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Union Calendar No. 48 

109TH CONGRESS 

1ST SESSION H. R. 2066 

[Report No. 109–91] 

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. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 4, 2005 

Mr. TOM DAVIS of Virginia (for himself and Mr. HUNTER) introduced the 

following bill; which was referred to the Committee on Government Reform 

MAY 23, 2005 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on May 4, 2005] 

A BILL 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘General Services Admin3 istration Modernization Act’’. 

4 SEC. 2. FEDERAL ACQUISITION SERVICE. 

5 (a) ESTABLISHMENT.— 

6 (1) IN GENERAL.—Section 303 of title 40, 

7 United States Code, is amended to read as follows: 

8 ‘‘§ 303. Federal Acquisition Service 

9 ‘‘(a) ESTABLISHMENT.—There is established in the 

10 General Services Administration a Federal Acquisition 

11 Service. The Administrator of General Services shall ap12 point a Commissioner of the Federal Acquisition Service, 

13 who shall be the head of the Federal Acquisition Service. 

14 ‘‘(b) FUNCTIONS.—Subject to the direction and control 

15 of the Administrator of General Services, the Commissioner 

16 of the Federal Acquisition Service shall be responsible for 

17 carrying out functions related to the uses for which the Ac18 quisition Services Fund is authorized under section 321 of 

19 this title, including any functions that were carried out by 

20 the entities known as the Federal Supply Service and the 

21 Federal Technology Service and such other related functions 

22 as the Administrator considers appropriate. 

23 ‘‘(c) REGIONAL EXECUTIVES.—The Administrator 

24 may appoint up to five Regional Executives in the Federal 

25 Acquisition Service, to carry out such functions within the 
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1 Federal Acquisition Service as the Administrator considers 

2 appropriate.’’. 

3 (2) CLERICAL AMENDMENT.—The item relating 

4 to section 303 at the beginning of chapter 3 of such 

5 title is amended to read as follows: 

‘‘303. Federal Acquisition Service.’’. 

6 (b) EXECUTIVE SCHEDULE COMPENSATION.—Section 

7 5316 of title 5, United States Code, is amended by striking 

8 ‘‘Commissioner, Federal Supply Service, General Services 

9 Administration.’’ and inserting the following: 

10 ‘‘Commissioner, Federal Acquisition Service, 

11 General Services Administration.’’. 

12 (c) REFERENCES.—Any reference in any other Federal 

13 law, Executive order, rule, regulation, reorganization plan, 

14 or delegation of authority, or in any document— 

15 (1) to the Federal Supply Service is deemed to 

16 refer to the Federal Acquisition Service; 

17 (2) to the GSA Federal Technology Service is 

18 deemed to refer to the Federal Acquisition Service; 

19 (3) to the Commissioner of the Federal Supply 

20 Service is deemed to refer to the Commissioner of the 

21 Federal Acquisition Service; and 

22 (4) to the Commissioner of the GSA Federal 

23 Technology Service is deemed to refer to the Commis24 sioner of the Federal Acquisition Service. 
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1 SEC. 3. ACQUISITION SERVICES FUND. 

2 (a) ABOLISHMENT OF GENERAL SUPPLY FUND AND

3 INFORMATION TECHNOLOGY FUND.—The General Supply 

4 Fund and the Information Technology Fund in the Treas5 ury are hereby abolished. 

6 (b) TRANSFERS.—Capital assets and balances remain7 ing in the General Supply Fund and the Information Tech8 nology Fund as in existence immediately before this section 

9 takes effect shall be transferred to the Acquisition Services 

10 Fund and shall be merged with and be available for the 

11 purposes of the Acquisition Services Fund under section 321 

12 of title 40, United States Code (as amended by this Act). 

13 (c) ASSUMPTION OF OBLIGATIONS.—Any liabilities, 

14 commitments, and obligations of the General Supply Fund 

15 and the Information Technology Fund as in existence im16 mediately before this section takes effect shall be assumed 

17 by the Acquisition Services Fund. 

18 (d) EXISTENCE AND COMPOSITION OF ACQUISITION

19 SERVICES FUND.—Subsections (a) and (b) of section 321 

20 of title 40, United States Code, are amended to read as fol21 lows: 

22 ‘‘(a) EXISTENCE.—The Acquisition Services Fund is 

23 a special fund in the Treasury. 

24 ‘‘(b) COMPOSITION.— 
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1 ‘‘(1) IN GENERAL.—The Fund is composed of 

2 amounts authorized to be transferred to the Fund or 

3 otherwise made available to the Fund. 

4 ‘‘(2) OTHER CREDITS.—The Fund shall be cred5 ited with all reimbursements, advances, and refunds 

6 or recoveries relating to personal property or services 

7 procured through the Fund, including— 

8 ‘‘(A) the net proceeds of disposal of surplus 

9 personal property; and 

10 ‘‘(B) receipts from carriers and others for 

11 loss of, or damage to, personal property; and 

12 ‘‘(C) receipts from agencies charged fees 

13 pursuant to rates established by the Adminis14 trator. 

