GSA SAYS 'CITY PAIR PROGRAM' SAVES GOVERNMENT BILLIONS

FROM:  U.S. GENERAL SERVICES ADMINISTRATION

City Pair Program Saves Billions for Federal Agencies
Air travel program leverages government’s buying power to save over $2 billion annually
August 16, 2013

WASHINGTON — Today, the U.S. General Services Administration announced the award of its cost-saving air travel contracts for 2014, which will save taxpayers approximately $2.2 billion a year. Under GSA’s City Pair Program, airfare rates for the federal government’s official travel are pre-negotiated and offer up to 59 percent off of commercial airfare for the federal workforce. In addition to offering considerable discounts, the City Pair Program allows the federal government additional flexibility in how it books air travel.

“GSA’s mission is to help federal agencies save money, and that includes getting the best price for government travelers," said Tom Sharpe, Jr. Commissioner of GSA’s Federal Acquisition Service. "By leveraging the government’s buying power, we are able to help federal agencies reduce travel costs and save billions of taxpayer dollars.”

GSA’s data-driven analytical approach to managing the program and negotiating with the carriers is driving greater cost savings and performance for the City Pair Program and the overall rates for 2014 are consistently below corporate benchmark rates in all top markets.

In 2014, the City Pair Program is expanding its reach, increasing available routes by 25 percent to more than 6,300 destinations.  Average one-way ticket prices for domestic flights have dropped four percent and international rates have dropped seven percent. Additionally, non-stop flights have been expanded by 20 percent to 1,887 routes.

For the upcoming year, the City Pair Program retained all of the same benefits which contribute to greater savings, beyond ticket cost, for government. The program gives federal travelers the flexibility to book one- way, multi-leg, and round-trip airfare at the lowest cost possible, while retaining the ability to adjust or cancel flights at no additional cost to the government.

Another positive trend for federal travelers is that many secondary markets that were not awarded in 2013, because lower commercial fares were readily available, were awarded and will be available in 2014. Following the 2013 decision to not award the secondary markets, instead directing federal travelers to the lower commercially-available rates, the airlines came back to GSA with competitive pricing in those markets this year, allowing for travelers to book lowest rates and receive the benefits associated with booking through City Pairs.

Ten major U.S. carriers were awarded contracts. When awarding City Pair contracts to airlines, GSA considers a number of criteria, including availability of non-stop service, total number of flights, flight availability, average elapsed flight time, availability of jet service, and price of service. The program also offers dual fare markets to provide flexibility for immediate travel and discounted fares for booking flights early.  The 2014 rates will become effective October 1, 2013.

GSA CHIEF ADMINISTRATIVE SERVICES OFFICER TESTIFIES BEFORE HOUSE SUBCOMMITTEE

FROM: U.S. GENERAL SERVICES ADMINISTRATION
Metzler Testimony at House Subcommittee
Testimony of Cynthia Metzler
Chief Administrative Services Officer, U.S. General Services Administration
Before the
Subcommittee on the Federal Workforce, U.S. Postal Service and the Census
House Committee on Oversight and Government Reform
February 27th, 2012

Good morning Chairman Farenthold, Ranking Member Lynch, and Members of the Subcommittee. My name is Cynthia Metzler, and I am the Chief Administrative Services Officer of the U.S. General Services Administration (GSA). In that capacity, I promote efficiency within the agency and, in part, ensure that our travel and conference policies have strong controls, effective oversight, and focus on reducing costs.


Under new leadership, GSA has refocused on its mission of delivering the best value in real estate, acquisition, and technology service to government and the American people. GSA has instituted a number of reforms internally to meet this goal. To streamline and simplify our services, make GSA more efficient, and provide greater accountability and transparency, GSA is consolidating many of our central services. The Acting Administrator has put in place new leadership in the Public Buildings Service and the Federal Acquisition Service to reinvigorate our business lines and continue our reform efforts. To lead the consolidation of GSA’s financial services and to stress the importance of strong oversight of GSA’s finances, we have hired a new Chief Financial Officer. Last year, to ensure taxpayer funds were being used wisely, we cut
Senior Executive Service bonuses substantially and put in place a targeted hiring freeze across the agency. And by engaging GSA’s staff through the "Great Ideas Hunt," we have put in place simple reforms that are anticipated to save taxpayers an estimated $5.5 million per year.


GSA’s travel policies have also been reformed to reflect this mission. GSA has put in place strict internal travel and conference policies to reduce costs, provide strong oversight, and ensure that travel only occurs when necessary. Additionally, as part of our agency’s mission to serve our Federal partners and deliver savings, we are providing tools to allow agencies to better manage their travel and conference spending and we are working with OMB on changes to government-wide travel policies to increase efficiency and effectiveness, reduce costs, and incorporate industry best practices. These efforts are in line with the Administration’s aim to promote cost reduction across a wide range of administrative expenses, particularly travel and conferences.


GSA’s Policies –
GSA has instituted rigorous new controls and oversight to ensure that all proposed travel and conference expenses are cost-effective, serve legitimate mission needs, and have appropriate levels of review.

