[Congressional Record (Bound Edition), Volume 151 (2005), Part 8]
[House]
[Pages 10741-10743]
[From the U.S. Government Publishing Office, www.gpo.gov]




           GENERAL SERVICES ADMINISTRATION MODERNIZATION ACT

  Ms. ROS-LEHTINEN. Mr. Speaker, I move to suspend the rules and pass 
the bill (H.R. 2066) to amend title 40, United States Code, to 
establish a Federal Acquisition Service, to replace the General Supply 
Fund and the Information Technology Fund with an Acquisition Services 
Fund, and for other purposes.
  The Clerk read as follows:

                               H.R. 2066

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``General Services 
     Administration Modernization Act''.

     SEC. 2. FEDERAL ACQUISITION SERVICE.

       (a) Establishment.--
       (1) In general.--Section 303 of title 40, United States 
     Code, is amended to read as follows:

     ``Sec. 303. Federal Acquisition Service

       ``(a) Establishment.--There is established in the General 
     Services Administration a Federal Acquisition Service. The 
     Administrator of General Services shall appoint a non-career 
     employee as Commissioner of the Federal Acquisition Service, 
     who shall be the head of the Federal Acquisition Service.
       ``(b) Functions.--Subject to the direction and control of 
     the Administrator of General Services, the Commissioner of 
     the Federal Acquisition Service shall be responsible for 
     administering the Acquisition Services Fund under section 321 
     of this title and carrying out functions related to the uses 
     for which such Fund is authorized under such section, 
     including any functions that were carried out by the entities 
     known as the Federal Supply Service and the Federal 
     Technology Service and such other related functions as the 
     Administrator considers appropriate.
       ``(c) Regional Executives.--The Administrator may appoint 
     up to five Regional Executives in the Federal Acquisition 
     Service, to carry out such functions within the Federal 
     Acquisition Service as the Administrator considers 
     appropriate.''.
       (2) Clerical amendment.--The item relating to section 303 
     at the beginning of chapter 3 of such title is amended to 
     read as follows:

``303. Federal Acquisition Service.''.
       (b) Executive Schedule Compensation.--Section 5316 of title 
     5, United States Code, is amended by striking the item 
     relating to the Commissioner of the Federal Supply Service of 
     the General Services Administration and inserting the 
     following:

[[Page 10742]]

       ``Commissioner of the Federal Acquisition Service, General 
     Services Administration.''.
       (c) References.--Any reference in any other Federal law, 
     Executive order, rule, regulation, reorganization plan, or 
     delegation of authority, or in any document--
       (1) to the Federal Supply Service is deemed to refer to the 
     Federal Acquisition Service;
       (2) to the GSA Federal Technology Service is deemed to 
     refer to the Federal Acquisition Service;
       (3) to the Commissioner of the Federal Supply Service is 
     deemed to refer to the Commissioner of the Federal 
     Acquisition Service; and
       (4) to the Commissioner of the GSA Federal Technology 
     Service is deemed to refer to the Commissioner of the Federal 
     Acquisition Service.

     SEC. 3. ACQUISITION SERVICES FUND.

