Detailed Information on the
General Services Administration - National Furniture Center Assessment

Use the NFC's Strategic Assessment process to define ambitious performance targets that lead to successful achievement of long term goals. 1. Participation in OCFO Performance Management Process 2. Participation in OMB PART cycle, FY2006 - FY2011

Review and streamline operations to increase efficiencies by standardizing internal contracting processes. 1. Business Model Redesign Implementation 2. Final implementation of FAS Organization Design (order has been signed by Administrator)

Increase efficiency in assessing customer requirements by finding new avenues to promote NFC products, capture customer buying habits, and enhance customer service. 1. Increase agency customer participation in the Quality Partnership Meetings 2. Increase marketing of the traditional SOP program 3. Promote agency customer use of blanket purchase agreements (BPAs) against the GSA Schedules 4. Perform Lean Six Sigma - Process Improvement for SOP and MAS Programs

Measure: Timeliness to award new contracts (days)

Explanation:At the end of FY2004, the National Furniture Center was making progress in decreasing its cycle time (number of days) to process new offers (contracts) in support of the long term goals of the Commercial Acquisition business line. In FY2005, the "Get It Right" campaign modified processes within the National Furniture Center. Cycle time performance measure targets were adjusted to reflect these changes which resulted in an increase in the amount time needed to process an offer. As a component of the Commercial Acquisition, cycle time results for the center were compiled with the other acquisition centers in the business line to produce the average number of days required to process a modification. Tthe National Furniture Center average cycle time for the number of days required to award new offers were as follows: 66.60 (FY2003), 61.00 (FY2004), 84.00 (FY2005). With the creation of the Federal Acquisition Service, the National Furniture Center will have individual performance and targets. The proposed performance measure targets for FY2006 - FY2011 are listed in the table below, and will be reviewed periodically as efficiencies gained from the creation of the Federal Acquisition Service (FAS) are assessed.

Measure: Timeliness to award contract modifications to add products and services (days)

Explanation:At the end of FY2004, the National Furniture Center was making progress in decreasing its cycle time (number of days) to process modifications to add products or services to existing Multiple Award Schedule contracts in support of the long term goals of the Commercial Acquisition business line. In FY2005, the "Get It Right" campaign modified processes within the National Furniture Center. Cycle time performance measure targets were adjusted to reflect these changes which resulted in an increase in the amount time needed to process a contract modification. As a component of the Commercial Acquisition, cycle time results for the center were compiled with the other acquisition centers in the business line to produce the average number of days required to process a modification. The National Furniture Center average cycle time for number of days required to award a contract modifications were as follows: 12.30 (FY2003), 9.00 (FY2004), 13.00 (FY2005). With the creation of the Federal Acquisition Service, the National Furniture Center will have individual performance and targets. The proposed performance measure targets for FY2006 - FY2011 are listed in the table below, and will be reviewed periodically as efficiencies gained from the creation of the Federal Acquisition Service (FAS) are assessed.

Measure: Direct operating expense as a percentage of gross margin.

Explanation:The fiscal year end results of the National Furniture Center's (NFC) direct operating expense as a percentage of the gross margin has not been a performance measure for the National Furniture Center. The NFC has gathered the information and the table contains the center's results for FY 2002 - FY2005. In FY2004, the National Furniture Center added 16 additional FTE to its on-board as a result of the closing of an acquisition center in the Federal Supply Service which increased the NFC direct operating expenses. The reduction of the Industrial Funding Fee (IFF) contributed to a decline in business volume, revenue and gross margin for FY2005. The National Furniture Center implemented a recovery plan to address these reductions. Also, the merger into FAS will create other efficiencies to compliment the recovery plan. With the creation of the Federal Acquisition Service, the National Furniture Center will have individual performance and targets. The proposed performance measure targets for FY2006 - FY2011 are listed in the table below, and will be reviewed periodically as efficiencies gained from the creation of the Federal Acquisition Service (FAS) are assessed.

Measure: Ratio of full-time equivalents (FTE) to business volume (efficiency)

Explanation:The ratio of full-time equivalents (FTE) to business volume (efficiency) has not been a performance measure for the National Furniture Center. The table contains the center's results for FY 2002 - FY2005. The full-time equivalent (FTE) is based on the number on-board at the end of the fiscal year. In FY2004, the National Furniture Center added 16 additional FTE to its on-board as a result of the closing of an acquisition center in the Federal Supply Service. The reduction of the Industrial Funding Fee (IFF) contributed to a decline in business volume and revenue in FY2005. The National Furniture Center implemented a recovery plan to address these reductions. The merger into FAS will create other efficiencies to compliment the recovery plan. With the creation of the Federal Acquisition Service, the National Furniture Center will have individual performance and targets. The proposed performance measure targets for FY2006 - FY2011 are listed in the table below, and will be reviewed periodically as efficiencies gained from the creation of the Federal Acquisition Service (FAS) are assessed.