15 ‘‘(3) COST AND CAPITAL REQUIREMENTS.—The 

16 Administrator shall determine the cost and capital re17 quirements of the Fund for each fiscal year and shall 

18 develop a plan concerning such requirements in con19 sultation with the Chief Financial Officer of the Gen20 eral Services Administration. Any change to the cost 

21 and capital requirements of the Fund for a fiscal year 

22 shall be approved by the Administrator. The Adminis23 trator shall establish rates to be charged agencies pro24 vided, or to be provided, supply of personal property 
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1 and non-personal services through the Fund, in ac2 cordance with the plan. 

3 ‘‘(4) DEPOSIT OF FEES.—Fees collected by the 

4 Administrator under section 313 of this title may be 

5 deposited in the Fund to be used for the purposes of 

6 the Fund.’’. 

7 (e) USES OF FUND.—Section 321(c) of such title is 

8 amended in paragraph (1)(A)— 

9 (1) by striking ‘‘and’’ at the end of clause (i); 

10 (2) by inserting ‘‘and’’ after the semicolon at the 

11 end of clause (ii); and 

12 (3) by inserting after clause (ii) the following 

13 new clause: 

14 ‘‘(iii) personal services related to the 

15 provision of information technology (as de16 fined in section 11101(6) of this title);’’. 

17 (f) PAYMENT FOR PROPERTY AND SERVICES.—Section 

18 321(d)(2)(A) of such title is amended— 

19 (1) by striking ‘‘and’’ at the end of clause (iv); 

20 (2) by redesignating clause (v) as clause (vi); 

21 and 

22 (3) by inserting after clause (iv) the following 

23 new clause: 

24 ‘‘(v) the cost of personal services em25 ployed directly in providing information 
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1 technology (as defined in section 11101(6) 

2 of this title); and’’. 

3 (g) TRANSFER OF UNCOMMITTED BALANCES.—Sub4 section (f) of section 321 of such title is amended to read 

5 as follows: 

6 ‘‘(f) TRANSFER OF UNCOMMITTED BALANCES.—Fol7 lowing the close of each fiscal year, after making provision 

8 for a sufficient level of inventory of personal property to 

9 meet the needs of Federal agencies, the replacement cost of 

10 motor vehicles, and other anticipated operating needs re11 flected in the cost and capital plan developed under sub12 section (b), the uncommitted balance of any funds remain13 ing in the Fund shall be transferred to the general fund 

14 of the Treasury as miscellaneous receipts.’’. 

15 (h) CONFORMING AND CLERICAL AMENDMENTS.— 

16 (1) Section 322 of such title is repealed. 

17 (2) The heading for section 321 of such title is 

18 amended to read as follows: 

19 ‘‘§ 321. Acquisition Services Fund’’. 

20 (3) The table of sections for chapter 3 of such 

21 title is amended by striking the items relating to sec22 tions 321 and 322 and inserting the following: 

‘‘321. Acquisition Services Fund.’’. 

23 (4) Section 573 of such title is amended by strik24 ing ‘‘General Supply Fund’’ both places it appears 

25 and inserting ‘‘Acquisition Services Fund’’. 
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1 (5) Section 604(b) of such title is amended— 

2 (A) in the heading, by striking ‘‘GENERAL

3 SUPPLY FUND’’ and inserting ‘‘ACQUISITION

4 SERVICES FUND’’; and 

5 (B) in the text, by striking ‘‘General Supply 

6 Fund’’ and inserting ‘‘Acquisition Services 

7 Fund’’. 

8 (6) Section 605 of such title is amended— 

9 (A) in subsection (a)— 

10 (i) in the heading, by striking ‘‘GEN11 ERAL SUPPLY FUND’’ and inserting ‘‘AC12 QUISITION SERVICES FUND’’; and 

13 (ii) in the text, by striking ‘‘General 

14 Supply Fund’’ and inserting ‘‘Acquisition 

15 Services Fund’’; and 

16 (B) in subsection (b)(2)— 

17 (i) by striking ‘‘321(f)(1)’’ and insert18 ing ‘‘321(f)’’; and 

19 (ii) by striking ‘‘General Supply 

20 Fund’’ and inserting ‘‘Acquisition Services 

21 Fund’’. 
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1 SEC. 4. PROVISIONS RELATING TO ACQUISITION PER2 SONNEL. 

3 Section 37 of the Office of Federal Procurement Policy 

4 Act (41 U.S.C. 433) is amended by adding at the end the 

5 following new subsections: 

6 ‘‘(i) PROVISIONS RELATING TO REEMPLOYMENT.— 

7 ‘‘(1) POLICIES AND PROCEDURES.—The head of 

8 each executive agency, after consultation with the Ad9 ministrator and the Director of the Office of Per10 sonnel Management, shall establish policies and proce11 dures under which the agency head may reemploy in 

12 an acquisition-related position (as described in sub13 section (g)(1)(A)) an individual receiving an annuity 

14 from the Civil Service Retirement and Disability 

15 Fund, on the basis of such individual’s service, with16 out discontinuing such annuity. The head of each ex17 ecutive agency shall keep the Administrator informed 

18 of the agency’s use of this authority. 

