General Services Administration Modernization Act

Mr. Speaker, H.R. 2066, the General Services Administration Modernization Act, was introduced by myself and Armed Services Chairman Hunter last month and approved by the Committee on Government Reform by unanimous consent on May 5, 2005.

The legislation would authorize a much needed reorganization and streamlining of the General Services Administration, the federal agency charged with leveraging the federal government's buying power to purchase commercial goods and services for the federal government at the best value possible in order to maximize the use of taxpayer funds.

This legislation has been under consideration in the Government Reform Committee for a number of years and has been the subject of multiple legislative and oversight hearings. It was also included in the President's budget proposal for fiscal year 2006.

Mr. Speaker, each year GSA buys products and services from the private sector worth well over $30 billion and resells them to federal agencies through two different Services. The Federal Technology Service uses the Information Technology Fund to purchase information technology, and the Federal Supply Service uses the General Supply Fund to purchase commercial goods and services.

This bifurcated system may have made sense when the IT fund was created two decades ago, when information technology was in its infancy. Today, however, laptop computers, cell phones, and e-mail are as ubiquitous as desks and phones. The business case for a separate system to handle IT goods and services no longer exists. In fact, the bifurcated system has become a barrier to coordinated acquisition of management services and the technology needed to support a total solution.

Since 2002, Administrator Perry has instituted and is currently carrying out an internal reorganization aimed at establishing GSA as a modem enterprise more reflective of the current market. H.R. 2066 would assist those efforts. Critical to Administrator Perry's efforts to modernize the General Services Administration is ensuring that the structural reforms are memorialized in GSA's organic legislation so that the remedies will endure.

To accomplish this, H.R. 2066 would consolidate the Federal Supply Service and the Federal Technology Service into a single entity operating out of a unified fund, providing federal agencies with a one- stop shop to acquire all of their commercial goods and services. This change in statute would provide GSA with the structure it needs to bring it in line with the current commercial market.

Specifically, the legislation would amend the Federal Property and Administrative Services Act of 1949 to create a new ``Federal Acquisition Service,'' to be headed by a high-level Commissioner appointed by the GSA Administrator. H.R. 2066 would also provide that the new Federal Acquisition Service be supported by a newly created ``Acquisition Services Fund'' consisting of the assets of the old Information Technology and Supply Funds.

In addition, H.R. 2066 would authorize the GSA Administrator to appoint up to five ``Regional Executives'' for the Federal Acquisition Service to facilitate closer oversight and more management control over acquisition-related activities.

Finally, Mr./Madam Speaker, the General Services Administration Modernization Act would authorize retention bonuses and reemployment relief aimed at maintaining the strength and experience of the federal government's civilian acquisition workforce.

The environment in which the federal government purchases goods and services has changed dramatically in recent decades. Relegating the federal agency charged with purchasing goods and services for the rest of the federal government to an organizational structure that was constructed to function in a different era is a waste of taxpayer dollars. H.R. 2066 would remove the old structures that inhibit efficient federal purchases of solutions that are a mix of products, services and technology. The federal marketplace should reflect the best of the commercial marketplace: both in the products and services we buy and the way we buy them.

Mr. President, I ask unanimous consent that the Committee on Agriculture, Nutrition and Forestry be authorized to conduct a full committee hearing during the session of the Senate on Tuesday, May 2, 2006, at 9:30 a.m. in SH-216, Hart Senate Office Building. The purpose of this hearing will be to review the implementation of the Peanut Provisions of the Farm Security and Rural Investment Act of 2002.

Mr. President, I ask unanimous consent that the Committee on Homeland Security and Governmental Affairs be authorized to meet on Tuesday, May 2, 2006, at 10 a.m. for a business meeting to consider pending committee business.

Agenda

Committee Reports: Report of the Committee on Homeland Security and Governmental Affairs titled, ``Hurricane Katrina: A Nation Still Unprepared.''

Legislation: S. 2459, GreenLane Maritime Cargo Security Act; H.R. 2066, General Services Administration Modernization Act.

Nominations: Uttam Dhillon to be Director of the Office of Counternarcotics Enforcement, U.S. Department of Homeland Security; Mark Acton to be Commissioner, Postal Rate Commission.