Measure: Number of schedule task orders solicited using GSA e-BUY.

Explanation:The National Furniture Center did not have a separate target for eBUY. The business line had a target of x-number of posting per year. The National Furniture Center had the following number of RFQ posted against the Special Item Numbers (SINs) on its schedules: 1596 (FY2003), 4609 (FY2004), 6775 (FY2005). With the creation of the Federal Acquisition Service, the National Furniture Center will have individual performance and targets. The proposed performance measure targets for FY2006 - FY2011 are listed in the table below, and will be reviewed periodically as efficiencies gained from the creation of the Federal Acquisition Service (FAS) are assessed.

Measure: Percentage of projects (TBD) where cost and Procurement Administrative Lead Time (PALT) schedule variances are within +10% of the approved project plan for projects over $5,000,000.

Explanation:This is a new performance measure for the National Furniture Center. The results for FY2006 will establish the baseline for this performance measure.

Is the program purpose clear?

Explanation: The mission of the National Furniture Center (NFC) is to be the preferred source of best value commercial services and products to the Federal government by creating quality work environments that enable our client agencies to focus on their unique missions. This is achieved by offering unmatched service to its Federal customers by providing complete turnkey project management solutions and services for furniture purchases, office equipment, and professional audiovisual products and services.

Evidence: The GSA and the FSS were established by the Federal Property and Administrative Services Act of 1949 (Section 201, 40 U.S.C. 481). Additional information concerning the mission and functions of the NFC can be found on the GSA Website at www.gsa.gov/furniture.

Does the program address a specific and existing problem, interest, or need?

Explanation: With over 1,500 suppliers and manufacturers on GSA Schedule, the National Furniture Center (NFC) provides the customer with a breadth of quality American made commercial products and services at significant cost savings that meet federal acquisition regulations. In addition, the NFC offers a variety of assisted services such as conducting market research, developing technical requirements, performance evaluation, and dispute resolution. This two prong approach has been successful in meeting customer needs and reducing costs. In addition, the Department of Defense (DOD) Military Construction and Family Housing budgets grew over the past several years, providing a viable opportunity for furniture and furnishings.

Evidence: The GSA and the FSS were established by the Federal Property and Administrative Services Act of 1949 (Section 201, 40 U.S.C. 481). The NFC relies on an internal report to track the use of the Federal Supply Service Multiple Award Schedule program's contracts. Through the use of this internal report and the monitoring of postings that are established through GSA eBuy, the NFC is able to track the breadth of products and services that are available to customer agencies. This is significant in light of DOD's growing housing needs as evidenced by their budgetary allocations for construction and family housing (Office of the Secretary of Defense - Budget Materials Website at http://www.dod.mil/comptroller/defbudget/).

Is the program designed so that it is not redundant or duplicative of any other Federal, state, local or private effort?

Explanation: The National Furniture Center (NFC) serves a viable portion of the furniture market. However, individual agencies may choose to use their own procurement offices for greater control over their purchases. This takes more time as they have to run a procurement and money in that an agency must run a larger procurement organization. Also, there are other competitors to GSA. For example, the Federal Prison Industries, Unicor, can set competitive rates and must be considered as an option by federal agencies when making purchases. In addition, GOVWORKS and the Defense Logistics Agency (DLA) offer product acquisition and/or turnkey project services similar to those offered by the NFC.

Evidence: Competitors to the NFC include GovWorks (www.govworks.gov); Federal Prison Industries, Inc. (http://www.unicor.gov/prodservices/prod_dir_schedule) and; DLA (http://www.dla.mil/bussoppsmain.asp).

Is the program design free of major flaws that would limit the program's effectiveness or efficiency?

Explanation: The General Supply Fund (GSF), the current funding mechanism of GSA's National Furniture Center (NFC), was established to promote business like operations within the Federal Government. The GSF is a revolving fund and as such its operations must be efficient and recover the total operating expenses of its programs. The NFC offers customer agencies a variety of specialized products and services to meet their changing needs and serves as a center of excellence within the furniture industry. Services provided include simple acquisitions as well as complex design and build-out of office space for customer agencies. The NFC specializes in the furniture market and is able to leverage the buying power of the Federal government to negotiate the prices, terms, and conditions in its contracts to offer agency customers. The NFC routinely negotiates extra discounts for its large assisted acquisitions. As the NFC negotiates lower prices and better terms, it is able to secure efficiencies and economies of savings for the Federal government.