19 ‘‘(2) SERVICE NOT SUBJECT TO CSRS OR FERS.— 

20 An individual so reemployed shall not be considered 

21 an employee for the purposes of chapter 83 or 84 of 

22 title 5, United States Code. 

23 ‘‘(3) CRITERIA FOR EXERCISE OF AUTHORITY.— 

24 Polices and procedures established pursuant to this 

25 subsection shall authorize the head of the executive 
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1 agency, on a case-by-case basis, to continue an annu2 ity if— 

3 ‘‘(A) the unusually high or unique quali4 fications of an individual receiving an annuity 

5 from the Civil Service Retirement and Disability 

6 Fund on the basis of such individual’s service, or 

7 ‘‘(B) a special need of the agency for the 

8 services of an employee, 

9 makes the reemployment of an individual essential. 

10 ‘‘(4) REPORTING REQUIREMENT.—The Adminis11 trator shall submit annually to the Committee on 

12 Government Reform of the House of Representatives 

13 and the Committee on Homeland Security and Gov14 ernmental Affairs of the Senate a report on the use 

15 of the authority under this subsection, including the 

16 number of employees reemployed under authority of 

17 this subsection. 

18 ‘‘(5) SUNSET PROVISION.—The authority under 

19 this subsection shall expire on December 31, 2011. 

20 ‘‘(j) RETENTION BONUSES.— 

21 ‘‘(1) IN GENERAL.—The head of each executive 

22 agency, after consultation with the Administrator, 

23 shall establish policies and procedures under which 

24 the agency head may pay retention bonuses to em25 ployees holding acquisition-related positions (as de-
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1 scribed in subsection (g)(1)(A)) within such agency, 

2 except that the authority to pay a bonus under this 

3 subsection shall be available only if— 

4 ‘‘(A) the unusually high or unique quali5 fications of an employee or a special need of the 

6 agency for the services of an employee makes the 

7 retention of such employee essential; and 

8 ‘‘(B) the agency determines that, in the ab9 sence of such a bonus, it is likely that the em10 ployee would leave— 

11 ‘‘(i) the Federal service; or 

12 ‘‘(ii) for a different position in the 

13 Federal service under conditions described 

14 in regulations of the Office. 

15 ‘‘(2) SERVICE AGREEMENTS.—(A) Payment of a 

16 bonus under this subsection shall be contingent upon 

17 the employee entering into a written agreement with 

18 the agency to complete a period of service with the 

19 agency in return for the bonus. 

20 ‘‘(B)(i) The agreement shall include— 

21 ‘‘(I) the length of the period of service re22 quired; 

23 ‘‘(II) the bonus amount; 

24 ‘‘(III) the manner in which the bonus will 

25 be paid (as described in paragraph (3)(B)); and 
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1 ‘‘(IV) any other terms and conditions of the 

2 bonus, including the terms and conditions gov3 erning the termination of an agreement. 

4 ‘‘(3) TERMS AND CONDITIONS.—A bonus under 

5 this subsection— 

6 ‘‘(A) may not exceed 50 percent of the basic 

7 pay of the employee; 

8 ‘‘(B) may be paid to an employee— 

9 ‘‘(i) in installments after completion of 

10 specified periods of service; 

11 ‘‘(ii) in a single lump sum at the end 

12 of the period of service required by the 

13 agreement; or 

14 ‘‘(iii) in any other manner mutually 

15 agreed to by the agency and the employee; 

16 ‘‘(C) is not part of the basic pay of the em17 ployee; and 

18 ‘‘(D) may not be paid to an employee who 

19 holds a position— 

20 ‘‘(i) appointment to which is by the 

21 President, by and with the advice and con22 sent of the Senate; 

23 ‘‘(ii) in the Senior Executive Service 

24 as a noncareer appointee (as such term is 
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1 defined under section 3132(a) of title 5, 

2 United States Code); or 

3 ‘‘(iii) which has been excepted from the 

4 competitive service by reason of its con5 fidential, policy-determining, policy-mak6 ing, or policy-advocating character.’’. 

7 SEC. 5. EFFECTIVE DATE. 

8 This Act and the amendments made by this Act shall 

9 take effect 60 days after the date of the enactment of this 

10 Act. 
Union Calendar No. 48 

109TH CONGRESS 

1ST SESSION H. R. 2066 

[Report No. 109–91] 

A BILL 

To amend title 40, United States Code, to establish 

and for other purposes. nology Fund with an Acquisition Services Fund, General Supply Fund and the Information Techa Federal Acquisition Service, to replace the 

MAY 23, 2005 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union,