Originally Broadcast December 22, 2007
Washington, D.C.
Welcome to The Business of Government Hour, a conversation about management with a government executive who is changing the way government does business.
The Business of Government Hour is produced by The IBM Center for The Business of Government, which was created in 1998 to encourage discussion and research into new approaches to improving government effectiveness.
You can find out more about The Center by visiting us on the web at businessofgovernment.org.
And now, The Business of Government Hour.
Mr. Morales: Good morning. I'm Albert Morales, your host, and managing partner of The IBM Center for The Business of Government.
Challenged by the administration, federal agencies have sought to identify new and smarter ways to do business and move toward a government that is citizen-centered and results-oriented. To be successful in this area, federal agencies require support and assistance, and the U.S. General Services Administration, or GSA, through its Federal Acquisition Service, works to provide that support. It's taking a leadership role in reducing wasteful government spending.
With us this morning to discuss his organization's leadership in this effort is our special guest, Jim Williams, commissioner of the Federal Acquisition Service within GSA.
Good morning, Jim.
Mr. Williams: Good morning, Albert.
Mr. Morales: Also joining us in our conversation is John Nyland, managing partner for IBM's Public-Sector Global Business Services.
Good morning, John.
Mr. Nyland: Good morning, Al.
Mr. Morales: Jim, before we get started, could you set some context for our listeners by providing us a sense of the history and mission of the U.S. General Services Administration, or GSA? Can you tell us when it was created and what its mission is today?
Mr. Williams: I would be glad to, Al. GSA was created on July 1, 1949, and it was an act signed by Pres. Harry Truman, the Federal Property and Administrative Services Act. It was really a result of the Hoover Commission. The Hoover Commission looked at what do we need in government to make government more effective, more efficient, stop all the duplicative waste that was going on. So GSA was created as a central procurement agency, and really created to help dispose of wartime goods and things like that.
Mr. Morales: Jim, perhaps you can give us some more particulars about the organization in terms of how GSA is organized, the size of the budget, number of employees, and the geographic footprint that you cover.
Mr. Williams: I'd be glad to. GSA has about 12,000 employees, and we have 11 regional offices in places like Boston, New York, Atlanta, Fort Worth, Chicago, Kansas City, San Francisco, Seattle, and the National Capital Region, and I think I named them all. We have a $17 billion budget, and that's pretty much the way we're set up with two different services. The Public Building Service, and think of the nation's landlord, an organization that controls about 8,300 either owned or leased federal office buildings. That accounts for about $500 billion in assets. And then the other half of that, the other service, is the Federal Acquisition Service, which I'm the head of, and that is a service which is the first service in the history of GSA established in law -- last October 2006 actually, in the GSA Modernization Act. And that's a combination of two prior services: the Federal Technology Service and the Federal Supply Service.
Mr. Nyland: So Jim, now that you've provided us with a sense of the larger organization, perhaps you could spend a few minutes and just tell us about your specific area and roles as the commissioner of the Federal Acquisition Service within GSA. So kind of what are your specific responsibilities and duties? And can you tell us about the areas under your purview and how you support GSA's overall mission?
Mr. Williams: Sure, I'd be glad to, John. GSA is a central acquisition agency. We like to think of ourselves as the premier acquisition agency in government. And the way it's set up under the Federal Acquisition Service, my organization, we have four business lines. First, we have one called Travel, Motor Vehicle, and Card Services, headed by Assistant Commissioner Bill Webster. And that looks at many of the things that we do in those arenas, such as charge card services. Three million users spend about $27 billion a year with about 92 million transactions.
We also have our Fleet Program is under that, and our Fleet Program leases about 200,000+ vehicles per year; very proud of the work they do around the world. We have over 1,000 vehicles in Iraq right now.
We also have our Automotive Program, that we are the federal government's buyer of vehicles, and we buy about 65,000 vehicles a year in addition to those 200,000 that we lease.
Our next one is our General Supplies and Services, and under that, we have three different parts. We have our Global Supply Program, which is really an integrated supply chain that provides support to the warfighter, the firefighter, and the everyday government office worker around the world. We also have property disposal, which we do a lot of, hundreds of millions of dollars of property that agencies no longer need, like the commercial trailers that we've helped to dispose of. And we have a guy heading that up, Dave Robbins does a great job there. Our overall assistant commissioner is Joe Jeu, who is just a fantastic leader for GSA. We also have our Integrated Technology Services organization headed by Assistant Commissioner John Johnson. And this is an area where they enter into large contracts such as Networx, Alliant, SATCOM-II, Fed Relay, and they also have all of the other GWACs plus the IT 70 Schedules, and we're very proud of John for that.
Our fourth business area is Assisted Acquisition Services, headed by Assistant Commissioner Mary Davie. And that's an area where agencies actually come to GSA for assisted services, where we actually help them throughout the life cycle, whether it's doing an acquisition strategy or requirements development, doing the acquisition. And we know every agency is struggling in their acquisition mission today. We're there as a force multiplier, as a workload balancer. If your budget is shooting up for next year, do you want to hire all those people permanently? Instead, come to GSA, and these people really take a lot of pride in the assisting work that they do.
Mr. Nyland: So regarding your specific responsibilities and duties, what do you currently see as kind of your top three challenges that you face in your position, and how are you going after these challenges?
