[House Report 111-587]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-587
======================================================================
FEDERAL SUPPLY SCHEDULES USAGE ACT OF 2010
_______
September 14, 2010.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Towns, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany S. 2868]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to whom
was referred the bill (S. 2868) to provide increased access to
the General Services Administration's Schedules Program by the
American Red Cross and State and local governments, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Legislative History.............................................. 3
Section-by-Section............................................... 3
Explanation of Amendments........................................ 4
Committee Consideration.......................................... 4
Roll Call Votes.................................................. 4
Application of Law to the Legislative Branch..................... 4
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 4
Statement of General Performance Goals and Objectives............ 4
Constitutional Authority Statement............................... 5
Federal Advisory Committee Act................................... 5
Unfunded Mandate Statement....................................... 5
Earmark Identification........................................... 5
Committee Estimate............................................... 5
Budget Authority and Congressional Budget Office Cost Estimate... 5
Changes in Existing Law Made by the Bill, as Reported............ 6
Additional Views................................................. 8
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 ``Federal Supply Schedules Usage Act of
2010''.
SEC. 2. AUTHORITY OF THE AMERICAN RED CROSS AND OTHER DISASTER RELIEF
ORGANIZATIONS TO USE FEDERAL SUPPLY SCHEDULES FOR
CERTAIN GOODS AND SERVICES.
Section 502 of title 40, United States Code, is amended by adding at
the end the following new subsection:
``(e) Use of Supply Schedules by the Red Cross and Other Disaster
Relief Organizations.--
``(1) In general.--The Administrator may provide for the use
by the American National Red Cross and other qualified disaster
relief organizations of Federal supply schedules. Purchases
under this authority by the Red Cross shall be used in
furtherance of the purposes of the American National Red Cross
set forth in section 300102 of title 36, United States Code.
Purchases under this authority by other qualified disaster
relief organizations shall be used in furtherance of purposes
determined to be appropriate and set forth in guidance by the
Administrator of the General Services Administration, in
consultation with the Administrator of the Federal Emergency
Management Agency.
``(2) Limitation.--The authority under this subsection may
not be used to purchase supplies for resale.
``(3) Qualified disaster relief organization defined.--In
this subsection, the term `qualified disaster relief
organization' has the meaning given the term by the
Administrator of General Services, in consultation with the
Administrator of the Federal Emergency Management Agency.''.
SEC. 3. DUTY OF USERS REGARDING USE OF FEDERAL SUPPLY SCHEDULES.
Section 502 of title 40, United States Code, as amended by section 2,
is further amended by adding at the end the following new subsection:
``(f) Duty of Users Regarding Use of Supply Schedules.--All users of
Federal supply schedules, including non-Federal users, shall use the
schedules in accordance with the ordering guidance provided by the
Administrator of General Services.''.
SEC. 4. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO USE SUPPLY
SCHEDULES FOR CERTAIN GOODS AND SERVICES.
Subsection (d)(1) of section 502 of title 40, United States Code, is
amended by inserting ``, to facilitate disaster preparedness or
response,'' after ``Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.)''.
Purpose and Summary
S. 2868, the ``Federal Supply Schedules Usage Act of 2009''
(FSSAA), authorizes the Administrator of the General Services
Administration (GSA) to provide for the use of the Federal
Supply Schedules (FSS) by the American Red Cross (Red Cross),
and state and local governments, for disaster preparedness and
response.
The bill seeks to enhance the ability of the Red Cross and
state and local governments to effectively prepare for and
respond to disasters by giving them the ability to purchase
specific goods and services through the pre-negotiated
contracts of the FSS. This would save the administrative costs
of negotiating individual agreements and leverage the economies
of scale of the federal government's buying power. Both groups
would be barred from the resale of any products purchased off
the FSS and all of their purchases would be required to be in
accordance with the ordering guidance of the GSA.
Background and Need for Legislation
S. 2868 would allow the American National Red Cross and
state and local governments to make purchases from the Federal
Supply Schedules for disaster relief and preparedness. This
will help the country quickly and effectively respond to
disasters and also leverage the buying power provided by the
schedules. This authority will allow the disaster response
entities to get better value for their dollars spent, which, in
turn will increase their ability to provide response to our
citizens. State and local governments have already been given
this authority for other categories of products such as IT and
emergency equipment, this bill expands the authority to
disaster preparedness.
Legislative History
S. 2868 was introduced by Sen. Joseph I. Lieberman on
December 12, 2009. The bill was reported by the Senate
Committee on Homeland Security and Governmental Affairs without
amendment on May 17, 2010. The Senate passed FSSAA without
amendment and unanimous consent on May 24, 2010. The bill was
referred to the House Committee on Oversight and Government
Reform on May 25, 2010. The Oversight Committee ordered the
bill reported favorably, with an amendment, on July 28, 2010.
Section-by-Section
Section 1: Short title
The short title of the bill is the ``Federal Supply
Schedules Usage Act of 2009.''