Evidence: The extensive line of services and products offered by the NFC are indicative of the program's ability to serve as a center of excellence for furnishing needs within the Federal Government. Favorable results on the program's customer satisfaction survey also support the success of the program. Additionally, the NFC has had extensive reviews of its business practices and procedures in recent years to ensure that the program is conducting business in such a way to support efficient operations and continuous improvement of its policies and practices. In FY 2004, a review of Federal Supply Service Special Orders Programs (SOP) was conducted to ensure that all programs that operating under the SOP method of supply including the NFC were using sound business practices regarding the collection and use of customer agency funds. To further this effort, the NFC Recovery Plan (2006) has been implemented to further enhance the program's ability to maximize its operational efficiency and performance. The broad reorganization of the Federal Supply Service (FSS) and Federal Technology Service (FTS) to form the Federal Acquisition Service (FAS, http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelPage=%2Fep%2Fchannel%2FgsaOverview.jsp&channelId=-17545) has also resulted in an analysis of business practices and service delivery models to ensure that all programs within FAS are managed in such a way to support streamlined, effectively managed operations which will assist GSA as it implements improved processes and controls as a result of the 2005 Annual Performance and Accountability Report (http://www.gsa.gov/gsa/cm_attachments/GSA_DOCUMENT/GSAFullPAR_111505_Final_R2F-aAB_0Z5RDZ-i34K-pR.pdf).

Is the program design effectively targeted so that resources will address the program's purpose directly and will reach intended beneficiaries?

Explanation: The National Furniture Center's (NFC) intended beneficiaries include Federal agencies and military organizations located worldwide and other select entities (e.g. District of Columbia government). The program effectively targets by partnering with the Public Buildings Service (PBS), viewing opportunities in the Customer Relationship Management application, and researching construction and housing trends in military and other federal agency budgets. Once targeted, the NFC further explores their needs through customer visits and survey results. In addition, the NFC obtains inputs from industry partners on emerging market trends at scheduled Quality Partnership Council meetings and from the Business Partner Satisfaction Survey.

Evidence: Through the use of customer relationship management, the NFC is able to identify opportunities to provide services to customer agencies and target its offerings to better serve the Federal Government. The NFC also conducts annual customer satisfaction and business partner surveys to monitor the program's success in meeting customer needs and how well the program is working with business partners in carrying out NFC services. The results of these surveys are analyzed and used to identify any needed refinements to the program offerings or its service delivery model to ensure program beneficiaries are being served. For additional information concerning GSA, the NFC, and its customer requirements, review the Federal Property and Administrative Services Act of 1949 (Section 201, 40 U.S.C. 481) and DOD's construction and family housing budget (Office of the Secretary of Defense - Budget Materials Website at http://www.dod.mil/comptroller/defbudget/).

Does the program have a limited number of specific long-term performance measures that focus on outcomes and meaningfully reflect the purpose of the program?

Explanation: The National Furniture Center (NFC) has quantifiable, long-term measures to guide program performance and to understand how well the NFC is meeting customer needs. The long-term performance measures are: timeliness to award new contracts, timeliness to award contract modifications to add products and services, direct operating expenses as a percentage of gross margin, ratio of full-time equivalents (FTE) to business volume, and number of schedule task orders solicited used GSA e-Buy.

Evidence: The NFC has established long-term performance measures in support of the Federal Acquisition Service (FAS) goals that focus on outcomes and reflect the purpose of the program. These measures are included in the program performance measures section of this review. These measures will also be used in the FY 2008 Budget process and will be included in the GSA FY 2008 OMB Budget Submission and Congressional Justification. In prior years this program was contained within the Federal Supply Service (FSS) Commercial Acquisition business line and all measures and results were reported at the business line level externally. For more information review the GSA Strategic Plan at http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_DOCUMENT&contentId=10620&noc=T.

Does the program have ambitious targets and timeframes for its long-term measures?

Explanation: Specific quantified targets have been established for the long-term goals. The measures have clear baselines with ambitious annual targets that ensure incremental progress toward the long-term goals.

Evidence: The targets and timeframe for accomplishing the programs long-term measures and targets are included in the program performance measures section of this review and will be documented in the FY 2008 GSA OMB Budget Submission and Congressional Justification.

Does the program have a limited number of specific annual performance measures that can demonstrate progress toward achieving the program's long-term goals?

Explanation: The National Furniture Center (NFC) has six specific, annual performance measures that demonstrate progress toward achieving the program's long-term goals. The annual performance measures are: timeliness to award new contracts; timeliness to award contract modifications; percent of projects where cost and Procurement Administrative Lead Time (PALT) schedule variances are within 10% of the approved project plan; percent of schedule task orders solicited using e-Buy; direct operating expenses as a percent of gross margin; and ratio of full time equivalents (FTE) to business volume.

Evidence: The program performance measures section of this review contains the NFC annual performance measures that have been established and the program's progress in achieving results for these measures.

Does the program have baselines and ambitious targets for its annual measures?

Explanation: The National Furniture Center has baselines for most of its annual measures and has ambitious targets. The baselines and targets are derived from historical program performance and set in conjunction with the Federal Supply Service, Office of Commercial Acquisition, Office of Enterprise Planning, and Office of the Controller.

