[House Report 109-91]
[From the U.S. Government Publishing Office]
109th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 109-91
======================================================================
GENERAL SERVICES ADMINISTRATION MODERNIZATION ACT
_______
May 23, 2005.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Tom Davis of Virginia, from the Committee on Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 2066]
[Including cost estimate of the Congressional Budget Office]
The Committee on Government Reform, to whom was referred 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, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
CONTENTS
Page
Committee Statement and Views.................................... 5
Section-by-Section............................................... 10
Explanation of Amendments........................................ 12
Committee Consideration.......................................... 13
Rollcall Votes................................................... 13
Application of Law to the Legislative Branch..................... 13
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 13
Statement of General Performance Goals and Objectives............ 13
Constitutional Authority Statement............................... 13
Federal Advisory Committee Act................................... 13
Unfunded Mandate Statement....................................... 13
Committee Estimate............................................... 14
Budget Authority and Congressional Budget Office Cost Estimate... 14
Changes in Existing Law Made by the Bill as Reported............. 15
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
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;
(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.
Committee Statement and Views
PURPOSE AND SUMMARY
H.R. 2066, the General Services Administration
Modernization Act, was introduced by Chairmen Davis and Hunter
and would authorize a much needed reorganization and
streamlining of the General Services Administration (GSA), 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. This legislation
was approved by the Committee on Government Reform by unanimous
consent on May 5, 2005. This legislation has long been
championed by Chairman Davis, has been the subject of multiple
legislative and oversight hearings by the Committee on
Government Reform, and was included in the President's budget
proposal for fiscal year 2006.
BACKGROUND AND NEED FOR LEGISLATION
The General Services Administration, through the Federal
Supply Service (FSS) and the Federal Technology Service (FTS),
each year buys products and services from the private sector
worth well over $30 billion and resells them to federal
agencies using the General Supply Fund and the Information
Technology Fund. Under FSS, federal agencies, and in some cases
State and local governments, can deal directly with private
sector vendors who make their products available on the FSS
Schedule, which is managed by GSA. Under FTS, GSA plays a more
active role by acting as a ``third party advisor'' for the
federal agency in acquiring telecommunication and information
technology goods and services. Fees collected from customer
agencies are the main source of funds for both programs.
This bifurcated system may have made sense when it was
created two decades ago when information technology investments
were a relatively new phenomenon, but technologies such as
laptop computers, cell phones, and e-mail are now as ubiquitous
with office supplies as are desks and phones. The technology
market has evolved from the acquisition of stand-alone hardware
or services to solutions that are a mix of products and
services. There is no longer a need for separate services for
technology and other products and services. Two separate buying
organizations operating out of two different funds has become a
barrier to coordinated acquisition of management services, and
the technology needed to support a total solution.
The process of establishing GSA as a modern supplier of
products received a boost in 1996 when Congress passed the
Clinger Cohen Act. That legislation, among other reforms,
eliminated GSA's outdated centralized acquisition authority
over information technology and authorized a number of
significant management innovations for information technology,
including the use of government-wide acquisition contracts.
These government-wide contracts became a significant part of
FTS's business base. GSA's business grew rapidly after 1996,
yet its organizational structure remained static. This
unrestrained growth without corresponding structural
realignment resulted in overlapping and redundant functions in
both FTS and FSS causing inefficiencies within GSA and
confusion for customer agencies.
In 2002, GSA instituted the process of establishing itself
as a more modern organization in response to a report by
Accenture on FTS/FSS organizational issues requested by
Chairman Davis. In response to the report, GSA took several
actions, including transferring contract development and
management activities from FTS to FSS as well as combining
market research and marketing functions in FSS. GSA is
currently in the process of reorganizing FSS and FTS into a
single, more efficient and effective acquisition entity. The
plan is to have the new organization supported by a unified
Acquisition Services Fund created by H.R. 2066's merger of
GSA's General Supply and Information Technology Funds. The
merger of the funds was proposed by the Administration in this
year's budget submission.
While the initial realignment activities were underway, the
GSA Inspector General in 2003 issued a disturbing report
concerning mismanagement of several FTS contracts in GSA's
Bremerton, Washington office in GSA's Northwest Region and
another in late 2004 showing similar problems in the remaining
ten GSA Regions. In response, GSA established its ``Get it
Right'' initiative aimed at ensuring accurate and transparent
use of GSA government-wide contracting vehicles.