       (a) Abolishment of General Supply Fund and Information 
     Technology Fund.--The General Supply Fund and the Information 
     Technology Fund in the Treasury are hereby abolished.
       (b) Transfers.--Capital assets and balances remaining in 
     the General Supply Fund and the Information Technology Fund 
     as in existence immediately before this section takes effect 
     shall be transferred to the Acquisition Services Fund and 
     shall be merged with and be available for the purposes of the 
     Acquisition Services Fund under section 321 of title 40, 
     United States Code (as amended by this Act).
       (c) Assumption of Obligations.--Any liabilities, 
     commitments, and obligations of the General Supply Fund and 
     the Information Technology Fund as in existence immediately 
     before this section takes effect shall be assumed by the 
     Acquisition Services Fund.
       (d) Existence and Composition of Acquisition Services 
     Fund.--Subsections (a) and (b) of section 321 of title 40, 
     United States Code, are amended to read as follows:
       ``(a) Existence.--The Acquisition Services Fund is a 
     special fund in the Treasury.
       ``(b) Composition.--
       ``(1) In general.--The Fund is composed of amounts 
     authorized to be transferred to the Fund or otherwise made 
     available to the Fund.
       ``(2) Other credits.--The Fund shall be credited with all 
     reimbursements, advances, and refunds or recoveries relating 
     to personal property or services procured through the Fund, 
     including--
       ``(A) the net proceeds of disposal of surplus personal 
     property;
       ``(B) receipts from carriers and others for loss of, or 
     damage to, personal property; and
       ``(C) receipts from agencies charged fees pursuant to rates 
     established by the Administrator.
       ``(3) Cost and capital requirements.--The Administrator 
     shall determine the cost and capital requirements of the Fund 
     for each fiscal year and shall develop a plan concerning such 
     requirements in consultation with the Chief Financial Officer 
     of the General Services Administration. Any change to the 
     cost and capital requirements of the Fund for a fiscal year 
     shall be approved by the Administrator. The Administrator 
     shall establish rates to be charged agencies provided, or to 
     be provided, supply of personal property and non-personal 
     services through the Fund, in accordance with the plan.
       ``(4) Deposit of fees.--Fees collected by the Administrator 
     under section 313 of this title may be deposited in the Fund 
     to be used for the purposes of the Fund.''.
       (e) Uses of Fund.--Section 321(c) of such title is amended 
     in paragraph (1)(A)--
       (1) by striking ``and'' at the end of clause (i);
       (2) by inserting ``and'' after the semicolon at the end of 
     clause (ii); and
       (3) by inserting after clause (ii) the following new clause 
     :
       ``(iii) personal services related to the provision of 
     information technology (as defined in section 11101(6) of 
     this title);''.
       (f) Payment for Property and Services.--Section 
     321(d)(2)(A) of such title is amended--
       (1) by striking ``and'' at the end of clause (iv);
       (2) by redesignating clause (v) as clause (vi); and
       (3) by inserting after clause (iv) the following new 
     clause:
       ``(v) the cost of personal services employed directly in 
     providing information technology (as defined in section 
     11101(6) of this title); and''.
       (g) Transfer of Uncommitted Balances.--Subsection (f) of 
     section 321 of such title is amended to read as follows:
       ``(f) Transfer of Uncommitted Balances.--Following the 
     close of each fiscal year, after making provision for a 
     sufficient level of inventory of personal property to meet 
     the needs of Federal agencies, the replacement cost of motor 
     vehicles, and other anticipated operating needs reflected in 
     the cost and capital plan developed under subsection (b), the 
     uncommitted balance of any funds remaining in the Fund shall 
     be transferred to the general fund of the Treasury as 
     miscellaneous receipts.''.
       (h) Conforming and Clerical Amendments.--
       (1) Section 322 of such title is repealed.
       (2) The heading for section 321 of such title is amended to 
     read as follows:

     ``Sec. 321. Acquisition Services Fund''.

       (3) The table of sections for chapter 3 of such title is 
     amended by striking the items relating to sections 321 and 
     322 and inserting the following:

``321. Acquisition Services Fund.''.

       (4) Section 573 of such title is amended by striking 
     ``General Supply Fund'' both places it appears and inserting 
     ``Acquisition Services Fund''.
       (5) Section 604(b) of such title is amended--
       (A) in the heading, by striking ``General Supply Fund'' and 
     inserting ``Acquisition Services Fund''; and
       (B) in the text, by striking ``General Supply Fund'' and 
     inserting ``Acquisition Services Fund''.
       (6) Section 605 of such title is amended--
       (A) in subsection (a)--
       (i) in the heading, by striking ``General Supply Fund'' and 
     inserting ``Acquisition Services Fund''; and
       (ii) in the text, by striking ``General Supply Fund'' and 
     inserting ``Acquisition Services Fund''; and
       (B) in subsection (b)(2)--
       (i) by striking ``321(f)(1)'' and inserting ``321(f)''; and
       (ii) by striking ``General Supply Fund'' and inserting 
     ``Acquisition Services Fund''.

