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 Tech-
nology 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 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, 
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 non-career employee as Commissioner of the Fed-
eral Acquisition Service, who shall be the head of the Fed-
eral 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 administering the Acquisition Services Fund 
under section 321 of this title and carrying out functions 
related to the uses for which such Fund is authorized 
under such section, including any functions that were car-
ried out by the entities known as the Federal Supply Serv-
ice and the Federal Technology Service and such other 
related functions as the Administrator considers appro-
priate. 
‘‘(c) REGIONAL EXECUTIVES.—The Administrator 
may appoint up to five Regional Executives in the Federal 
Acquisition Service, to carry out such functions within the 
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 the item relating to the Commissioner of the Fed-
eral Supply Service of the General Services Administration 
and inserting the following: 
‘‘Commissioner of the Federal Acquisition Serv-
ice, 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.
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.—
‘‘(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; 
‘‘(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-
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
technology (as defined in section 11101(6) 
of this title); and’’. 
(g) TRANSFER OF UNCOMMITTED BALANCES.—Sub-
section (f) of section 321 of such title is amended to read 
as follows: 
‘‘(f) TRANSFER OF UNCOMMITTED BALANCES.—Fol-
lowing the close of each fiscal year, after making provision 
for a sufficient level of inventory of personal property to 
meet the needs of Federal agencies, the replacement cost 
of motor vehicles, and other anticipated operating needs 
reflected in the cost and capital plan developed under sub-
section (b), the uncommitted balance of any funds remain-
ing in the Fund shall be transferred to the general fund 
of the Treasury as miscellaneous receipts.’’. 
(h) CONFORMING AND CLERICAL AMENDMENTS.— 
(1) Section 322 of such title is repealed. 
(2) The heading for section 321 of such title is 
amended to read as follows: 
‘‘§ 321. Acquisition Services Fund’’. 
(3) The table of sections for chapter 3 of such 
title is amended by striking the items relating to sec-
tions 321 and 322 and inserting the following: 
‘‘321. Acquisition Services Fund.’’. 
(4) Section 573 of such title is amended by 
striking ‘‘General Supply Fund’’ both places it ap-
pears and inserting ‘‘Acquisition Services Fund’’.
(5) Section 604(b) of such title is amended— 
(A) in the heading, by striking ‘‘GENERAL 
SUPPLY FUND’’ and inserting ‘‘ACQUISITION 
SERVICES FUND’’; and 
(B) in the text, by striking ‘‘General Sup-
ply Fund’’ and inserting ‘‘Acquisition Services 
Fund’’. 
(6) Section 605 of such title is amended— 
(A) in subsection (a)— 
(i) in the heading, by striking ‘‘GEN-
ERAL SUPPLY FUND’’ and inserting ‘‘AC-
QUISITION SERVICES FUND’’; and 
(ii) in the text, by striking ‘‘General 
Supply Fund’’ and inserting ‘‘Acquisition 
Services Fund’’; and 
(B) in subsection (b)(2)— 
(i) by striking ‘‘321(f)(1)’’ and insert-
ing ‘‘321(f)’’; and 
(ii) by striking ‘‘General Supply 
Fund’’ and inserting ‘‘Acquisition Services 
Fund’’.
SEC. 4. PROVISIONS RELATING TO ACQUISITION PER-
SONNEL. 
Section 37 of the Office of Federal Procurement Pol-
icy Act (41 U.S.C. 433) is amended by adding at the end 
the following new subsections: 
‘‘(i) PROVISIONS RELATING TO REEMPLOYMENT.— 
If an individual receiving an annuity from the Civil Service 
Retirement and Disability Fund on the basis of such indi-
vidual’s service becomes reemployed in an acquisition-re-
lated position (as described in subsection (g)(1)(A)), such 
annuity shall not be discontinued thereby. An individual 
so reemployed shall not be considered an employee for the 
purposes of chapter 83 or 84 of title 5, United States 
Code. 
‘‘(j) RETENTION BONUSES.— 
‘‘(1) The head of each executive agency, after 
consultation with the Administrator, shall establish 
policies and procedures under which the agency head 
may pay retention bonuses to employees holding ac-
quisition-related positions (as described in subsection 
(g)(1)(A)) within such agency, except that the au-
thority to pay a bonus under this subsection shall be 
available only if— 
‘‘(A) the unusually high or unique quali-
fications of an employee or a special need of the
agency for the services of an employee makes 
the retention of such employee essential; and 
‘‘(B) the agency determines that, in the 
absence of such a bonus, it is likely that the 
employee would leave— 
‘‘(i) the Federal service; or 
‘‘(ii) for a different position in the 
Federal service under conditions described 
in regulations of the Office. 
‘‘(2)(A) Payment of a bonus under this sub-
section shall be contingent upon the employee enter-
ing into a written agreement with the agency to 
complete a period of service with the agency in re-
turn for the bonus. 
‘‘(B)(i) The agreement shall include— 
‘‘(I) the length of the period of service re-
quired; 
‘‘(II) the bonus amount; 
‘‘(III) the manner in which the bonus will 
be paid (as described in paragraph (3)(B)); and 
‘‘(IV) any other terms and conditions of 
the bonus, including the terms and conditions 
governing the termination of an agreement. 
‘‘(3) A bonus under this subsection—
‘‘(A) may not exceed 50 percent of the 
basic pay of the employee; 
‘‘(B) may be paid to an employee— 
‘‘(i) in installments after completion 
of specified periods of service; 
‘‘(ii) in a single lump sum at the end 
of the period of service required by the 
agreement; or 
‘‘(iii) in any other manner mutually 
agreed to by the agency and the employee; 
‘‘(C) is not part of the basic pay of the em-
ployee; and 
‘‘(D) may not be paid to an employee who 
holds a position— 
‘‘(i) appointment to which is by the 
President, by and with the advice and con-
sent of the Senate; 
‘‘(ii) in the Senior Executive Service 
as a noncareer appointee (as such term is 
defined under section 3132(a) of title 5, 
United States Code); or 
‘‘(iii) which has been excepted from 
the competitive service by reason of its 
confidential, 
policy-determining, 
policy- 
making, or policy-advocating character.’’.
SEC. 5. EFFECTIVE DATE. 
This Act and the amendments made by this Act shall 
take effect 60 days after the date of the enactment of this 
Act. 
Æ