H.R. 2066 would assist GSA in remedying its management
challenges and responding to the evolving technology market.
Critical to the permanent resolution of GSA management
challenges is ensuring that the structural reforms are
memorialized in GSA's organic legislation so that the remedies
developed will endure. H.R. 2066 would provide an overall
structure within which to consolidate FSS and FTS 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. The legislation is a culmination
of years of effort by this Committee and the Subcommittee on
Technology and Procurement Policy to modernize the GSA and to
bring it in line with the commercial market it must capture for
its federal agency customers. This legislation will provide GSA
the structure it requires to reflect the best of the commercial
marketplace.
Specifically, the legislation would amend the Federal
Property and Administrative Services Act of 1949 to create a
new ``Federal Acquisition Service,'' combining the existing FSS
(which currently purchases commercial goods and services for
the federal government), and FTS (which currently supplies
information technology to federal agencies). The new Federal
Acquisition Service would be headed by a high-level
Commissioner appointed by the GSA Administrator.
H.R. 2066 would authorize the Federal Acquisition Service
to be supported by a newly created ``Acquisition Services
Fund,'' consisting of the assets of the old Information
Technology and Supply Funds. The merged Acquisition Services
Fund and Federal Acquisition Service created by this
legislation would eliminate the artificial and outdated
barriers that have prohibited GSA from offering acquisition
services to customer agencies that combine information
technology and other goods and services. The bill would allow
GSA for the first time to offer customer agencies goods,
services, and information technology together in a single
acquisition. It would bring GSA in line with the current
commercial market that has evolved from stand-alone hardware or
services to solutions that are a mix of products, services and
technology.
H.R. 2066 would also 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.
Recently, the existing GSA regions were the subject of
Inspector General reports that revealed evidence of acquisition
mismanagement. Audit of Federal Technology Service's Client
Support Centers, Report No. A020144/T/5/Z04002, January 8,
2004; Compendium of Audits of the Federal Technology Service
Regional Client Support Centers, December 14, 2004.
H.R. 2066 would establish authority for retention bonuses
and reemployment relief aimed at maintaining the strength and
experience of the federal government's civilian acquisition
workforce. Specifically, H.R. 2066 would provide that an
individual receiving a civil service annuity who becomes
reemployed in an acquisition-related position would not
necessarily have his or her annuity discontinued.
H.R. 2066 would help the Administrator in his efforts to
address GSA's management challenges and would provide the
structure to allow GSA to meet the demands of the modern
government market. 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.
HEARINGS
H.R. 2066 would update GSA's structure to enable it to
access the modern commercial marketplace for its customer
federal agencies. The legislation would also provide the
structure GSA needs to provide better, more effective oversight
and control of its acquisition-related activities performed in
the GSA regions.
H.R. 2066 is the product of an intensive hearing and
oversight process that has spanned three Congresses. The
provisions in the current legislation are rooted in the
findings of multiple hearings held by the Subcommittee on
Technology and Procurement Policy, the Committee on Government
Reform, as well as in the recommendations of the President
contained in this year's Budget Submission and the findings of
the GSA Inspector General.
On April 11, 2002, the Subcommittee on Technology and
Procurement Policy held a hearing, Making Sense of
Procurement's Alphabet Soup: How Purchasing Agencies Choose
Between FSS and FTS, as part of its continuing oversight of the
government's procurement and information technology management
activities. Concerned about the overlapping and possibly
redundant nature of the FSS/FTS structure, the Subcommittee
reviewed the impact of the existing structure on GSA's customer
agencies and the vendor community. This hearing was based on
the report conducted by Accenture on the existing
organizational structure of the Federal Technology Service and
the Federal Supply Service and how to maximize the efficiency
and effectiveness of the two services.
The Subcommittee heard testimony from David Cooper, General
Accounting Office (GAO)--now the Government Accountability
Office--Director, Acquisition and Sourcing Management; Stephen
Perry, GSA Administrator; Claudia Knott, Executive Director,
Logistics Policy and Acquisition Management, Defense Logistics
Agency; Edward Allen, Executive Director, Coalition for
Government Procurement (CGP); and Dwight Hutchins, Partner, USA
Federal Government Strategy Practice, Accenture.
