology Management and the Federal Cloud Computing Strategy issued by the federal CIO’s office. The initiatives being implemented in response to these documents are making significant progress tackling long standing challenges in the way IT is acquired and managed. These reforms are also meeting the Administration’s goals to make government more responsive, operationally effective, cost efficient, transparent, participatory, collaborative, and innovative for the citizens it serves.

The Subcommittee asked that I address the four questions outlined below.
(1) Please provide an overview of how the General Services Administration (GSA) is
implementing the Office of Management and Budget’s (OMB) 25 Point Implementation
Plan to Reform Federal Information Technology Management, the OMB Federal Data
Center Consolidation Initiative, and the Federal Chief Information Officer’s Federal
Cloud Computing Strategy. GSA plays a central role in realizing the goals set forth in the Administration’s initiatives and strategies to reform IT management, consolidate data centers and implement cloud computing  Below are the primary initiatives underway to achieve the policy goals of Data Center Consolidation, the Cloud Computing Strategy and the specific objectives of the 25 Point Plan. Below is an overview of the work we are conducting to support specific objectives of the Federal IT Reform Strategy. Each objective of the 25 Point IT Reform Plan for which GSA is directlyresponsible is identified in bold; the specific section is in parenthesis.Complete detailed implementation plans to consolidate at least 800 data centers by 2015.

(#1)
Create a government-wide marketplace for data center availability (#2)
The Federal Data Center Consolidation Initiative (FDCCI), managed jointly by GSA and OMB, is charged with reversing the federal government’s explosive data center growth to optimize and improve efficiency of federal IT infrastructure. The FDCCI is chartered to engage with agencies, support and facilitate agency data center consolidation planning, and to provide tools to federal partners.

Under the FDCCI, GSA is accomplishing the following:
Working with a government-wide task force co-chaired by DHS and DOI that meets
monthly and includes representatives from all 24 CFO Act agencies.

Assisting agencies to maximize the return on investments for data centers to remain in
their inventory after consolidation Ensuring consistent data collection of the federal data center inventory by developing
and disseminating standard templates to collect, manage, and analyze agency data
center inventory data.

Collaborating with industry on best practices and solutions for key data center
consolidation issues. Developing a comprehensive data center Total Cost Model for agencies to use to
analyze alternative consolidation scenarios, enable data-driven decision-making for
infrastructure cost and performance optimization.

Pursuing development of a data center marketplace that would help optimize
infrastructure utilization across government by matching agencies with excess
computing capacity with those that have immediate requirements. A working group is
addressing consensus-building, requirements gathering, and other key facets necessary
to ensure the marketplace’s success. Stand up contract vehicles for secure IaaS solutions

(#4)
IT infrastructure represents a multi-billion dollar investment that requires constant maintenance, expensive technology upgrades, and dedication of valuable personnel. Agencies are faced with outdated infrastructure requiring ongoing, major investments to keep pace with growing demand and rapidly changing technology. Servers across both government and industry are highly underutilized. To address these issues, GSA’s Federal Acquisition Service (FAS) established a Blanket Purchase Agreement (BPA) with 12 companies (many with multiple partners) that offer cloud storage, computing power, and cloud-based website hosting as commodity services that enable agencies to optimize their infrastructure and achieve substantial, long-term cost savings.

Under these Infrastructure as a Service (IaaS) contracts, agencies pay only for what they need, define performance requirements, have the flexibility to respond to changing demands, benefit from commodity pricing, and are assured of secure solutions. At present, four contractors are offering services under the BPA, with the remaining completing the security authorization process. DHS has recently awarded a task order under this BPA for the consolidation and migration of its public facing websites to a cloud hosting service. Stand up contract vehicles for commodity services

(#5)
Working closely with email and collaboration experts from across government, GSA developed a government-wide contract vehicle to help agencies move email and collaboration solutions to the cloud. The Email as a Service (EaaS) BPA is an active procurement managed by FAS; responses are currently being evaluated. It will offer federal customers a streamlined procurement vehicle to commercially available cloud email solutions that best fits their agency's needs. Based on information from Forrester Research, average cost savings for agencies migrating to cloud-based email are expected to be $11/mailbox/month, $1 million in annual savings for every 7,500 users, or approximately 44% over existing on-premise email solutions.

