Includes capital outlay as follows: 1964, $253 thousand: 1965, $538 thousand: 1966, $75 thousand. Excludes adjustment of prior year costs of $9 thousand. Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1963, $745 thousand (1964 adjustments -$51 thousand): 1964, $1,479 thousand, 1965. $690 thousand and 1966, $690 thousand. * $225 thousand of this amount was placed in reserve. The appropriation provides for (1) establishment of efficient supply property management practices throughout the Federal Government and (2) expenses of operating the worldwide supply system through which commercialtype commodities are sold to Government agencies and cost-type contractors from depot stocks, or by direct delivery from suppliers, whichever is more economical and meets the needs of the Government. Except for customer orders placed directly with suppliers under Federal Supply schedule contracts, most of the purchases of commodities are financed initially from the General supply fund, subject to reimbursement by ordering agencies. Wherever economical and feasible, costs of commodities furnished directly from suppliers are paid directly from funds of the requisitioning agency without involving the General supply fund. The budget includes an item for separate transmittal for 1965 of $2,835 thousand to finance an increase in stores stock sales from $330 million to $365 million, an increase in purchases of nonstores direct delivery items from $256 million to $283.4 million, and for expenses to develop automotive safety standards under Public Law 88-515, approved August 30, 1964. Fair value of personal property received from other appropriations or funds without cost for use by GSA is as follows: 1964, $25 thousand; 1965, $14 thousand; 1966, $13 thousand. 1. Supply distribution.-Stocks of commercial-type commodities are received, warehoused, and issued on a worldwide basis to Federal agencies through a national supply distribution system consisting of both wholesale and retail distribution facilities. Stores stock sales reflect a continuous increase, as follows: 1962, $239.5 million; 1963, $259.7 million; 1964, $287.8 million; and 1965 and 1966 estimated at $365 million and $386 million, respectively, including the cost of transportation to destination. 2. Procurement.-Commodities are procured to maintain inventories at stores depots to insure availability in advance of sales orders and for direct delivery to agencies. Term contracts for commercial-type commodities and services are established for large aggregate volume requirements against which agencies place individual orders at uniform price advantages. Total procurement in 1966 is estimated at $1,825 million compared to $1,761.7 million in 1965 and actual purchases of $1,550.9 million in 1964. 3. Quality control and standardization (a) Inspection.Timely delivery of commodities of specified quality is assured by inspection and surveillance at contractors' plants or supply depots, by laboratory tests and analyses of samples prior to acceptance, and by contract administration assistance. (b) Supply standardization.—Qualitative requirements of Federal agencies are reflected in Federal specifications, Federal standards, and Federal item identifications which are mandatory for use in procurement. These documents collectively provide for optimum expansion of supply support by GSA of commercial-type items to Federal agencies and for competitive procurement. The estimated workload for 1965 and 1966 is based primarily upon new items entering the national supply system requiring identification and specifications and revisions to existing specifications to reflect changing technology applicable to the current requirements of Federal agencies. The cataloging program results in establishing a uniform identification for each item of supply and establishes a basis for expanding supply support by the General Services Administration once the commonality of the items is determined. 4. Supply management. The national supply system is developed, coordinated, and monitored; supply management surveys of Federal agencies' supply operations are conducted and recommendations are made for improving their efficiency and economy within the framework of the national supply system; supply management policies, procedures, methods and informational guides and training material for Government-wide application are promulgated; and the nationwide supply data system of the Federal supply service is designed, installed, and main tained. 10 Total obligations.. 