[Senate Report 118-120]
[From the U.S. Government Publishing Office]


                                                   Calendar No. 264

118th Congress}                                           { Report
                                 SENATE
 1st Session  }                                           { 118-120

======================================================================
 
                       REUSE EXCESS PROPERTY ACT

                               __________

                              R E P O R T

                                 OF THE

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              TO ACCOMPANY

                                S. 2685

              TO MAKE DATA AND INTERNAL GUIDANCE ON EXCESS
             PERSONAL PROPERTY PUBLICLY AVAILABLE, AND FOR
                             OTHER PURPOSES

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


                December 5, 2023.--Ordered to be printed
                
                               __________

                                
                    U.S. GOVERNMENT PUBLISHING OFFICE                    
                           WASHINGTON : 2023                    
          
-----------------------------------------------------------------------------------                
               
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           RAND PAUL, Kentucky
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              JAMES LANKFORD, Oklahoma
JACKY ROSEN, Nevada                  MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
RICHARD BLUMENTHAL, Connecticut      JOSH HAWLEY, Missouri
LAPHONZA R. BUTLER, California       ROGER MARSHALL, Kansas

                   David M. Weinberg, Staff Director
            Lena C. Chang, Director of Governmental Affairs
              Chelsea A. Davis, Professional Staff Member
           William E. Henderson III, Minority Staff Director
              Christina N. Salazar, Minority Chief Counsel
                  Andrew J. Hopkins, Minority Counsel
                     Laura W. Kilbride, Chief Clerk
                     
                     

                                                  Calendar No. 264

118th Congress}                                           { Report
                                 SENATE
 1st Session  }                                           { 118-120

======================================================================              
               
                       REUSE EXCESS PROPERTY ACT

                                _______
                                

                December 5, 2023.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 2685]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 2685) to make data 
and internal guidance on excess personal property publicly 
available, and for other purposes, having considered the same, 
reports favorably thereon with an amendment, in the nature of a 
substitute, and recommends that the bill, as amended, do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................3
 IV. Section-by-Section Analysis of the Bill, as Reported.............3
  V. Evaluation of Regulatory Impact..................................5
 VI. Congressional Budget Office Cost Estimate........................5
VII. Changes in Existing Law Made by the Bill, as Reported............6

                         I. Purpose and Summary

    S. 2685, the Reuse Excess Property Act, would amend 
existing statutory reporting requirements on excess personal 
property owned by federal agencies, in order to increase 
transparency and help reduce waste. Agencies currently report 
to the General Services Administration (GSA) on excess personal 
property, which refers to physical (non-real estate) items 
owned by an agency. This bill would require GSA and executive 
agencies to report to Congress and the public on its internal 
guidance and data regarding disposal and repurposing of excess 
personal property. It would also require agencies to designate 
an employee responsible for searching through data on available 
excess personal property, in order to maximize agencies' reuse 
of items that meet their needs. To further increase 
transparency, the bill requires GSA's interagency working group 
on personal property to make its findings publicly available. 
This bill would also direct the Government Accountability 
Office (GAO) to submit a report to the congressional oversight 
committees on the acquisition of federal personal property from 
entities based in China.

              II. Background and Need for the Legislation

    The federal government is the largest single purchaser of 
goods and services in the world.\1\ As of 2022, the federal 
government managed and owned approximately $2 trillion in 
personal property assets, such as office supplies, computers, 
furniture, heavy machinery, and government vehicles. At the 
same time, federal agencies annually identify billions of 
dollars of personal property that is excess, or no longer 
needed at the agency.\2\ This property is then made available 
to other federal agencies at no cost, other than necessary 
transportation or shipping expenses. This provides a 
significant opportunity to reduce new expenditures.
---------------------------------------------------------------------------
    \1\U.S. Small Business Administration Contracting Guide (https://
www.sba.gov/federal-contracting/contracting-
guide#::text=The%20U.S.%20government%20is%20the,consider%20buying
%20from%20small%20businesses.) (accessed October 26, 2023).
    \2\Government Accountability Office, Federal Personal Property: 
Better Internal Guidance and More Action from GSA Are Needed to Help 
Agencies Maximize Use of Excess (GAO-22-104626) (June 2022).
---------------------------------------------------------------------------
    In June 2022, GAO released a report finding that agencies 
have not used excess property as a significant source for 
obtaining the goods they need.\3\ Agencies are statutorily 
required to obtain excess property from other agencies, to the 
extent practical, to fill agency needs.\4\ Similarly, agencies 
are required to consider excess property before buying new 
products under guidelines in the Federal Management 
Regulation.\5\ However, GAO reported that from 2016 to 2020, 
agencies obtained just $3.9 billion (based on original cost) in 
excess property from other agencies, while an additional $28.9 
billion worth of excess property remained unused. During the 
same period, agencies acquired $206 billion in new property.\6\
---------------------------------------------------------------------------
    \3\Government Accountability Office, supra note 2.
    \4\40 U.S.C. Sec.  524(b).
    \5\41 CFR Sec.  102-36.65.
    \6\Government Accountability Office, supra note 2.
---------------------------------------------------------------------------
    GAO found that agencies lacked sufficient guidance 
governing the reuse of excess personal property. GAO concluded 
that without adequate guidance, agencies could be squandering 
opportunities to save money by obtaining excess personal 
property at reduced or no costs.\7\ While not all excess 
property will be suitable to meet agency needs, GAO found that 
existing policy is not sufficient. GAO concluded that 
additional guidance, transparency and accountability is needed 
to allow agencies to better leverage excess personal property 
and save taxpayer dollars.\8\
---------------------------------------------------------------------------
    \7\Government Accountability Office, supra note 2.
    \8\Government Accountability Office, supra note 2.
---------------------------------------------------------------------------
    The Reuse Excess Property Act would make guidance and data 
on excess personal property publicly available, in order to 
hold agencies accountable for efficiently using and reusing 
personal property. Specifically, the bill would require GSA to 
share annual agency reports on excess personal property with 
Congress and the public. The bill also would require agencies 
to publish the internal guidance they use to consider obtaining 
excess personal property. At minimum, this guidance must 
include essential components from the Federal Management 
Regulation, including the requirement to consider other 
agencies' excess property before buying new personal property. 
Each agency must also designate an employee who will be 
responsible for searching through available sources on excess 
personal property for items that meet the agency's needs.
    This legislation would ensure agencies have fundamental 
guidance in place to maximize the reuse of excess personal 
property. Additionally, this bill would provide the public with 
essential data, helping decision-makers and taxpayers better 
understand the extent to which agencies are working to cut 
wasteful spending through the use of excess property. Shining a 
light on agency practices would provide transparency and may 
incentivize a more efficient use of excess personal property, 
saving taxpayer dollars.