The BPA will offer a range of email services in public, private, and highly secured clouds,
making available robust, feature-rich, secure email and collaboration service options similar to those currently being implemented at GSA, USDA, USAID, DOE, and other agencies. It can meet the needs of the 15 agencies that have identified 950,000 e-mail boxes they plan to move to the cloud under the Administration’s IT Reform effort. Launch an interactive platform for pre-RFP agency-industry collaboration

(#25)
To streamline the procurement process and enhance communication with industry, GSA is
establishing "cross-trained" program teams and improving the way requirements are defined. GSA is working to establish an interactive platform for pre-RFP agency-industry collaboration. Based on input from government and industry, alternatives for design and delivery of an online collaboration tool have been examined and rated. Candidates for the tool included existing government systems and commercial collaboration tools.

GSA not only is fostering adoption of cloud computing government-wide, but as required under the Cloud First policy, has recently completed a major cloud migration of our internal email and collaboration solution that demonstrates the significant potential of cloud solutions to achieve substantial cost savings. In approximately seven months, we moved 17,000 users to Google Apps for Government. Savings over the next five years are projected to be over $15M. Not only have we reduced costs, but we have also made significant gains in environmental sustainability – we shut down 45 servers, which is equivalent to taking 60 cars off the road. The lessons learned from our cloud implementation have been captured and are being shared with agencies across the government as they seek to achieve similar success.

2. Please provide an overview of the costs associated with implementing these plans at
GSA, and provide a description of both the short-term and long-term budgetary impacts of these changes. To date, GSA’s Federal Cloud Computing Initiative has been funded under the e-Government program administered by the Federal Chief Information Officer. In FY10 and FY11 GSA’s Federal Cloud Computing Initiative (FCCI) Program Management Office (PMO) budget of $4.8 million was allocated to five primary tasks:

Establish procurement vehicles that allow agencies to purchase IT resources as
commodities - resulting in the award of the Infrastructure as a Service (IaaS) Blanket
Purchase Agreement under GSA Schedule 70.

Address security risks in deploying government information in a cloud environment -
resulting in the development of the Federal Risk Authorization Management Program
(FedRAMP)

Establish a procurement vehicle that allows agencies to purchase cloud-based e-mail
services - resulting in the issuance of the Email as a Service (EaaS) procurement that is
currently underway

Work with agencies to consolidate their data center asset - resulting in the Federal Data
Center Consolidation Initiative that works with agencies to inventory their data center
assets and to identify targets for consolidation and optimization

Create apps.gov, an on-line storefront that provides access to over 3,000 cloud-based
products and services where agencies can research solutions, compare prices and
place on-line orders using GSA’s eBuy system.

This initial funding provided by the e-Gov Fund allowed GSA to accomplish significant results. However, there are key activities that still need to be accomplished to realize the significant, additional potential cost savings and productivity improvements that GSA can help agencies achieve. The continuation of these cost-saving initiatives is dependent on FY12 eGov Fund budget levels and decisions.

3. What cybersecurity steps is the GSA taking to protect federal data and communications in the cloud? To what extent does GSA work with NIST on the development of cybersecurity standards for federal cloud computing use?

The primary goal of the Administration’s Cloud First policy is to achieve widespread practical use of secure cloud computing to improve operational efficiency and effectiveness of government. Currently, each agency typically conducts its own security Certification and Accreditation (C&A) process for every system it acquires, leading to unnecessary expense, duplication and inconsistency. According to the 2009 FISMA report to Congress, agencies reported spending $300M on C&A activities alone. Working in close collaboration with DHS, NIST, DoD and OMB and the Federal CIO Council,
GSA is leading establishment of the Federal Authorization Risk Management Program
(FedRAMP) to accelerate adoption of secure cloud solutions by agencies across government.

Key benefits include:
Provides a single, consistent security risk assessment and authorization that can be
leveraged across agencies – an "approve once, and use often" approach

Establishes a common set of baseline security assessment and continuous monitoring
requirements using NIST standards

Approves and makes available qualified, independent third party assessors, ensuring
consistent assessment and accreditation of cloud solutions and based on NIST’s proven
conformity assessment approach

Shifts risk management from annual reporting under FISMA to more robust continuous
monitoring, providing real-time detection and mitigation of persistent vulnerabilities and
security incidents.

There is strong support and demand for FedRAMP from agencies seeking to adopt cloud
services, as required by the Administration’s Cloud First policy, and from industry. FedRAMP's processes, policy, governance, and technical security standards have all been arrived at via a consensus-based approach that includes agencies’ Chief Information Security Officers, the Federal CIO Council, National Institute of Standards and Technology (NIST), Department of Homeland Security (DHS), Department of Defense (DoD), National Security Agency (NSA), and numerous industry organizations. This new program is expected to be initially launched this Fall.

