Why does the government buy from GSA who charge triple for the products they supply and who owns GSA?

Answer 1

YOU own it-- in the sense that the taxpayers do. GSA= General Services Administration. They function as many things, but GSA is primarily known, and reviled, as the purchasing agent for the US govt. They contract for and arrange for the purchase and distribution of goods and services--everything from pencils to tanks. They, in general, using the purchasing power of the US Gov't, do get good prices. BUT like any bureaucracy, they have to pay for themselves (i.e. staff, administrators) support such as phones, computers and warehouses. These costs are passed onto the Gov't agencies they purchase stuff for. So although they may only pay $2 for a screw driver, by the time a gov't entity somewhere in the world purchases and pays for it, the cost is substantially higher.

Now, you could argue, and many have, that each gov't office should just arrange to purchase their own supplies. The counter to that is that yes, you only pay $2 for the screwdriver, but you had to pay for staff to go and buy the screwdriver, so you actually paid much more for it, probably equal to what GSA would charge you, and you've lost the efficiency of scale.

Hard to determine what is more efficient, but GSA prices do feel like a screwing.

Answer 2

I've always thought that was stupid also. We go in and pay like 15.00 for a little box of cheap pens.....

I guess its all about the gov contract.

Answer 3

all in the business