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U.S. General Services Administration -- Is the Taxpayer getting the best deal?

July 26, 2005

The General Services Administration (GSA) is charging America a fee of $20 billion for its service of purchasing $66 billion worth of goods and services for the government – that’s a 29% middle-man fee.

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Major Findings:

• There are no incentives for Federal contracting officers to get the lowest price for their purchases.
• Most government procurement is done outside of GSA because its procedures are onerous.
• The current system lacks transparency and adds layers of bureaucracy to the Federal government.

These Findings Demand a Response:

• Radically reform or eliminate this high-priced middle-man with modern procurement practices and services developed in the private sector.
• Create incentives for Federal contracting officers to get the lowest price for goods and services.
• Use every available audit tool to ensure lowest prices.
• Get the taxpayers a better deal on the federal agencies purchase  – reduce middle-man rates from 5-8% to closer to 2-3%.