Mr. President, I ask unanimous consent that the Committee on the Judiciary be authorized to meet to conduct a hearing on ``FBI Oversight'' on Tuesday, May 2, 2006, at 9:30 a.m. in Room 226 of the Dirksen Senate Office Building.

Witness List:

Panel I: The Honorable Robert S. Mueller, III, Director, Federal Bureau of Investigation, U.S. Department of Justice, Washington, DC.

Panel II: The Honorable Glenn A. Fine, Inspector General, U.S. Department of Justice, Washington, DC; Linda M. Calbom, Director, Financial Management and Assurance, Government Accountability Office, Washington, DC; John Gannon, Ph.D, Vice President for Global Analysis, BAE Systems Information Technology, former Staff Director of the House Homeland Security Committee, McLean, VA.

Mr. President, I ask unanimous consent that the Committee on the Judiciary be authorized to meet to conduct a hearing on ``Judicial Nominations'' on Tuesday, May 2, 2006, at 4 p.m. in Room 226 of the Dirksen Senate Office Building.

Mr. President, I ask unanimous consent that the Committee on the Judiciary be authorized to meet to conduct a hearing on ``Judiciary Nominations'' on Tuesday, May 2, 2006, at 4 p.m. in Room 226 of the Dirksen Senate Office Building.

Mr. President, I ask unanimous consent that the Subcommittee on Emerging Threats and Capabilities be authorized to meet during the session of the Senate on Tuesday, May 2, 2006 at 5:30 p.m. in closed session to mark up the emerging threats and capabilities programs and provisions contained in the national defense authorization act for fiscal year 2007.

Mr. President, I ask unanimous consent that the Subcommittee on Readiness and Management Support be authorized to meet during the session of the Senate on Tuesday, May 2, 2006 at 3:30 p.m. in closed session to mark up the readiness and management support programs and provisions contained in the national defense authorization act for fiscal year 2007.

Mr. President, I ask unanimous consent that the Subcommittee on personnel be authorized to meet during the session of the Senate on Tuesday, May 2, 2006 at 2:30 p.m. in closed session to mark up the personnel programs and provisions contained in the national defense authorization act for fiscal year 2007.

Mr. President, I ask unanimous consent that the Subcommittee on Science and Space be authorized to meet on Tuesday, May 2, 2006, at 2:30 p.m., on NSF.

Mr. Speaker, I move to suspend the rules and concur in the Senate amendments to bill (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.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on the bill under consideration.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today in support of H.R. 2066, the General Services Administration Modernization Act, which was introduced by Armed Services Committee Chairman Hunter and myself last year. This legislation passed the House last May and was recently passed by the Senate with a handful of modifications which we are here today to accept in order to send the legislation to the President's desk for signature.

This important legislation would authorize a much-needed reorganization and streamlining of the General Services Administration, the Federal agency that is charged with leveraging the Federal Government's buying power to purchase commercial goods and services in a manner that maximizes taxpayer dollars.

Each year, GSA buys products and services from the private sector worth well over $30 billion and resells them to Federal agencies through two different services. The Federal Technology Service, or FTS, uses the Information Technology Fund purchase information technology; and the Federal Supply Service, the FSS, uses the General Supply Fund to purchase commercial goods and services.

This bifurcated system may have made sense when the IT fund was created two decades ago when information technology was in its infancy. Today, however, laptop computers, cell phones and e-mail are as ubiquitous as desks and phones. The business case, for separate systems to handle IT goods and services, no longer exists. In fact, the bifurcated system has become a barrier to coordinated acquisition of management services and the technology needed to support a total solution.

H.R. 2066 would amend GSA's organic stature by enacting structural reform to GSA's current organization in order to consolidate the Federal Supply Service and the Federal Technology Service into a single entity operating out of a unified fund, providing Federal agencies with a one-stop shop to acquire all of their commercial goods and services. This change in statute would provide GSA with the structure it needs to bring it in line with the current commercial marketplace.

The environment in which the Federal Government purchases goods and services has changed dramatically in recent years. H.R. 2066 would remove the old structures that inhibit efficient Federal purchases and solutions that are a mix of products, services and technology. The Federal marketplace should reflect the best of the commercial marketplace, both in the products and service we buy and the way that we buy them.

