GSA reorganization sparks internal anxiety

As the General Services Administration sorts out the details of its reorganization, senior managers and vendors have expressed concern and confusion over the impact the changes will have on them, while agency clients have said the changes are unlikely to increase the amount of business they do with GSA.

The reorganization combines the Federal Technology Service and Federal Supply Service into a single unit, the Federal Acquisition Service. GSA announced details of the plan in August, but has not filled many of the newly created management positions or announced the locations of some of the new offices.

The recent departure of top officials, including Donna Bennett, former FSS commissioner, Neal Fox, former assistant commissioner for commercial acquisition, and Sandra Bates, former commissioner of FTS, also has contributed to the sense of confusion.

In interviews with Government Executive, former and current senior managers at GSA said they were anxious about the impact the reorganization will have on their careers as well as the agency's ability to serve its customers.

"People are worried that they're going to get demoted," said one senior manager, who asked not to be identified.

Barbara Shelton, the acting commissioner of FAS, said GSA is doing what it can to alleviate that anxiety. "I believe that there are some senior managers who may be concerned," she said, adding that not everyone has been informed about where they will fit into the new organization.

At the same time, Shelton is trying to satisfy agency concerns, which include GSA's fee structure and contract management. The inspectors general at the Defense Department, GSA's largest customer, and GSA released have reports in the last year documenting violations of federal acquisition regulations at FTS.

Shelton said GSA has listened to agency concerns and responded to them. "We expect for more agencies to see that GSA is the best value for the way in which acquisitions are done in the federal government," she said.

Some agencies seem to be holding back their support of GSA. The Postal Service said GSA's reorganization will not lead them to buy more through the agency, but that the service expects to make more purchases on its own because it can save money that way. Homeland Security recently awarded a large contract directly to DHL, the express shipping company, instead of going through GSA. Treasury decided in August to run its own telecom procurement instead of using GSA's pending Networx offering.

Shelton said "concern" is the wrong word to describe her feelings about those recent awards. She said GSA now is working more closely with DHS, and that GSA would welcome Treasury "with open arms" if it changes its mind and decides to use Networx.

Suppliers also have expressed the desire for more information from GSA. Chuck Viator, a vice president for the information technology company Rivulet Communications Inc., based in Portsmouth, N.H., said he is still not sure how the reorganization will affect his company. "With all this change, how are we going to do business with GSA going forward? I don't think that's particularly clear," he said. He said he would like more details regarding the reorganization and its impact on vendors.

GSA has held multiple meetings with members of industry to gather input. "We answered most of their questions during those meetings," Shelton said. "In the organizational design, it's pretty clear the direct changes to industry will be minimal," she added.

Shelton said GSA likely will announce more details of the reorganization, but she does not know when. "We're committed," she said, "to letting people know what it is that we're doing."