News Releases
GSA Moves Federal Supply Service Distribution Toward a Virtual PlatformGSA #9596 July 8, 1999 WASHINGTON, DC -- As part of the General Services Administration's drive toward a more efficient supply system, David J. Barram, Administrator of GSA, and Frank Pugliese, Commissioner of GSA's Federal Supply Service, today jointly announced a new program for delivering supplies to Federal agencies that includes the phased closing of the agency's distribution centers. Over the next several months, GSA will close its remaining four distribution centers and four forward supply centers as part of a continuing effort to move the agency further toward a technology-based business that can provide its customers with state-of-the-art shopping capabilities. By mid-October, the distribution center in Burlington, NJ, and four forward supply points located in Franconia, VA, Auburn, WA, Chicago, IL, and Denver, CO, will begin closing. Within the next nine to eighteen months, those will be followed by closures of distribution centers located in Stockton, CA, Palmetto, GA, and Ft. Worth, TX. The FSS Stock Program has been moving to a "virtual platform" through strategic alliances with private sector companies. The new plan accelerates this movement toward a new business model in which most supplies will be delivered directly from vendors to federal customers. Barram said, "GSA's mission is to provide total work environments to federal employees. That mission, established in 1949, is still true today, but in a competitive world with rapid innovations, we must constantly look at how we conduct our business to ensure that we're providing the best value to our federal customers and the taxpayers. By becoming even more of an e-business and creating strategic alliances with private sector partners, GSA will enter the next century as a more focused and innovative provider of choice." The distribution centers operate as part of the stock program, a business within GSA's Federal Supply Service (FSS). While FSS provides federal agencies with services and supplies worth over $17.4 billion a year, the trend in sales through the stock program has been declining since 1984. The declining sales are attributable to procurement reform, government downsizing, widespread use of GSA's purchase card, new competition by private sector "super stores," and increased use of shopping over the Internet. Like any change, initially these closures will cause disruption, as many as 1,400-2,000 GSA jobs could be directly or indirectly affected. Within the next two or three months, GSA will initiate "reductions-in-force," a process more commonly known in the federal government as a "RIF." Both Barram and Pugliese acknowledged the difficulties associated with a RIF. Barram said, "I know very well that closing the distribution centers will cause great pain and uncertainty for many GSA employees, people who have worked hard and well for many years. This change affects good GSA people in a deep and personal way." Pugliese added his pledge to create a "sensitive, career-changing transition program." Barram said that he has directed Gail Lovelace, GSA's Chief People Officer, to develop a comprehensive plan that provides counseling, training and outplacement services to affected employees. In addition, GSA will be seeking new early out and buyout authority from the Office of Management and Budget, the Office of Personnel Management and the Congress. Barram commended Pugliese and his management team for their unfailing awareness of the effects this change would have on the lives of GSA people. Barram said, "While closing this part of GSA's business is a tough decision, sales trends tell us that this is no longer a business we should be in. There's a new way to shop and FSS will continue to find new and innovative ways to bring this to our customers." Index of News Releases
Last Reviewed 8/24/2005
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