Mr. Williams: Well, I would say my top three challenges are, first of all, we're a service organization, and our first commitment is to our customers. And when I talk about our customers to our people, I always say that we have two customers: the agencies that we support, whether that be federal, state, or local, trying to make them more effective and efficient in their missions; and our second customer is the American people. There used to be in our global supply organization that when something was shipped that GSA bought, it used to say, "When you use GSA, America saves money." That customer challenge is always in front of us to do a better and better job for the customer.
Secondly, I would say it's to our people to make sure we're a great place to work. I talk to our people all the time, that my philosophy is I believe in people and results in that order; that if you create the right environment for people with the right leadership, give them the right training, the right tools, the right processes, get out of their way and they will produce results every single time.
I think the third challenge, John, beyond the customers and the people, is our financial challenge. We are an organization that does not get appropriations. We exist based upon the fees we collect for the services we provide. Our customers almost always can vote with their feet, so we have to prove ourselves every single day. And in doing that, we have to manage all of our internal costs very, very judiciously.
Mr. Morales: Jim, now, you talk about 28 years in government. And last time we spoke to you on the air, I believe you were over at DHS, and you've also spent some time over at IRS. Could you describe for our listeners, refresh them, on sort of your career path? How did you get started?
Mr. Williams: I got started in procurement, which I learned to love. And having a business background, business undergraduate and later an MBA, it's something that I just thought used all my business training. I've been in government, as I said, Al, 28 years. And I've been in, I think, depending upon how you count, 10 federal agencies. My wife says I'm a migrant worker, and I think people follow different paths in their career. Many people at GSA have been there their whole lives. I like the challenge of going to new places and reinvigorating myself in every place.
I was lucky to work at places like Department of Commerce, which I loved. The Internal Revenue Service, I spent 12 years there in a place that believes in integrity above all things, which I loved. I was literally yanked over to Department of Homeland Security. And I know people talk about it as being chaotic and dysfunctional, and I think, you know, you can say, yes, it is, but I will tell you the people there are so incredibly dedicated, I loved working at Department of Homeland Security. I loved the people I worked with, I loved the mission, and I loved coming back to GSA. So I've been very fortunate in my career.
And I guess I've moved around partly by choice and partly not by choice, but I've been happy every time. I always reflect back on a deputy commissioner we had at IRS. When he was retiring, they asked him about his career and he said, well, simply put, I've done important work with good people and that was enough for me. And that's what I always say, too. I really believe we are the greatest country in the history of the world, and I love being a part of keeping this country strong.
Mr. Morales: Well, that's certainly a great set of broad experiences. So as you kind of reflect back on that career, how have these experiences prepared you for your current leadership role and perhaps shaped your management approach and informed your style?
Mr. Williams: Well, I've had some just absolutely outstanding bosses, and I think you learn a lot from those great bosses. I think you learn a lot from the really bad ones, too, and I've had a couple of those I guess along the way. But in terms of what I've done in my career, I spent the first 20 years or so in the procurement community. And then when I was at IRS, one of the great, great leaders I worked for, Charles Rossotti, the commissioner of the IRS, asked me to get involved in the IRS modernization and program management. And I went to see him one night saying, look, I really have a great job for you now, and it's about 7:00 at night, and he said have a seat and let's talk about it. About 8:20 that night, I said where's the hill, sir? I'll take it for you. And he's just, you know, one of the greatest guys, brilliant, and just an incredible leader, and I got involved in program management.
And then I went over to DHS, where I was kind of pulled in to head up the US-VISIT Program as the program director there. But there, I used GSA as a customer of GSA.
When I was called, I didn't know Lurita Doan at all, never met her before, before somebody called and said would you be interested in meeting her, talking about this job? And I said at the time, that was the only job I could think of that would cause me to leave Department of Homeland Security. Being the commissioner of Federal Acquisition Service, I felt like the stars aligned and this you know, being involved in program management, having worked for GSA twice before, being involved in acquisition, I jumped at the chance. And the first time Lurita and I talked, we quickly agreed how much we liked GSA, what we thought GSA's role should be. So I was very happy that I came back to GSA.
Mr. Morales: That's great.
What is the value of a central provider like GSA and its Federal Acquisition Service?
We will ask Jim Williams, commissioner of the Federal Acquisition Service, to share with us when the conversation about management continues on The Business of Government Hour.
(Intermission)
Mr. Morales: Welcome back to The Business of Government Hour. I'm your host, Albert Morales, and this morning's conversation is with Jim Williams, commissioner of the Federal Acquisition Service.
Also joining us in our conversation from IBM is John Nyland.
Jim, could you talk to us about the value of a central provider such as GSA? What are some of the benefits of having this type of an organization?
Mr. Williams: Well, first, Al, I think the Hoover Commission got it right a long time ago when they saw the need for a centralized procurement agency. And really, you want to leverage the government's buying power, you want to leverage the government's expertise in particular areas, and really take the burden away from all of those agencies to have to set up their own centers of expertise, use their own scarce resources to buy those common supply services and solutions that GSA can buy for them. And leveraging that buying power is one of the advantages. Leveraging the acquisition expertise is another. But let me give you another one that I don't think people thing about enough, and that is leveraging a single interface between the government and the private sector.