Travel can only be approved when all other alternatives, including video-conferencing, teleconferencing, and webinars have been considered. Additionally, travel must be for work related to GSA’s essential mission, such as building inspections or conducting litigation. To ensure all travel requests received appropriate review, GSA has instituted policies that limit the use of blanket authorizations and require that travel is authorized in advance on a trip-by-trip basis. And to make sure that what is often the most costly travel is only done for legitimate purposes, any international travel request must be approved by the Deputy Administrator.

Conferences can no longer be held without submission of a detailed justification, a proposed budget, and review and approval from multiple divisions. At minimum, this means any conference, no matter the proposed cost, is reviewed both by the head of the relevant division and GSA’s Chief Administrative Services Officer (CASO). In line with Administration guidance, when the proposed cost of a conference is more than $100,000, the Deputy Administrator must approve it, and if a conference is more than $500,000, the Acting Administrator must approve it and document the justification for why it must be held. To ensure that we carefully scrutinize any internal management meetings, the Deputy Administrator must review and approve these regardless of cost. Additionally, even attendance at a conference requires multiple layers of
approval, including by our CASO. Employees must justify their potential attendance and outline their expenses.


GSA now requires mandatory annual online training regarding conference attendance for GSA employees through the Conference Attendance Training module. This training highlights the importance of considering cost-effective alternatives like teleconferencing, and ensures every employee understands the difference between appropriate and inappropriate expenses. Employees learn about the Federal Travel Regulations, ensuring better compliance. To date, more than 11,000 GSA employees have completed the training, and we have presented the training to other agencies to either incorporate into their own training courses or to use our web capability for their own agency use.

In line with the Administration’s policies, we also have provided greater transparency into our conference expenses. We have posted all approved, agency-sponsored conferences held last year with a cost of over $100,000 on a publically available website that includes the budget and a justification for why the conference was held. We are contemplating ways to provide additional transparency into our travel and conference expenses.

All told, these changes under our new leadership have dramatically reduced costs, improved oversight, and made certain that travel and conference expenses are fully justified and missionrelated. Through the end of Fiscal Year 2012 alone, these policies have helped to save more than $28 million in travel and transportation costs.


Government-Wide Efforts –
This Administration has been clear about the need to cut wasteful spending and increase efficiency. Executive Order 13589, "Promoting Efficient Spending," directed agencies to cut waste in Federal government spending and identify opportunities to promote efficient and effective spending, including a reduction in conference and travel costs. This EO was further translated into guidance with OMB Memorandum M-12-12, "Promoting Efficient Spending to Support Agency Operations," which provided policies and practices to achieve these efficiencies. Among other items, this Memorandum directed agencies to reduce their travel
expenses by 30 percent off a Fiscal Year 2010 baseline, require the approval of senior officials for conferences with expenses over $100,000, prohibit conferences with expenses of more than $500,000 (unless the agency’s head provides a waiver finding that exceptional circumstances exist whereby spending in excess of $500,000 on a single conference is the most cost-effective option to achieve a compelling purpose), and increase transparency on these costs.The requirements on travel and conferences have already been implemented within GSA, and are outlined in detail above. To further these efforts government-wide, GSA has also looked for ways we can assist agencies by providing tools to help them better manage their travel and conference costs.


To help agencies prioritize use of Federally-owned space, GSA has created an online tool known as "Federal Meeting Facilities," which identifies Federal agencies that have conference and meeting space for agencies’ use. Conducting business and hosting conferences in space controlled by the Federal government is one way to reduce travel and related costs. The tool allows agencies to search and sort through a variety of different offerings, with contact information for the agency point of contact to work with to secure the space.


Additionally, GSA intends to enhance our e-Gov travel system through the award of ETS2 to help further consolidate online travel booking services, driving additional cost-savings and efficiencies while delivering improved accountability and reducing waste. ETS2 will be leveraged to standardize conference spend reporting to meet the requirements of OMB to provide greater transparency, as well as internal control enhancements that will allow agencies to track, monitor, and control conference attendee numbers and dollars spent.


GSA is also utilizing data to allow agencies to make better decisions about where to host conferences, when they are determined to be needed. GSA’s Conference Planning Tool compares potential destinations by major cost drivers, such as airfare and per diem, enabling agencies to make data-backed decisions on where meetings should be held. GSA is training administrative officers in over 20 Federal agencies on how to identify low cost destinations and venues for conferences and meetings.As part of this effort, GSA is also utilizing its unique leverage, in coordination with the Office of Management and Budget (OMB) and the Department of Defense (DOD), to help achieve savings through government-wide travel policies. As a first step, GSA froze the Federal per diem travel reimbursement rates, keeping FY13 reimbursement rates at FY12 levels. This will result in an anticipated $20 million in avoided costs in FY13, helping to meet the Administration’s directives to reduce government-wide travel costs.

Additionally, GSA is proposing to eliminate what is known as the conference lodging allowance. This allows travelers attending a conference to exceed the maximum lodging per diem rate by up to 25 percent when authorized by the hosting agency or by the traveler's agency if a conference is hosted by a private party. We have already taken away this provision at GSA, and are currently following the process to eliminate this provision government-wide.

