```

[Senate Report 115-343]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 621
115th Congress        }                         {
                                 SENATE                       Report
 2d Session           }                         {              115-343

_______________________________________________________________________

                                     

            FEDERAL PERSONAL PROPERTY MANAGEMENT ACT OF 2018

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 3031

  TO AMEND CHAPTER 5 OF TITLE 40, UNITED STATES CODE, TO IMPROVE THE 
                MANAGEMENT OF FEDERAL PERSONAL PROPERTY
                
                
                
                
                
                

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                October 4, 2018.--Ordered to be printed
                                   ______

                      U.S. GOVERNMENT PUBLISHING OFFICE 

89-010                       WASHINGTON : 2018
                
                
                
                
                
                
                
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                    RON JOHNSON, Wisconsin, Chairman
JOHN McCAIN, Arizona                 CLAIRE McCASKILL, Missouri
ROB PORTMAN, Ohio                    THOMAS R. CARPER, Delaware
RAND PAUL, Kentucky                  HEIDI HEITKAMP, North Dakota
JAMES LANKFORD, Oklahoma             GARY C. PETERS, Michigan
MICHAEL B. ENZI, Wyoming             MAGGIE HASSAN, New Hampshire
JOHN HOEVEN, North Dakota            KAMALA D. HARRIS, California
STEVE DAINES, Montana                DOUG JONES, Alabama

                  Christopher R. Hixon, Staff Director
                Gabrielle D'Adamo Singer, Chief Counsel
       Patrick J. Bailey, Chief Counsel for Governmental Affairs
               Margaret E. Daum, Minority Staff Director
       Charles A. Moskowitz, Minority Senior Legislative Counsel
Christopher J. Mulkins, Minority U.S. Government Accountability Office 
                                Detailee
                     Laura W. Kilbride, Chief Clerk
                     
                     
                     
                     
                     

                                                       Calendar No. 621
115th Congress        }                         {
                                 SENATE                       Report
 2d Session           }                         {              115-343

======================================================================

 
                 FEDERAL PERSONAL PROPERTY MANAGEMENT 
                              ACT OF 2018

                                _______
                                

                October 4, 2018.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 3031]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 3031) to amend 
chapter 5 of title 40, United States Code, to improve the 
management of Federal personal property, having considered the 
same, reports favorably thereon without amendment and 
recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................2
 IV. Section-by-Section Analysis......................................2
  V. Evaluation of Regulatory Impact..................................3
 VI. Congressional Budget Office Cost Estimate........................3
VII. Changes in Existing Law Made by the Bill, as Reported............4

                         I. Purpose and Summary

    S. 3031, the Federal Personal Property Management Act of 
2018, seeks to improve the management of Federal personal 
property by requiring Federal agencies to conduct an annual 
inventory and assessment of capitalized personal property, 
identify excess capitalized property, and regularly inventory 
accountable personal property.

              II. Background and the Need for Legislation

    In February 2018, the Government Accountability Office 
(GAO) reported that most Federal agencies do not have policies 
or processes in place for identifying personal property excess 
to the agency's needs.\1\ Personal property refers to property 
such as technology, furniture, and equipment.\2\ GAO found that 
agencies typically only declare personal property excess when 
there is a triggering event, such as office moves or space 
reductions, rather than continuously identifying surplus items 
that could be sold or used by another agency.\3\
---------------------------------------------------------------------------
    \1\Gov't Accountability Office, GAO-18-257, Federal Personal 
Property: Opportunities Exist to Improve Identification of Unneeded 
Property for Disposal (2018), available at https://www.gao.gov/
products/GAO-18-257.
    \2\Id.
    \3\Id.
---------------------------------------------------------------------------
    The report also found that the manner in which agencies 
classify their property as ``accountable'' or ``capitalized'' 
varies significantly from agency to agency, making it difficult 
to understand the value of the Federal Government's personal 
property inventory.\4\ Accountable property is that which is 
nonexpendable with a useful life of greater than two years, 
whereas capitalized property refers to more expensive items 
such as vehicles and machinery. These distinctions change the 
way these items are inventoried by the agency. A more 
consistent approach would lead to better management and 
disposal of personal property.
---------------------------------------------------------------------------
    \4\Id.
---------------------------------------------------------------------------
    The Federal Personal Property Management Act of 2018 
requires the General Services Administration (GSA) to develop 
standards that Federal agencies must follow to inventory and 
capitalize assets under their control and through that process 
identify capitalized assets that are no longer necessary. This 
methodology adheres more closely to private sector practice and 
allows for a prioritization of more valuable assets that are 
excess to the agency's needs.

                        III. Legislative History

    Senator Gary Peters introduced S. 3031 on June 7, 2018, 
with Senators Rand Paul, Doug Jones, and James Lankford. The 
bill was referred to the Committee on Homeland Security and 
Governmental Affairs.