I think what GSA does, particularly in its GWACs and schedules, the government-wide acquisition contracts and the Schedules Program, is we create an interface for entry into the federal marketplace. And I think it's the lowest cost entry into the federal marketplace, meaning a company that gets a GSA Schedule under a GWAC can then sell to everybody else in the federal government. And by keeping that low-cost entryway into the federal marketplace, we make it easier for large, small, small disadvantaged, service-disabled vets, all of those companies, woman-owned business, to gain entry into the federal marketplace, creating a broader industrial base.
Secondly, what we try to do, also is by optimizing that interface through standardized processes and electronic tools, we lower the transaction cost. So if a federal agency needs to buy something, first of all, they have a source or an interface to that private-sector provider where they can get something. We actually believe using things like our electronic tools, like GSA Advantage or combined with GSA e-Buy, more and more I think we're trying to move towards the government acting as one, the need for interoperability and information sharing. And by making things more into a common infrastructure, a common set of platforms that allows for similar standards and similar platforms across government, we facilitate that information sharing, that response to manmade or natural threats. And GSA can buy all of those common things and take that burden off agencies.
Mr. Morales: Now, Jim, you used terms such as "schedules," "contracts," and "GWACs." Could you give us a sense of the kinds of contracting vehicles and approaches that are available? And what business needs and approaches best fit these types of vehicles?
Mr. Williams: Well, I think we try to do things that meet all of our federal customer needs. I mean, GSA Schedules just reached an all-time high last year of 34.9 billion, up slightly from the year before. And then that is such a tremendous way to do business with the private sector. Again, with the 15,000 contractors we have on schedules, with 11 million products, I think agencies can get almost anything they need through those. But if there's more than that they need, we have things like our Alliant, which is for IT support services. And I think our people have done a great job with that, which, different from schedules, allows you to use any type of contract cost reimbursement or anything. And again, we're verifying the suppliers. We did a great job of scrutinizing, making sure we picked companies who we knew would deliver for our customers.
Mr. Nyland: So Jim, help us out a little bit with some of the terminology. What are the specific differences between the GSA Multiple Award Schedule contracts versus Government-Wide Acquisition Contracts, or the GWACs, and then the multi-agency contracts? And more specifically, kind of what's your sense of their overall effectiveness?
Mr. Williams: Well, the difference between a GWAC, Government-Wide Acquisitions Contract, and a MAC, a Multiple Award Contract, is the GWAC was set up in law as something under the Clinger-Cohen Act, where you get a specific delegation of authority for a GWAC. A MAC can be for something other than information technology that, again, is available government-wide. And we have all three. And as we've come together as the Federal Acquisition Service, we want to make sure we eliminate any unnecessary overlaps. There may still be overlaps because of different needs.
And generally with all of those, the GWACs, the MACs, and the Schedules, those are things where agencies go directly to those vehicles for support and then they pay us a fee. And those are kind of our direct channels where you don't go through GSA. You go directly to those sources of supply.
You can also come to us, our Assisted Acquisition Services, where you need that help, project management, financial management, and program management, to actually help you do the buying against either those particular contracts, the GWACs, MACs, and Schedules, or even we help people using their own internal contracts, as we've helped out agencies like Department of Defense and Department of Homeland Security.
Mr. Nyland: Now, GSA and the Federal Acquisition Service have made some significant management and financial changes to kind of the procurement operations over the last five years. Can you elaborate on some of these efforts? And how have these changes enhanced accountability, transparency, and delivery of services to customers?
Mr. Williams: GSA's Federal Acquisition Service is a result of a merging, or reorganization as some people call it, of the Federal Technology Service, which think of Networx and Alliant, and the Federal Supply Service, think of GSA Schedules. I call this something that is the creation or the establishment of a new service. It's an opportunity and an obligation to do something I think new and great for this country. And I look at it as how do we make GSA that strategic sourcer that can help federal agencies be more effective and efficient in spending their taxpayer dollars and making those taxpayer dollars go a lot farther. And certainly with the money we're spending to spread freedom and democracy around the world, we're going to have budget challenges for years to come, and every taxpayer dollar is precious. And I'm trying to create a system that is -- not only involves competition, it involves all those things that you care about in the private sector in terms of public accountability.
But the first and foremost goal of procurement is to meet the mission and meet it in an effective and efficient way. And that's what I'm trying to create, a foundational system that'll facilitate that.
Mr. Nyland: Given your organization's mission, what has the Federal Acquisition Service done to enhance and transform its customer service capabilities? So -- you know, does one GSA, one voice capture the intent of your integrated approach seeking to produce greater value for customers? And has it brought your organization closer to realizing its vision of one face to the customer?
Mr. Williams: Well, I think we're working towards that. When you look at trying to create something new, you know, I'd like to push a button and have it happen tomorrow. But in terms of being focused on the customer, I think a few years ago, GSA -- unfortunately, we were in some turmoil trying to create the Federal Acquisition Service, looking inward at some problems we had, and maybe back then we lost the focus on the customer. When we talk about what our principles are, they are service innovation and value, and that's what we live and breathe, and that first thing is service. And there's a reason why it's called the General Services Administration and the Federal Acquisition Service.
I love doing work for customers, and we have a customer accounts and research organization headed by Gary Feit. But that organization does a great job in understanding our customers' needs and giving us that feedback loop that tells us where we should be going to better serve the customer. And it is something where we have to come together continually as an organization.