Finally, GSA is interested in finding ways to further reduce the government’s travel costs longterm. Last year, we announced the formation of a Government-Wide Travel Advisory Committee (GTAC). The GTAC’s purpose is to review existing travel policies, processes, and procedures to determine ways agencies can achieve their mission-related travel needs at the lowest possible cost. To ensure we get input from all relevant stakeholders, the Committee’s members will be chosen from the travel industry, local and state governments, travel and convention bureaus, and representatives from corporations and the Federal Government. The GTAC will provide advice and recommendations for improvements to increase travel efficiency and effectiveness, reduce costs, and incorporate industry best practices. To ensure
transparency on how these recommendations are formulated, Committee business will be posted publically, in line with the rules for Federal Advisory Committees.

In sum, GSA believes that these government-wide efforts will result in significant savings for government and the American people.


Conclusion –
The Administration is focused on improving the effectiveness and efficiency of the government, including reducing travel and conference costs. GSA is committed to helping with those efforts. We have already taken swift action on GSA’s internal policies, provided tools to other agencies to help them make better travel and conference spending decisions, and are working with OMB and DOD on broader reforms that would result in even greater savings long-term.

GSA is fully dedicated to its renewed mission of delivering the best value in real estate, acquisition, and technology service to government and the American people. I appreciate the opportunity to be here today and I welcome any questions you have.

GSA ANNOUNCES NEW CLOUD SECRUITY AUTHORIZATION PROCESS TO SAVE MONEY

Photo Credit:  GSA

FROM: U.S. GENERAL SERVICES ADMINISTRATION

GSA Announces First FedRAMP Provisional Cloud Security Authorizations
FedRAMP Joint Authorization Board’s first provisional authorization gives agencies a "do once, use many times" framework that saves cost, time, and staff

WASHINGTON -- Today, the U.S. General Services Administration announced that the Federal Risk and Authorization Management Program (FedRAMP) has issued the first Joint Authorization Board (JAB) approved provisional cloud security authorization to Autonomic Resources LLC. The FedRAMP Joint Authorization Board is comprised of the Chief Information Officers from GSA and the Departments of Defense and Homeland Security.

FedRAMP is a standardized approach to cloud security assessments, authorization, and monitoring that will save the government money, time, and staff by eliminating redundant agency security assessments. Through FedRAMP’s leveraged security authorizations, federal agencies can also drastically reduce the time it takes to adopt new IT capabilities.

"The FedRAMP provisional authorization process sets a rigorous certification and accreditation bar for cloud service providers. By using FedRAMP and eliminating redundant security assessments, agencies can save an estimated $200,000 per authorization," said Dave McClure, Associate Administrator of GSA’s Office of Citizen Services and Innovative Technologies. "This innovative collaboration with industry will lead to a common and more effective and efficient security authorization process government-wide."

In order to receive this provisional authorization, Autonomic Resources documented and fully implemented the FedRAMP security controls on their cloud services offerings. In addition, they had an independent FedRAMP accredited Third Party Assessment Organization (3PAO) audit these implementations. Now, Autonomic Resources’ system is provisionally authorized to securely contain Federal information at a moderate Federal Information Security Management Act level of security. Agencies will be able to review the full provisional authorization package as well as the independent assessment conducted by a FedRAMP-accredited 3PAO for their own agency specific security authorizations. The JAB is expected to issue additional ATOs in early 2013 and announcements will be made as the authorizations are granted.

Autonomic Resources LLC is a certified 8a small business from Cary, North Carolina offering Infrastructure as a Service capabilities for federal agencies. Their independent assessment was completed by Veris Group, a FedRAMP accredited 3PAO.

U.S. FEDERAL TRAVEL REIMBURSEMENT RATES WILL NOT BE RAISED IN FY 2013

FROM: U.S. GENERAL SERVICES ADMINISTRATION

GSA Freezes Federal Travel Reimbursement Rates
Per Diem Rates for Fiscal Year 2013 Remain at 2012 Levels to cut costs
Aug. 14, 2012
WASHINGTON -- Today, the U.S. General Services Administration (GSA) announced it will set government-wide per diem travel reimbursement rates for fiscal year (FY) 2013 at current 2012 levels. The action will help federal agencies meet the Obama Administration's directives to reduce travel costs government-wide. GSA sets the federal government’s reimbursement rates for lodging, meals, and incidentals for federal employees’ official government travel. Freezing the federal travel reimbursement rates will save an estimated $20 million in avoided costs in FY 2013.

This action supports an Office of Management and Budget memorandum, directing federal agencies to decrease all travel spending in FY 2013 by 30 percent compared to FY 2010. In addition, as part of Acting Administrator Dan Tangherlini’s ongoing top-to-bottom review of GSA operations, freezing per diem rates is one of several measures the administrator has taken to ensure the agency is closely evaluating travel spending.

