[Senate Report 109-257]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                                 SENATE
 2d Session                                                     109-257
_______________________________________________________________________

                                     

                                                       Calendar No. 449

 
           GENERAL SERVICES ADMINISTRATION MODERNIZATION ACT

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                               H.R. 2066

     AMENDING 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




                  May 25, 2006.--Ordered to be printed


        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   SUSAN M. COLLINS, Maine, Chairman
TED STEVENS, Alaska                  JOSEPH I. LIEBERMAN, Connecticut
GEORGE V. VOINOVICH, Ohio            CARL LEVIN, Michigan
NORM COLEMAN, Minnesota              DANIEL K. AKAKA, Hawaii
TOM COBURN, Oklahoma                 THOMAS R. CARPER, Delaware
LINCOLN D. CHAFEE, Rhode Island      MARK DAYTON, Minnesota
ROBERT F. BENNETT, Utah              FRANK LAUTENBERG, New Jersey
PETE V. DOMENICI, New Mexico         MARK PRYOR, Arkansas
JOHN W. WARNER, Virginia
           Michael D. Bopp, Staff Director and Chief Counsel
                          Jay Maroney, Counsel
             Michael L. Alexander, Minority Staff Director
                    Troy H. Cribb, Minority Counsel
                  Trina Driessnack Tyrer, Chief Clerk


                                                       Calendar No. 449
109th Congress                                                   Report
                                 SENATE
 2d Session                                                     109-257

======================================================================




           GENERAL SERVICES ADMINISTRATION MODERNIZATION ACT

                                _______
                                

                  May 25, 2006.--Ordered to be printed

                                _______
                                

 Ms. Collins, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                        [To accompany H.R. 2066]

    The Committee on Homeland Security and Governmental 
Affairs, 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.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background.......................................................1
III. Legislative History..............................................4
 IV. Section-by-Section Analysis......................................4
  V. Estimated Cost of Legislation....................................6
 VI. Evaluation of Regulatory Impact..................................7
VII. Changes in Existing Law..........................................7

                         I. Purpose and Summary

    The purpose of H.R. 2066, the General Services 
Administration Modernization Act, is to establish a Federal 
Acquisition Service and to replace the General Supply Fund and 
the Information Technology Fund with an Acquisition Services 
Fund.

                             II. Background


                        NEED FOR THE LEGISLATION

    The U.S. General Services Administration (GSA) annually 
spends more than $30 billion dollars for products and services 
from the private sector that the agency resells to federal 
agencies through two different services--the Federal Technology 
Service (FTS) and the Federal Supply Service (FSS). Each 
service manages its own funding mechanism. FTS uses the 
Information Technology Fund (IT Fund) to assist Federal 
agencies in identifying, acquiring, deploying, managing and 
using technology solutions, and also provides information 
security services to help customer agencies protect their data 
and related systems. FTS also provides a full range of end-to-
end telecommunications products and services, including local 
and global voice, data, and video services. The FSS uses the 
General Supply Fund (GS Fund) to purchase commercial goods and 
services. While this construct made sense when information 
technology was in its infancy, the business case for separate 
systems to handle IT goods and services no longer exists. 
Instead, the separate funds have now become a barrier to 
coordinated acquisition management services and technology 
needed to support a total solution.
    To address this concern, GSA proposed \1\ that the two 
funds combine to form the Acquisition Services Fund. In order 
to achieve this unification, legislation was necessary as GSA 
does not have this authority. The planned FTS-FSS merger 
reflects recent changes in the marketplace, as many GSA 
customers require a blended delivery model that integrates 
products and services in a means that is transparent and that 
allows for end-to-end customer service.
---------------------------------------------------------------------------
    \1\ General Services Administration, ``GSA FAS Reorganization--
Seven Zones,'' given to Senate Homeland Security and Governmental 
Affairs Committee and Senate Appropriations Committee in Washington, DC 
on March 23, 2006; Budget of the United States Government, Fiscal Year 
2006, p. 333.
---------------------------------------------------------------------------
    The new Federal Acquisition Service (FAS) is intended to 
provide value to the taxpayer by improving the efficiency and 
effectiveness of the government's buying power to obtain the 
best value in products and services from suppliers at the 
lowest total transaction cost. The new FAS will save agency 
customers' time and help them to negotiate better terms and 
prices, enabling them to focus on their core missions. The new 
organization will also increase value to commercial suppliers 
of all types and sizes, by creating consistent and innovative 
processes to offer their products and services to government 
agencies more efficiently.
    During the course of the past year the new FAS has met many 
of its planning goals. In 2005, GSA established both the FAS 
Implementation Planning Steering Committee and Zonal 
Implementation Planning Steering Committee, in order to provide 
representative groups from the state, local and federal levels 
an opportunity to help design and implement the FAS.
    On April 5 2006, GSA received approval of its FAS plan from 
the Senate Appropriations Subcommittee on Transportation, 
Treasury, Housing and Urban Development.\2\ Approval was 
necessary because of the inclusion of a paragraph in the 
Transportation, Treasury, Housing and Urban Development 
Appropriations bill, passed on October 20, 2005, that stated: 
``No funds shall be used by the General Services Administration 
to reorganize its organizational structure without approval by 
the House and Senate Committees on Appropriations through an 
operating plan change.'' \3\ The approved plan was then shared 
with GSA customers, industry, union representatives and the GSA 
workforce. Based on stakeholder feedback, the plan was modified 
to provide for the creation of seven zones that consolidate 
some of the existing FTS and FSS regions.
---------------------------------------------------------------------------
    \2\ Senators Bond and Murray, letter to Acting Administrator David 
L. Bibb, April 5, 2006; Representative Joseph K. Knollenberg, letter to 
Acting Administrator David L. Bill, April 6, 2006.
    \3\ P.L. 109-115.
---------------------------------------------------------------------------