     SEC. 4. PROVISIONS RELATING TO ACQUISITION PERSONNEL.

       Section 37 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 433) is amended by adding at the end the following 
     new subsections:
       ``(i) Provisions Relating to Reemployment.--If an 
     individual receiving an annuity from the Civil Service 
     Retirement and Disability Fund on the basis of such 
     individual's service becomes reemployed in an acquisition-
     related position (as described in subsection (g)(1)(A)), such 
     annuity shall not be discontinued thereby. An individual so 
     reemployed shall not be considered an employee for the 
     purposes of chapter 83 or 84 of title 5, United States Code.
       ``(j) Retention Bonuses.--
       ``(1) The head of each executive agency, after consultation 
     with the Administrator, shall establish policies and 
     procedures under which the agency head may pay retention 
     bonuses to employees holding acquisition-related positions 
     (as described in subsection (g)(1)(A)) within such agency, 
     except that the authority to pay a bonus under this 
     subsection shall be available only if--
       ``(A) the unusually high or unique qualifications of an 
     employee or a special need of the agency for the services of 
     an employee makes the retention of such employee essential; 
     and
       ``(B) the agency determines that, in the absence of such a 
     bonus, it is likely that the employee would leave--
       ``(i) the Federal service; or
       ``(ii) for a different position in the Federal service 
     under conditions described in regulations of the Office.
       ``(2)(A) Payment of a bonus under this subsection shall be 
     contingent upon the employee entering into a written 
     agreement with the agency to complete a period of service 
     with the agency in return for the bonus.
       ``(B)(i) The agreement shall include--
       ``(I) the length of the period of service required;
       ``(II) the bonus amount;
       ``(III) the manner in which the bonus will be paid (as 
     described in paragraph (3)(B)); and
       ``(IV) any other terms and conditions of the bonus, 
     including the terms and conditions governing the termination 
     of an agreement.
       ``(3) A bonus under this subsection--
       ``(A) may not exceed 50 percent of the basic pay of the 
     employee;
       ``(B) may be paid to an employee--
       ``(i) in installments after completion of specified periods 
     of service;
       ``(ii) in a single lump sum at the end of the period of 
     service required by the agreement; or
       ``(iii) in any other manner mutually agreed to by the 
     agency and the employee;
       ``(C) is not part of the basic pay of the employee; and
       ``(D) may not be paid to an employee who holds a position--
       ``(i) appointment to which is by the President, by and with 
     the advice and consent of the Senate;
       ``(ii) in the Senior Executive Service as a noncareer 
     appointee (as such term is defined under section 3132(a) of 
     title 5, United States Code); or
       ``(iii) which has been excepted from the competitive 
     service by reason of its confidential, policy-determining, 
     policy-making, or policy-advocating character.''.

     SEC. 5. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect 60 days after the date of the enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Florida (Ms. Ros-Lehtinen) and the gentleman from Illinois (Mr. Davis) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from Florida (Ms. Ros-Lehtinen).

