House Approves GSA Modernization Act
First Major GSA Reform in More Than 20 Years Would Transform Federal Purchasing

September 26, 2006

WASHINGTON, D.C. Legislation introduced by Reps. Tom Davis, R-Va., and Duncan Hunter, R-Calif., to modernize the General Service Administration (GSA) has passed both houses of Congress and is headed to the president for his signature.

Congress today approved H.R. 2066, the "General Service Administration Modernization Act," which would bring GSA in line with the commercial market it must capture for its federal agency customers.

H.R. 2066 amends the Federal Property and Administrative Services Act to create a new Federal Acquisition Service, which combines the Federal Supply Service, which purchases goods and services for the federal government, and the Federal Technology Service, which supplies information technology. The FAS would be supported by the new Acquisition Services Fund, which would consist of the assets of the old Information Technology and Supply Funds.

Separate buying organizations operating out of two different funds has become a barrier to coordinated acquisition of management services and technology, Davis said.

"This legislation removes the old structures that inhibit efficient federal purchases," said Davis, chairman of the Government Reform Committee. "It will help GSA operate in a market that has evolved from stand-alone hardware or services to solutions that are a mix of products, services and technology. The previous system may have made sense two decades ago, but technologies such as laptop computers, cell phones and email are now as ubiquitous as desks and phones."

The legislation also would authorize the GSA administrator to appoint "Regional Executives" for the Federal Acquisition Service to facilitate closer oversight and authorize rehiring some recent retirees to address challenges facing the federal civilian acquisition workforce. Such workers would not have their annuity discontinued.