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General Services Administration: Distribution Center Modernization Was Mismanaged

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Report Type Reports and Testimonies
Report Date May 20, 1992
Report No. GGD-92-71
Subject
Summary:

The General Services Administration (GSA) has not effectively managed the modernization of its wholesale distribution centers, which store and issue supplies--everything from paints and ladders to photocopier paper--to federal agencies worldwide. Its attempt to develop crucial software has failed, wasting millions of dollars. While GSA believes that it can develop the needed software in-house, the projected completion data is over 3 years away, with no guarantees of cost effectiveness. Because of poor planning, GSA has also wasted millions of dollars buying and moving into the Palmetto (GA) distribution center. GSA has improved its planning for its second center in Burlington (NJ) however. Many of the unnecessary costs associated with Palmetto have been avoided, largely because local management followed established procedures.

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