40 New obligational authority (proposed sup- 1964 actual 1965 1966 estimate estimate 24 14 5 32 1,336 779 205 170 375 7 300 2,790 45 45 -45 2,835 2,835 (a) Stores items: Purchase of materials handling and 3,150 12,000 18,785 10 Relation of obligations to expenditures: Receipts and other offsets (items 11-17)--563,746 -703,554-751,078 Obligations affecting expenditures.. Expenditures... 600,037 720,751 767,373 36,292 17,197 16.295 9,083 17,062 32,459 -17,062 -32,459 -52,659 28,312 1,800 -3,905 1 Balances of selected resources are identified on the statement of financial condition. This fund finances, on a reimbursable basis, a national supply depot system and a system of ordering supplies for direct delivery to agencies. Supplies or services are sold from the fund at cost to other agencies and the District of Columbia. Related operating expenses are provided for under the appropriation Operating expenses, Federal Supply Service. Also financed by the fund and reimbursed by using agencies are the operations of interagency motor vehicle 33,935 pools established in areas of high vehicle density and the rehabilitation and repair of furniture and equipment. Budget program. The estimate provides for continued increases in sales to the military under the program for progressively expanding use of these supply facilities by the Department of Defense, and a slight increase in sales to civilian agencies. The estimate also contemplates the activation of additional motor vehicle pools. Supply operations-(a) Stores, regular. Stocks of common-use commodities are purchased in volume and stored in supply depots for issue to Government agencies. From ment... 3. Rehabilitation and repair of furni ture and equipment: Purchase 1 ment... 15,854 Total capital outlay, funded.. 20,502 16,703 25.828 L an alltime high of $287.8 million in 1964, sales are estimated Revenue, Expense, and Retained Earnings (in thousands of dollars)—Continued to increase to $365 million and $386 million in 1965 and 1966, respectively. (b) Stores, direct delivery. Orders for stores-type items, if sufficiently large and delivery time is not a factor, are placed with the commercial source of supply and delivered directly to the customer. Sales were $36.3 million in 1964, and are estimated to increase to $44 million in 1965 and $50 million in 1966. Supply operations-Continued Revenue.... (c) Nonstores items.-Definite quantity requirements of commodities which are not susceptible to economical stocking in supply depots are purchased for direct ship- Export operations: ment to using agencies. Sales through the fund are expected to increase from $168.9 million in 1964 to $225 million in 1965 and $227 million in 1966. Export operations.-Stores and nonstores items are shipped to oversea customers. Receipts to the fund covering packing, transportation costs, and other reimbursable services are expected to increase from $16.1 million in 1964 to $19.5 million in 1965 and $23 million in 1966. Equipment rental. Operating and ADP equipment is purchased and charged on an accrual basis to the using activities. Receipts are estimated to increase from $0.5 million in 1964 to $0.9 million in 1965 and $3.3 million in 1966. Rehabilitation and repair of furniture and equipment.— Furniture and equipment repair services, provided through commercial sources wherever feasible and economical, are estimated to increase from $5.5 million in 1964 to $7 million in 1965 and 1966. Motor pools. Services are provided to agencies through a system of interagency motor pools. Sales are estimated to increase from $28.2 million in 1964 to $34 million in 1965 and $34.4 million in 1966. Other revenue and expense.-Gain or losses on equipment disposals, adjustments between fiscal years, inventory writeoffs, and discounts are applied against operating costs. 1964 actual 1965 1966 estimate estimate Expense... Net operating income, nonstores items. Revenue... Net operating income, export operations. 298 Equipment rentals: Revenue.. Expense.... Operating results and financial condition.--Investment of the U.S. Government at the end of 1966 is estimated at $269.2 million consisting of $197.7 million direct appropriations, $68 million donated assets, $0.6 million capitalized surplus, and retained earnings of $3 million with $0.1 million deducted for long-term leave liability. Upon establishment of interagency motor pools addi- Analysis of retained earnings: tional donated assets arising from transfers of motor vehicles from other agencies will be capitalized in the fund. Any operating surplus, as determined by the General Accounting Office audit, must be returned to Treasury as miscellaneous receipts. Payments to be so made in 1965 and 1966 are $4,802 thousand and $3 million, respectively. Revenue, Expense, and Retained Earnings (in thousands of dollars) Retained earnings, end of year.... |