2006 budget request calls for FTS-FSS merger

The Bush administration wants to collapse the Federal Supply and Federal Technology services into a single organization.

In the fiscal 2006 budget request sent to Congress today, the Bush administration said changes to the way IT is acquired mean that the General Services Administration's "two separate supply and technology organizations are no longer needed."

"The budget proposes to break down these artificial barriers by merging the two services into a Federal Technology and Supply Service," the budget said. "The result of this restructuring include increasing organizational efficiencies, improving coordination by streamlining functions and achieving savings for customer agencies by modifying fee structures."

As a precursor to the budget release, GSA late last month announced it would form working groups to look at five areas, including the relationship between FTS and FSS.

The decision to merge the two organizations also comes before Congress can legislate changes. Rep. Tom Davis (R-Va.), chairman of the House Government Reform Committee, has made it clear over the past six months that his committee will take a closer look at GSA, particularly its organizational structure and the roles of FSS and FTS.

Additionally, the budget proposal noted that GSA by January must reduce the fees agencies pay to use governmentwide acquisition contracts. The agency also plans to merge the General Supply Fund and the IT Fund into a General Services Fund.