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GAO-09-230R 1 (2009-02-06)

handle is hein.gao/gaobaanmb0001 and id is 1 raw text is: ,10,G A 0 .,! = Accountability * Integrity Reliability United States Government Accountability Office Washington, DC 20548 February 6, 2009 The Honorable Mary L. Landrieu Chair The Honorable Olympia J. Snowe Ranking Member Committee on Small Business and Entrepreneurship United States Senate The Honorable John F. Kerry United States Senate Subject: GSA Global Supply's Direct Vendor Delivery Proposal Addresses Declining Office Product Sales, but Annual Reviews May Be Needed to Monitor Impact on Small Business Participation In fiscal year 2007, the General Services Administration (GSA) purchased $853 million in supplies from businesses-large and small-for its Global Supply system for subsequent resale to federal agencies. Of this amount, $194 million was for office products sold through the Global Supply Stock Program (Stock Program). The Stock Program allows federal customers to purchase thousands of products, ranging from office supplies to firefighting equipment, from two GSA distribution centers. In an effort to reduce delivery times and cut costs, GSA has worked for several years to develop a new business model for the Stock Program. In November 2008, GSA issued a solicitation for proposals that would remove one-third, or about 550, of its office supply products from the Stock Program and require businesses to ship these office products directly to GSA customers. Under the proposed Direct Vendor Delivery (DVD) Program, blanket purchase agreements (BPA) would be put in place between GSA and vendors, with the aim of allowing customers to receive additional price discounts, save time, and reduce paperwork. Small businesses and others have raised concerns about the impact of the proposed shift to DVD on small businesses' participation in office product sales. In fiscal year 2007, GSA purchased $76 million in office products from small businesses, or about 39 percent of the total purchases of office products under the Stock Program. In response to your request, this report addresses three questions: (1) What are the 'A BPA is a simplified method of filling anticipated repetitive needs for supplies or services by establishing an account with a qualified source of supply. GAO-09-230R GSA Global Supply Proposal

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