Chairman Davis explained that the aim of the hearing was to
determine whether FSS and FTS ensure that American taxpayers
receive fair value for their hard-earned dollars when the
government acquires products or services. Government witnesses,
Mr. Cooper and Administrator Perry, raised concerns about the
existing overlap between the two services, as both provide
access to similar products and services. The witnesses noted
that eight of the top ten IT product and service providers hold
contracts with both FSS and FTS. Mr. Cooper suggested that GSA
should develop better performance measures. Administrator Perry
said GSA is instituting a rigorous management review to improve
performance and provide best value to its customers and for the
government. Administrator Perry noted that GSA had recently
contracted with Accenture to assist in the review, provide
recommendations, and alternate solutions for improving GSA
performance. Mr. Hutchins's testimony was limited to the
approach and methodology Accenture will use for the study.
Ms. Knott said DLA spends more than $300 million annually
on Schedule contracts but relies on the Defense Information
Systems Agency (DISA) to acquire telecommunications services.
DISA in turn spends $14-15 million a year utilizing FTS
contracts. Mr. Allen said that CGP member companies work
closely with both FSS and FTS. Mr. Allen expressed concern that
GSA's substantial growth has resulted in overlap between the
two services. He noted that virtually every technology solution
available under FTS contracts can be found through the
Schedules. FTS buyers are the largest users of Schedule
contracts, and duplicative contracts within FTS exist. There
are multiple contract vehicles in FTS with similar offerings.
This overlap takes valuable time away from customer service and
inevitably increases acquisition costs. Mr. Allen stated that
eliminating this overlap is key to GSA's future success.
The hearing established that despite existing challenges,
GSA was making progress in addressing the structural and
management issues surrounding FTS and FSS. Based on information
gleaned from this hearing, the Subcommittee enlisted the help
of GAO in following the progress of GSA's implementation of the
recommendations of the Accenture study and vowed to continue
its oversight of these aspects of GSA's activities.
On October 2, 2003, the Committee on Government Reform held
another hearing on structural issues faced by GSA titled
Entrepreneurial Government Run Amok? A Review of FTS/FSS
Organizational and Management Challenges. This hearing explored
efforts to restructure the organization of FSS and FTS, the
impact of GSA Inspector General investigations of FTS contract
mismanagement, and GSA's plans for a new government-wide
telecommunications program. The hearing built on the
information on GSA structural and management challenges
developed in the previous Subcommittee hearing and supplemented
by GAO work performed for the Committee.
At the hearing, GSA Administrator Stephen Perry and the GAO
Director of Acquisition and Sourcing Management William Woods
testified along with private sector witnesses, Larry Allen,
Executive Vice President of the Coalition for Government
Procurement and Donald Scott Senior Vice President of EDS, Inc.
on behalf of the International Technology Association of
America (ITAA). Testimony focused on GSA's actions to implement
its performance improvement project and the importance of
enhancing GSA's ability to help agencies strategically purchase
products and services.
Administrator Perry discussed GSA's FTS and FSS performance
improvement project, recent reports about mismanagement of FTS
operations and its Information Technology Fund, and the
strategy for GSA's recently proposed government-wide voice and
data telecommunications program, Networx. He explained that GSA
had begun to consolidate independent functions into one
structure to meet customer and agency needs and to reduce
duplication. Administrator Perry addressed the contracting
mismanagement in GSA Regions found by the GSA Inspector
General. Many of the problems centered on the use of the
Information Technology Fund for non-technology items. Mr. Woods
said that, while GSA actions should help reduce certain
inefficiencies in its structure, GAO believed that GSA needs to
take a more active role in helping federal agencies reduce the
overall cost of their FSS and FTS purchases.
Private sector witnesses from CGP and ITAA reiterated the
need for GSA to eliminate duplicative contracts that result in
higher overhead burdens for contractors and confusion among GSA
customers. They shared the view that GSA's focus should be on
efficiency and effectiveness and the redundancies between the
FSS and FTS should be eliminated. At the conclusion of this
hearing, the Chairman reiterated his intention to continue the
Committee's oversight activities.
On March 16, 2005, the Committee held yet another hearing
on GSA structural issues: Service Oriented Streamlining:
Rethinking the Way GSA Does Business. The hearing was held to
explore removing the artificial barrier, created by two
separate buying organizations operating out of different funds,
to coordinated acquisition of goods, services and technology.