    The Committee considered S. 3031 at a June 13, 2018, 
business meeting. The Committee ordered S. 3031 reported 
favorably en bloc by voice vote. Senators present for the vote 
were Johnson, Portman, Lankford, Enzi, McCaskill, Carper, 
Peters, Hassan, Harris, and Jones.

        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 
``Federal Personal Property Management Act of 2018.''

Section 2. Federal personal property management

    This section requires Federal agencies, in accordance with 
GSA guidance, to annually inventory capitalized personal 
property and to regularly inventory accountable property. It 
also requires GSA to set thresholds for acquisitions of 
personal property that will be considered capitalized or 
accountable.

                   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 and would impose no costs on 
state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 16, 2018.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 3031, the Federal 
Personal Property Management Act of 2018.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

S. 3031--Federal Personal Property Management Act of 2018

    S. 3031 would require federal agencies to conduct an annual 
inventory and assessment of personal property under their 
control. Federal personal property includes everything other 
than real property--from office supplies to aircraft and motor 
vehicles. According to the Government Accountability Office, 
current law requires agencies to continuously review property 
they control and to identify unneeded personal property and 
dispose of it promptly. The General Services Administration has 
issued regulations establishing a governmentwide disposal 
process for unneeded property. In addition, the Office of 
Management and Budget provides guidance to agencies on 
efficient operations, emphasizing internal controls to ensure 
that agencies identify unneeded property.
    Because the bill would clarify agencies' current 
requirements with respect to personal property, CBO expects 
that implementing S. 3031 would have no significant effect on 
the federal budget.
    Enacting S. 3031 could affect direct spending by agencies 
that use fees, receipts from the sale of goods, and other 
collections to cover operating costs. Therefore, pay-as-you-go 
procedures apply. Because most agencies can adjust the amounts 
collected as their operating costs change, CBO estimates that 
any net changes in direct spending by those agencies would not 
be significant. Enacting the bill would not affect revenues.
    CBO estimates that enacting S. 3031 would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    S. 3031 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was reviewed by H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

       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 ADMINISTRATIVE SERVICES

           *       *       *       *       *       *       *

CHAPTER 5--PROPERTY MANAGEMENT

           *       *       *       *       *       *       *

Subchapter I--Procurement and Warehousing

           *       *       *       *       *       *       *

SEC. 506. INVENTORY CONTROLS AND SYSTEMS.

    (a) * * *
          (1) * * *
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) Capitalization thresholds.--Establish 
                thresholds for acquisitions of personal 
                property for which executive agencies shall 
                capitalize the personal property.
                  (F) Accountability thresholds.--
                Notwithstanding section 121(b), for the 
                management and accountability of personal 
                property, establish thresholds for acquisitions 
                of personal property for which executive 
                agencies shall establish and maintain property 
                records in a centralized system.

           *       *       *       *       *       *       *

Subchapter II--Use of Property

           *       *       *       *       *       *       *

SEC. 524. DUTIES OF EXECUTIVE AGENCIES.

    (a) Required.--Each executive agency shall--
          (1) * * *

           *       *       *       *       *       *       *

          (11) * * *
                  (A) * * *
                  (B) * * *
                          (i) * * *

           *       *       *       *       *       *       *

                          (xi) any additional information 
                        required by the Administrator of 
                        General Services to carry out section 
                        623; [and]
          (12) provide to the Federal Real Property Council and 
        the Administrator of General Services the information 
        described in paragraph (11)(B) to be used for the 
        establishment and maintenance of the database described 
        in section 21 of the Federal Assets Sale and Transfer 
        Act of 2016; and
          (13) in accordance with guidance from the 
        Administrator of General Services--
                  (A) on an annual basis, conduct an inventory 
                and assessment of capitalized personal property 
                to identify excess capitalized personal 
                property under its control, including 
                evaluating--
                          (i) the age and condition of the 
                        property;
                          (ii) the extent to which the 
                        executive agency utilizes the personal 
                        property;
                          (iii) the extent to which the mission 
                        of the executive agency is dependent on 
                        the personal property; and
                          (iv) any other aspect of the personal 
                        property that the Administrator 
                        determines is useful or necessary for 
                        the executive agency to evaluate; and
                  (B) on a regular basis, conduct an inventory 
                and assessment of accountable personal property 
                under its control, including evaluating--
                          (i) the age and condition of the 
                        property;
                          (ii) the extent to which the 
                        executive agency utilizes the personal 
                        property;
                          (iii) the extent to which the mission 
                        of the executive agency is dependent on 
                        the personal property; and
                          (iv) any other aspect of the personal 
                        property that the Administrator 
                        determines is useful or necessary for 
                        the executive agency to evaluate.

                                  [all]
```