[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
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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.
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\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).
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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\
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\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.
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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\
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\7\Government Accountability Office, supra note 2.
\8\Government Accountability Office, supra note 2.
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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]