DOA, GSA report fewer overdue payables but procurement bottlenecks and staffing remain

Department of Administration and General Services Agency (GSA) officials told the Committee on Finance and Government Operations on June 19 that outstanding vendor payables have declined substantially but procurement workload and staffing remain constraints that affect federal grant spending.

DOA Director Edward Byrne said when he assumed the role outstanding vendor payables were about $41,000,000; at the time of the hearing DOA reported that figure had been reduced to just over $4,000,000. Byrne and committee members cautioned that the remaining amount fluctuates and some invoices have not been submitted by agencies.

Adriana Kitagawa, acting chief procurement officer, told senators GSA had received more than 2,000 requisitions as of May and that roughly 100 of those were for formal invitation-for-bid or request-for-proposal processes, which are more complex and time-consuming. Kitagawa said GSA aims for a 15-to-30-day turnaround on straightforward procurements but noted complexity, late agency submissions and spec problems can lengthen processing time. She said GSA had five buyers on staff with two current vacancies (one buyer supervisor and one buyer 1) budgeted for FY26.

Senators pressed on aging invoices. Director Byrne said about $1,000,000 of the outstanding balance might be more than 120 days old and explained aging counts from the invoice date; the DOA CFO confirmed there are cases where invoices remain unpaid due to lack of funding in the identified account and that DOA helps agencies find the correct account when that happens.

Kitagawa said GSA has begun "recentralizing" procurement functions to ensure trained buyers review specifications and improve consistency; buyers will review agency specs and contact agencies when technical or compliance gaps appear. She also described mechanisms for agencies to upload invoices directly to the new financial system and said GSA electronically sends purchase orders to vendors and agency points of contact when orders are signed.

Committee members and DOA discussed causes of failed or slow procurements, including unclear specifications, vendor insolvency (one electric school bus bidder went out of business) and agencies waiting until late in the fiscal year to submit requisitions. Kitagawa noted GSA sometimes processes urgent procurement manually when the system is closed and that turnaround was as fast as about 10 days in low-volume months.

No formal votes were held. Committee members requested DOA provide a report identifying how many overdue invoices are unpaid specifically for lack of funding and requested continued monitoring of procurement timelines and staffing.