[[Page 10743]]



                              {time}  1545


                             general leave

  Ms. ROS-LEHTINEN. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks and include extraneous material on H.R. 2066.
  The SPEAKER pro tempore (Mr. Daniel E. Lungren of California). Is 
there objection to the request of the gentlewoman from Florida?
  There was no objection.
  Ms. ROS-LEHTINEN. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, as a member of the Committee on Government Reform, I 
rise in support of H.R. 2066, the General Services Administration 
Modernization Act. This legislation would provide a reorganization of 
the General Services Administration, the Federal agency that is charged 
with procuring the facilities, products, services, and technology that 
Federal agencies and their employees need every day. H.R. 2066 will 
ensure that the GSA maximizes its use of taxpayer funds.
  This legislation has been under consideration in our Committee on 
Government Reform for a number of years, and it has been the subject of 
multiple legislative and oversight hearings and was included in the 
President's budget proposal for fiscal year 2006. Specifically, H.R. 
2066 would combine GSA's current Federal Supply Service and Federal 
Technology Service into a single entity, operating out of a united 
fund. This would provide Federal agencies with a one-stop shop to 
acquire all of their commercial goods and services.
  The separate technology fund was created in the 1980s to assist 
agencies as they incorporated complex mainframe computers into their 
daily operations. But today information technology is as common in the 
Federal workplace as furniture. Having two separate entities within 
GSA, one focusing on IT goods and services, one focusing on non-IT 
goods and services, is no longer appropriate. So H.R. 2066 would 
provide GSA with the statutory structure that it needs to bring it in 
line with the current commercial market.
  Overall, the reforms provided in H.R. 2066 would help GSA streamline 
its operations, improve its performance and efficiency far into the 
future. I urge its passage today, Mr. Speaker, and I congratulate the 
bill's distinguished authors, the gentleman from Virginia (Mr. Tom 
Davis) and the gentleman from California (Mr. Hunter) for working to 
create such a thoughtful bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I am pleased to join with my colleague, the gentlewoman 
from Florida (Ms. Ros-Lehtinen), in consideration of H.R. 2066, the 
bill before us today.
  H.R. 2066, the General Services Modernization Act, as reported by the 
Committee on Government Reform, represents the first major 
reorganization within the GSA in nearly 20 years. This bill would 
combine without substantive change the revolving funds used for the 
operations of the Federal Supply Service and the Federal Technology 
Service, both currently separate organizations within GSA.
  The bill would also authorize a new unit, the Federal Acquisition 
Service, headed by a commissioner, to take over the operations of the 
combined services.
  The Federal Supply Service provides an economic and efficient system 
for the procurement and supply of goods and services to Federal 
agencies. One way it does this is through the schedules program which 
manages long-term government-wide contracts for commercial goods and 
services. This provides customer agencies with benefits of volume 
discount pricing, lower administrative costs, and reduced inventories.
  The Federal Technology Service offers agencies a wide range of 
information technology and telecommunication products and services on a 
number of contract vehicles. Its focus is oriented toward providing 
more full-service solutions for IT, telecommunications and professional 
services.
  While I would have preferred a more thorough analysis of the benefits 
of the consolidation intended by this bill, the proposal would seem to 
offer increased organizational efficiency and improved coordination of 
the functions the services currently provide. I look forward to 
reviewing the detailed reorganization plans that the GSA is preparing.
  The bill also contains provisions which would give civilian agencies 
additional tools to maintain their acquisition work forces. It would 
allow agencies to offer retention bonuses and to reemploy retirees in 
certain special circumstances. I would also like to thank the chairman 
for working with us to provide appropriate safeguards on the use of 
this authority and for accepting a Democratic amendment regarding the 
appointment of the new commissioner of the Federal Acquisition Service.
  While not directly relevant to this legislation, I would like to take 
this opportunity to urge the GSA to consult more closely with Federal 
employee unions on its plans for reorganizing. A number of 
representatives of Federal employees have contacted the committee with 
concerns about the reorganization. Primary among those concerns is the 
fact that no one seemed to be talking to them about the plans for 
merging the two services. This approach can only breed distrust and 
fear, and I urge the administrator to improve communication with the 
affected employees.
  Mr. Speaker, I reserve the balance of my time.
  Ms. ROS-LEHTINEN. Mr. Speaker, I withdraw my motion to suspend the 
rules on H.R. 2066.
  The SPEAKER pro tempore. The motion is withdrawn.

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