                     DEVELOPMENT OF THE LEGISLATION

    H.R. 2066 is the product of a 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, of the House Committee on Government Reform, as well as 
in the recommendations of the administration contained in the 
President's Fiscal Year 2007 Budget Request \4\ and the 
findings of the GSA Inspector General.\5\
---------------------------------------------------------------------------
    \4\ Appendix, Budget of the United States Government, Fiscal Year 
2007, p. 1054.
    \5\ Compendium of Audits of the Federal Technology Service Regional 
Client Support Centers, GSA Inspector General, December 14, 2004.
---------------------------------------------------------------------------
    On April 11, 2002, the House Subcommittee on Technology and 
Procurement Policy held a hearing titled, ``Making Sense of 
Procurement's Alphabet Soup: How Purchasing Agencies Choose 
Between FSS and FTS,'' as part of its continued oversight of 
the government's procurement and information technology 
management activities.\6\ 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.
---------------------------------------------------------------------------
    \6\ Making Sense of Procurement's Alphabet Soup: How Purchasing 
Agencies Choose Between FSS and FTS, Subcomm. on Tech. and Procurement 
Policy, House Comm. on Gov't Reform, 107th Cong. 107-172 (2002).
---------------------------------------------------------------------------
    On October 2, 2003, the House 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.'' \7\ 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 
was developed in the previous Subcommittee hearing and was 
supplemented by GAO work performed for the House Government 
Reform Committee.\8\
---------------------------------------------------------------------------
    \7\ Entrepreneurial Government Run Amok? A Review of FTS/FSS 
Organizational and Management Challenges, House Comm. on Gov't Reform, 
108th Cong. 108-80 (2003).
    \8\ Restructuring GSA's Federal Supply Service and Federal 
Technology Service, Statement of William T. Woods, Director Acquisition 
and Sourcing Management, Testimony before the House Gov't Reform Comm., 
GAO-04-132T, October 2, 2003.
---------------------------------------------------------------------------
    On March 16, 2005, the House Government Reform Committee 
held a hearing on GSA structural issues titled, ``Service 
Oriented Streamlining: Rethinking the Way GSA Does Business.'' 
\9\ 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. The final hearing is built on 
evidence developed in the prior hearings as well as recent 
revelations of contract management challenges in FTS exposed by 
GSA Inspector General reports on weaknesses in GSA's management 
controls over its regional offices.\10\
---------------------------------------------------------------------------
    \9\ Service Oriented Streamlining: Rethinking the Way GSA Does 
Business, House Gov't Reform Comm., 109th Cong. 109-11 (2005).
    \10\ Compendium of Audits of the Federal Technology Service 
Regional Client Support Centers, GSA Inspector General, December 14, 
2004.
---------------------------------------------------------------------------

                        III. Legislative History

    H.R. 2066 was introduced by Representative Tom Davis on May 
4, 2005, and is co-sponsored by Representative Duncan Hunter. 
On May 5, 2005, the House Government Reform Committee met in 
open session and ordered reported favorably the bill, H.R. 
2066, as amended, by voice vote. During consideration, an 
amendment was offered by Representative 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. On May 23, 2005, H.R. 2066 passed 
the House of Representatives by voice vote under suspension of 
the rules. The legislation was received in the Senate on May 
24, 2005, and was referred to the Senate Committee on Homeland 
Security and Governmental Affairs.
    On May 2, 2006, the Committee considered H.R. 2066 and 
ordered the bill reported favorably by voice vote as amended by 
the amendment offered by Chairman Collins and the amendment 
offered by Senator Voinovich. Members present were Senators 
Collins, Coleman, Chafee, Warner, Lieberman, Akaka, Carper, 
Dayton, Lautenberg, and Pryor. The Collins amendment, 
cosponsored by Senators Lieberman and Stevens, removed the 
requirement from H.R. 2066 that capped the number of Regional 
Executives. The Voinovich amendment, cosponsored by Senator 
Akaka, strengthened the criteria under which an agency would 
re-employ an annuitant in an acquisition related position 
without a reduction in annuity and struck the provision in H.R. 
2066 allowing agencies, after consultation with the Office of 
Federal Procurement Policy Administrator, to pay retention 
bonuses to employees holding acquisition-related positions. 
Agencies already have been granted similar authority to pay 
such bonuses as part of the Federal Workforce Flexibility Act 
of 2004.

