I 

109TH CONGRESS 

1ST SESSION 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. 

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 

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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘General Services Ad5 ministration Modernization Act’’. 

6 SEC. 2. FEDERAL ACQUISITION SERVICE. 

7 (a) ESTABLISHMENT.— 
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1 (1) IN GENERAL.—Section 303 of title 40, 

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

3 ‘‘§ 303. Federal Acquisition Service 

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

5 General Services Administration a Federal Acquisition 

6 Service. The Administrator of General Services shall ap7 point a non-career employee as Commissioner of the Fed8 eral Acquisition Service, who shall be the head of the Fed9 eral Acquisition Service. 

10 ‘‘(b) FUNCTIONS.—Subject to the direction and con11 trol of the Administrator of General Services, the Commis12 sioner of the Federal Acquisition Service shall be respon13 sible for administering the Acquisition Services Fund 

14 under section 321 of this title and carrying out functions 

15 related to the uses for which such Fund is authorized 

16 under such section, including any functions that were car17 ried out by the entities known as the Federal Supply Serv18 ice and the Federal Technology Service and such other 

19 related functions as the Administrator considers appro20 priate. 

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

22 may appoint up to five Regional Executives in the Federal 

23 Acquisition Service, to carry out such functions within the 

24 Federal Acquisition Service as the Administrator con25 siders appropriate.’’. 
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1 (2) CLERICAL AMENDMENT.—The item relating 

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

3 title is amended to read as follows: 

‘‘303. Federal Acquisition Service.’’. 

4 (b) EXECUTIVE SCHEDULE COMPENSATION.—Sec5 tion 5316 of title 5, United States Code, is amended by 

6 striking the item relating to the Commissioner of the Fed7 eral Supply Service of the General Services Administration 

8 and inserting the following: 

9 ‘‘Commissioner of the Federal Acquisition Serv10 ice, General Services Administration.’’. 

11 (c) REFERENCES.—Any reference in any other Fed12 eral law, Executive order, rule, regulation, reorganization 

13 plan, or delegation of authority, or in any document— 

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

15 refer to the Federal Acquisition Service; 

16 (2) to the GSA Federal Technology Service is 

17 deemed to refer to the Federal Acquisition Service; 

18 (3) to the Commissioner of the Federal Supply 

19 Service is deemed to refer to the Commissioner of 

20 the Federal Acquisition Service; and 

21 (4) to the Commissioner of the GSA Federal 

22 Technology Service is deemed to refer to the Com23 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; 

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 per-
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1 sonal property and non-personal services through the 

2 Fund, in accordance with the plan. 

3 ‘‘(4) DEPOSIT OFFEES.—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 ‘‘GENERAL

3 SUPPLY FUND’’ and inserting ‘‘ACQUISITION

4 SERVICES FUND’’; and 

5 (B) in the text, by striking ‘‘General Sup6 ply 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 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 If an individual receiving an annuity from the Civil Service 

8 Retirement and Disability Fund on the basis of such indi9 vidual’s service becomes reemployed in an acquisition-re10 lated position (as described in subsection (g)(1)(A)), such 

11 annuity shall not be discontinued thereby. An individual 

12 so reemployed shall not be considered an employee for the 

13 purposes of chapter 83 or 84 of title 5, United States 

14 Code. 

15 ‘‘(j) RETENTION BONUSES.— 

16 ‘‘(1) The head of each executive agency, after 

17 consultation with the Administrator, shall establish 

18 policies and procedures under which the agency head 

19 may pay retention bonuses to employees holding ac20 quisition-related positions (as described in subsection 

21 (g)(1)(A)) within such agency, except that the au22 thority to pay a bonus under this subsection shall be 

23 available only if— 

24 ‘‘(A) the unusually high or unique quali25 fications of an employee or a special need of the 
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1 agency for the services of an employee makes 

2 the retention of such employee essential; and 

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

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

5 employee would leave— 

6 ‘‘(i) the Federal service; or 

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

8 Federal service under conditions described 

9 in regulations of the Office. 

10 ‘‘(2)(A) Payment of a bonus under this sub11 section shall be contingent upon the employee enter12 ing into a written agreement with the agency to 

13 complete a period of service with the agency in re14 turn for the bonus. 

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

16 ‘‘(I) the length of the period of service re17 quired; 

18 ‘‘(II) the bonus amount; 

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

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

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

22 the bonus, including the terms and conditions 

23 governing the termination of an agreement. 

24 ‘‘(3) A bonus under this subsection— 
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1 ‘‘(A) may not exceed 50 percent of the 

2 basic pay of the employee; 

3 ‘‘(B) may be paid to an employee— 

4 ‘‘(i) in installments after completion 

5 of specified periods of service; 

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

7 of the period of service required by the 

8 agreement; or 

9 ‘‘(iii) in any other manner mutually 

10 agreed to by the agency and the employee; 

11 ‘‘(C) is not part of the basic pay of the em12 ployee; and 

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

14 holds a position— 

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

16 President, by and with the advice and con17 sent of the Senate; 

18 ‘‘(ii) in the Senior Executive Service 

19 as a noncareer appointee (as such term is 

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

21 United States Code); or 

22 ‘‘(iii) which has been excepted from 

23 the competitive service by reason of its 

24 confidential, policy-determining, policy25 making, or policy-advocating character.’’. 
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1 SEC. 5. EFFECTIVE DATE. 

2 This Act and the amendments made by this Act shall 

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

4 Act. 

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