The hearing addressed legislative and administrative options to
consolidate FSS and FTS into a single entity operating out of a
unified fund, in order to provide federal agencies with a one-
stop shop to acquire commercial goods, services and technology.
This final hearing built on evidence developed in the prior
hearings as well as recent revelations of contract management
challenges in FTS exposed by the GSA Inspector General reports
on weaknesses in GSA's management controls over its regional
offices.
Witnesses at this hearing included: Stephen Perry, GSA
Administrator; Deidre Lee, Procurement Executive, Department of
Defense, GSA's largest customer; Eugene Waszily, GSA Assistant
Inspector General for Auditing; Thomas Hewitt, President,
Global Government Inc. on behalf of ITAA; Vic Avetissian,
Corporate Director (Government Acquisition Initiative) Northrop
Grumman Corporation on behalf of the Contract Services
Association of America; Mike Davison, Director & General
Manager, Canon Government Marketing Division on behalf of the
Coalition for Government Procurement; Elaine Dauphin, Vice
President, GSA and GWAC Programs, Computer Sciences Corporation
on behalf of the Professional Services Council; Richard Brown,
National President, National Federation of Federal Employees.
In addition, a statement was provided by Steven Kelman,
Harvard's Kennedy School of Government, who was invited to
appear but was unable to attend due to teaching obligations.
Administrator Perry said that the initiative to reorganize
and consolidate FSS and FTS is designed to strengthen GSA's
capability to meet increasing agency requirements for
excellence in acquisition of technology, telecommunications,
and other products and services, so that agencies can continue
to rely on GSA to meet their requirements and avoid the need to
duplicate acquisition activities within their agencies. He said
that GSA teams are scheduled to complete detailed
reorganization/consolidation implementation plans by July
enabling implementation to begin in the near future.
Ms. Lee testified that in fiscal year 2004, FTS awarded
contracts and task orders valued at over $6 billion for
telecommunications, professional services and technology for
DOD, and that DOD spent $7 billion through the FSS Schedules.
Mr. Waszily supported the merging of the Federal Technology
Fund with the General Supply Fund as an improvement in
financial management.
The private sector witnesses agreed that GSA should
determine the needs of customer agencies, conduct a
performance-based review, and develop a business model to
support them. ITAA believes that GSA restructuring should focus
on establishing direct lines of authority and responsibility to
complement a business model that assigns accountability for its
execution and success.
Information gathered at this and the previous hearings was
used to formulate H.R. 2066.
Section-by-Section
Section 1--Short title
This section would provide that the Act be cited as the
``General Services Administration Modernization Act.''
Section 2--Federal Acquisition Service
This section would amend 40 U.S.C. 303 to provide for a new
Federal Acquisition Service to be headed by a high-level
Commissioner appointed by the Administrator of General Services
(Administrator). The Commissioner of the Federal Acquisition
Service would be responsible for heading the new Federal
Acquisition Service which will carry out functions related to
the newly, merged Acquisition Services fund created by section
3 of this Act including any functions carried out by the
current Federal Supply and Federal Technology Services.
GSA purchases commercial products and services, including
information technology from the private sector and resells them
through various contract vehicles to customer government
agencies. The Federal Supply Service, operating out of the
current General Supply Fund, resells commercial goods and
services while the Federal Technology Service, operating out of
the current Information Technology Fund, specializes in
technology goods and services. This section would provide in
statute a broad structural outline for the new service, which
will allow the General Services Administration to offer to
customer agencies for the first time, goods and services and
information technology together in a single acquisition. The
Federal Acquisition Service will operate out of a merged
Acquisition Services Fund created by section 3 to replace the
General Supply and Information Technology Funds.
This section would also authorize the Administrator to
appoint up to five ``Regional Executives'' for the Federal
Acquisition Service. The Regional Executives would perform such
Federal Acquisition Service related functions that the
Administrator considers appropriate. This section would
establish a statutory Executive to facilitate closer oversight
and more management control over acquisition-related activities
that are conducted in GSA's Regional Offices throughout the
country. Recently, the GSA regions were the subject of
Inspector General reports that revealed evidence of serious
acquisition mismanagement. These activities are in need of
careful management control and oversight.