4. What other challenges face federal agencies in adopting cloud computing services,
and what steps is the GSA taking to overcome these challenges?
Considerable progress has been made in adopting successful cloud solutions. Cloud computing’ is now an accepted part of the federal IT lexicon. However, there continues to be a need for more thorough understanding of the cloud’s deployment models, unique security implications, and data management challenges. Agency executives should not focus on cloud technology itself; rather, they should focus on the desired outcome driving the need for cloud adoption.

CIOs need to work with their line of business executives and program managers to develop and deploy effective cloud roadmaps that address pressing agency mission needs, taking into account costs savings and expected performance improvements. Agencies should analyze business needs and identify cloud solutions that best fit their requirements by making cloud adoption part of an overall IT portfolio management and sourcing strategy. NIST is currently working on a Cloud Computing Technology Roadmap that will be released in November. If linked to cloud provider products and services, it would greatly assist in this decision-making.

Cultural resistance is also a major challenge. Cloud adoption requires moving away from
managing physical assets to buying services. As GSA’s own experience has shown, these
issues can be effectively addressed. Critical success factors include robust communication,
practical training and emphasis on the benefits of cloud, and especially on the control agencies gain by buying what they need and defining performance metrics that are tied to desired performance results. GSA found that having a group of early adopters fostered buy-in and enthusiasm, and provided a ready corps of skilled users.

Conclusion
Mr. Chairman, General Services Administration is leading the Administration’s charge to make government more open, transparent, and effective for the citizens it serves. In our increasingly data-centric and network-based world and workplace, effective and efficient procurement and implementation of information technology will be paramount in making sure the federal government closes the IT performance gap between it and the private sector. Cloud computing and data center consolidation are key initiatives that should be pursued aggressively to achieve needed costs savings and improve effectiveness of government operations.

Thank you for the opportunity to appear today. I look forward to answering questions from you and members of the Subcommittee.

GENERAL SERVICES ADMINISTRATOR ADDRESSES "CULTURE OF WASTEFUL SPENDING" BEFORE CONGRESSIONAL COMMITTEE

FROM:  U.S. GENERAL SERVICES ADMINISTRATION
Hearing on “Addressing GSA's Culture of Wasteful Spending”
DANIEL TANGHERLINI
ACTING ADMINISTRATOR
U.S. GENERAL SERVICES ADMINISTRATION
BEFORE THE COMMITTEE ON
OVERSIGHT AND GOVERNMENT REFORM
"ADDRESSING GSA'S CULTURE OF WASTEFUL SPENDING"
April 16, 2012
Good afternoon Chairman Issa, Ranking Member Cummings, and Members of the Committee.  My name is Daniel Tangherlini, and I am the Acting Administrator of the U.S. General Services Administration (GSA).

I appreciate the opportunity to come before the committee today. First and foremost, I want to state my agreement with the President that the waste and abuse outlined in the Inspector General’s (IG) report is an outrage and completely antithetical to the goals and directives of this Administration.  We have taken strong action against those officials who are responsible and will continue to do so where appropriate.  We are taking steps to improve internal controls and oversight to ensure this never happens again.  I look forward to working in partnership with this Committee to ensure there is full accountability for these activities so that we can begin to restore the trust of the American people.

At the same time I am committed to renewing GSA’s focus on its core mission: saving taxpayers’ money by efficiently procuring supplies, services, and real estate, and effectively disposing of unneeded government property. There is a powerful value proposition to a single agency dedicated to this work, especially in these fiscal times, and we need to ensure we get back to basics and conduct this work better than ever.

Promoting Efficiency and Reducing Costs –
The shocking activities and violations outlined in the IG report run counter to every goal of this Administration. The Administration makes cutting costs and improving the efficiency of the Federal government a top priority. On June 13, 2011, the President issued Executive Order (E.O.) 13576, “Delivering an Efficient, Effective, and Accountable Government.” This EO emphasized the importance of eliminating waste and improving efficiency, establishing the Government Accountability and Transparency Board to enhance transparency of Federal spending and advance efforts to detect and remediate fraud, waste, and abuse.

The President further established the goals of this Administration in E.O. 13589, “Promoting Efficient Spending,” which set clear reduction targets for travel, employee information technology devices, printing, executive fleets, promotional items, and other areas. The President’s FY 2013 budget request for GSA would achieve $49 million in savings under this EO, including $9.7 million in travel.

Holding Officials Responsible –
It is important that those responsible for the abuses outlined in the IG’s report be held accountable. We are taking aggressive action to address this issue and to ensure that such egregious actions will never occur again. We have taken a series of personnel actions, including the removal of two senior political appointees. We have also placed ten career employees on administrative leave, including five senior officials.

I intend to uphold the highest ethical standards at this agency and take any action that is necessary and appropriate. If we find any irregularities, I will immediately engage the Inspector General. As I indicated in my joint letter with GSA’s Inspector General, I intend to set a standard that complacency will not be tolerated, and waste, fraud, or abuse must be reported.