                    IV. Section-by-Section Analysis


Section 1--Short title

    Provides that the Act be cited as the ``General Services 
Administration Modernization Act.''

Section 2--Federal Acquisition Service

    Amends 40 U.S.C. Sec. 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.
    Provides in statute a broad structural outline for the new 
service, which will allow the General Services Administration 
to offer to customer agencies 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.
    Authorizes the Administrator to appoint 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.
    Amends 5 U.S.C. Sec. 5316 to rename the Commissioner of the 
Federal Supply Service the Commissioner of the Federal 
Acquisition Service for purposes of compensation.

Section 3--Acquisition Services Fund

    Repeals 40 U.S.C. Sec. 322 that established the General 
Services Administration's Information Technology Fund and amend 
40 U.S.C. Sec. 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.
    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.
    Provides for various amendments to 40 U.S.C. Sec. 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 to 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

    Amends section 37 of the Office of Federal Procurement 
Policy Act (41 U.S.C. Sec. 433) to provide the federal 
acquisition community an additional tool aimed at maintaining 
the strength and experience of the federal civilian acquisition 
workforce. Specifically, the section would require the head of 
an executive agency, after consultation with the Administrator 
for Federal Procurement Policy and the Director of the Office 
of Personnel Management, to 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 be subject to a reduction in 
their federal annuity. The criteria under which each case would 
be considered would include an individual's unique 
qualifications, the agency's exceptional difficulty in 
recruiting or retaining a qualified employee, or a temporary 
hiring need. The authority would be exercised on a case-by-case 
basis. The Administrator for the Office of Federal Procurement 
Policy would report annually to the Committee on Government 
Reform and the Committee on Homeland Security and Governmental 
Affairs on the use of such authority. The authority provided 
under this section would expire on December 31, 2011.

Section 5--Effective date

    Provides that the Act and amendments made by it would take 
effect 60 days after enactment.

                    V. Estimated Cost of Legislation

                                                       May 4, 2006.
Hon. Susan M. Collins,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Madam 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,
                                          Donald B. Marron,
                                                   Acting Director.
    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 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.
    On May 19, 2005, CBO provided a cost estimate for H.R. 2066 
as ordered reported by the House Committee on Government Reform 
on May 5, 2005. The two pieces of legislation are similar, and 
our cost estimates are the same.
    The CBO staff contact for this estimate is Matthew 
Pickford. This estimate was approved by Peter H. Fontaine, 
Deputy Assistant Director for Budget Analysis.

                  VI. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill. CBO states that 
there are no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and no costs on 
state, local, or tribal governments. The legislation contains 
no other regulatory impact.

                      VII. Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, 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 and existing law, in which no 
change is proposed, is shown in roman):

  TITLE 40, UNITED STATES CODE: PUBLIC BUILDINGS, PROPERTY, AND WORKS

        Subtitle I--Federal Property and Administrative Services

       CHAPTER 3--ORGANIZATION OF GENERAL SERVICES ADMINISTRATION


                         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 
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 arereappropriated 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) In general.--For property or services procured 
        through the Fund for requisitioning agencies, the 
        agencies shall pay prices the Administrator fixes under 
        this subsection.
          (2) Prices fixed by administrator.--The Administrator 
        shall fix prices at levels sufficient to recover--
                  (A) so far as practicable--
                          (i) the purchase price;
                          (ii) the transportation cost;
                          (iii) inventory losses;
                          (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 plan 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.

           *       *       *       *       *       *       *


   TITLE 5, UNITED STATES CODE: GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES


                     Subpart D--Pay and Allowances


                   CHAPTER 53--PAY RATES AND SYSTEMS


              Subchapter II--Executive Schedule Pay Rates


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.

           *       *       *       *       *       *       *


             TITLE 41, UNITED STATES CODE: PUBLIC CONTRACTS

            CHAPTER 7--OFFICE OF FEDERAL PROCUREMENT POLICY


SEC. 433. 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.--Policies 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,
                  (B) the exceptional difficulty in recruiting 
                or retaining a qualified employee, or (C) a 
                temporary emergency hiring need, 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.

                                  
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