We're not a large organization. I think the Federal Acquisition Service is just under 4,000 people, but we're spread around the world, nationwide in our 11 regions. And my job is to really get the right people together to make sure that we set out the right vision as a team, we work as a team, we focus on the customer to make sure we know what they need and we can provide it and always keep ourselves on edge. So, you know, mostly, John, I would say it's around getting the focus straight, the focus being service innovation and value, and doing those things that, first of all, get the right people. Start with people and then focus on a system gets -- the people, the processes, the technologies, get those all working together.
We have four business lines, but we also have these other organizations: our customer accounts and research, our controller, our chief information officer, our acquisition management, and our administration. Those are the people I kind of termed "our integrators" as we're trying to come together. They're going to optimize what we have to do, and they're going to make sure that everything they do supports coming together to better serve that customer, because we have to keep our fees as low as possible and we have to keep our processes and tools on the forefront. I mean, that's critical for agencies who make the decision whether to use us or not.
Mr. Morales: Now, Jim, earlier you mentioned the President's Management Agenda, and certainly here on the radio show and at the Center, we spend a lot of time analyzing the effects and results of the PMA. Can you tell us about the PMA objectives for e-government and the results that have been achieved to date? And specifically, what role does your agency play in the success of this initiative?
Mr. Williams: Well, first of all, I have to say I am a huge fan of the President's Management Agenda. I think it is exactly where this government needs to go for all the reasons I said before in terms of bringing together one government. Being a better manager in the President's Management Agenda has five key elements, e-government being one of them. And in the e government arena, I think GSA plays a particularly large role.
First of all, we have an Office of Governmentwide Policy who works very closely with OMB to help implement the President's Management Agenda, especially in the e-government area. My particular organization, we do things like e travel, where we now have 100 percent of all of the agencies signed up, all of the civilian agencies, on the same e-travel system. And again, that's one of those common platforms. We are involved in the financial management line of business, the HR line of business, and all these things are about, again, to me, trying to make the government a better manager of the taxpayer dollars, putting out those common platforms.
And one of the things they don't talk about as we try and make financial systems more common and HR systems more common and an e-travel system something common across government, as somebody who's worked in, as I said, maybe multi- or as much as 10 different federal agencies, when I go from agency to agency and I see a different system every time I go someplace, frankly, that doesn't facilitate a robust 21st century workforce. I mean, so many of our issues are now enterprise-wide across boundaries. We ought to have a more flexible workforce so people can move around.
I'm a big supporter of the President's Management Agenda through our e-travel, our federal assets sales. We're one of the four key organizations that have been designated by OMB to be a property disposal agency for personal property. We're the only ones that do it for all facets of federal asset disposal. As I said, the lines of business, we're involved in all of them.
The Infrastructure Technology Initiative, trying to look at consolidating and saving money in infrastructure, we're getting very involved in that and very proud to do so.
Mr. Morales: That's fantastic.
What about GSA's recent Alliant Government-Wide Acquisition Contract?
We will ask Jim Williams, commissioner of the Federal Acquisition Service, to share with us when the conversation about management continues on The Business of Government Hour.
(Intermission)
Mr. Morales: Welcome back to The Business of Government Hour. I'm your host, Albert Morales, and this morning's conversation is with Jim Williams, commissioner of the Federal Acquisition Service.
Also joining us in our conversation is John Nyland, managing partner for IBM's Public Sector Global Business Services.
Jim, with having more than 10,000 contract holders on your GSA Schedule contracts, how has the organization streamlined its e-procurement program and eased the administrative burden on your employees?
Mr. Williams: I would say through several ways, Al. First of all, when our administrator came in, immediately, she gave me a 30-day challenge. How do you look at taking particularly small business companies who want to get on a Schedule and how do you reengineer your processes to get it down so that it didn't take what it was at the time, 120 days or so, get it down to 30 days or less to get a GSA Schedule contract. And we've looked at not sacrificing quality, but how do we look at our processes.
We're doing the same thing with Mike Sade, our assistant commissioner for acquisition, is looking at our modifications process. We want to be able to -- for companies to be able to add products and services quickly to their existing Schedules, again without sacrificing the job that we have to do to verify it's still a good company, still great pricing.
He's also combining it with our CIO, Ed O'Hare. There, we're trying to merge the changes in the process to the advances in the enabling technology. And Ed is looking at further taking GSA Advantage, which we've already taken GSA Advantage, and it's customized for our agency customers. There's Air Force Advantage, afadvantage.gov, vaadvantage.gov. And something else that Ed is doing is combining that with e-Buy and e-Library. E-Buy is where you can go on and electronically post request for quotations and get back electronically the offers and bids and then award it. E Library is a research tool. And Ed's trying to bring all three of those together. And he actually just did this not too long ago with the VA, with VA e-Connect, where he put out e Buy with this e-Connect with a service-oriented architecture that allowed agencies to be able to embed part of that e-Buy capability into their existing system. Again, making that transactional cost not only quick, but being able to lower the transaction costs that agencies always have pressure to do something quick and to spend those taxpayer dollars wisely and to make sure it's good quality. And we do all of those things.
Mr. Morales: Jim, now, in the last segment you touched upon GWACs and Alliant. Could you elaborate a little bit more on the benefits that you expect to provide your customer agencies with the establishment of the Alliant GWAC?
