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 Tech-
nology 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 Fed-
eral Acquisition Service, to replace the General Supply 
Fund and the Information Technology Fund with an 
Acquisition Services Fund, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘General Services Ad-
ministration Modernization Act’’. 
SEC. 2. FEDERAL ACQUISITION SERVICE. 
(a) ESTABLISHMENT.— 
(1) IN
GENERAL.—Section 303 of title 40, 
United States Code, is amended to read as follows: 
‘‘§ 303. Federal Acquisition Service 
‘‘(a) ESTABLISHMENT.—There is established in the 
General Services Administration a Federal Acquisition 
Service. The Administrator of General Services shall ap-
point a Commissioner of the Federal Acquisition Service, 
who shall be the head of the Federal Acquisition Service. 
‘‘(b) FUNCTIONS.—Subject to the direction and con-
trol of the Administrator of General Services, the Commis-
sioner of the Federal Acquisition Service shall be respon-
sible 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 ap-
propriate. 
‘‘(c) REGIONAL EXECUTIVES.—The Administrator 
may appoint up to five Regional Executives in the Federal 
Acquisition Service, to carry out such functions within the 
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Federal Acquisition Service as the Administrator con-
siders appropriate.’’. 
(2) CLERICAL AMENDMENT.—The item relating 
to section 303 at the beginning of chapter 3 of such 
title is amended to read as follows: 
‘‘303.
Federal Acquisition Service.’’. 
(b) EXECUTIVE SCHEDULE COMPENSATION.—Sec-
tion 5316 of title 5, United States Code, is amended by 
striking ‘‘Commissioner, Federal Supply Service, General 
Services Administration.’’ and inserting the following: 
‘‘Commissioner, Federal Acquisition Service, 
General Services Administration.’’. 
(c) REFERENCES.—Any reference in any other Fed-
eral law, Executive order, rule, regulation, reorganization 
plan, or delegation of authority, or in any document— 
(1) to the Federal Supply Service is deemed to 
refer to the Federal Acquisition Service; 
(2) to the GSA Federal Technology Service is 
deemed to refer to the Federal Acquisition Service; 
(3) to the Commissioner of the Federal Supply 
Service is deemed to refer to the Commissioner of 
the Federal Acquisition Service; and 
(4) to the Commissioner of the GSA Federal 
Technology Service is deemed to refer to the Com-
missioner of the Federal Acquisition Service. 
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SEC. 3. ACQUISITION SERVICES FUND. 
(a) ABOLISHMENT OF GENERAL SUPPLY FUND AND 
INFORMATION TECHNOLOGY FUND.—The General Supply 
Fund and the Information Technology Fund in the Treas-
ury are hereby abolished. 
(b) TRANSFERS.—Capital assets and balances re-
maining in the General Supply Fund and the Information 
Technology Fund as in existence immediately before this 
section takes effect shall be transferred to the Acquisition 
Services Fund and shall be merged with and be available 
for the purposes of the Acquisition Services Fund under 
section 321 of title 40, United States Code (as amended 
by this Act). 
(c) ASSUMPTION OF OBLIGATIONS.—Any liabilities, 
commitments, and obligations of the General Supply Fund 
and the Information Technology Fund as in existence im-
mediately before this section takes effect shall be assumed 
by the Acquisition Services Fund. 
(d) EXISTENCE AND COMPOSITION OF ACQUISITION 
SERVICES FUND.—Subsections (a) and (b) of section 321 
of title 40, United States Code, are amended to read as 
follows: 
‘‘(a) EXISTENCE.—The Acquisition Services Fund is 
a special fund in the Treasury. 
‘‘(b) COMPOSITION.— 
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‘‘(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 re-
funds or recoveries relating to personal property or 
services procured through the Fund, including— 
‘‘(A) the net proceeds of disposal of sur-
plus 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 Adminis-
trator. 
‘‘(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 fis-
cal year shall be approved by the Administrator. The 
Administrator shall establish rates to be charged 
agencies provided, or to be provided, supply of per-
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sonal 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.’’. 
(e) USES OF FUND.—Section 321(c) of such title is 
amended in paragraph (1)(A)— 
(1) by striking ‘‘and’’ at the end of clause (i); 
(2) by inserting ‘‘and’’ after the semicolon at 
the end of clause (ii); and 
(3) by inserting after clause (ii) the following 
new clause: 
‘‘(iii) personal services related to the 
provision of information technology (as de-
fined in section 11101(6) of this title);’’. 
(f) PAYMENT FOR PROPERTY AND SERVICES.—Sec-
tion 321(d)(2)(A) of such title is amended— 
(1) by striking ‘‘and’’ at the end of clause (iv); 
(2) by redesignating clause (v) as clause (vi); 
and 
(3) by inserting after clause (iv) the following 
new clause: 
‘‘(v) the cost of personal services em-
ployed directly in providing information 
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