[Congressional Record (Bound Edition), Volume 151 (2005), Part 8]
[House]
[Pages 10743-10745]
[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, as amended.
  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 
     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 
     carrying out functions related to the uses for which the 
     Acquisition Services Fund is authorized under section 321 of 
     this title, 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 ``Commissioner, 
     Federal Supply Service, General Services Administration.'' 
     and inserting the following:
       ``Commissioner, 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;

[[Page 10744]]

       (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; and
       ``(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.--
       ``(1) Policies and procedures.--The head of each executive 
     agency, after consultation with the Administrator and the 
     Director of the Office of Personnel Management, shall 
     establish policies and procedures under which the agency head 
     may reemploy in an acquisition-related position (as described 
     in subsection (g)(1)(A)) an individual receiving an annuity 
     from the Civil Service Retirement and Disability Fund, on the 
     basis of such individual's service, without discontinuing 
     such annuity. The head of each executive agency shall keep 
     the Administrator informed of the agency's use of this 
     authority.
       ``(2) Service not subject to csrs or fers.--An individual 
     so reemployed shall not be considered an employee for the 
     purposes of chapter 83 or 84 of title 5, United States Code.
       ``(3) Criteria for exercise of authority.--Polices and 
     procedures established pursuant to this subsection shall 
     authorize the head of the executive agency, on a case-by-case 
     basis, to continue an annuity if--
       ``(A) the unusually high or unique qualifications of an 
     individual receiving an annuity from the Civil Service 
     Retirement and Disability Fund on the basis of such 
     individual's service, or
       ``(B) a special need of the agency for the services of an 
     employee,
     makes the reemployment of an individual essential.
       ``(4) Reporting requirement.--The Administrator shall 
     submit annually to the Committee on Government Reform of the 
     House of Representatives and the Committee on Homeland 
     Security and Governmental Affairs of the Senate a report on 
     the use of the authority under this subsection, including the 
     number of employees reemployed under authority of this 
     subsection.
       ``(5) Sunset provision.--The authority under this 
     subsection shall expire on December 31, 2011.
       ``(j) Retention Bonuses.--
       ``(1) In general.--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) Service agreements.--(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) Terms and conditions.--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

[[Page 10745]]

gentleman from Illinois (Mr. Davis) each will control 20 minutes.
  The Chair recognizes the gentlewoman from Florida (Ms. Ros-Lehtinen).
  Ms. ROS-LEHTINEN. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, as we had discussed, the bill before us is going to 
provide the General Services Administration with the statutory 
structure that it needs to bring it in line with the current commercial 
market transactions, and it is going to streamline its operation and 
improve its performance. There are no objections to the bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. DAVIS of Illinois. Mr. Speaker, I rise in support of H.R. 2066.
  The bill before us today, H.R. 2066, the ``General Services, 
Modernization Act'' as reported by the Government Reform Committee 
represents the first major reorganization within GSA in nearly 20 
years. The 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 service to Federal 
agencies. One way it does this is through the schedules program, which 
manages long-term, governmentwide 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 range of information 
technology and telecommunications products and services on a number of 
contract vehicles. Its focus is more oriented toward providing ``full 
service'' solutions for IT, telecommunication, 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 GSA is 
preparing.
  The bill also contains provisions which would give civilian agencies 
additional tools to maintain their acquisition workforces. It would 
allow agencies to offer retention bonuses and to re-employ retirees in 
certain special circumstances. I would 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 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 seems 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 Federal employees.
  Mr. TOM DAVIS of Virginia. Mr. Speaker, H.R. 2066, the General 
Services Administration Modernization Act, was introduced by myself and 
Armed Services Chairman Hunter last month and approved by the Committee 
on Government Reform by unanimous consent on May 5, 2005.
  The legislation would authorize a much needed reorganization and 
streamlining of the General Services Administration, the Federal agency 
charged with leveraging the Federal Government's buying power to 
purchase commercial goods and services for the Federal Government at 
the best value possible in order to maximize the use of taxpayer funds.
  This legislation has been under consideration in the Government 
Reform Committee for a number of years and has been the subject of 
multiple legislative and oversight hearings. It was also included in 
the President's budget proposal for fiscal year 2006.
  Mr. Speaker, each year GSA buys products and services from the 
private sector worth well over $30 billion and resells them to Federal 
agencies through two different Services. The Federal Technology Service 
uses the Information Technology Fund to purchase information 
technology, and the Federal Supply Service uses the General Supply Fund 
to purchase commercial goods and services.
  This bifurcated system may have made sense when the IT fund was 
created two decades ago, when information technology was in its 
infancy. Today, however, laptop computers, cell phones, and e-mail are 
as ubiquitous as desks and phones. The business case for a separate 
system to handle IT goods and services no longer exists. In fact, the 
bifurcated system has become a barrier to coordinated acquisition of 
management services and the technology needed to support a total 
solution.
  Since 2002, Administrator Perry has instituted and is currently 
carrying out an internal reorganization aimed at establishing GSA as a 
modem enterprise more reflective of the current market. H.R. 2066 would 
assist those efforts. Critical to Administrator Perry's efforts to 
modernize the General Services Administration is ensuring that the 
structural reforms are memorialized in GSA's organic legislation so 
that the remedies will endure.
  To accomplish this, H.R. 2066 would consolidate the Federal Supply 
Service and the Federal Technology Service into a single entity 
operating out of a unified fund, providing federal agencies with a one-
stop shop to acquire all of their commercial goods and services. This 
change in statute would provide GSA with the structure it needs to 
bring it in line with the current commercial market.
  Specifically, the legislation would amend the Federal Property and 
Administrative Services Act of 1949 to create a new ``Federal 
Acquisition Service,'' to be headed by a high-level Commissioner 
appointed by the GSA Administrator. H.R. 2066 would also provide that 
the new Federal Acquisition Service be supported by a newly created 
``Acquisition Services Fund'' consisting of the assets of the old 
Information Technology and Supply Funds.
  In addition, H.R. 2066 would authorize the GSA Administrator to 
appoint up to five ``Regional Executives'' for the Federal Acquisition 
Service to facilitate closer oversight and more management control over 
acquisition-related activities.
  Finally, Mr. Speaker, the General Services Administration 
Modernization Act would authorize retention bonuses and reemployment 
relief aimed at maintaining the strength and experience of the Federal 
Government's civilian acquisition workforce.
  The environment in which the Federal Government purchases goods and 
services has changed dramatically in recent decades. Relegating the 
Federal agency charged with purchasing goods and services for the rest 
of the Federal Government to an organizational structure that was 
constructed to function in a different era is a waste of taxpayer 
dollars. H.R. 2066 would remove the old structures that inhibit 
efficient Federal purchases of solutions that are a mix of products, 
services and technology. The Federal marketplace should reflect the 
best of the commercial marketplace: both in the products and services 
we buy and the way we buy them.
  Mr. DAVIS of Illinois. Mr. Speaker, I have no further requests for 
time, and I yield back the balance of my time.
  Ms. ROS-LEHTINEN. Mr. Speaker, I urge all of my colleagues to support 
H.R. 2066, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from Florida (Ms. Ros-Lehtinen) that the House suspend the 
rules and pass the bill, H.R. 2066, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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