"GSA is undergoing a rigorous review process to find ways in which we can streamline agency operations and save money across the government," said Tangherlini. "By keeping per diem rates at current levels, we are supporting federal agencies in controlling costs and ensuring that taxpayer dollars are used wisely."

GENERAL SERVICES ADMINISTRATOR DAN TANGHERLINI'S REMARKS REGARDING NEW NOAA CENTER

FROM: U.S. GENERAL SERVICES ADMINISTRATION
 
Tangherlini Says New NOAA Center Represents Government’s Commitment to Sustainable Practices
Remarks by
Dan Tangherlini
U.S. General Services Administration
Opening of the NOAA Center for Weather and Climate Prediction
University of Maryland, College Park
October 15, 2012

Ladies and Gentlemen, on behalf of everyone who has worked on this project at GSA, it is a pleasure to be here today. We all know how important it is to know the weather when you walk out the door in the morning, but I don’t think that I realized just how important it is to understand the effects of weather until I worked for the DC Department of Transportation.

In that kind of an environment, an accurate forecast is about more than whether or not you need an umbrella. It’s about deciding whether or not 40,000 children can get to school, some of whom rely on those schools not just for learning, but for food as well. It’s about understanding if it’s safe to send hundreds of thousands of commuters out on our roads and public transit systems.

No matter where you work, whether it is in government or in business, good data is the foundation of good decision making. And understanding the weather and the full range of its potential impact is essential information to individuals who manage some of our most important services.

This brand new, almost 270,000 square foot center will enable NOAA to provide exactly that kind of data. By consolidating 3 NOAA offices and bringing more than 800 meteorologists, scientists, data managers and other NOAA employees together in this state of the art facility, they will be able to provide the entire nation with short range and long range weather, climate, and hydrological forecasts.

At GSA, our mission is to provide federal agencies the support they need to fulfill their responsibilities to the American people at the maximum possible value. This facility gives NOAA the resources they need to do their jobs to the best of their ability. And with sustainable features such as "green roofs" bio-retention areas, recycled construction materials, highly energy efficient windows and motion based lighting systems, and a storm water cistern to collect water for irrigation, it provides value to both this agency and the taxpayers. We can all be proud of this "green crown jewel" of the M-Square Research and Technology Park. It represents this government’s commitment to sustainable practices by making the most efficient and effective use possible of natural as well as fiscal resources, which is why it is under consideration by the EPA as an "Energy Star" building.

This project would not have been possible without the dedicated work of some men and women here at GSA and I would be remiss if I did not take a moment to recognize their contributions. I want to thank Jim Dunn, the project manager; Calvin Myint, the Director of the Triangle Service Center; Martha Gates; the former Director of the Triangle Service Center, who is now retired, but handled a large amount of the work that went into this project; Mark Stadsklev; the project contracting officer; and everyone else from GSA who worked so hard to make this project a reality.

This is a great day for GSA, NOAA, and the University of Maryland. To Dr. Lubchenco and everyone at NOAA, and to Dr. Loh and everyone at the University of Maryland, congratulations on this new facility. I know you’ll put it to good use.

GSA SAVES $4 MILLION FROM GOING UP IN SMOKE

GSA supports our nations firefighters
FROM: U.S. GENERAL SERVICES ADMINISTRATION

GSA Saved Firefighters $4 Million in August

Posted by William Hicks

Federal Acquisition Service Southwest Region on September 19th, 2012

Each year, in the summer and early fall, wildfires present a very real threat to forests, wildlife, and residential areas in western and southwestern United States. A vital role of GSA’s mission is to support firefighters and save taxpayer dollars by utilizing government contracts to consolidate purchasing supplies and equipment. In August alone, GSA’s Wildland Fire Program saved an estimated $4 million on orders of equipment to support firefighters across the nation.

While wildfire activity slowed in July, national preparedness levels increased in August with large fires burning in Arizona, Idaho, Utah, Nevada, California, Montana, Oregon, Washington State, Wyoming, Oklahoma and Texas. During the single month, the Southwest Supply Operations Center, which is responsible for GSA’s Wildland Fire Program, processed over 40 orders for fire equipment and supplies for national fire caches. The supplies were shipped from the GSA Western Distribution Center in French Camp, California. In many cases, shipments are responses to immediate needs and must be processed during evening or weekend hours.

The program provides firefighters with equipment and supplies, facilitates advanced procurements in preparation for fire season, assists in standardization of fire equipment and supplies, and provides direct distribution of items to field units. Located in Fort Worth, Texas, the Southwest Supply Operations Center stocks over 250 items to assist firefighting in the task of fire suppression including water handling equipment, fire line tools, fire shelters, and protective clothing. As of early September, sales of equipment in the region totaled $38.4 million, which is estimated to have saved firefighters $13 million in cost-savings.

GSA also provides support to state and local governments during times of emergency through the use of government-wide contracts with commercial firms that are designed to save time and money in the procurement process. The use of these contracts, referred to as "schedules," provides access to millions of commercial products and services at volume discount pricing.