                        III. Legislative History

    Senator Gary Peters (D-MI) introduced S. 2685, the Reuse 
Excess Property Act, on July 27, 2023, with original cosponsor 
Senator James Lankford (R-OK). The bill was referred to the 
Committee on Homeland Security and Governmental Affairs.
    The Committee considered S. 2685 at a business meeting on 
October 25, 2023. At the business meeting, Chairman Peters 
offered a substitute amendment to the bill, as well as a 
modification to that amendment. The Peters amendment, as 
modified, deleted a word for clarity and added Senate and House 
oversight committees to existing public reporting requirements. 
The modification directed GAO to submit a report to the Senate 
Committee on Homeland Security and Governmental Affairs and the 
House Committee on Oversight and Accountability on the 
acquisition of federal personal property from Chinese entities. 
The modification also added a 5-year sunset to the bill and 
required that no additional funds be used to carry out the 
bill. The Committee adopted the modification to the Peters 
substitute amendment and the Peters substitute amendment, as 
modified, by unanimous consent, with Senators Peters, Hassan, 
Sinema, Rosen, Ossoff, Blumenthal, Butler, Paul, Lankford, 
Romney, Scott, and Hawley present. The bill, as amended by the 
Peters substitute amendment as modified, was ordered favorably 
by roll call vote of 11 yeas to 0 nays, with Senators Peters, 
Hassan, Sinema, Rosen, Ossoff, Blumenthal, Butler, Paul, 
Lankford, Romney, and Scott voting in the affirmative. Senators 
Carper, Johnson, Hawley, and Marshall voted yea by proxy, for 
the record only.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section establishes the short title of the bill as the 
``Reuse Excess Property Act.''

Section 2. Reporting on excess personal property

    Subsection (a) amends existing reporting requirements on 
excess personal property (section 529 of title 40, United 
States Code), to require each executive agency to submit its 
annual report on excess personal property to congressional 
oversight committees (the Senate Committee on Homeland Security 
and Governmental Affairs, and the House Committee on Oversight 
and Accountability) in addition to GSA.
    Subsection (a) adds a new subsection (c) to section 529 to 
require GSA to compile data from these annual reports and 
submit the data to the congressional committees. Within 180 
days after the end of the each fiscal year, GSA must also 
publish a report on a centralized public website, which must 
include: (1) the complete data from each annual agency report, 
in a user-friendly format; (2) a summary of the findings of 
each report, including the aggregate dollar amount of personal 
property determined to be no longer required; and (3) any 
recommendations from GSA.
    Subsection (a) also adds a new section 530 to title 40, 
United States Code, regarding internal agency guidance on 
excess personal property. The new section requires each 
executive agency to submit to GSA the agency's internal 
guidance on considering the use of excess personal property, 
and also make this guidance publicly available on the agency's 
website. The internal guidance must include: (1) a requirement 
to consider excess personal property before buying new; (2) 
when it is practicable to check for and obtain excess personal 
property; (3) how to evaluate the suitability of excess 
personal property for use; and (4) defined roles and 
responsibilities relevant to considering the use of excess 
personal property, including the designation of an employee as 
responsible for searching through available data on excess 
personal property for items that meet the needs of the 
executive agency.
    Subsection (b) of the new section 530 requires each 
executive agency to submit updates to its internal guidance to 
GSA and update its agency website accordingly.
    Subsection (b) requires GSA to publish a report on a 
centralized public website that includes a summary of findings 
from the interagency working group on personal property, which 
first convened in February 2023 to examine the acquisition of 
personal property and ways to improve the use of excess 
personal property.
    Subsection (c) amends the table of sections for chapter 5 
of title 40, United States Code, by inserting a reference to 
the new section 530.
    Subsection (d) directs GAO to submit a report to the Senate 
Committee on Homeland Security and Governmental Affairs and the 
House Committee on Oversight and Accountability. This report 
should evaluate the frequency with which executive agencies 
acquire personal property that was made, produced, or 
manufactured by any entity, including any corporation, that is 
organized under the laws of, is headquartered in, or has its 
principal place of business in the People's Republic of China, 
including any Special Administrative Region.
    Subsection (e) sunsets the authorities of this Act 5 years 
after its enactment.
    Subsection (f) provides that no additional funds are 
authorized to be appropriated for the purpose of carrying out 
this Act or the amendments made by this Act.