I believe this commitment is critical, not only because we owe it to the American taxpayers, but also because we owe it to the many GSA employees who conform to the highest ethical standards and deserve to be proud of the agency for which they work.

Taking Action –
I have taken a number of steps since I began my tenure on April 3, 2012 to ensure this never happens again. GSA has consolidated conference oversight in the new Office of Administrative Services, which is now responsible for:
Oversight of contracting for conference space, related activities, and amenities;
Review and approval of proposed conferences for relation to GSA mission;
Review and approval of any awards ceremonies where food is provided by the Federal government;
Review and approval of conference budgets as well as changes to those budgets;
Oversight and coordination with GSA conference/event planners and contracting officers on conference planning;

Review of travel and accommodations related to conference planning and execution;
Handling of procurement for all internal GSA conferences; and
Development of mandatory annual training for all employees regarding conference planning and attendance.
Additionally, we have cancelled the 2012 Western Regions Conference as well as a number of other conferences that only or primarily involved internal staff. To date, I have cancelled 35 conferences,1 saving taxpayers $995,686. As we put in place greater controls and oversight, we are reviewing each event to make sure that any travel is justified by a mission requirement.

We have also begun review of employee relocations at government expense, and will require all future relocations to be approved centrally by both the Chief People Officer and the Chief Financial Officer.

To strengthen internal controls, we are bringing in all Public Buildings Service regional budgets under the direct authority of GSA’s Chief Financial Officer. The autonomy of regional budget allocations is, in part, what led to this gross misuse of taxpayer funds on both the regional conference and the employee rewards program known as “Hats Off.” The additional approvals and centralized oversight are intended to mitigate the risk of these problems.

In response to concerns over spending on employee rewards programs, I have eliminated the “Hats Off” store that was operating in the Pacific Rim Region, as well as all similar GSA programs.

I am moving aggressively to recapture wasted taxpayer funds. As a first step, on April 13th, I directed that letters be sent to Bob Peck, Jeff Neely, and Robert Shepard demanding reimbursement for private, in-room receptions at the Western Regions Conference. I will pursue other fund recovery opportunities.
I am engaged in a top to bottom review of this agency. I will continue to pursue every initiative necessary to ensure this never happens again and to restore the trust of American taxpayers.

Conclusion –
The unacceptable and inappropriate activities at the Western Regions Conference stand in direct contradiction to the express goals of this agency and the Administration, and I am committed to ensuring that we take whatever steps are necessary to hold those responsible accountable and to make sure that this never happens again. At the same time, I believe that the need for a high quality GSA is more acute today than in any time in its history. We need to refocus this agency and get back to the basics: streamlining the administrative work of the Federal government to save taxpayers money.

I look forward to working with this Committee moving forward and I welcome the opportunity to answer any questions.
 Thank you.

1A conference is “a symposium, seminar, workshop, or other organized or formal meeting lasting portions of 1 or more days where people assemble to exchange information and views or explore or clarify a defined subject, problem or area of knowledge.”

GSA'S ACTING ADMINISTRATOR DAN TANGHERLINI SPEAKS BEFORE CONGRESSIONAL COMMITTEE ON OVERSIGHT/REFORM

FROM:  U.S. GENERAL SERVICES ADMINISTRATION
Statement of Acting Administrator Dan Tangherlini Before the Committee on Oversight and Government Reform
April 16, 2012
WASHINGTON – Today GSA Acting Administrator Dan Tangherlini will testify before the U.S. House of Representatives Committee on Oversight and Government Reform on the GSA Inspector General’s Report on the 2010 Western Regions Conference. Following is the statement that Acting Administrator Dan Tangherlini will submit for the record.
------------------
Good afternoon Chairman Issa, Ranking Member Cummings, and Members of the Committee.  My name is Daniel Tangherlini, and I am the Acting Administrator of the U.S. General Services Administration (GSA).

I appreciate the opportunity to come before the committee today.  First and foremost, I want to state my agreement with the President that the waste and abuse outlined in the Inspector General’s (IG) report is an outrage and completely antithetical to the goals and directives of this Administration.  We have taken strong action against those officials who are responsible and will continue to do so where appropriate.  We are taking steps to improve internal controls and oversight to ensure this never happens again.  I look forward to working in partnership with this Committee to ensure there is full accountability for these activities so that we can begin to restore the trust of the American people.