Mr. Williams: Sure. I'm very proud of the job that our people did on Alliant, mostly because they went out and really listened to the customers out there. And Alliant is really a replacement vehicle, in a way, for previous vehicles like Answer and Millennia, but it's different. Again, as I talked about earlier, Alliant was structured around both the federal enterprise architecture and the DOD enterprise architecture, so you can look at buying things that are consistent with different segments of those enterprise architectures.
I think the other thing they did was maintain very high standards with Alliant. Even with GSA Schedules, we go out and verify those suppliers. We don't just award a contract and turn our head. We have people go out and check to make sure that these contractors are delivering the way they're supposed to.
On Alliant, we set very high standards for -- we wanted established companies. We wanted cost accounting systems that were established, because if they're going to be doing cost reimbursement, time and materials, or any type of contract, we want them to have a solid performance record, solid accounting systems.
those out there, because we find that an agency, in talking to customers, when doing their job may want to start with a company that maybe designs a system. Do they want that company to also develop it? And that doesn't necessarily involve a conflict of interest if the agency is managing that. But if they want to go to one company for the whole thing, they're not constrained by other agency vehicles that might have domain restrictions or functional area restrictions. We eliminated that to make sure we did what our customers wanted. So we're very proud of what Alliant is and what it can do for agencies.
More than that, as I said, we have I think done a great job in choosing great industry partners. And we know that we really want to get this program growing, you know, that OMB wants us to do this. Because, again, it tells agencies here's a vehicle that allows you to do things consistent with the federal enterprise architecture and the DoD enterprise architecture. I think it's a super Government-Wide Acquisition Contract, or GWAC, for agencies to use.
Mr. Morales: Now, do you expect the civilian agencies and the DoD to be equal users?
Mr. Williams: Well, I think, you know, a lot of the civilian and DoD agencies have spent time creating their own vehicles. And I wish they hadn't, because they have scarce acquisition resources. For them to do that, they have created yet another interface to the private sector. And when you look at what GSA does, if you can get it through GSA, why would you do it anywhere else? And I love the words of people like Lt. Gen. Charlie Croom, who says, look, I don't want to create something if I can buy it elsewhere, the head of Defense Information Systems Agency. And I think all agencies should think in a statesperson-like way, like Gen. Croom, to say why should I recreate this? Because when you create it, you're taking scarce acquisition resources and putting them into something that is duplicative.
Mr. Nyland: So Jim, GSA and its customer agencies are preparing to transition to a new government-wide telecommunications contract known as Networx. Could you elaborate on the Networx program? And how do the advanced technologies and services that are defined in this program serve as a platform to transform the government's telecommunications infrastructure to a more seamless and secure environment?
Mr. Williams: Well, John, first of all, I would say Networx is something I believe is a transformational vehicle, and I'm really repeating what Assistant Commissioner Johnson says all the time. If you look back in time, when this started as FTS 2000, it was really a replacement for a dedicated network. It talked a lot about the convergence of voice data and video. But frankly, it was really a lot about lowering that price of the voice calls at that time.
I think going from FTS 2000 to FTS 2001 to Networx -- and surprisingly Networx is not an acronym, it is N-e-t-w-o-r-x, but it is really a unique vehicle, the largest telecommunications award in the history of the federal government as far as we know. But it is something, if you look at the services that are underneath that, as I said earlier, this is the ability to not just look at your buying carrier services, you're looking at a transformational vehicle and you look at the ability to take advantage of Internet Protocol Verion 6, IPv6, or a voiceover IP. I mean, that's where agencies are going, and the ability to use even the managed services that are under Networx.
All agencies are facing challenges in having the right kind of people to manage a conglomerate of different network services. What we look at Networx is eventually is a capability to deliver broadband to the desktop and really to provide the transformational vehicle where agencies can look at how can I accomplish my mission differently and how can I do that through a common platform of networks? And again, agencies can either manage their own networks or choose the network services portion of Networx. I think it's a tremendous vehicle.
Mr. Nyland: So of late, there's been a lot of effort towards a government-wide standard for a secure and reliable form of identification for employees and contractors. Can you elaborate a little bit on the Homeland Security Presidential Directive 12, commonly referred to as HSPD-12? What are some of the key requirements, and could you tell us about the services your organization offers in this area to agencies?
Mr. Williams: Sure, John, I'd be glad to. I mean, looking at Networx as trying to have everything be seamless, secure, and electronic communications, you then look at how do you identify people. And HSPD-12, Homeland Security Presidential Directive 12, is really looking at how do you establish a common credential as well as a common vetting system, something if you look across the federal government probably should have been done 50 years ago. And certainly the President in 2004 signed this as a result of September 11th, but it's critical that we do this.
And at the Department of Homeland Security, Deputy Secretary Admiral Loy used to hold up a truck driver's 17 different ID cards. Well, I think you've actually seen people walking around with multiple federal credentials and that's not good for security and it's inefficient. And somebody, as I said, who's moved around in my career, to have to go get myself re-vetted when I step somewhere on a Friday to a new location, or a Monday, and they tell me my security clearance has to be redone, it really doesn't make any sense. And I think the ultimate dream of HSPD-12 is, first of all, have a common vetting system that is secure, so that when you get a credential, it is based upon a secure supply chain of source documents, not built, frankly, on a potential house of cards, then to get that credential that eventually could be used in an interoperable manner for both physical access and logical access. I mean, that's really where we should be going.