This section also would amend 5 U.S.C. 5316 to substitute
the new Commissioner of the Federal Acquisition Service for the
current Commissioner of the Federal Supply Service for purposes
of compensation and make other necessary technical changes.
Section 3--Acquisition Services Fund
This section would repeal 40 U.S.C. 322 that established
the General Services Administration's Information Technology
Fund and amend 40 U.S.C. 321 that established the General
Supply Fund to create a new Acquisition Services Fund
consisting of the assets of the old Information Technology and
Supply funds. GSA purchases commercial products and services
from the private sector and resells them through various
contract vehicles to customer government agencies. GSA
currently uses the Supply Fund for commercial goods and
services and the Information Technology Fund for technology
goods and services.
This new Acquisition Services Fund would support the
unified activities of the Federal Acquisition Service created
in Section 2 of this Act. The new merged fund would have the
combined attributes of the old Supply and Information
Technology funds but would eliminate the artificial and
outdated barriers that prohibited GSA from offering acquisition
services to customer agencies that combined information
technology and other goods and services. Though there are
changes to some of the specific wording for purposes of
updating, it is the belief of the Committee that the use of the
new fund for ``the provision of information technology'' would
include all the existing uses of the Information Technology
Fund, including efficiently managing, coordinating, operating
and using information technology resources. The Committee also
notes that GSA currently has the authority to enter into multi-
year contracts under 41 U.S.C. 254c.
This section would provide for various amendments to 40
U.S.C. 322 establishing the existence and composition of the
new fund. It would provide that the Administrator determine the
cost and capital requirements of the fund each fiscal year and,
in consultation with the Chief Financial Officer, develop a
plan concerning these requirements. The Administrator would
establish rates to be charged agencies for services provided
through the fund. Among other things, this section would also
provide that, at the close of each fiscal year, after
provisions for a sufficient inventory of personal property to
meet agencies' needs, the replacement cost of motor vehicles,
and other anticipated operating needs reflected in the
Administrator's requirements plan, the uncommitted balance of
any funds remaining in the fund are to be transferred to the
Treasury's general fund as miscellaneous receipts.
Section 4--Provisions relating to acquisition personnel
This section would amend section 37 of the Office of
Federal Procurement Policy Act (41 U.S.C. 433) to establish
retention bonuses and reemployment relief aimed at maintaining
the strength and experience of our civilian acquisition
workforce. Specifically, the section would provide that the
head of an executive agency, after consultation with the
Administrator for Federal Procurement Policy (Administrator)
and the Director of the Office of Personnel Management,
establish policies and procedures under which an individual
receiving a Civil Service Annuity who becomes reemployed in an
acquisition-related position could under certain conditions not
have his/her annuity discontinued. An employee would qualify
for such reemployment treatment on a case-by-case basis if the
employee's high or unique qualifications or the special needs
of the agency make the reemployment of the individual
essential. The Administrator would report annually to the
Committee on Government Reform and the Committee on Homeland
Security and Governmental Affairs on the use of the authority.
The authority would sunset on December 31, 2011.
This section would also provide that the head of each
executive agency, after consultation with the Administrator,
shall establish policies and procedures to pay retention
bonuses to employees in acquisition related positions if it is
essential to retain an employee with unusually high or unique
qualifications or the special needs of the agency for an
employee's services make it essential to retain the employee.
The agency must also determine that, but for the bonus, the
employee would leave federal service or, under certain
conditions, leave for a different position in the federal
service.
The payment of retention bonuses would be contingent upon
the employee executing a written service agreement, including
the length of service required, amount of bonus, method of
payment and other terms including termination. Under this
section, retention bonuses would not exceed 50 percent of the
employee's pay, may be paid in a lump sum or installments, are
not to be a part of an employee's basic pay and may not be paid
to individuals appointed by the President with Senate
confirmation, in the Senior Executive Service as a non-career
appointee, or a position that is excepted from the competitive
service.
Section 5--Effective date
This section would provide that the Act and amendments made
by it would take effect 60 days after enactment.
Explanation of Amendments
The amendment in the nature of the substitute, as amended,
is explained in the descriptive portions of this report.
Committee Consideration
On May 5, 2005, the Committee met in open session and
ordered reported favorably the bill, H.R. 2066, as amended, by
voice vote, a quorum being present. During Committee
consideration an amendment was offered by Rep. Maloney to
eliminate the requirement that the Commissioner of the new
Federal Acquisition Service be a non-career employee. The
amendment was adopted by unanimous consent.