Evidence: The baselines and targets that have been established for the NFC have been included in the program performance measures section of this review. These baselines and targets will be published in the GSA FY 2008 OMB Budget Submission and the Congressional Justification. The targets that have been established focus on continued program improvement on all performance measures.

Do all partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) commit to and work toward the annual and/or long-term goals of the program?

Explanation: Industry partners support the overall goals of the National Furniture Center (NFC) which are discussed during Quality Partnership Council (QPC) meetings. However, partners do not measure and report on performance as it relates to accomplishing the NFC's goals.

Evidence: For information on the Quality Partnership Council (QPC) including its charter and meeting minutes visit http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelPage=%2Fep%2Fchannel%2FgsaOverview.jsp&channelId=-14007.

Are independent evaluations of sufficient scope and quality conducted on a regular basis or as needed to support program improvements and evaluate effectiveness and relevance to the problem, interest, or need?

Explanation: The core competency of the National Furniture Center is the award and modification of Federal Supply Multiple Award Schedule contracts. There are regularly scheduled, independent reviews of the National Furniture Center (NFC) including contract quality reviews and financial audits. There have also been several comprehensive, independent studies conducted over the last several years, which have evaluated program effectiveness, identified areas for improvements, and influenced program planning.

Evidence: The NFC has had extensive reviews of its business practices and procedures in recent years to ensure that the program is conducting business to support efficient operations (NFC Recovery Plan, GSA 2006) and continuous improvement of its policies and practices (FY 2005 GSA Contract Quality Reviews). In FY 2004, a review of Federal Supply Service Special Orders Programs (SOP) was conducted to ensure that all programs that operate under the SOP method of supply including the NFC use sound business practices in regard to the collection and use of customer agency funds. More recently, Booz Allen Hamilton completed a thorough evaluation of the SOP fee structure and provided recommendations for the agency's consideration ("GSA Strategic Rate/Fee Review", Booz Allen Hamilton Study, 2006). The broad reorganization of the Federal Supply Service (FSS) and Federal Technology Service (FTS) to form the Federal Acquisition Service has also resulted in an analysis of the FSS acquisition centers to determine areas where improvements can be made to optimize program operations (The Gelber Report, GSA 2006). Additional performance and program reviews include the 2005 Annual Performance and Accountability Report at http://www.gsa.gov/gsa/cm_attachments/GSA_DOCUMENT/GSAFullPAR_111505_Final_R2F-aAB_0Z5RDZ-i34K-pR.pdf and the GAO Report - Contract Management: Opportunities to Improve Pricing of GSA Multiple Award Schedules Contracts (2005) at http://www.gao.gov/new.items/d05229.pdf.

Are Budget requests explicitly tied to accomplishment of the annual and long-term performance goals, and are the resource needs presented in a complete and transparent manner in the program's budget?

Explanation: The National Furniture Center (NFC) participates in the Strategic Planning, Budget and Performance Management Cycle (SBP&P). The budget is formulated based on General Services Administration strategic goals and individual program performance goals. Funding levels are determined based on the activities that are required to achieve these goals and the performance targets that are set. Through linking the Congressional Budget with the performance goals and measures, full program budgets are directly aligned with program goals.

Evidence: The NFC follows the overall GSA agency guidance in regard to linking budget dollars to performance measures as prescribed by the OCFO's Performance Management Process (PMP). Page GSF-17 of the FY 2006 GSA Congressional Justification (http://www.gsa.gov/gsa/cm_attachments/GSA_DOCUMENT/2006CJ_R2E-s65_0Z5RDZ-i34K-pR.pdf) displays the method through which funding is tied to performance measures in external budget documents. This methodology will be used in FY 2008 to link all Federal Acquisition Service (FAS) external performance measures to funding requests.

Has the program taken meaningful steps to correct its strategic planning deficiencies?

Explanation: The NFC continuously strives to take meaningful steps to correct any strategic planning deficiencies. Two areas that receive a great deal of program attention are cycle time (time to process contracts and modifications) and consistent contract quality. These areas ensure the NFC is getting their customers the products and services they need in an expeditious manner while observing the highest level of procurement integrity. Prior review of these areas at the business line level (until recently, the NFC was monitored as part of the Commercial Acquisition Business Line) showed inconsistencies among the acquisition centers and suggested areas for improvement. For example, each acquisition center considered different factors in determining cycle time, such as differing start times for an offer, how to count the days, and when to start the clock once an offer transferred to another contract specialist. The NFC, in accordance with the other centers, realized this led to customer confusion and fostered inefficiencies within the Commercial Acquisition Business Line. The Board of Advisors (comprised of the FC acquisition center senior management) examined areas of commonality where best practices could be developed and applied. With regard to cycle time, a standardized tracking system was implemented. To ensure consistent contract quality, the centers requested and underwent a thorough review by Federal Supply Service (FSS) Acquisition Management Center (FX). The independent review produced contract quality ratings for each acquisition center, and gave recommendations for improvement that have been implemented throughout the centers. Going forward, under the new FAS organization, the NFC is now a direct participant in the performance management process. Deficiencies are being addressed through a strategic assessment and action plan that includes long-term goals and supporting annual performance measures designed to further improve the center's efficiency and effectiveness in supporting the mission requirements of its Federal customers.