GSA’s Office of Emergency Response and Recovery provides the overall logistics support for disasters and manages our role in the Emergency Support Functions as part of FEMA’s National Response Framework. They are GSA’s first responders and "boots on the ground" within hours of an event. In addition to wildfires, GSA provides support during hurricanes, tornados, floods, earthquakes and other man-made or natural disasters.

GSA ESTIMATES CLOUD MIGRATING EMAIL ACCOUNTS WILL SAVE $15 MILLION

FROM: U.S. GENERAL SERVICES ADMINISTRATION

Creating Comprehensive Cloud Solutions
Posted by Mary Davie, Assistant Commissioner, Office of Integrated Technology Services on September 12th, 2012
Recently GSA announced the availability of our cloud email solution,
the Email as a Service (EaaS) Blanket Purchase Agreements (BPA), which will allow agencies to order pre-approved cloud based tools for email, office automation, and electronic records management, as well as the migration and integration services necessary for a swift transition leading to rapid savings. The BPAs offer government recurring purchasing options at a reduced cost that are also convenient and efficient.

Cloud based email services support the Obama Administration’s efforts to bring cloud services into the federal government and reduce federal data centers, which save taxpayer dollars. 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. Everything agencies need to move to the cloud is available through GSA.

Cloud IT represents an innovative way for government to do more with less at a time when federal budgets are shrinking. Agencies can leverage cloud services to become more efficient. We estimate that agencies that use cloud based email will save 50 percent, about $1 million, annually for every 7,500 users migrated. Last year GSA was the first federal agency to make the move to cloud migrating 17,000 email accounts, saving $2 million to date, with an estimated savings of $15 million over five years.

What makes EaaS even more exciting is that it will leverage GSA’s innovative security program, Federal Risk Authorization Management Program (FedRAMP), which uses a "do once, use many times" approach to save agencies time and money by providing a standardized approach to security assessment, authorization, and continuous monitoring.
These new BPAs are the latest cloud offering from GSA, however, we have been working in collaboration with government and industry for years to provide government agencies with a comprehensivecloud solutions portfolio for use by government agencies to save millions of taxpayer dollars. In fact, GSA’s history of providing cloud solutions dates back to 2009.
The move to the cloud has not been easy and there have been some growing pains in the process for both government and private industry providers. Government is experiencing slower migrations to the cloud than anticipated and industry is learning what it takes to meet government mandated security controls. Transitioning to cloud IT is a major shift in the way government conducts business, which means that we are constantly learning lessons and making improvements. And out of those lessons we get great solutions, like FedRAMP, which will make sure that every agency, no matter their mission, can rely on the security of their cloud solutions; and the millions spent by agencies conducting their own security assessments can be avoided.

GSA views technology, specifically cloud technology, as a primary driver to transform how government works while saving millions of taxpayer dollars and driving efficient collaboration. We envision a great government through technology and cloud IT is helping us take a giant leap in that direction.

GSA ASSERTS TRAVEL PROGRAM WILL SAVE ALMOST $6 BILLION

FROM: U.S. GENERAL SERVICES ADMINISTRATION
Travel Program Saves Billions for Federal Agencies
Air Travel program leverages government’s buying power to save nearly $6 billion annually

August 9, 2012
WASHINGTON — Today, the U.S. General Services Administration announced the award of its cost-saving air travel contracts for 2013, which save taxpayers an estimated $5.9 billion a year. Under GSA’s City Pairs Program, airfare rates for the federal government’s official travel are pre-negotiated and offer up to 73 percent off of commercial airfare for the federal workforce. In addition to offering considerable discounts, the City Pairs Program allows the federal government additional flexibility in how it books air travel.
　
"GSA’s mission is to help federal agencies save money, and that includes getting the best price for government travelers," said Mary Davie, Acting Commissioner of GSA’s Federal Acquisition Service. "By leveraging the government’s buying power, we are able to maximize cost-savings for federal agencies and save taxpayer dollars."
　
The City Pairs Program establishes standard airfare rates between cities where the federal workforce typically travels, and these pre-negotiated rates save the government money. GSA is able to negotiate best-value pricing for the government by using travel data. All major U.S. carriers participate in the City Pairs Program. The 2013 rates will become effective October 1, 2012.
　
For fiscal year 2013 the City Pairs Program retained all of the same benefits, which save the federal government on commercial travel rates. The program gives federal travelers the flexibility to book one- way, multileg, and round-trip airfare at the lowest cost possible, while retaining the ability to adjust or cancel flights at no additional cost to the government.
　
When awarding City Pairs contracts to airlines, GSA considers a number of criteria, including availability of nonstop service, total number of flights, flight availability, average elapsed flight time, and price of service. The program also offers dual fare markets to provide flexibility for immediate travel and discounted fares for booking flights early.

