General Services Administration Modernization Act
Latest Action
Became Public Law No: 109-313.
Official Summary
General Services Administration Modernization Act - (Sec. 2) Establishes a Federal Acquisition Service in the General Services Administration (GSA) to be headed by a Commissioner who shall be responsible for carrying out functions related to the uses of the Acquisition Services Fund (created by this Act), including any functions that were carried out by the Federal Supply Service and the Federal Technology Service. Authorizes the Administrator to appoint Regional Executives in the Federal Acquisition Service to carry out such functions within that Service as the Administrator considers appropriate. (Sec. 3) Abolishes the General Supply Fund and the Information Technology Fund in the Treasury. Transfers remaining capital assets and balances in such Funds to the Acquisition Services Fund to be merged with, and be available for, the purposes of such Fund. Requires the Acquisition Services Fund to be credited with all reimbursements relating to personal property or services procured through the Fund, including: (1) the net proceeds of disposal of surplus personal property; and (2) receipts from carriers and others for loss of, or damage to, personal property; and (3) receipts from agencies charged fees pursuant to rates established by the Administrator. Requires the Administrator to determine cost and capital requirements of the Fund and develop a plan concerning such requirements in consultation with the Chief Financial Officer of GSA. Requires the Administrator, according to such plan, to establish rates to be charged agencies provided personal property and non-personal services through the Fund. Allows fees collected for recovering the costs of testing materials tendered for sale or lease to GSA or any procurement authority acting under GSA to be deposited in the Fund. Provides for: (1) the use of the Fund for personal services related to the provision of information technology; and (2) the Administrator to fix prices at levels sufficient to recover the cost of personal services employed directly in providing information technology. Sets requirements for the transfer of uncommitted balances in the Fund. (Sec. 4) Amends the Office of Federal Procurement Policy Act to direct the head of each executive agency to establish policies and procedures under which the agency head may reemploy in an acquisition-related position an individual receiving an annuity from the Civil Service Retirement and Disability Fund without discontinuing such annuity, if unique needs exist. Prohibits considering an individual so reemployed to be a federal employee for the purposes of the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS). Requires the Administrator to submit annual reports to specified congressional committees on the use of such authority, including the number of employees reemployed under such authority. Terminates such authority on December 31, 2011.
GovScope Watchdog™
AI Government Intelligence™The General Services Administration Modernization Act establishes a Federal Acquisition Service within the General Services Administration (GSA), consolidating functions previously performed by the Federal Supply Service and the Federal Technology Service under a new Commissioner. It abolishes the General Supply Fund and the Information Technology Fund, merging their assets into a newly created Acquisition Services Fund, which will finance procurement activities through fees and reimbursements. The Act also authorizes the appointment of Regional Executives to manage acquisition functions regionally. Additionally, it amends the Office of Federal Procurement Policy Act to allow certain retired federal employees to be reemployed in acquisition-related positions without losing their annuities, with reporting requirements and a termination date for this authority.
This law reorganizes GSA acquisition services under a new structure and funding mechanism while allowing limited reemployment of retired acquisition personnel under specific conditions.
- Creates a Federal Acquisition Service headed by a Commissioner to oversee acquisition functions formerly managed by two separate GSA services.
- Establishes the Acquisition Services Fund by merging the General Supply Fund and the Information Technology Fund, funding procurement activities through fees, reimbursements, and proceeds from surplus property.
- Allows reemployment of certain retirees in acquisition roles without annuity interruption, subject to annual reporting and a sunset provision ending this authority in 2011.
['General Services Administration (GSA) through streamlined acquisition management', 'Federal agencies procuring goods and services via GSA', 'Retired federal acquisition personnel eligible for reemployment', 'Regional Executives appointed to manage acquisition functions regionally']
['Implementation complexity in merging funds and transferring assets', 'Ensuring accurate cost recovery through fee setting and rate establishment', 'Oversight of reemployment authority to prevent potential misuse or conflicts', 'Managing the sunset of reemployment authority and transition planning']
The Act was passed by the 109th Congress and signed into law on October 6, 2006, reflecting efforts to modernize and consolidate federal acquisition services within the GSA. It aligns with broader government operations reforms aimed at improving efficiency and accountability in federal procurement.
Hidden impact flags detected: 2
GovScope reviewed 2 policy-risk categories. Hover for a quick definition. Click detected flags for bill-specific details.
['Potential for improved efficiency and coordination in federal procurement through consolidation of acquisition services and funds.', 'Possible changes in procurement pricing and cost recovery due to new fee structures and rate-setting authority.', 'Enhanced regional management of acquisition functions through appointment of Regional Executives may lead to localized responsiveness.', 'Temporary increase in experienced acquisition workforce availability due to reemployment of retirees, followed by eventual reduction after sunset.']
Oversight should focus on the financial management of the newly created Acquisition Services Fund, ensuring transparency in fee setting and cost recovery. Monitoring the use and impact of the reemployment authority is important to prevent conflicts of interest and ensure compliance with retirement system rules. Annual reporting requirements provide a mechanism for congressional oversight. The sunset provision for reemployment authority requires attention to transition planning and evaluation of the policy's effectiveness.
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