Evidence: The NFC fully participates in performance planning and review to strengthen its operations. It recently completed its FY2008 Strategic Assessment Plan in support of the General Services Administration strategic planning process as required by the President's Management Agenda. These measures are consistent with the long-term goals of the Federal Supply Service (http://insite.fss.gsa.gov/fe/measures.cfm). The pending reorganization of FSS as part of the Federal Acquisition Service will provide additional opportunities to strengthen program performance (FAS Organization Plan at http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelPage=%2Fep%2Fchannel%2FgsaOverview.jsp&channelId=-17545).

Has the agency/program conducted a recent, meaningful, credible analysis of alternatives that includes trade-offs between cost, schedule, risk, and performance goals, and used the results to guide the resulting activity?

Explanation: The National Furniture Center (NFC) routinely explores all alternative solutions toward enhancing it business model and when fulfilling customer requirements. With the former, the NFC encourages in-house and third party studies (Coriendo, LLC Study, 2005; Booz Allen Hamilton Study, 2006) and drafts meaningful business and marketing plans (NFC Recovery Plan) to help guide operations. This will continue with the creation of the Federal Acquisition Service (FAS) which was the result of careful examination of proposed alternatives for effective operations. A combined service will result in the most efficient organization and best value for American taxpayers. At the program level, the NFC routinely assists Federal customers in assessing all possible solutions for their acquisition needs. One way this is done is by obtaining at least three quotes (preferably more) for their procurements to ensure competition and to obtain the best value for the taxpayer. Another way is by determining if leasing is more advantageous to purchasing. This is often the case with items under Schedule 36 - Office, Imaging, and Document Solutions. The option to lease is also presented in situations where the long-term requirements for the customer have not been determined, such as in cases where the agency is setting up emergency facilities in response to natural disasters. The NFC works to provide its Federal customers with all of the options needed to make an informed determination on what is the best value to meet its mission requirements.

Evidence: The program has developed the NFC Furniture Purchasing Procedures guide which documents the practices used within the acquisition center to provide services to customer agencies. In recent years, independent studies of the program have been conducted, including the Coriendo Study in 2005 and an analysis by Booz Allen Hamilton in 2006 (GSA Strategic Rate/Fee Review). These studies provided valuable information for the NFC to assist in refining program operations to ensure that the mission of GSA and the NFC are accomplished. They serve as a valuable tool for program managers to assist in determining if there is a need for additional product offerings or any refinement to the program's current base of products and services. The pending reorganization of FSS as part of the Federal Acquisition Service will provide additional opportunities to strengthen program performance (FAS Organization Plan at http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelPage=%2Fep%2Fchannel%2FgsaOverview.jsp&channelId=-17545).

Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?

Explanation: National Furniture Center (NFC) performance measures are entered into the Performance Measurement Tool (PMT) and tracked monthly by program management and reported to GSA's senior management quarterly. The results are used to ensure that contracts are being processed timely (cycle time), customer needs are being met by a proficient staff (Clinger-Cohen compliancy), and the program is operating efficiently. The NFC also uses various metrics to track the percent of business going to socio-economic concerns and annual surveys to help strengthen relationships among the NFC, customers, and industry partners.

Evidence: The NFC utilizes information from multiple sources in order to monitor and improve program performance. The Performance Measurement Tool (http://pmt.gsa.gov/) is an important element in tracking program performance. Internal reports are used to determine the volume of purchases that are generated by the multiple award schedules that are managed by the NFC. Socioeconomic reports are used to gather data relative to the use of small and disadvantaged business partners and to ensure that the NFC is supporting the Federal Government's mission of fostering these business relationships. Valuable information is also gathered from annual customer a satisfaction survey which is used to determine areas in which program improvements are needed to support our customers or where current offerings may not be sufficient to meet customer needs.

Are Federal managers and program partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) held accountable for cost, schedule and performance results?

Explanation: The National Furniture Center's managers are held accountable for business results and cost containment through the Associate Performance Plan and Appraisal System (APPAS), the Performance Measurement System, and anti-deficiency and other regulatory legislation. The Office of Acquisition Management uses contractor site visits and report cards to ensure that Multiple Award Schedules (MAS) vendors are meeting the terms of the contracts.

Evidence: The NFC Management and Associate APPAS Plans, which are established for all associates on an annual basis, are aligned with the mission of the organization. By establishing these plans and using this rating system, associate actions are directly linked to the results achieved by the organization (Federal Supply Service Performance Measures Website at http://insite.fss.gsa.gov/fe/measures.cfm). In addition, contractor site visits and report cards are used to ensure that vendors on MAS contracts are meeting the terms and conditions of the contract and achieving acceptable results.