Again, that creates a common platform for a more interoperable set of credentials across government. Our role in that, we're very proud of the PMO, the Program Management Office, we now have about 67 agencies that we're supplying that credential to. I think it encompasses about 850,000 credentials. And we're proud of the very first deadline back in 2006, where we were the only organization, our Program Management Offices, to produce NIST FIPS 201 compliant cards. We're very proud of that, but we know we have to continue to deliver because we have another deadline coming up in October of 2008. We worked very closely with Karen Evans at OMB on this to make sure that we are in sync with where they want to go.
But this is something beyond just making good economic sense in terms of, you know, the common vetting system, the common credentials. It's important to the security of the nation. So we're proud of the work we're doing in HSPD-12.
Mr. Nyland: Let me switch gears a little bit and now talk about IT infrastructure. You know, in a period of static or even decreasing federal IT budgets, the cost of maintaining existing federal IT infrastructure is rising at a faster pace than information technology as a whole. As a way of seeking to realize cost savings by optimizing IT infrastructure, can you elaborate on the IT infrastructure line of business? And how will it lead to IT infrastructure consolidation and optimization and assist us in the development of a government-wide common solution?
Mr. Williams: Well, again, John, I think this is a great OMB presidential initiative. And if you look at where Karen Evans is trying to go, and she works with our Office of Governmentwide Policy on this, and a leader named Von Harrison, who does a great job on this for GSA, and we're working with that interagency committee from the Federal Acquisition Service to make this a reality.
And if you look at that, as you talked about, that infrastructure initiative, I think they've broken down infrastructure into three parts: the end-user systems and support, the mainframes and servers systems and support, and the telecommunications systems and support. All of those are common platforms. All of those are opportunities where we could save as much as 25 or more percent off that growing percentage of our IT budget. And I think the fact that it's growing, in a way, may not be a bad thing. Because, again, moving more and more things into a common infrastructure is a good thing, because it means you're optimizing by using something that's common, a common infrastructure, versus everybody doing their own thing. That's not a good thing.
But if you look at just things like our data centers, I heard recently our data centers consume 1.5 percent of the total power in the United States. And I think there's an opportunity to put everybody on this common platform. If you think about a common platform from the end user to the mainframe servers to the telecommunications, again, that will facilitate information sharing and interoperability. And the savings in terms of going green and energy efficiency, the things that we can do with that infrastructure at the same time can just save a ton of money with tremendous benefits.
And I think what we're looking at, the initiative that's there right now, is to put everybody on a common set of metrics. And take those metrics and compare them to common industry of private-sector metrics. And then look at how do you -- you know, where you are in terms of your metrics of performance and cost efficiencies today. Where do you have to be? And then how do you get there? And I think, you know, one way to get there is through consolidation. All agencies have different legacy systems, different challenges, but trying to get them -- to give them the goal of you need to save money and improve performance. And then how do they get there? What GSA, my organization, wants to do as we're partnering with the Office of Governmentwide Policy and OMB, is be ready with those kinds of offerings that can provide the opportunity for agencies to get there.
We just recently added on a Schedule A company that offers data center services at the Top Secret/SCI, sensitive compartmented information, TS/SCI level. And I think where agencies are moving is looking at they want security. Absolutely, security is paramount. But they don't want to own everything anymore. They want to look at how do I buy services? And how do I get myself moving up that scale to meet the metrics of the private sector or better? And how do I save money? Consolidation is one way. Changing the mindset of what you're buying, not buying the bricks and mortar, but buying the service and making sure the service is going to be there when you need it. And it's going to get you in terms of the cost efficiency that we want to get to the private sector or better.
So I think the first goal is get them on a common set of metrics, measure them against the private sector as a benchmark, and then look at ways to give people the goals of saving money. I want my organization to be there to help out with those offerings that help out with the environmental, the energy initiative, and just provide those services that the agencies need and across the spectrum of the infrastructure of end user to mainframes and servers up to the telecommunications. And I think with the telecommunications, Networx is a key component of that today, SATCOM-II, and there are other pieces that we do in that area.
Mr. Morales: Now, Jim, in this area of services, we're seeing an increasing mix between government employees and contract employees. I only have a minute left, but from your perspective, could you tell us how federal managers can effectively manage this ever-increasing blended workforce composed of both contractors and federal workers?
Mr. Williams: Well, I think that is a tough challenge, Al. And being a former program manager, I experienced that challenge. First of all, the government's always the customer. And the government has to be able to know -- be a smart buyer and they know their mission better than anybody.
I think that partnering with the private sector, I think, is -- there's been wonderful successes in partnering with the private sector. And those successes come about when you work as a team. And it's often a challenge because you have a contract in the middle of it and you want to have the private sector have accountability. But frankly, when you get into some of these larger programs, it's joint accountability. You succeed together or you go down in flames together. So I think you want to find a way to structure the role of the contractor as a partner with the government. But, at the same time, the government is 51 percent of the vote always and the government has to be smart about what their mission needs are.
And I like partnership with the private sector. It brings what I hope is the blend of best practices from the private sector. Because certainly they service a lot of other customers besides the government, and it brings that mission knowledge of the government agencies. When you it's like anything else in life. If you can bring a team of people together, get them focused on a common goal, the results are just tremendous.
