Farm Credit SystemCosts for Office Space, Equipment, and Furniture Compared to GSA's Costs Gao ID: GGD-94-57 January 7, 1994
The Farm Credit System (FCS) is a nationwide system of borrower-owned banks and associations established by Congress to provide credit and other financial services to farmers and their cooperatives. FCS and its regulator, the Farm Credit Administration (FCA), could save money if they had access to and used General Services Administration (GSA) supply sources for office equipment and furniture purchases. GSA prices for these items were often less than the prices that FCS and FCA obtained on their own in 1992. Even though FCA and FCS banks were allowed to use GSA supply sources, they did not do so routinely in 1992. FCS entities other than banks are not authorized to use GSA sources. Although FCS and FCA 1992 costs for leasing and operating space were about the same as GSA's costs, FCS and FCA used more space per employee than either GSA's space utilization goal or agencies' actual usage rates in GSA space, due partly to recent staffing cuts. FCS and FCA are trying to reduce the amount of office space they use, which should improve their space utilization rates.
GAO found that: (1) FCS and FCA could reduce their procurement costs if they have access to GSA supply sources for office equipment and furniture purchases; (2) GSA prices for office equipment and furniture were often less than the prices FCA and FCS paid in 1992; (3) FCS and FCA costs for office space were about the same as GSA office space costs; (4) some FCS entities eligible to use GSA sources did not always obtain GSA prices when they were less than open market prices; (5) FCS and FCA costs for leasing office space were about the same as GSA leasing costs; (6) FCS and FCA used more space per employee than GSA, in part because of recent staffing reductions; and (7) FCS and FCA have taken steps to reduce excess office space and improve their space utilization rates.Recommendations
Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.Director: Team: Phone: