GSA supply depots cost money, report says

GSA supply depots cost money, report says

FEB. 15—An independent analysis of the eight General Services Administration supply warehouses suggests it would be more cost-effective to outsource the business, the agency said.

'Each alternative involves some degree of risk and implementation complications, the analysis leaves no doubt that substantial, durable and long-term changes must be made,' GSA Federal Supply Service commissioner Frank Pugliese said, in a memo to employees.

The report, based on research conducted over the last month by consultants from Logistics Management Institute of McLean, Va., and two other consultants (, was submitted last week. It was presented to officials from GSA, the American Federation of Government Employees and the National Federation of Federal Employees.

GSA officials, however, would not release the report, because the matter was still under consideration. They said no timetable has been set for a decision about the warehouses.

The issue of the supply warehouses has been dogging GSA since last year when it introduced a plan to close the eight facilities and let agencies order goods directly from vendors over the Internet. AFGE protested the decision, eventually blocking the closure.

The warehouses employ about 2,000 people.

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