GENERAL SERVICES ADMINISTRATION REFORM ISSUES

FROM: U.S. GENERAL SERVICES ADMINISTRATION

CYNTHIA METZLER
CHIEF ADMINISTRATIVE SERVICES OFFICER
U.S. GENERAL SERVICES ADMINISTRATION
BEFORE THE HOUSE COMMITTEE
ON TRANSPORTATION AND INFRASTRUCTURE

"GSA Reform"
August 1, 2012Good morning Chairman Mica, Ranking Member Rahall, and Members of the Committee. My name is Cynthia Metzler, and I am the Chief Administrative Services Officer of the U.S. General Services Administration (GSA). In that capacity, I coordinate internal management and support services to promote efficiency within the agency covering a wide variety of issues, including travel and conferences.

As you are aware, Acting Administrator Dan Tangherlini was not able to appear today due to a longstanding family commitment. Mr. Tangherlini reached out to the Committee to request that this hearing be rescheduled at a mutually convenient date so that he could personally appear, but was informed that the Committee was electing to proceed with today’s hearing with the awareness that the Mr. Tangherlini was unavailable. Mr. Tangherlini looks forward to continuing to work with the Committee to improve the efficiency of GSA and refocus the agency on its core mission of streamlining the administrative work of the Federal government to save money for the American taxpayer.

Given that the genesis of this hearing was the Acting Administrator’s recent referral to the Inspector General of a 2010 awards ceremony for the Federal Acquisition Service, I have come here today to outline the steps we have taken to reform our conference and travel policies to prevent waste from happening again.

As of April 2012, all travel for events, including internal GSA meetings, training, conferences, seminars, and leadership or management events, among others, was suspended.

We have consolidated oversight of conference and travel expenses in the Office of Administrative Services, which I lead.

My office reviews each and every planned future conference to make sure that these events, and any related travel, are justified.

For example:
Conferences require a business justification and the submission of a budget, and must be approved by the head of the office pursuing the conference, and myself and for those conferences with anticipated costs over $100,000, the Deputy Administrator must also approve the conference.

We have cancelled 37 previously scheduled conferences
Any travel must be essential to the mission of the agency, such as conducting litigation or performing building inspections.
Any routine travel for meetings internal to GSA requires a waiver from the Administrator or Deputy Administrator
These are only a few of the many reforms the Acting Administrator has taken to improve oversight, strengthen controls, and help to refocus the agency on its core mission. His top to bottom review of all agency operations continues, and I know he looks forward to discussing those further with you in the future.

The 2010 FAS awards ceremony is another example of what the Acting Administrator has already recognized: a pattern of misjudgment which spans several years and administrations. It must stop, and that’s why Acting Administrator Tangherlini has instituted several stringent new policies on spending to put an end to this waste.

The new leadership at GSA is committed to investigating any misuse of taxpayer dollars. When we find questionable occurrences we refer them to the Office of Inspector General, as we did in this case.

GSA has already taken a number of important steps to reform conference and travel policies within the agency. As part of the Acting Administrator’s top to bottom review of the agency, more steps will be taken to improve efficiency and save taxpayer dollars.

I

GSA SELLING EXCESS PROPERTIES VALUED AT $82 MILLION

U.S. GENERAL SERVICES ADMINISTRATION

(Right) The Georgetown Heating Plant is one of the excess properties that GSA will auction this year.

GSA to Dispose of Excess Property, Save Taxpayer DollarsOnline public auction for Moscow Federal Building begins August 7, 2012July 24, 2012
Contact: Stephanie Kenitzer, 253-931-7873
Stephanie.Kenitzer@gsa.gov

MOSCOW, IDAHO -- Today, the U.S. General Services Administration (GSA) announced
 it will begin an online auction to sell the Moscow (Idaho) Federal Building on August, 7th. Auctioning this property is part of GSA’s ongoing efforts to dispose of excess properties to save taxpayer dollars and make more efficient use of the government’s real estate assets. In the past year alone, the federal government has sold or transferred 97 excess properties valued at $82 million.

"As the federal government’s landlord, our mission includes making government more efficient and saving money by disposing of buildings and facilities that are no longer needed," said George Northcroft, Regional Administrator of GSA’s Northwest and Arctic Region. "We are working to get the best deal for the taxpayers."

The Moscow Federal Building is no longer used to its full potential and has been deemed an excess federal property. The five story office building with 107 parking spaces is located at 220 East 5th Street in Moscow, Idaho. Built in 1973, the property is located downtown near government and private offices and retail space buildings. The building also contains a U.S. Post Office. The current federal tenants will have the opportunity to remain in the building for at least two years.

The auction will begin on August 7, 2012 with a minimum bid of $300,000. Bids may be submitted at GSA's auction website at RealEstateSales.gov. GSA will host open houses on August 2nd and 9th with hourly tours at 12:00, 1:00 and 2:00 PM from the building entrance.

The starting bid amount does not represent the value of the property, but rather provides a reasonable starting point for the online auction. The government seeks to obtain fair market value for the property and reserves the right to reject any and all bids.

The Georgetown Heating Plant is one of the excess properties that GSA will auction this year.