Are funds (Federal and partners') obligated in a timely manner, spent for the intended purpose and accurately reported?

Explanation: The General Services Administration's accounting system that serves the National Furniture Center (NFC) requires all obligations on behalf of the program or industry partners be established prior to processing payments for goods and services. This ensures that payments correspond to their intended purpose. Furthermore, program and partner funds are obligated consistent with established plans (program funds against operating budgets and partner funds against project plans). Program funds are monitored by management and the financial office on a monthly basis and discrepancies corrected in the accounting system. These funds (obligations) are further validated as part of an annual open item review. Partner funds are monitored on a quarterly basis as part of an agency initiative to ensure proper accounting and financial closeout of program funding.

Evidence: The NFC uses the monthly Status of Funds Report to track operating expenses against its approved Operating Expense Allowance (http://insite.fss.gsa.gov/financial/). In addition, the NFC uses a project fund tracking sheet to monitor customer funding to ensure that all funds are managed appropriately and utilized for their intended purpose. For further information concerning budget requirements, review the Congressional Budget Justification for FY2006 and FY2007 at http://www.gsa.gov/gsa/cm_attachments/GSA_DOCUMENT/2006CJ_R2E-s65_0Z5RDZ-i34K-pR.pdf and http://www.gsa.gov/gsa/cm_attachments/GSA_DOCUMENT/2006CJ_R2E-s65_0Z5RDZ-i34K-pR.pdf.

Does the program have procedures (e.g. competitive sourcing/cost comparisons, IT improvements, appropriate incentives) to measure and achieve efficiencies and cost effectiveness in program execution?

Explanation: The National Furniture Center (NFC) works hard to be a proficient organization and maintains two efficiency measures as part of it Strategic Assessment to monitor how well it achieves this goal. First, it monitors direct operating costs as a percentage of the gross margin. Second, it tracks the ratio of full-time equivalents (FTE) to business volume. A consistent review of these measures has led the NFC to address areas for improvement. For instance, the 2005 Coriendo, LLC Study was an independent review of the program's funding obligation and furniture ordering and tracking processes. As a result of the findings, the NFC initiated improvements to streamline procurement processes, such as the development of a project tracking system by the Federal Supply Service (FSS) Office of the Chief Information Officer.

Evidence: The FSS Performance Measures Website (http://insite.fss.gsa.gov/fe/measures.cfm) is used to monitor efficiency measures as part of the Strategic Assessment Plan. The NFC also utilizes feedback from independent studies to implement process improvements. For example, systems improvements were made that resulted from recommendations of the Coriendo, LLC Study (2005).

Does the program collaborate and coordinate effectively with related programs?

Explanation: The National Furniture Center (NFC) routinely works with the Public Buildings Service (PBS) and the Federal Technology Service (FTS) on projects throughout federal government worldwide. On a typical project, PBS will share space planning information and the customer's initial requirements for the NFC to review and provide guidance. Also, FTS will ensure that the center has the proposed electrical configuration for the project which is very important for determining the installation timeline for the project. These consultations greatly help the NFC when working with the customer to draft furniture requirements that will meet their needs and conform to the design of the space. For example, the NFC partnered with both services to establish and furnish a new regional office building for the Federal Emergency Management Agency (FEMA). The project required coordination between GSA services to develop a timeline for installation of furniture, workstations, conference rooms within the overall construction, renovation, and information technology infrastructure master plan for the customer. This was accomplished through regular on-site visits and meetings, teleconference, and email with PBS, FTS, and the Federal customer team in Kansas City, Missouri. This partnership continues to grow as PBS and the NFC work on projects in Washington, San Francisco, and other parts of the country. In addition, the NFC meets regularly with customers and industry partners to discuss emerging trends, performance, and customer satisfaction at Quality Partnership Council (QPC) meetings.

Evidence: The program coordinates with PBS on projects to gather requirements for customers as discussed in the explanation in regard to the new FEMA office space cited above. Additionally, the NFC Quality Partnership Council meetings enable the program to keep abreast of emerging trends in the industry as well as new practices and methods for meeting customer needs in accordance with the QPC charter (http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelPage=%2Fep%2Fchannel%2FgsaOverview.jsp&channelId=-14007).

Does the program use strong financial management practices?

