II 

Calendar No. 449 

109TH CONGRESS 

2D SESSION H. R. 2066 

[Report No. 109–257] 

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 SENATE OF THE UNITED STATES 

MAY 24, 2005 

Received; read twice and referred to the Committee on Homeland Security and 

Governmental Affairs 

MAY 25, 2006 

Reported by Ms. COLLINS, with amendments 

[Omit the part struck through and insert the part printed in italic] 

AN ACT 

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 Ad3 ministration 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 con15 trol of the Administrator of General Services, the Commis16 sioner of the Federal Acquisition Service shall be respon17 sible for carrying out functions related to the uses for 

18 which the Acquisition Services Fund is authorized under 

19 section 321 of this title, including any functions that were 

20 carried out by the entities known as the Federal Supply 

21 Service and the Federal Technology Service and such 

22 other related functions as the Administrator considers ap23 propriate. 

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

25 may appoint up to five Regional Executives in the Federal 

26 Acquisition Service, to carry out such functions within the 


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1 Federal Acquisition Service as the Administrator con2 siders 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.—Sec7 tion 5316 of title 5, United States Code, is amended by 

8 striking ‘‘Commissioner, Federal Supply Service, General 

9 Services Administration.’’ and inserting the following: 

10 ‘‘Commissioner, Federal Acquisition Service, 

11 General Services Administration.’’. 

12 (c) REFERENCES.—Any reference in any other Fed13 eral law, Executive order, rule, regulation, reorganization 

14 plan, 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 

21 the Federal Acquisition Service; and 

22 (4) to the Commissioner of the GSA Federal 

23 Technology Service is deemed to refer to the Com24 missioner 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 re7 maining in the General Supply Fund and the Information 

8 Technology Fund as in existence immediately before this 

9 section takes effect shall be transferred to the Acquisition 

10 Services Fund and shall be merged with and be available 

11 for the purposes of the Acquisition Services Fund under 

12 section 321 of title 40, United States Code (as amended 

13 by this Act). 

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

15 commitments, and obligations of the General Supply Fund 

16 and the Information Technology Fund as in existence im17 mediately before this section takes effect shall be assumed 

18 by the Acquisition Services Fund. 

19 (d) EXISTENCE AND COMPOSITION OF ACQUISITION

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

21 of title 40, United States Code, are amended to read as 

22 follows: 

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

24 a special fund in the Treasury. 

25 ‘‘(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 

5 credited with all reimbursements, advances, and re6 funds or recoveries relating to personal property or 

7 services procured through the Fund, including— 

8 ‘‘(A) the net proceeds of disposal of sur9 plus 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 

17 requirements of the Fund for each fiscal year and 

18 shall develop a plan concerning such requirements in 

19 consultation with the Chief Financial Officer of the 

20 General Services Administration. Any change to the 

21 cost and capital requirements of the Fund for a fis22 cal year shall be approved by the Administrator. The 

23 Administrator shall establish rates to be charged 

24 agencies provided, or to be provided, supply of perVerDate Aug 31 2005 05:03 May 26, 2006 Jkt 049196 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2066.RS H2066

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1 sonal property and non-personal services through the 

2 Fund, in accordance 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 

6 of 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 

11 the 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.—Sec18 tion 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 

10 of motor vehicles, and other anticipated operating needs 

11 reflected 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 

24 striking ‘‘General Supply Fund’’ both places it ap25 pears 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 ‘‘GEN3 ERAL SUPPLY FUND’’ and inserting 

4 ‘‘ACQUISITION SERVICES FUND’’; 

5 and 

6 (B) in the text, by striking ‘‘General Sup7 ply Fund’’ and inserting ‘‘Acquisition Services 

8 Fund’’. 

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

10 (A) in subsection (a)— 

11 (i) in the heading, by striking ‘‘GEN12 ERAL SUPPLY FUND’’ and inserting ‘‘AC13 QUISITION SERVICES FUND’’; and 

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

15 Supply Fund’’ and inserting ‘‘Acquisition 

16 Services Fund’’; and 

17 (B) in subsection (b)(2)— 

18 (i) by striking ‘‘321(f)(1)’’ and insert19 ing ‘‘321(f)’’; and 

20 (ii) by striking ‘‘General Supply 

21 Fund’’ and inserting ‘‘Acquisition Services 

22 Fund’’. 


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1 SEC. 4. PROVISIONS RELATING TO ACQUISITION PER2 SONNEL. 