Section 2: Authority of the American Red Cross and other disaster
relief organizations to use Federal Supply Schedules for
certain goods and services
This section would amend section 502 of title 40, United
States Code, by adding a new subsection (e), providing for the
use of the Federal Supply Schedules by the American National
Red Cross and other disaster relief organizations for purposes
in furtherance of the purposes of the American National Red
Cross set forth in section 300102 of title 36, United States
Code. Purchases under this authority by other qualified
disaster relief organizations shall also be in furtherance of
purposes determined to be appropriate and in guidance by the
Administrator of General Services, in consultation with the
Administrator of the Federal Emergency Management Agency.
This section also adds a new paragraph (2), providing
limitation that the American National Red Cross may not make
purchases under the authority of this section for resale.
Paragraph (3) defines the term ``qualified disaster relief
organization'' as the meaning given the term by the
Administrator of General Services, in consultation with the
Administrator of the Federal Emergency Management Agency.
Section 3: Duty of users regarding use of Federal Supply Schedules
This section would further amend section 502 of title 40,
United States Code, by adding a new subsection (f), requiring
all users of the Federal Supply Schedules, whether Federal or
non-Federal users, to do so in accordance with the ordering
guidance of the Administrator of General Services.
Section 4: Authority of state and local governments to use supply
schedules for certain goods and services
This section would amend subsection (d)(1) of section 502
of title 40, United States Code, by adding the authority for
state and local governments to use the schedules to facilitate
disaster preparedness and response.
Explanation of Amendments
Representative Cao offered an amendment which was agreed to
by voice vote. The amendment would allow all qualified
nonprofit disaster relief organizations to have access to the
Federal Supply Schedules and is intended to enhance the
delivery of disaster relief and recovery goods and services in
areas of the United States affected by disasters. The qualified
disaster relief organizations would be able to make purchases
from the Schedules as deemed appropriate and with the guidance
of the General Services Administration, in consultation with
the Administrator of the Federal Emergency Management Agency.
Committee Consideration
The Committee on Oversight and Government Reform met in
open session and ordered S. 2868, as amended, to be reported
favorably to the House by a voice vote.
Roll Call Votes
No roll call 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 terms and conditions of
employment or access to public services and accommodations. The
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 including
the need to allow our country to respond to disasters in the
most efficient and timely manner possible, whether through
federal or non-federal efforts.
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, including the legislation's grant of authority
to the American National Red Cross, state, and local
governments to make purchases for disaster preparedness and
response from the Federal Supply Schedules.
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 S. 2868. 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 meaning 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 on
whether the provisions of the report include unfunded mandates.
In compliance with this requirement the Committee has received
a letter from the Congressional Budget Office included herein.
Earmark Identification
S. 2868 does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(e), 9(f), or 9(g) of rule XXI.
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
S. 2868. 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 S. 2868 from the Director of
the Congressional Budget Office:
August 9, 2010.
Hon. Edolphus Towns,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2868, the Federal
Supply Schedules Usage Act of 2009.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
S. 2868--Federal Supply Schedules Usage Act of 2009
S. 2868 would amend federal law to allow disaster relief
organizations, as well as state and local governments, to use
the federal supply schedules of the General Services
Administration (GSA) to procure goods and services from private
firms for disaster preparedness and response activities. Under
current law, state and local governments may purchase such
services through the federal supply schedules; the legislation
would expand the purchasing program to include the American Red
Cross and other disaster relief organizations.
CBO estimates that implementing the legislation would have
no significant impact on the federal budget. Enacting the bill
would affect direct spending; therefore, pay-as-you-go
procedures apply. However, CBO estimates that any net budgetary
impact would not be significant in any year. Enacting the bill
would not affect revenues.
Any purchases of such supplies and services would be an
exchange between disaster relief organizations and commercial
suppliers. However, GSA charges a 0.75 percent fee on all sales
to recover the procurement and administrative costs of
operating the program. Based on information from GSA regarding
the current program and anticipated demand under the expanded
program, CBO estimates that increasing the number of purchases
would increase offsetting receipts by less than $500,000
annually. Because such fees are spent by GSA without further
appropriation, the net budgetary impact of the legislation
would be negligible.
S. 2868 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 December 23, 2009, CBO transmitted a cost estimate for
S. 2868, as ordered reported by the Senate Committee on
Homeland Security and Governmental Affairs on December 6, 2009.
The two pieces of legislation are similar and CBO's estimate of
their costs is the same.
The CBO staff contact for this estimate is Matthew
Pickford. The estimate was approved by Theresa Gullo, 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
* * * * * * *
CHAPTER 5--PROPERTY MANAGEMENT
SUBCHAPTER I--PROCUREMENT AND WAREHOUSING
* * * * * * *
Sec. 502. Services for other entities
(a) * * *
* * * * * * *
(d) Use of Supply Schedules for Certain Goods and Services.--
(1) In general.--The Administrator may provide for
the use by State or local governments of Federal supply
schedules of the General Services Administration for
goods or services that are to be used to facilitate
recovery from a major disaster declared by the
President under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et seq.),
to facilitate disaster preparedness or response, or to
facilitate recovery from terrorism or nuclear,
biological, chemical, or radiological attack.