Explanation: As part of the National Furniture Center's standard operational procedures, the center's monthly financial reports are meticulously scrutinized to ensure that expenses are at or below the fiscal plan at the center, regional, service and national level. Additionally, the NFC has been proactive in instituting new controls to address potential vulnerabilities. For example, the Federal Supply Service conducted a review of its special order programs which included the National Furniture Center (NFC). The review showed areas requiring procedural changes and where greater efficiencies could be gained. FSS issued new guidelines for all acquisition centers, and the NFC report recommendations were implemented by the center in support of these guidelines. The NFC also reviews reports, statements, and studies produced within the agency that may not directly impact the center, but nonetheless provide an opportunity to examine and strengthen internal procedures. For instance, PricewaterhouseCoopers (PwC) reported that the General Services Administration (GSA) was not free of material internal control weaknesses in the FY2004-FY2005 audit. PwC found instances where "GSA did not return spending authority to customer agencies for expired obligations and for those instances in which bona fide needs for unfilled customer orders ceased to exist". Although weaknesses were cited at the agency level and were not observed within the NFC, the audit findings provide a benchmark upon which to gauge internal controls.

Evidence: The NFC was part of a Federal Supply Service (FSS) Special Orders Program (SOP) Review (2004) which focused on ensuring that funds collected from customer agencies were properly managed. This review acknowledged that FSS SOP program uses strong financial management practices. In addition, the 2005 Annual Performance and Accountability Report demonstrates that GSA and the NFC utilize strong financial management practices (http://www.gsa.gov/gsa/cm_attachments/GSA_DOCUMENT/GSAFullPAR_111505_Final_R2F-aAB_0Z5RDZ-i34K-pR.pdf).

Has the program taken meaningful steps to address its management deficiencies?

Explanation: The National Furniture Center (NFC) has taken meaningful steps to address the internal control weakness found in the PwC audit. The NFC strengthened internal controls by adhering to new guidelines issued by the Office of the Chief Financial Officer for the cancellation, review, and certification of unfilled customer orders. In addition, as a result of the findings of a 2005 Coriendo, LLC Study, the NFC streamlined procurement processes such the development of a project tracking system by the FSS Office of the Chief Information Officer. The NFC, in conjunction with the General Accounting Office (GAO) and GSA Inspector General (IG), periodically performs contract quality reviews. If discrepancies are found, the NFC takes corrective action and submits a written response to the GAO and the IG.

Evidence: The NFC was part of a Federal Supply Service (FSS) Special Orders Program (SOP) Review (2004) which focused on ensuring that funds collected from customer agencies were properly managed. This review acknowledged that FSS SOP program uses strong financial management practices. In addition, the 2005 Annual Performance and Accountability Report demonstrates that GSA and the NFC utilize strong financial management practices (http://www.gsa.gov/gsa/cm_attachments/GSA_DOCUMENT/GSAFullPAR_111505_Final_R2F-aAB_0Z5RDZ-i34K-pR.pdf).

Is the program managed by maintaining clearly defined deliverables, capability/performance characteristics, and appropriate, credible cost and schedule goals?

Explanation: The National Furniture Center (NFC) has a thorough pre-award process to ensure that potential Multiple Award Schedules (MAS) contractors are qualified to provide products and services to the federal government. Each potential contract holder must demonstrate that their products are relevant to the Special Item Number (SIN) they are applying under, meet technical specifications, have sufficient past performance, and financial viability, to name a few examples. Finally, the negotiated price must be determined to provide the best value.

Evidence: NFC Standard Operating Procedures ensure consistency of operation and program performance. There are also published articles in GSA Update regarding NFC projects including related to FEMA and the IRS (http://insite.gsa.gov/Insite/gsa/ep/portletView.do?pageTypeId=8065&channelId=-8750).

Has the program demonstrated adequate progress in achieving its long-term performance goals?

Explanation: The National Furniture Center (NFC) has developed a set of clearly defined, long-term goals towards which the NFC has made significant progress and is on track to meet its long-term performance goals. Prior to the implementation of the Federal Acquisition Service (FAS), the National Furniture Center (NFC) consistently met or exceeded the majority of annual performance measures in support of the long-term goals of the Commercial Acquisition (FC) business line. Historically, FC has made adequate progress towards achieving its long-term goals. Under the new FAS, the NFC is a direct participant in the performance management process and therefore has developed its own long-term goals. In FY2005, the NFC was successful in achieving the targets in its long-term performance measures.

Evidence: Prior to the creation of the Federal Acquisition Service (FAS, http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelPage=%2Fep%2Fchannel%2FgsaOverview.jsp&channelId=-17545), the NFC was a component of the Federal Supply Service Commercial Acquisition (FC) business line. Performance measure goals and targets were established at a business line level and the individual acquisition center results contributed to the overall success of the business line. Results for the Commercial Acquisition business line are shown in the FY 2006 Congressional Justification on page GSF 22 (http://www.gsa.gov/gsa/cm_attachments/GSA_DOCUMENT/2006CJ_R2E-s65_0Z5RDZ-i34K-pR.pdf). For FY 2006, the NFC has worked with OMB to develop clearly defined performance measures and targets for the program which are included in this review. Performance measure results for the NFC (http://pmt.gsa.gov/) will be documented in the FY 2008 GSA Congressional Justification.

Does the program (including program partners) achieve its annual performance goals?

