selected as our first major target area because of long neglected improvements and the large dollar expenditures. However, we plan to examine, systematically, our product line and acquisition strategies for all stock and non-stock items. This will be a continuous effort heavily founded on needs-oriented market research to ascertain both the best means of dealing with each industry and market, as well as to examine the specific needs and ordering patterns of our Federal customers. Formation of fully integrated commodity management centers, in major areas such as furniture, tools, office supplies, office equipment, and others. We now have in place two major centers -- furniture and fully accountable for performance from requirements determination through procurement, quality assurance, distribution and disposition. We plan to gradually form several additional centers. tools - Modernization of Contract Management. Our past practices in the oversight of contractor performance have left much to be desired. То remedy this we have put in place in the past year a team of 71 contract administration specialists throughout the United States to supplement our Quality Assurance Specialists. We are now giving much closer dayto-day attention to timely contract performance, as well as to on-site inspection of commodities at both source of production and in-depot stocks. Warehouse modernization and consolidation. This is an ongoing effort to reduce the large space and manpower requirements of these facilities through mechanization, and to shrink the number of depots whenever possible. We now have 16 depots after the recent closure of the Bayonne, New Jersey facility. Over time we should be able to reduce this number working in close collaboration with other Federal depot managers, particularly the Department of Defense. Modernization of our management information and computer systems. While definite progress is now in process, we still have far to go to fully automate our inventory management, requisition processing, shipping document preparation, and other activities related to our supply functions. We have a full-time staff dedicated to this effort. The outcome will be economies, more timely service to customers, and more current knowledge of workload and productivity. Workforce development. The 4,500 members of the Federal Supply Service staff must be kept fully abreast of changing technology so as to improve their knowledge and skills, and opportunities for personal growth and advancement. Working with GSA's central personnel office, career development plans are being developed for each occupational group -- and extensive training courses are being offered, with initial emphasis on contracting and contract administration. Every functional and occupational area in FSS will receive such attention. Our goal is to make the Federal Supply Service a model of best practice and competent performance in every aspect of procurement and logistic management. The Automated Data and Telecommunications Service (ADTS) Our programs in this area are designed to improve Government operations through the application of modern data processing and communication technology. Increased application of existing information processing technology can achieve cost reductions and improve productivity. In view of the foregoing, I would like to highlight some of the more significant accomplishments and initiatives of ADTS during the past year and a half. Our Federal Telecommunications System (FTS) intercity network is the largest private network in the country. It transmits voice and data calls for virtually every Federal department, agency, board and commission throughout the nation. Last year it handled almost 215 million intercity calls for about half of what they would have cost if placed on the commercial long-distance network. The cost avoidance for this program alone was over $200 million Competition in the communications business was increased about 12 years ago with an FCC decision to allow private equipment to be connected to the public telephone network. GSA is increasing to the maximum extent practical the competitive acquisition of its communications services and equipment. To date, we have competitively awarded 41 contracts for telephone systems. These contracts provide for the telephone switching equipment, instruments, operator positions, cabling and maintenance. Additionally, we have just competitively awarded a contract for 192 circuits between San Fran cisco, CA and Washington, DC. If all the contract options are exercised, the projected 10 year life cycle costs could be as much as $15 million less than our present service arrangement. On the data processing side, we recently awarded an $8.5 million teleprocessing services contract to support the Army's program for recruiting and re-enlisting military personnel. This application for existing technology, combined with the terms and conditions of the new contract, is projected to cost about $24 million less over the next 5 years than the current teleprocessing arrangement. Another significant accomplishment is the estimated $31.5 million contract we awarded for computer disk subsystems. We estimate a cost avoidance of over $11 million will result by Federal agencies acquiring disk subsystems at prices under this contract, rather than normal commercial prices. Ordering against this contract also will be speedier for agencies than following the usual, more lengthy, procurement process. We expect the contract to increase productivity from Federal ADP facilities, as well as reduce the amount of equipment and space needed, all of which should lower costs. I would also like to mention we have taken a major step toward consolidating and improving GSA's data processing and telecommunications procurement and management regulations. A rewrite which dramatically simplifies the regulations has been completed. Comments from interested parties are now being reviewed and reconciled. emphasis of the regulations will be on management oversight and planning. It also raises the dollar threshold of blanket delegations to agencies for competitive procurements. The The last ADTS initiative I want to highlight is the establishment of the Agency Liaison Officer program. This program is designated to: (1) develop independent acquisition and technology management competence within individual agencies; (2) satisfy short term agency requirements for specific areas of expertise until the agency is able to develop its own capabilities; and (3) establish a method of sustained communications and planning coordination between GSA and its customer agencies. goal - A major goal of this program is the same as ADTS' overall to encourage the application of information technology to improve the Government's operating effectiveness, achieve cost reductions, and increase productivity. Transportation and Public Utilities Service I am extremely proud of the numerous travel cost reduction and energy savings initiatives which have been undertaken by GSA in the past year We have signed airline contracts for reduced fares for Government travelers on trips between eleven cities; these reduced which range from 35 to 69 percent of the standard industry fare levels will result in estimated savings of some $7 million. This contract coverage will be expanded in January, 1981. We also have entered into an agreement with Amtrak for a 20 percent discount on Metroliner coach fares between Washington, D.C. and New York City; this agreement will result in savings of about $650,000 per year. Travel costs have also been reduced through; (a) the use of half-fare airline coupons; (b) the negotiation of hotel discounts in 13 southeast cities; and (c) the introduction of a centralized program for the shipment of household goods of civilian Federal employees being transferred from one duty station to another. This last program |