I would urge my colleagues to accept these amendments and support

Let me thank my colleague from Maryland for his assistance on this and so many other things that the committee works on. I would urge all members to support the passage of H.R. 2066.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I am pleased to join with my colleague, the gentlewoman from Florida (Ms. Ros-Lehtinen), in consideration of H.R. 2066, the bill before us today.

H.R. 2066, the General Services Modernization Act, as reported by the Committee on Government Reform, represents the first major reorganization within the GSA in nearly 20 years. This bill would combine without substantive change the revolving funds used for the operations of the Federal Supply Service and the Federal Technology Service, both currently separate organizations within GSA.

The bill would also authorize a new unit, the Federal Acquisition Service, headed by a commissioner, to take over the operations of the combined services.

The Federal Supply Service provides an economic and efficient system for the procurement and supply of goods and services to Federal agencies. One way it does this is through the schedules program which manages long-term government-wide contracts for commercial goods and services. This provides customer agencies with benefits of volume discount pricing, lower administrative costs, and reduced inventories.

The Federal Technology Service offers agencies a wide range of information technology and telecommunication products and services on a number of contract vehicles. Its focus is oriented toward providing more full-service solutions for IT, telecommunications and professional services.

While I would have preferred a more thorough analysis of the benefits of the consolidation intended by this bill, the proposal would seem to offer increased organizational efficiency and improved coordination of the functions the services currently provide. I look forward to reviewing the detailed reorganization plans that the GSA is preparing.

The bill also contains provisions which would give civilian agencies additional tools to maintain their acquisition work forces. It would allow agencies to offer retention bonuses and to reemploy retirees in certain special circumstances. I would also like to thank the chairman for working with us to provide appropriate safeguards on the use of this authority and for accepting a Democratic amendment regarding the appointment of the new commissioner of the Federal Acquisition Service.

While not directly relevant to this legislation, I would like to take this opportunity to urge the GSA to consult more closely with Federal employee unions on its plans for reorganizing. A number of representatives of Federal employees have contacted the committee with concerns about the reorganization. Primary among those concerns is the fact that no one seemed to be talking to them about the plans for merging the two services. This approach can only breed distrust and fear, and I urge the administrator to improve communication with the affected employees.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I rise in support of H.R. 2066.

The bill before us today, H.R. 2066, the ``General Services, Modernization Act'' as reported by the Government Reform Committee represents the first major reorganization within GSA in nearly 20 years. The bill would combine, without substantive change, the revolving funds used for the operations of the Federal Supply Service and the Federal Technology Service, both currently separate organizations within GSA. The bill would also authorize a new unit, the Federal Acquisition Service, headed by a Commissioner, to take over the operations of the combined services.

The Federal Supply Service provides an economic and efficient system for the procurement and supply of goods and service to Federal agencies. One way it does this is through the schedules program, which manages long-term, governmentwide contracts for commercial goods and services. This provides customer agencies with benefits of volume discount pricing, lower administrative costs, and reduced inventories.

The Federal Technology Service offers agencies a range of information technology and telecommunications products and services on a number of contract vehicles. Its focus is more oriented toward providing ``full service'' solutions for IT, telecommunication, and professional services.

While I would have preferred a more thorough analysis of the benefits of the consolidation intended by this bill, the proposal would seem to offer increased organizational efficiency and improved coordination of the functions the Services currently provide.

I look forward to reviewing the detailed reorganization plans GSA is preparing.

The bill also contains provisions which would give civilian agencies additional tools to maintain their acquisition workforces. It would allow agencies to offer retention bonuses and to re-employ retirees in certain special circumstances. I would like to thank the Chairman for working with us to provide appropriate safeguards on the use of this authority, and for accepting a Democratic amendment regarding the appointment of the new Commissioner of the Federal Acquisition Service.

While not directly relevant to this legislation, I would like to take this opportunity to urge GSA to consult more closely with Federal employee unions on its plans for reorganizing. A number of representatives of Federal employees have contacted the Committee with concerns about the reorganization. Primary among those concerns is the fact that no one seems to be talking to them about the plans for merging the two services. This approach can only breed distrust and fear, and I urge the Administrator to improve communication with the affected Federal employees.

Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.