                   V. 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 and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate




    S. 2685 would amend federal law regarding the use of excess 
personal property. Personal property refers to physical items 
(not real estate or land) ranging from common products--such as 
office equipment, motor vehicles, and animals--to specialized 
equipment--such as scientific devices and heavy machinery. 
Specifically, the legislation would:
           Require the Government Accountability Office 
        (GAO) to report on the frequency of federal agencies 
        buying personal property that is produced in China,
           Require the General Services Administration 
        (GSA) to publicly report on excess personal property 
        and on its interagency working group, and
           Require agencies to report on their guidance 
        about the use of excess personal property.
    The bill would sunset five years after enactment.
    CBO is unaware of any comprehensive information about 
personal property purchased by the federal government that is 
produced in China. Based on the cost of similar reporting 
requirements and CBO's expectation that GSA and federal 
agencies will continue their efforts with respect to the use of 
excess personal property, CBO estimates that implementing the 
bill would cost less than $500,000. That spending would be 
subject to the availability of appropriated funds.
    Enacting S. 2685 could affect direct spending by some 
agencies that are allowed to use fees, receipts from the sale 
of goods, and other collections to cover operating costs. CBO 
estimates that any net changes in direct spending by those 
agencies would be negligible because most of them can adjust 
amounts collected to reflect changes in operating costs.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was reviewed by H. Samuel Papenfuss, 
Deputy Director of Budget Analysis.

                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

       VII. Changes in Existing Law Made by the Bill, as Reported

    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 brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS

           *       *       *       *       *       *       *


Subtitle I--Federal Property and Administrative Services

           *       *       *       *       *       *       *


                     CHAPTER 5--PROPERTY MANAGEMENT

Table of sections
Sec.
501. Services for executive agencies.
     * * * * * * *
530. Internal guidance on excess personal property.
     * * * * * * *

SUBCHAPTER II--USE OF PROPERTY

           *       *       *       *       *       *       *



SEC. 529. ANNUAL EXECUTIVE AGENCY REPORTS ON EXCESS PERSONAL PROPERTY

    (a) In General.--During the calendar quarter following the 
close of each fiscal year, each executive agency shall submit 
to the Administrator of General Services and the Committee on 
Homeland Security and Governmental Affairs of the Senate and 
the Committee on Oversight and Accountability of the House of 
Representatives a report on personal property--
          (1) obtained as--
          (A) excess property; or
          (B) personal property determined to be no longer 
        required for the purpose of the appropriation used to 
        make the purchase; and
          (2) furnished within the United States to a recipient 
        other than a federal agency.
    (b) * * *
    (c) Compilation of Data.--Not later than 180 days following 
the close of a fiscal year, the Administrator shall compile the 
data in the reports submitted under subsection (a) and submit 
to the Committee on Homeland Security and Governmental Affairs 
of the Senate and the Committee on Oversight and Accountability 
of the House of Representatives and publish on a centralized 
online website a publicly available report, which shall 
include--
          (1) the complete data provided in each report in a 
        user-friendly format;
          (2) a summary of the findings of each report, 
        including the aggregate dollar amount of personal 
        property determined to be no longer required for the 
        purpose of the appropriation used to make the purchase; 
        and
          (3) any other recommendations from the Administrator.

SEC. 530. INTERNAL GUIDANCE ON EXCESS PERSONAL PROPERTY

    (a) Initial Report.--Not later than 180 days after the date 
of enactment of this section, each executive agency shall 
submit to the Administrator of General Services and make 
publicly available on the website of the executive agency the 
internal guidance of the executive agency on considering using 
excess personal property to meet the needs of the executive 
agency, which shall include--
          (1) a requirement to consider excess personal 
        property before buying new;
          (2) when it is practicable to check for and obtain 
        excess personal property;
          (3) how to evaluate the suitability of excess 
        personal property for use; and
          (4) defined roles and responsibilities relevant to 
        considering the use of excess personal property, 
        including the designation of an employee as responsible 
        for searching through available excess personal 
        property for items that meet the needs of the executive 
        agency.
    (b) Updates.--Each executive agency shall submit to the 
Administrator of General Services and update on the website of 
the executive agency any changes to the internal guidance 
submitted and made available under subsection (a).

           *       *       *       *       *       *       *


                                  [all]