GSA SHEDS REAL ESTATE TO SAVE MONEY

FROM:  U.S. GENERAL SERVICES ADMINISTRATION
The Georgetown Heating Plant.  Credit:  GSA
GSA Tackles Excess Property, Saves Taxpayer Dollars
Posted by Linda Chero, Acting Commissioner, GSA’s Public Building Service on June 19th, 2012
The Georgetown Heating Plant is one of the excess properties that GSA will auction this year. :  
Today, GSA’s Deputy Assistant Commissioner for Real Property Utilization and Disposal Flavio Peres updated Congress on our agency’s efforts to dispose of excess property and save taxpayer dollars. The meeting took place at the Georgetown Heating Plant in Washington, DC, which GSA will auction off this year, saving taxpayer dollars and allowing the property to be returned to productive use for the community. Auctioning this property is just one example of GSA’s ongoing efforts to better manage federal real property.  The Obama Administration is moving aggressively on disposing excess properties to save money and make more efficient use of the government’s real estate assets.

Two years ago, President Obama called on his Administration to save taxpayers billions of dollars by consolidating operations and selling excess federal properties. Recently the White House announced that agencies are on track to save $8 billion in real estate costs by the end of this year.  In fact, Agencies have already achieved more than $5.6 billion in savings, and GSA alone has contributed more than $317 million in savings so far.

In the past year alone, the federal government has sold or transferred 97 properties valued at $82 million.  GSA recently sold the Nome Federal Building in downtown Nome, Alaska, for $1.68 million.  The 27,000-square-foot, two-story building, built in 1958, will now be used as commercial office space.  At the opposite end of the country in Moscow, Maine, GSA auctioned off a 1,425 acre Cold War-era radar site for around $750,000.

GSA has been working tirelessly with all federal landholding agencies to dispose of unneeded properties and since 2002 more than 3,355 federal properties have been taken off the government’s rolls.  But more still needs to be done. Our mission at GSA is to make government more efficient and save money, and as the federal government’s landlord, we will continue to do that by working with agencies to identify and dispose of buildings and facilities that are no longer needed.

GSA SAYS IT IS MEETING ENERGY AND SUSTAINABILITY GOALS

Photo:  Windmills.  Credit:  Wikimedia.
FROM:  U.S. GENERAL SERVICES ADMINISTRATION
GSA Meets Top Energy and Sustainability Goals
Agency receives top marks on all measured sustainability goals
June 15, 2012
WASHINGTON – Today, the U.S. General Services Administration released its sustainability and energy performance scorecard for Fiscal Year 2011 showing the agency continues to cut costs through energy efficiency and reducing pollution. Using the scorecard as a benchmark, GSA will continue to identify and track the best opportunities to make further progress toward meeting its sustainability and energy performance goals. Under Executive Order 13514, President Barack Obama directed federal agencies to lead by example in clean energy and to meet a range of energy, water, pollution, and waste reduction targets.

“Making buildings more efficient, saving energy, and creating a more fuel efficient fleet is helping government to improve its environmental performance and saves taxpayer dollars,” said Acting Administrator Dan Tangherlini. “GSA is on track to meet its own sustainability goals under the Executive Order, and we are uniquely positioned to help other federal agencies meet their goals as well.”    

GSA, which owns and leases over 9,600 federal buildings nationwide, has partnered with industry to make federal buildings more energy-efficient through the use of innovative technologies such as solar panels, advanced lighting systems, geothermal technology, wind power, and low-flow plumbing systems. As a result in FY 2011, GSA reduced greenhouse gas emissions from federal buildings that it directly pays utilities for by 20.3 percent relative to its FY 2008 baseline, well ahead of its targeted reduction of 10 percent and well on its way to meeting its FY 2020 target of 28.7 percent. GSA now derives 15.8 percent of the electricity used in these facilities from renewable electricity sources, including 2.5 percent from new sources.  Additionally, GSA has reduced water intensity by nearly 13.7 percent against a target of 6 percent, and reduced energy intensity by 19.2 percent against an 18 percent target.

By purchasing more fuel-efficient vehicles, including hybrids, GSA has reduced its agency’s fleet petroleum use by 25.6 percent against a 12 percent target.
GSA also recently released a set of key skills that federal building managers and contractors need to operate federal facilities at peak efficiency. These core competencies ensure that GSA goes beyond buildings themselves to the people that operate them, working with key industry associations and other federal agencies to create a next generation facilities management workforce. Green buildings and their efficient operation are key to achieving GSA’s goal to reduce the operating costs and footprint of the federal government. Federal buildings operations personnel will be required to demonstrate these core competencies by June of 2013.

In addition to being on track to meet its own sustainability goals, GSA procures sustainable products and services to help other federal agencies meet their sustainability goals. GSA assists agencies with incorporating sustainable building practices and procuring fuel-efficient vehicles for agency-owned fleets.

GSA LOOKS TO SAVE LIGHTHOUSES AND CASH

Credit:  Wikimedia.
FROM:  U.S. GENERAL SERVICES ADMINISTRAION
GSA Seeking Stewards for 12 Historic Lighthouses
Real property disposal program saves taxpayer money, preserves the past.
WASHINGTON – Today the U.S. General Services Administration announced it is looking for caretakers of several historic lighthouses in an effort to save tax dollars while preserving the past.  As part of the National Historic Lighthouse Preservation Act program, the agency is offering 12 historic lighthouses along the Atlantic Seaboard and Great Lakes, at no cost, to eligible state or local governments, non-profit corporations, historic preservation groups, or community development organizations.  This program helps move the government towards meeting the President’s goal of cutting real estate costs by over $1.5 billion and the government is on track to save $3.5 billion by the end of the year.