* * * * * * *
(e) Use of Supply Schedules by the Red Cross and Other
Disaster Relief Organizations.--
(1) In general.--The Administrator may provide for
the use by the American National Red Cross and other
qualified disaster relief organizations of Federal
supply schedules. Purchases under this authority by the
Red Cross shall be used in furtherance of the purposes
of the American National Red Cross set forth in section
300102 of title 36, United States Code. Purchases under
this authority by other qualified disaster relief
organizations shall be used in furtherance of purposes
determined to be appropriate and set forth in guidance
by the Administrator of the General Services
Administration, in consultation with the Administrator
of the Federal Emergency Management Agency.
(2) Limitation.--The authority under this subsection
may not be used to purchase supplies for resale.
(3) Qualified disaster relief organization defined.--
In this subsection, the term ``qualified disaster
relief organization'' has the meaning given the term by
the Administrator of General Services, in consultation
with the Administrator of the Federal Emergency
Management Agency.
(f) Duty of Users Regarding Use of Supply Schedules.--All
users of Federal supply schedules, including non-Federal users,
shall use the schedules in accordance with the ordering
guidance provided by the Administrator of General Services.
* * * * * * *
ADDITIONAL VIEWS
The Federal Supply Schedules Usage Act of 2009 (S. 2868)
grants the Administrator of the General Services Administration
(GSA) the authority to allow the American Red Cross and state
and local governments to utilize the Federal supply schedules
(FSS) to prepare for and respond to natural disasters. The bill
does not require that the American Red Cross or the state and
local governments use the FSS. If these entities choose to use
the FSS, however, the bill enables them to leverage the federal
government's significant purchasing power. According to the
Congressional Budget Office, this bill would have no
significant impact on the federal budget.
There is precedent for allowing government entities, quasi-
government entities, and certain private entities to buy goods
and services from the FSS. Over the years, Congress has given
GSA statutory authority to broaden access to the FSS.
Currently, all executive agencies, the legislative branch, the
District of Columbia, tribes and tribal organizations, certain
foreign governments, and quasi-governmental and government
chartered entities such as the Christopher Columbus Fellowship
Foundation, the Bonneville Power Administration, and the Civil
Air Patrol are eligible to use the FSS for certain purposes or
under certain circumstances. A complete list of the entities
eligible to use the FSS was made part of the record at the
Committee's Business Meeting on this bill and others held on
July 28, 2010.
During the Committee Business Meeting on the bill,
Representative Anh ``Joseph'' Cao offered an amendment to
expand S. 2868 to allow all qualified non-profit organizations,
such as the Salvation Army and Catholic Relief Services, to
purchase from the FSS. The amendment requires the GSA
Administrator, along with the head of Federal Emergency
Management Agency (FEMA), to determine which organizations
qualify for the purposes of this bill.
In 2005, vast areas along the coast of the Gulf of Mexico,
were devastated by Hurricane Katrina. This includes Louisiana's
Second Congressional District, which includes parts of Orleans
and Jefferson Parishes. In the wake of the hurricane, many
observed the multitude of non-profit organizations, beyond the
American Red Cross, that provided disaster relief and continue
to provide recovery services to areas along the Gulf Coast.
More recently, after the tragic earthquake in Haiti, the New
York Times listed at least 41 large-scale disaster relief
organizations to which Americans could contribute. Because of
their work on both the international and domestic stages, these
organizations should also be eligible to purchase goods and
services from the FSS.
In addition to widely recognized national organizations,
local organizations are also invaluable. They have on-the-
ground knowledge of the greatest local needs and how to fulfill
those needs. Under the Stafford Act, whenever possible,
contracts for disaster relief should be awarded to local
contractors. Giving local organizations access to the GSA's FSS
will facilitate the quick delivery of supplies and services to
areas affected by natural disaster. Granting access to the
favorable rates offered by the FSS to additional qualified
organizations whose mission is to provide disaster relief,
preparedness, and recovery services will enhance the delivery
and quality of disaster relief and recovery goods and services
in areas of the U.S. affected by a disaster. In introducing
this amendment, Rep. Cao sought eligibility for these local
organizations as well.
We applaud the expansion of the bill to include private,
non-profit organizations beyond the American Red Cross to
ensure that the greatest numbers of individuals affected by
disaster can be served swiftly and completely by qualified non-
profit organizations. There are numerous capable disaster
relief organizations that should be eligible to purchase from
the FSS. We appreciate the Chairman agreeing to support this
amendment and were pleased it was agreed to during the Business
Meeting.
Darrell Issa,
Ranking Member.
Anh ``Joseph'' Cao,
Member.