[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.

                                  
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