"GSA has a responsibility to dispose of excess government real estate assets, including historic lighthouses,” said GSA’s Acting Commissioner of Public Buildings Linda Chero.  “Historic lighthouses are unique in that they have sentimental and tangible value as historic landmarks in local communities. Through the preservation program, GSA helps find new stewards for excess lighthouses that are no longer considered mission critical to the United States Coast Guard.”

In partnership with the U.S. Coast Guard and the National Park Service, GSA administers the federal program that conveys historic lighthouses to caretakers through the National Historic Lighthouse Preservation Act. Since enactment of this legislation in 2000, GSA has conveyed 84 lighthouses to new stewards who are required to maintain historic preservation standards for these unique properties.

Proceeds from the public sales go back into the Coast Guard’s lighthouse fund to continue preservation and maintenance of lights that are still in federal ownership.  Organizations interested in acquiring one of the lighthouses will have 60 days to submit a letter expressing interest in the property and complete a rigorous application process. If no suitable steward is identified, the lighthouses are then auctioned to the general public.

GSA will soon issue Notices of Availability for the following light stations: Ontonagon West Pierhead Light, Manistique Light, Stannard Rock Light, and Fourteen Foot Shoal Light in Michigan; Liston Rear Range Light in Delaware; American Shoal Light in Florida; Ashland Light in Wisconsin; Butler Flats Light, Graves Light, Edgartown Light in Massachusetts; and Halfway Rock Light and Boon Island Light in Maine.
To find out more information on these properties and how to submit a letter of interest, visithttp://www.nps.gov/history/maritime/nhlpa/nhlpa.htm.
Lighthouses available for public sale will be listed and auctioned at http://realestatesales.gov.

GSA REPORT RELEASED ON GREEN BUILDING CERTIFICATION SYSTEMS

FROM:  U.S. GENERAL SERVICES ADMINISTRATION
GSA Releases Initial Report on Green Building Certification Systems
WASHINGTON – Today, the U.S. General Services Administration released its review of the Green Building Certification Systems. This initial report is the first step in an extensive review process -- including a public comment period – that evaluates tools that could help federal agencies meet their goals for maintaining and constructing more sustainable and efficient buildings.  When completed, the use of updated building certification systems will help GSA’s customer agencies meet federal requirements for green construction, save taxpayer dollars and meet the goals of President Obama’s Executive Order on Federal Leadership in Environmental, Energy, and Economic Performance (EO 13514).  

The U.S. government owns and leases nearly 3.4 billion square feet of real estate and is the largest consumer of energy in the United States. The U.S. General Services Administration oversees the leasing and construction of over 9,600 buildings in the federal government building portfolio, and every five years, the agency is required to review building certification systems for the entire government under the Energy Independence Security Act. In this most recent review, more than 180 green building certification systems, tools, and standards were initially screened by an independent laboratory to determine which were most applicable for construction of new buildings, major renovations, and upgrades to existing facilities.

After the most recent evaluation of green building certification systems in April, GSA successfully narrowed the field by selecting systems that employed whole building evaluations, are available within the US market, and have third party certifications.

Three certification systems passed the screening criteria: Green Building Initiative's Green Globes, U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED), and the International Living Building Challenge. The initial findings from GSA revealed that none of the three building certification systems cover 100% of the Federal building requirements for new construction, major renovations, or existing buildings.

GSA will hold public listening sessions for members of the public to provide feedback on its review and convene an interagency review group to evaluate and make recommendations on how to guide government construction towards meeting the goals of President Obama’s sustainability executive order. The inter agency task is co-chaired by GSA, the Department of Energy and the Department of Defense. Agencies with large portfolio holdings such as the Department of State, National Park Service, Department of Veterans Affairs, and the Forest Service have also been invited to take part.  

The review group’s findings will be shared through a notice-and-comment period advertised in the Federal Register.  Following public comment, GSA, DOD, and DOE will develop formal recommendations on how green building certification systems will be used to facilitate high performance in the federal sector. GSA expects to make its final recommendation to the Secretary of Energy in Fall of 2012.
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Green Building Certification Systems
GSA is a centralized, federal procurement, property management, policy development and information provision agency, created by Congress to improve government efficiency and help federal agencies better serve the public.  In this role, GSA acquires products and services on behalf of federal agencies; plays a key role in developing and implementing governmentwide policies; provides services and solutions for the office operations of more than 1 million federal workers; and encourages a citizen-centric relationship with government by providing a single "point of entry" to the information and services citizens need in a timeframe they can appreciate.

GSA'S ACTING HEAD ADMINISTRATOR ADDRESSES "GSA'S CULTURE OF WASTEFUL SPENDING"

FROM:  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.
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