Rollcall Votes
No rollcall votes were held.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill reorganizes and streamlines 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. As such this bill does not relate to employment or
access to public services and accommodations.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
Constitutional Authority Statement
Under clause 3(d)(1) of rule XIII of the Rules of the House
of Representatives, the Committee must include a statement
citing the specific powers granted to Congress to enact the law
proposed by H.R. 2066. Article I, Section 8, Clause 18 of the
Constitution of the United States grants the Congress the power
to enact this law.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., Section 5(b).
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement whether
the provisions of the reported include unfunded mandates. In
compliance with this requirement the Committee has received a
letter from the Congressional Budget Office included herein.
Committee Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 2066. However, clause 3(d)(3)(B) of that rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for H.R. 2066 from the Director of
the Congressional Budget Office:
May 19, 2005.
Hon. Tom Davis,
Chairman, Committee on Government Reform,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2066, the General
Services Administration Modernization Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Douglas Holtz-Eakin.
Enclosure.
H.R. 2066--General Services Administration Modernization Act
H.R. 2066 would amend federal law to establish a Federal
Acquisition Service by combining the assets and services of the
Federal Supply Service and the Federal Technology Service. The
Federal Supply Service purchases goods and services for the
federal government, and the Federal Technology Service provides
information technology to federal agencies. In addition, the
legislation would authorize retention bonuses and re-employment
incentives for certain civilian federal employees.
Because the legislation would restructure the agencies that
procure goods and services for federal agencies and would not
provide any new authorities for federal procurement or civilian
acquisition personnel, CBO estimates that implementing H.R.
2066 would have no significant effect on the budget and would
not affect direct spending or revenues.
H.R. 2066 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is Matthew
Pickford. This estimate was approved by Peter H. Fontaine,
Deputy Assistant Director for Budget Analysis.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 40, UNITED STATES CODE
* * * * * * *
SUBTITLE I--FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES
* * * * * * *
CHAPTER 3--ORGANIZATION OF GENERAL SERVICES ADMINISTRATION
* * * * * * *
SUBCHAPTER I--GENERAL
Sec.
301. Establishment.
302. Administrator and Deputy Administrator.
[303. Functions.]
303. Federal Acquisition Service.
* * * * * * *
SUBCHAPTER III--FUNDS
[321. General Supply Fund.
[322. Information Technology Fund.]
321. Acquisition Services Fund.
* * * * * * *
SUBCHAPTER I--GENERAL
* * * * * * *
[Sec. 303. Functions
[(a) Bureau of Federal Supply.--
[(1) Transfer of functions.--Subject to paragraph
(2), the functions of the Administrator of General
Services include functions related to the Bureau of
Federal Supply in the Department of the Treasury that,
immediately before July 1, 1949, were functions of--
[(A) the Bureau;
[(B) the Director of the Bureau;
[(C) the personnel of the Bureau; or
[(D) the Secretary of the Treasury.
[(2) Functions not transferred.--The functions of the
Administrator of General Services do not include
functions retained in the Department of the Treasury
under section 102(c) of the Federal Property and
Administrative Services Act of 1949 (ch. 288, 63 Stat.
380).
[(b) Federal Works Agency and Commissioner of Public
Buildings.--The functions of the Administrator of General
Services include functions related to the Federal Works Agency
and functions related to the Commissioner of Public Buildings
that, immediately before July 1, 1949, were functions of--
[(1) the Federal Works Agency;
[(2) the Federal Works Administrator; or
[(3) the Commissioner of Public Buildings.]
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.
* * * * * * *
SUBCHAPTER III--FUNDS
[Sec. 321. General Supply Fund
[(a) Existence.--The General Supply Fund is a special fund in
the Treasury.
[(b) Composition.--
[(1) In general.--The Fund is composed of amounts
appropriated to the Fund and the value, as determined
by the Administrator of General Services, of personal
property transferred from executive agencies to the
Administrator under section 501(d) of this title to the
extent that payment is not made or credit allowed for
the property.
[(2) Other credits.--
[(A) In general.--The Fund shall be credited
with all reimbursements, advances, and refunds
or recoveries relating to personal property or
services procured through the Fund, including--
[(i) the net proceeds of disposal of
surplus personal property; and
[(ii) receipts from carriers and
others for loss of, or damage to,
personal property.