Mr. Morales: That's fantastic.
What does the future hold for GSA and its Federal Acquisition Service? We will ask Jim Williams, commissioner of the Federal Acquisition Service, to share with us when the conversation about management continues on The Business of Government Hour.
(Intermission)
Mr. Morales: Welcome back to The Business of Government Hour. I'm your host, Albert Morales, and this morning's conversation is with Jim Williams, commissioner of the Federal Acquisition Service.
Also joining us in our conversation from IBM is John Nyland.
Jim, you finished the last segment by talking about how some of the best programs are accomplished by teams of employees. Could you elaborate a little bit more on your approach to empowering your employees? How do you lead change and enable your staff and those within the organization to accept the inevitability of change and make the most of it?
Mr. Williams: I think I was lucky to have some experience with change at the Internal Revenue Service under Charles Rossotti when he really undertook a massive change there at IRS. And then joining from there Department of Homeland Security, which I can't think of a bigger change in government in the past 50 years than the creation of the Department of Homeland Security. And I think change is -- it's a cliche, but it is constant.
When I came into GSA, again, they were a little bit, I think, trying to finalize the establishment of the Federal Acquisition Service. What I first tried to do is articulate, I think, a vision for where I think GSA ought to be going. And that vision involves focusing on the customer, being that provider of the common supply services and solutions that help the warfighter, the firefighter, the government office work, meet their needs, providing that foundational acquisition system all the way through from helping agencies with setting up vehicles for them to use or helping agencies actually buy, to helping them dispose of property or manage their fleets, programs, things like that. And then getting the right set of stable leaders in place.
And then, frankly, the change is something, as I see it, as a refocusing. Again, focusing on the customer. Focusing on being internally efficient. Focusing on creating a great workplace.
Mr. Morales: So along similar lines, Jim, we get to ask most of our guests about collaboration. And so I'm curious, what kind of partnerships are you developing now to improve your operations and outcomes at GSA? And how do you envision these partnerships perhaps evolving over time?
Mr. Williams: Well, Al, I love partnerships. And I think I had great partnerships at Homeland Security with my friends at the FBI, Tom Bush, and my friends at State Department, Ambassador Maura Hardy. And I just like, as I said before, getting good people together and getting them working together. I think at GSA, we started with a Department of Defense Memorandum of Agreement, how we can improve together. And I think I talked about recently we signed -- I signed a Memorandum of Agreement with Gen. Usher, the deputy commandant of the Marine Corps for installation logistics, for us to be his 4-PL, fourth party logistical supplier. We're very proud of that. And the agreement we have with TRANSCOM, Gen. Norton Schwartz, head of U.S. Transportation Command, and Lt. Gen. Dail of Defense Logistics Agency, trying to be that strategic partner and how do we optimize things with our customer agencies. Strategic partnerships are great for us because we can improve our delivery of service and at better pricing.
I think internally, you know, I have a group of people who are the leaders underneath Barney Brasseux and me, and I like to say that, you know, I'm the type of person, I don't like to lead by committee, but I like the best advice of smart people. And certainly, there are people at GSA who know their job so much better than I will ever know, and I like to get them together.
We have something that our Assistant Commissioner Jack Williams, and I'm sorry if I didn't mention him before, for strategic business planning process improvement, he runs our Management Council. And our Management Council is composed of our assistant commissioners, who work directly for Barney and me, and our assistant regional administrators around the country. We get together as a team, and that team were the ones that came up with our principles of service, innovation, and value. And as I've said before, I care about getting good people together and getting the work as a team. So I'm not sure if that's directly responsive to your question, but collaboration is what it's all about. That's how you get things done in government today.
Mr. Nyland: Jim, I'd like to transition now to the future. Can you give us a sense of some of the key issues that are going to affect the Federal Acquisition Service and government-wide procurements over the next year or two?
Mr. Williams: Well, I think there's changes coming with some recent laws that are being passed looking at changing the federal acquisition system, and I think we have to make sure that we provide the proper training and things like that. I think where we're going, GSA, first of all, going green is I think an important initiative for us. And our deputy administrator, David Bibb, is heading that up as one of the key senior federal officials in government on going green. That, combined with energy efficiency.
I think we're also looking at where our customers want one-stop shopping. Another initiative we have within GSA is One GSA. And our latest strategic plan really emphasizes coming together between the Public Building Service and the Federal Acquisition Service. If some agency is making a major move, how do we really provide one-stop shopping in terms of the move and the furniture that we provide and the telecommunications capabilities, and everything so that agency can come to us and have us take care of their needs. And I think that's something we're trying to be better at, to provide that one-stop shopping for our customers.
I'm also looking at how do we better integrate across GSA? There's a great part of GSA, the Office of Communication and Citizen Services, and there's a person there, Martha Dorris, who really is the creator of usa.gov. And they provide services directly to the citizens. They deal with the states all the time. What we're also trying to do is be a better provider to state and local government. When you talk about, you know, the threats or the challenges, whether it's acquisition resources or responding to natural disasters, those exist across federal, state, and local.
We partnered with FEMA to put in place contingency contracting to help them respond to those kinds of disasters. Our Schedules Program is now open for state and local governments for response and recovery purposes. And we did this with the Department of Homeland Security to open up all of our Schedules so that whatever states, if they have a need, they can feel they can come to us.