3 Section 37 of the Office of Federal Procurement Pol4 icy Act (41 U.S.C. 433) is amended by adding at the end 

5 the following new subsections: 

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

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

8 of each executive agency, after consultation with the 

9 Administrator and the Director of the Office of Per10 sonnel Management, shall establish policies and pro11 cedures under which the agency head may reemploy 

12 in an acquisition-related position (as described in 

13 subsection (g)(1)(A)) an individual receiving an an14 nuity from the Civil Service Retirement and Dis15 ability Fund, on the basis of such individual’s serv16 ice, without discontinuing such annuity. The head of 

17 each executive agency shall keep the Administrator 

18 informed of the agency’s use of this authority. 

19 ‘‘(2) SERVICE NOT SUBJECT TO CSRS OR

20 FERS.—An individual so reemployed shall not be 

21 considered an employee for the purposes of chapter 

22 83 or 84 of title 5, United States Code. 

23 ‘‘(3) CRITERIA FOR EXERCISE OF AUTHOR24 ITY.—Polices and procedures established pursuant 

25 to this subsection shall authorize the head of the exVerDate Aug 31 2005 05:03 May 26, 2006 Jkt 049196 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2066.RS H2066

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1 ecutive agency, on a case-by-case basis, to continue 

2 an annuity if— 

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

5 from the Civil Service Retirement and Dis6 ability Fund on the basis of such individual’s 

7 service, or 

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

9 services of an employee, 

10 ‘‘(B) the exceptional difficulty in recruiting 

11 or retaining a qualified employee, or 

12 ‘‘(C) a temporary emergency hiring need, 

13 makes the reemployment of an individual essential. 

14 ‘‘(4) REPORTING REQUIREMENT.—The Admin15 istrator shall submit annually to the Committee on 

16 Government Reform of the House of Representatives 

17 and the Committee on Homeland Security and Gov18 ernmental Affairs of the Senate a report on the use 

19 of the authority under this subsection, including the 

20 number of employees reemployed under authority of 

21 this subsection. 

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

23 this subsection shall expire on December 31, 2011. 

24 December 31, 2011.’’. 

25 ‘‘(j) RETENTION BONUSES.— 


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

2 agency, after consultation with the Administrator, 

3 shall establish policies and procedures under which 

4 the agency head may pay retention bonuses to em5 ployees holding acquisition-related positions (as de6 scribed in subsection (g)(1)(A)) within such agency, 

7 except that the authority to pay a bonus under this 

8 subsection shall be available only if— 

9 ‘‘(A) the unusually high or unique quali10 fications of an employee or a special need of the 

11 agency for the services of an employee makes 

12 the retention of such employee essential; and 

13 ‘‘(B) the agency determines that, in the 

14 absence of such a bonus, it is likely that the 

15 employee would leave— 

16 ‘‘(i) the Federal service; or 

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

18 Federal service under conditions described 

19 in regulations of the Office. 

20 ‘‘(2) SERVICE AGREEMENTS.—(A) Payment of 

21 a bonus under this subsection shall be contingent 

22 upon the employee entering into a written agreement 

23 with the agency to complete a period of service with 

24 the agency in return for the bonus. 

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


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1 ‘‘(I) the length of the period of service re2 quired; 

3 ‘‘(II) the bonus amount; 

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

5 be paid (as described in paragraph (3)(B)); and 

6 ‘‘(IV) any other terms and conditions of 

7 the bonus, including the terms and conditions 

8 governing the termination of an agreement. 

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

10 this subsection— 

11 ‘‘(A) may not exceed 50 percent of the 

12 basic pay of the employee; 

13 ‘‘(B) may be paid to an employee— 

14 ‘‘(i) in installments after completion 

15 of specified periods of service; 

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

17 of the period of service required by the 

18 agreement; or 

19 ‘‘(iii) in any other manner mutually 

20 agreed to by the agency and the employee; 

21 ‘‘(C) is not part of the basic pay of the em22 ployee; and 

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

24 holds a position— 


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

2 President, by and with the advice and con3 sent of the Senate; 

4 ‘‘(ii) in the Senior Executive Service 

5 as a noncareer appointee (as such term is 

6 defined under section 3132(a) of title 5, 

7 United States Code); or 

8 ‘‘(iii) which has been excepted from 

9 the competitive service by reason of its 

10 confidential, policy-determining, policy11 making, or policy-advocating character.’’. 

12 SEC. 5. EFFECTIVE DATE. 

13 This Act and the amendments made by this Act shall 

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

15 Act. 


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Calendar No. 449 

109TH CONGRESS 

2D SESSION H. R. 2066 

[Report No. 109

–257] 

AN ACT 

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 25, 2006 

Reported with amendments 


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