[(B) Reappropriation.--Amounts credited under
this paragraph are reappropriated for the
purposes of the Fund.
[(3) 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.]
Sec. 321. Acquisition Services Fund
(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.
(c) Uses.--
(1) In general.--The Fund is available for use by or
under the direction and control of the Administrator
for--
(A) procuring, for the use of federal
agencies in the proper discharge of their
responsibilities--
(i) personal property (including the
purchase from or through the Public
Printer, for warehouse issue, of
standard forms, blankbook work,
standard specifications, and other
printed material in common use by
federal agencies and not available
through the Superintendent of
Documents); [and]
(ii) nonpersonal services; and
(iii) personal services related to
the provision of information technology
(as defined in section 11101(6) of this
title);
* * * * * * *
(d) Payment for Property and Services.--
(1) * * *
(2) Prices fixed by administrator.--The Administrator
shall fix prices at levels sufficient to recover--
(A) so far as practicable--
(i) * * *
* * * * * * *
(iv) the cost of personal services
employed directly in the repair,
rehabilitation, and conversion of
personal property; [and]
(v) the cost of personal services
employed directly in providing
information technology (as defined in
section 11101(6) of this title); and
[(v)] (vi) the cost of amortization
and repair of equipment used for lease
or rent to executive agencies; and
(B) properly allocable costs payable by the
Fund under subsection (c)(1)(C).
* * * * * * *
[(f) Treatment of Surplus.--
[(1) Surplus deposited in treasury.--As of September
30 of each year, any surplus in the Fund above the
amounts transferred or appropriated to establish and
maintain the Fund (all assets, liabilities, and prior
losses considered) shall be deposited in the Treasury
as miscellaneous receipts.
[(2) Surplus retained.--From any surplus generated by
operation of the Fund, the Administrator may retain
amounts necessary to maintain a sufficient level of
inventory of personal property to meet the needs of the
federal agencies.]
(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.
* * * * * * *
[Sec. 322. Information Technology Fund
[(a) Existence.--There is an Information Technology Fund in
the Treasury.
[(b) Cost and Capital Requirements.--
[(1) In general.--The Administrator of General
Services shall determine the cost and capital
requirements of the Fund for each fiscal year. The cost
and capital requirements may include amounts--
[(A) needed to purchase (if the Administrator
has determined that purchase is the least
costly alternative) information processing and
transmission equipment, software, systems, and
operating facilities necessary to provide
services;
[(B) resulting from operations of the Fund,
including the net proceeds from the disposal of
excess or surplus personal property and
receipts from carriers and others for loss or
damage to property; and
[(C) that are appropriated, authorized to be
transferred, or otherwise made available to the
Fund.
[(2) Submitting plans to office of management and
budget.--The Administrator shall submit plans
concerning the cost and capital requirements determined
under this section, and other information as may be
requested, for review and approval by the Director of
the Office of Management and Budget. Plans submitted
under this section fulfill the requirements of sections
1512 and 1513 of title 31.
[(3) Adjustments.--Any change to the cost and capital
requirements of the Fund for a fiscal year shall be
made in the same manner as the initial fiscal year
determination.
[(c) Use.--
[(1) In general.--The Fund is available for expenses,
including personal services and other costs, and for
procurement (by lease, purchase, transfer, or
otherwise) to efficiently provide information
technology resources to federal agencies and to
efficiently manage, coordinate, operate, and use those
resources.
[(2) Specifically included items.--Information
technology resources provided under this section
include information processing and transmission
equipment, software, systems, operating facilities,
supplies, and related services including maintenance
and repair.
[(3) Cancellation costs.--Any cancellation costs
incurred for a contract entered into under subsection
(e) shall be paid from money currently available in the
Fund.
[(4) No fiscal year limitation.--The Fund is
available without fiscal year limitation.
[(d) Charges to Agencies.--If the Director approves plans
submitted by the Administrator under subsection (b), the
Administrator shall establish rates, consistent with the
approval, to be charged to agencies for information technology
resources provided through the Fund.