And I think we saw the benefits of this kind of partnership with FEMA in the recent, not-too-long-ago California wildfires, where we not only had the things to help the firefighter, the supplies they needed to fight the fires, but we were ready with things like meals ready to eat and water. Then we put in place contingency contracts with FEMA to be better able to respond to those kinds of disasters.
So strategic partnerships are where it's all about. And our future is about GSA doing more of those strategic partnerships and really providing those common platforms across government and often being either a provider of services or a provider of the contracting expertise.
Mr. Nyland: Now, Jim, staying on the future, kind of on a broader basis, what are some of the major opportunities and challenges that your organization will encounter in the future? And how do you envision your office will evolve over the next five years or so?
Mr. Williams: I'm not sure. First of all, I hope we'll continue to be customer-focused. I hope we will be there on the forefront of what our agencies need to get them those products and services they need. Hopefully, we'll build better partnerships with our customers and within GSA. Where we'll be five years from now, I think that's pretty hard for any agency or any entity even to predict. But certainly I think you look at where we are in the history of this country right now, where the need to really protect our children and our grandchildren from putting them in great debt really should be a compelling burning platform to say we need to do everything we can to save money. And I think GSA's in the best position to either provide that common service, that common solution, that allows to all of those win-win goals of information sharing, interoperability, and taking the burden off agencies.
Agencies who manage their own fleets today, I don't know why they do it. I don't know why they don't just let GSA do that for them, because we measure customer satisfaction and we get very, very high marks in that area. So I hope that we can become somebody that is relied upon for all of those common things that the agencies need.
And believe me, I am not trying to build an empire. I just believe this is good government. And what I also believe is that we have to be constantly on our toes. And I think we have to look at these opportunities to provide that acquisition system and those services across federal, state, and local. Because, you know, there's not right now a very high level of confidence in the government. I mean, there's -- if you look at some of the ratings, for whatever reason they're not where they should be, you know, down in the teens.
And I do believe, again, we are the greatest country in the history of the world, but that's a very precarious thing. I really believe that. And I believe that GSA as a support agency in the middle of supporting these 100+ agencies in 100 countries around the world, we are critical to the nation's future. And I think we have the right people to do that. Our challenge will be keeping the right people and keeping the right edge in terms of process improvements in technology and processes so people don't have to duplicate what we do. So certainly we're always going to have challenges, and maintaining the financial discipline is something that's a challenge every day.
Mr. Morales: Jim, you've had a very successful 28 years of federal service. As you sort of reflect on your career, what advice would you give to a person who perhaps is considering a career in public service or in the federal government?
Mr. Williams: Well, first of all, I would say do it. I often talk to people in the private sector and say, you know, once you've made all the money you need, come in and work for the federal government. Do something you'll be proud of for the rest of your life. And I've seen that so many times. People have come into government and, first of all, they say, well, I've never worked harder in my whole life, but they've never been more ennobled in what they do because it's such a -- just something that is inside you that feels good about being a public servant. It feels good about helping the United States of America stay strong. I guess the advice I would give, you know, keep up your education. As somebody once said, volunteer for things. Always -- you know, I'm somebody who likes to take on the big challenges. Anything less than that, I'm bored. I probably have only two speeds, which is full speed and dead asleep, and I like multiple challenges at once.
But I think the advice I would give people is the advice I've often -- repeatedly give to young Air Force officers, which is don't think about the next promotion. Just think about the job you have in front of you and do it well. And at the end of the day, you've done it well and that's a good thing. It's a feel-good thing. And usually if you've done it well, somewhere somebody will say, hey, there's somebody who we ought to bring along. Never shirk from responsibility.
And, you know, the government is somewhat different from other institutions where they put a little bit higher premium on integrity and public accountability. I know everybody else does and certainly that's happening in the private sector, but you always want to operate with integrity because it's not your money. It's somebody else's money, and do the best thing for the taxpayer. If you do the right thing and stick to your principles and work hard and give an honest day's work for an honest day's pay, you'll be successful in your career and you will love it. And I've enjoyed it.
I mean, I just -- I always tell people if I couldn't, you know, play for the Boston Red Sox or if I couldn't play in the NBA, this is what I'd choose to do, having been through what I've been through. I love it.
Mr. Morales: That's wonderful advice, thank you. Unfortunately, we have reached the end of our time.
I do want to thank you for fitting us into your busy schedule. But more importantly, John and I would like to thank you for your dedicated service to our country across the many roles that you've served in nearly the past 30 years.
Mr. Williams: Well, thank you very much, Al and John. It's a pleasure being here today, and I hope people will look at GSA and the Federal Acquisition Service as something that is there for them. We try.
Mr. Morales: Great. This has been The Business of Government Hour, featuring a conversation with Jim Williams, commissioner of the Federal Acquisition Service within the U.S. General Services Administration.
My co-host has been John Nyland, managing partner for IBM's Public-Sector Global Business Services.
As you enjoy the rest of your day, please take time to remember the men and women of our armed and civil services abroad who can't hear this morning's show on how we're improving their government, but who deserve our unconditional respect and support.
For The Business of Government Hour, I'm Albert Morales. Thank you for listening. Announcer: This has been The Business of Government Hour.
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