U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

49–010 

" ! SENATE 109TH CONGRESS

2d Session 

REPORT

2006

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 


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(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

SUSAN M. COLLINS, Maine, Chairman 

TED STEVENS, Alaska 

GEORGE V. VOINOVICH, Ohio 

NORM COLEMAN, Minnesota 

TOM COBURN, Oklahoma 

LINCOLN D. CHAFEE, Rhode Island 

ROBERT F. BENNETT, Utah 

PETE V. DOMENICI, New Mexico 

JOHN W. WARNER, Virginia 

JOSEPH I. LIEBERMAN, Connecticut 

CARL LEVIN, Michigan 

DANIEL K. AKAKA, Hawaii 

THOMAS R. CARPER, Delaware 

MARK DAYTON, Minnesota 

FRANK LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas 

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 


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49–010 

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 


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1General 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. 2Senators 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. 3P.L. 109–115. 

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. 

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 apVerDate Aug 31 2005 01:52 Jun 01, 2006 Jkt 049010 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\SR257.XXX SR257

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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. 6Making 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). 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. 9Service Oriented Streamlining: Rethinking the Way GSA Does Business, House Gov’t Reform 

Comm., 109th Cong. 109–11 (2005). 

proved 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. 

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

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. 

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

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 


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10 Compendium of Audits of the Federal Technology Service Regional Client Support Centers, 

GSA Inspector General, December 14, 2004. 

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

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. § 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. 


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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. § 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. § 322 that established the General Services 

Administration’s Information Technology Fund and amend 40 

U.S.C. § 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. § 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. § 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 acquisitionrelated position could, under certain conditions, not be subject to 

a reduction in their federal annuity. The criteria under which each 


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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. 


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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 

øSEC. 303. FUNCTIONS 

ø(a) BUREAU OF FEDERAL SUPPLY.—

ø(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—

ø(A) the Bureau; 

ø(B) the Director of the Bureau; 

ø(C) the personnel of the Bureau; or 

ø(D) the Secretary of the Treasury. 

ø(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). 

ø(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—

ø(1) the Federal Works Agency; 

ø(2) the Federal Works Administrator; or 

ø(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 


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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 

øSEC. 321. GENERAL SUPPLY FUND 

ø(a) EXISTENCE.—The General Supply Fund is a special fund in 

the Treasury. 

ø(b) COMPOSITION.— ø(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. 

ø(2) OTHER CREDITS.— ø(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— ø(i) the net proceeds of disposal of surplus personal 

property; and 

ø(ii) receipts from carriers and others for loss of, or 

damage to, personal property. 

ø(B) REAPPROPRIATION.—Amounts credited under this 

paragraph are reappropriated for the purposes of the 

Fund. 

ø(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—


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(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); øand¿ 

(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; øand¿ 

(v) the cost of personal services employed directly in 

providing information technology (as defined in section 

11101(6) of this title); and 

ø(v)¿ (vi) the cost of amortization and repair of 

equipment used for lease or rent to executive agencies; 

and 


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(B) properly allocable costs payable by the Fund under 

subsection (c)(1)(C). 

* * * * * * * 

ø(f) TREATMENT OF SURPLUS.— ø(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. 

ø(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. 

* * * * * * * 

øSEC. 322. INFORMATION TECHNOLOGY FUND 

ø(a) EXISTENCE.—There is an Information Technology Fund in 

the Treasury. 

ø(b) COST AND CAPITAL REQUIREMENTS.— ø(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— ø(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; 

ø(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 

ø(C) that are appropriated, authorized to be transferred, 

or otherwise made available to the Fund. 

ø(2) SUBMITTING PLAN TO OFFICE OF MANAGEMENT AND BUDG- ET.—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. 

ø(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. 

ø(c) USE.—

ø(1) IN GENERAL.—The Fund is available for expenses, including personal services and other costs, and for procurement 


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(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. 

ø(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. 

ø(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. 

ø(4) NO FISCAL YEAR LIMITATION.—The Fund is available 

without fiscal year limitation. 

ø(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. 

ø(e) CONTRACT AUTHORITY.—

ø(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—

ø(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; 

ø(B) the contract is awarded on a fully competitive basis; 

and 

ø(C) the Administrator determines that—

ø(i) the need for the information technology hardware, software, or services being provided will continue over the period of the contract; 

ø(ii) the use of the multiyear contract will yield substantial cost savings when compared with other methods of providing the necessary resources; and 

ø(iii) the method of contracting will not exclude 

small business participation. 

ø(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. 

ø(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. 

ø(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.¿ 

* * * * * * * 


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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 øGeneral 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 øGeneral 

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 øGENERAL 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 øGeneral 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 øGENERAL SUPPLY FUND¿ ACQUISITION SERVICES

FUND TO COVER COSTS.—The øGeneral 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 ø321(f)(1)¿ 321(f) 

of this title, the increment may be retained as a part of the 

capital of the øGeneral Supply Fund¿ Acquisition Services 


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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. 

* * * * * * * 

øCommissioner, 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. 


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(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. 

Æ 


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