Explanation: In FY2005, the Commercial Acquisition business line, which contained the National Furniture Center (NFC), achieved its targets for 2/3rds of the annual performance goals that are included in the FY 2005 GSA Performance and Accountability Report. The NFC also achieved favorable results on its measures relating to the timeliness of processing contracts and modifications. These results are included in the program performance measures section of this review. Industry partners do not measure and report on performance as it relates to accomplishing the NFC's goals. However, industry partners support the overall goals of the NFC which are discussed during Quality Partnership Council (QPC) meetings.

Evidence: The Federal Supply Service Performance Measure website contains the Commercial Acquisition business line performance goals and measures achieved for FY 2005 (http://insite.fss.gsa.gov/corvu/v3/Scorecards/FC/Scorecards/BL_FC_r5_pcf3df1pi24069.html). The NFC performance results from prior years contributed to the results of the performance measures by the business line. Beginning in FY 2006, the NFC's individual performance measures and results achieved will be documented in the external GSA Budget documents. While program partners do not report on performance measures for the NFC, the Quality Partnership Council website illustrates the supportive partnership between the NFC, industry, and customer agencies (http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelPage=%2Fep%2Fchannel%2FgsaOverview.jsp&channelId=-14007).

Does the program demonstrate improved efficiencies or cost effectiveness in achieving program goals each year?

Explanation: The Commercial Acquisition Business line and the National Furniture Center (NFC) have demonstrated improved efficiencies by decreasing cycle time to process offers and modifications as is documented in the performance measures section of this review. With the establishment of the Federal Acquisition Service (FAS), the NFC has established annual targets at the program level. Starting in FY 2006, these targets and the performance of the program will be reported in all external GSA Budget documents going forward.

Evidence: Prior to FY 2006, NFC measures were reported as a component of the Federal Supply Service Commercial Acquisition business line through the FSS Performance Measures Website (http://insite.fss.gsa.gov/fe/measures.cfm) and the Performance Measurement Tool (http://pmt.gsa.gov). The Federal Acquisition Service Organization Plan aligns this program within the General Supplies and Services portfolio (http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelPage=%2Fep%2Fchannel%2FgsaOverview.jsp&channelId=-17545). The NFC will now be measured at the program level within the FAS organization.

Does the performance of this program compare favorably to other programs, including government, private, etc., with similar purpose and goals?

Explanation: The National Furniture Center (NFC) has participated in annual customer satisfaction surveys as part of the Commercial Acquisition (FC) business line; however, the NFC has not engaged in formal program comparisons with competing entities. Survey results show customers are satisfied and overwhelmingly loyal to the NFC. Analysis of Request for Quotes (RFQ) demonstrates that NFC competitors use the Multiple Award Schedules (MAS) for order fulfillment.

Evidence: The program has not been able to present information evaluating its performance against other programs. However, there are no other programs of a similar volume and nature. Therefore, GSA evaluates its performances against customer satisfaction and a number of efficiency measures.

Do independent evaluations of sufficient scope and quality indicate that the program is effective and achieving results?

Explanation: The National Furniture Center (NFC), in conjunction with the General Accounting Office (GAO) and GSA Inspector General (IG), periodically performs contract quality reviews. These reviews have been predominately favorable and any discrepancies have been promptly remedied. In FY 2004, a review of Federal Supply Service Special Orders Programs (SOP) was conducted to ensure that all programs that operate under the SOP method of supply including the NFC use sound business practices in regard to the collection and use of customer agency funds. In addition, there have been comprehensive, independent studies conducted over the last several years, which have evaluated program effectiveness, identified areas for improvements, and influenced program planning.

Evidence: The NFC has had extensive reviews of its business practices and procedures in recent years to ensure that the program is conducting business in such a way as to support efficient operations and continuous improvement of its policies and practices. The Federal Supply Service Special Orders Programs (SOP) review was conducted to ensure that all programs operating under the SOP method of supply, including the NFC, use sound business practices in the collection and use of customer agency funds. The broad reorganization of the Federal Supply Service (FSS) and Federal Technology Service (FTS) to form the Federal Acquisition Service (FAS) has resulted in an analysis of business practices and service delivery models to ensure that all programs within FAS are managed in such a way to support streamlined effectively managed operations (http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelPage=%2Fep%2Fchannel%2FgsaOverview.jsp&channelId=-17545). Finally, Booz Allen Hamilton conducted a study in 2006, titled GSA Strategic Rate/Fee Review, to provide a comprehensive analysis of the NFC and its business model.

Were program goals achieved within budgeted costs and established schedules?

Explanation: The National Furniture Center (NFC) accomplished its performance results while consistently managing its resource allocation and staying under budget. Historically, the NFC has demonstrated progress toward improving cycle time which directly impacts the ability to meet established schedules.

Evidence: The Federal Supply Service Performance Measures Website and the Performance Measurement Tool (http://pmt.gsa.gov/) provide information regarding NFC performance results.