At the same time I am committed to renewing GSA’s focus on its core mission: saving taxpayers’ money by efficiently procuring supplies, services, and real estate, and effectively disposing of unneeded government property.  There is a powerful value proposition to a single agency dedicated to this work, especially in these fiscal times, and we need to ensure we get back to basics and conduct this work better than ever.

Promoting Efficiency and Reducing Costs –
The shocking activities and violations outlined in the IG report run counter to every goal of this Administration.  The Administration makes cutting costs and improving the efficiency of the Federal government a top priority.  On June 13, 2011, the President issued Executive Order (E.O.) 13576, “Delivering an Efficient, Effective, and Accountable Government.”  This EO emphasized the importance of eliminating waste and improving efficiency, establishing the Government Accountability and Transparency Board to enhance transparency of Federal spending and advance efforts to detect and remediate fraud, waste, and abuse.

The President further established the goals of this Administration in E.O. 13589, “Promoting Efficient Spending,” which set clear reduction targets for travel, employee information technology devices, printing, executive fleets, promotional items, and other areas.  The President’s FY 2013 budget request for GSA would achieve $49 million in savings under this EO, including $9.7 million in travel.

Holding Officials Responsible –
It is important that those responsible for the abuses outlined in the IG’s report be held accountable.  We are taking aggressive action to address this issue and to ensure that such egregious actions will never occur again.  We have taken a series of personnel actions, including the removal of two senior political appointees.  We have also placed ten career employees on administrative leave, including five senior officials.

I intend to uphold the highest ethical standards at this agency and take any action that is necessary and appropriate.  If we find any irregularities, I will immediately engage the Inspector General.  As I indicated in my joint letter with GSA’s Inspector General, I intend to set a standard that complacency will not be tolerated, and waste, fraud, or abuse must be reported.

I believe this commitment is critical, not only because we owe it to the American taxpayers, but also because we owe it to the many GSA employees who conform to the highest ethical standards and deserve to be proud of the agency for which they work.

Taking Action –
I have taken a number of steps since I began my tenure on April 3, 2012  to ensure this never happens again.  GSA has consolidated conference oversight in the new Office of Administrative Services, which is now responsible for:
 Oversight of contracting for conference space, related activities, and amenities;
 Review and approval of proposed conferences for relation to GSA mission;
 Review and approval of any awards ceremonies where food is provided by the Federal government;
 Review and approval of conference budgets as well as changes to those budgets;
 Oversight and coordination with GSA conference/event planners and contracting officers on conference planning;

 Review of travel and accommodations related to conference planning and execution;
 Handling of procurement for all internal GSA conferences; and
 Development of mandatory annual training for all employees regarding conference planning and attendance

Additionally, we have cancelled the 2012 Western Regions Conference as well as a number of other conferences that only or primarily involved internal staff.  To date, I have cancelled 35 conferences*, saving taxpayers $995,686.  As we put in place greater controls and oversight, we are reviewing each event to make sure that any travel is justified by a mission requirement.

We have also begun review of employee relocations at government expense, and will require all future relocations to be approved centrally by both the Chief People Officer and the Chief Financial Officer.

To strengthen internal controls, we are bringing in all Public Buildings Service regional budgets under the direct authority of GSA’s Chief Financial Officer.  The autonomy of regional budget allocations is, in part, what led to this gross misuse of taxpayer funds on both the regional conference and the employee rewards program known as “Hats Off.” The additional approvals and centralized oversight are intended to mitigate the risk of these problems.

In response to concerns over spending on employee rewards programs, I have eliminated the “Hats Off” store that was operating in the Pacific Rim Region, as well as all similar GSA programs.
I am moving aggressively to recapture wasted taxpayer funds.  As a first step, on April 13th, I directed that letters be sent to Bob Peck, Jeff Neely, and Robert Shepard demanding reimbursement for private, in-room receptions at the Western Regions Conference.  I will pursue other fund recovery opportunities.

I am engaged in a top to bottom review of this agency. I will continue to pursue every initiative necessary to ensure this never happens again and to restore the trust of American taxpayers.

Conclusion –
The unacceptable and inappropriate activities at the Western Regions Conference stand in direct contradiction to the express goals of this agency and the Administration, and I am committed to ensuring that we take whatever steps are necessary to hold those responsible accountable and to make sure that this never happens again.  At the same time, I believe that the need for a high quality GSA is more acute today than in any time in its history. We need to refocus this agency and get back to the basics: streamlining the administrative work of the Federal government to save taxpayers money.

I look forward to working with this Committee moving forward and I welcome the opportunity to answer any questions.  Thank you.

*A conference is “a symposium, seminar, workshop, or other organized or formal meeting lasting portions of 1 or more days where people assemble to exchange information and views or explore or clarify a defined subject, problem or area of knowledge.”