[(e) Contract Authority.--
[(1) In general.--In operating the Fund, the
Administrator may enter into multiyear contracts, not
longer than 5 years, to provide information technology
hardware, software, or services if--
[(A) amounts are available and adequate to
pay the costs of the contract for the first
fiscal year and any costs of cancellation or
termination;
[(B) the contract is awarded on a fully
competitive basis; and
[(C) the Administrator determines that--
[(i) the need for the information
technology hardware, software, or
services being provided will continue
over the period of the contract;
[(ii) the use of the multiyear
contract will yield substantial cost
savings when compared with other
methods of providing the necessary
resources; and
[(iii) the method of contracting will
not exclude small business
participation.
[(2) Effect on other law.--This subsection does not
limit the authority of the Administrator to procure
equipment and services under sections 501-505 of this
title.
[(f) Transfer of Uncommitted Balance.--After the close of
each fiscal year, any uncommitted balance remaining in the
Fund, after making provision for anticipated operating needs as
determined by the Office of Management and Budget, shall be
transferred to the Treasury as miscellaneous receipts.
[(g) Annual Report.--The Administrator shall report annually
to the Director on the operation of the Fund. The report must
address the inventory, use, and acquisition of information
processing equipment and identify any proposed increases to the
capital of the Fund.]
* * * * * * *
CHAPTER 5--PROPERTY MANAGEMENT
* * * * * * *
SUBCHAPTER IV--PROCEEDS FROM SALE OR TRANSFER
* * * * * * *
Sec. 573. Personal property
The Administrator of General Services may retain from the
proceeds of sales of personal property the Administrator
conducts amounts necessary to recover, to the extent
practicable, costs the Administrator (or the Administrator's
agent) incurs in conducting the sales. The Administrator shall
deposit amounts retained into the [General Supply Fund]
Acquisition Services Fund established under section 321(a) of
this title. From the amounts deposited, the Administrator may
pay direct costs and reasonably related indirect costs incurred
in conducting sales of personal property. At least once each
year, amounts retained that are not needed to pay the direct
and indirect costs shall be transferred from the [General
Supply Fund] Acquisition Services Fund to the general fund or
another appropriate account in the Treasury.
* * * * * * *
SUBCHAPTER VI--MOTOR VEHICLE POOLS AND TRANSPORTATION SYSTEMS
* * * * * * *
Sec. 604. Treatment of assets taken over to establish motor vehicle
pools and transportation systems
(a) * * *
(b) Addition to [General Supply Fund] Acquisition Services
Fund.--If the Administrator takes over motor vehicles or
related equipment or supplies under section 602 of this title
but reimbursement is not required under subsection (a), the
value of the property taken over, as determined by the
Administrator, may be added to the capital of the [General
Supply Fund] Acquisition Services Fund. If the Administrator
subsequently returns property of a similar kind under section
610 of this title, the value of the property may be deducted
from the Fund.
Sec. 605. Payment of costs
(a) Use of [General Supply Fund] Acquisition Services Fund To
Cover Costs.--The [General Supply Fund] Acquisition Services
Fund provided for in section 321 of this title is available for
use by or under the direction and control of the Administrator
of General Services to pay the costs of carrying out section
602 of this title, including the cost of purchasing or renting
motor vehicles and related equipment and supplies.
(b) Setting Prices To Recover Costs.--
(1) * * *
(2) Increment for replacement cost.--In the
Administrator's discretion, prices may include an
increment for the estimated replacement cost of motor
vehicles and related equipment and supplies.
Notwithstanding section [321(f)(1)] 321(f) of this
title, the increment may be retained as a part of the
capital of the [General Supply Fund] Acquisition
Services Fund but is available only to replace motor
vehicles and related equipment and supplies.
* * * * * * *
----------
SECTION 5316 OF TITLE 5, UNITED STATES CODE
Sec. 5316. Positions at level V
Level V of the Executive Schedule applies to the following
positions, for which the annual rate of basic pay shall be the
rate determined with respect to such level under chapter 11 of
title 2, as adjusted by section 5318 of this title:
Administrator, Bonneville Power Administration,
Department of the Interior.
* * * * * * *
[Commissioner, Federal Supply Service, General
Services Administration.]
Commissioner, Federal Acquisition Service, General
Services Administration.
* * * * * * *
----------
SECTION 37 OF THE OFFICE OF FEDERAL PROCUREMENT POLICY ACT
SEC. 37. ACQUISITION WORKFORCE.
(a) * * *
* * * * * * *
(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.