Tom Sharpe, Commissioner of GSA Federal Acquisition Service, posted on the agency's website that the GSA is preparing to make important changes to their business model, which could see it exit millions of square feet of warehouse distribution space. The GSA is already moving forward with the implementation of a new vision for the Federal Acquisition Service (FAS), which includes a new business model for their supply business that would allow vendors to directly support GSA customers. This transformation would sidestep the GSA's existing wholesale supply business, which relies on warehouse distribution centers and retail stores around the world that stocks inventory from those warehouses.
"This model is costly, cumbersome and no longer the most efficient or effective approach to supporting our federal partners," wrote Mr. Sharpe. "This is the right time to implement these changes to GSA's supply program and they are one part of a new vision we are outlining for FAS over the next year. By working closely with our vendors, we have an opportunity to support our federal partners with the value and services they need, through a system that is suited to today's marketplace."
While it is not clear just how much of the federal government's warehouse inventory is used by the FAS, the GSA controls a total inventory of 25.56 million rentable square feet, according to a CoStar report. It leases 16.1 million square feet and owns the remainder.
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