[Senate Report 115-343]
[From the U.S. Government Publishing Office]
Calendar No. 621
115th Congress } {
SENATE Report
2d Session } { 115-343
_______________________________________________________________________
FEDERAL PERSONAL PROPERTY MANAGEMENT ACT OF 2018
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
S. 3031
TO AMEND CHAPTER 5 OF TITLE 40, UNITED STATES CODE, TO IMPROVE THE
MANAGEMENT OF FEDERAL PERSONAL PROPERTY
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
October 4, 2018.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
89-010 WASHINGTON : 2018
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
RON JOHNSON, Wisconsin, Chairman
JOHN McCAIN, Arizona CLAIRE McCASKILL, Missouri
ROB PORTMAN, Ohio THOMAS R. CARPER, Delaware
RAND PAUL, Kentucky HEIDI HEITKAMP, North Dakota
JAMES LANKFORD, Oklahoma GARY C. PETERS, Michigan
MICHAEL B. ENZI, Wyoming MAGGIE HASSAN, New Hampshire
JOHN HOEVEN, North Dakota KAMALA D. HARRIS, California
STEVE DAINES, Montana DOUG JONES, Alabama
Christopher R. Hixon, Staff Director
Gabrielle D'Adamo Singer, Chief Counsel
Patrick J. Bailey, Chief Counsel for Governmental Affairs
Margaret E. Daum, Minority Staff Director
Charles A. Moskowitz, Minority Senior Legislative Counsel
Christopher J. Mulkins, Minority U.S. Government Accountability Office
Detailee
Laura W. Kilbride, Chief Clerk
Calendar No. 621
115th Congress } {
SENATE Report
2d Session } { 115-343
======================================================================
FEDERAL PERSONAL PROPERTY MANAGEMENT
ACT OF 2018
_______
October 4, 2018.--Ordered to be printed
_______
Mr. Johnson, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany S. 3031]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (S. 3031) to amend
chapter 5 of title 40, United States Code, to improve the
management of Federal personal property, having considered the
same, reports favorably thereon without amendment and
recommends that the bill do pass.
CONTENTS
Page
I. Purpose and Summary..............................................1
II. Background and Need for the Legislation..........................2
III. Legislative History..............................................2
IV. Section-by-Section Analysis......................................2
V. Evaluation of Regulatory Impact..................................3
VI. Congressional Budget Office Cost Estimate........................3
VII. Changes in Existing Law Made by the Bill, as Reported............4
I. Purpose and Summary
S. 3031, the Federal Personal Property Management Act of
2018, seeks to improve the management of Federal personal
property by requiring Federal agencies to conduct an annual
inventory and assessment of capitalized personal property,
identify excess capitalized property, and regularly inventory
accountable personal property.
II. Background and the Need for Legislation
In February 2018, the Government Accountability Office
(GAO) reported that most Federal agencies do not have policies
or processes in place for identifying personal property excess
to the agency's needs.\1\ Personal property refers to property
such as technology, furniture, and equipment.\2\ GAO found that
agencies typically only declare personal property excess when
there is a triggering event, such as office moves or space
reductions, rather than continuously identifying surplus items
that could be sold or used by another agency.\3\
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\1\Gov't Accountability Office, GAO-18-257, Federal Personal
Property: Opportunities Exist to Improve Identification of Unneeded
Property for Disposal (2018), available at https://www.gao.gov/
products/GAO-18-257.
\2\Id.
\3\Id.
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The report also found that the manner in which agencies
classify their property as ``accountable'' or ``capitalized''
varies significantly from agency to agency, making it difficult
to understand the value of the Federal Government's personal
property inventory.\4\ Accountable property is that which is
nonexpendable with a useful life of greater than two years,
whereas capitalized property refers to more expensive items
such as vehicles and machinery. These distinctions change the
way these items are inventoried by the agency. A more
consistent approach would lead to better management and
disposal of personal property.
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\4\Id.
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The Federal Personal Property Management Act of 2018
requires the General Services Administration (GSA) to develop
standards that Federal agencies must follow to inventory and
capitalize assets under their control and through that process
identify capitalized assets that are no longer necessary. This
methodology adheres more closely to private sector practice and
allows for a prioritization of more valuable assets that are
excess to the agency's needs.
III. Legislative History
Senator Gary Peters introduced S. 3031 on June 7, 2018,
with Senators Rand Paul, Doug Jones, and James Lankford. The
bill was referred to the Committee on Homeland Security and
Governmental Affairs.
The Committee considered S. 3031 at a June 13, 2018,
business meeting. The Committee ordered S. 3031 reported
favorably en bloc by voice vote. Senators present for the vote
were Johnson, Portman, Lankford, Enzi, McCaskill, Carper,
Peters, Hassan, Harris, and Jones.
IV. Section-by-Section Analysis of the Bill, as Reported
Section 1. Short title
This section establishes the short title of the bill as the
``Federal Personal Property Management Act of 2018.''
Section 2. Federal personal property management
This section requires Federal agencies, in accordance with
GSA guidance, to annually inventory capitalized personal
property and to regularly inventory accountable property. It
also requires GSA to set thresholds for acquisitions of
personal property that will be considered capitalized or
accountable.
V. Evaluation of Regulatory Impact
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill and determined
that the bill will have no regulatory impact within the meaning
of the rules. The Committee agrees with the Congressional
Budget Office's statement that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act and would impose no costs on
state, local, or tribal governments.
VI. Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 16, 2018.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 3031, the Federal
Personal Property Management Act of 2018.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Keith Hall,
Director.
Enclosure.
S. 3031--Federal Personal Property Management Act of 2018
S. 3031 would require federal agencies to conduct an annual
inventory and assessment of personal property under their
control. Federal personal property includes everything other
than real property--from office supplies to aircraft and motor
vehicles. According to the Government Accountability Office,
current law requires agencies to continuously review property
they control and to identify unneeded personal property and
dispose of it promptly. The General Services Administration has
issued regulations establishing a governmentwide disposal
process for unneeded property. In addition, the Office of
Management and Budget provides guidance to agencies on
efficient operations, emphasizing internal controls to ensure
that agencies identify unneeded property.
Because the bill would clarify agencies' current
requirements with respect to personal property, CBO expects
that implementing S. 3031 would have no significant effect on
the federal budget.
Enacting S. 3031 could affect direct spending by agencies
that use fees, receipts from the sale of goods, and other
collections to cover operating costs. Therefore, pay-as-you-go
procedures apply. Because most agencies can adjust the amounts
collected as their operating costs change, CBO estimates that
any net changes in direct spending by those agencies would not
be significant. Enacting the bill would not affect revenues.
CBO estimates that enacting S. 3031 would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
S. 3031 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Matthew
Pickford. The estimate was reviewed by H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
VII. Changes in Existing Law Made by the Bill, as Reported
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows: (existing law
proposed to be omitted is enclosed in brackets, new matter is
printed in italic, and existing law in which no change is
proposed is shown in roman):
UNITED STATES CODE
* * * * * * *
TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND ADMINISTRATIVE SERVICES
* * * * * * *
CHAPTER 5--PROPERTY MANAGEMENT
* * * * * * *
Subchapter I--Procurement and Warehousing
* * * * * * *
SEC. 506. INVENTORY CONTROLS AND SYSTEMS.
(a) * * *
(1) * * *
(A) * * *
* * * * * * *
(E) Capitalization thresholds.--Establish
thresholds for acquisitions of personal
property for which executive agencies shall
capitalize the personal property.
(F) Accountability thresholds.--
Notwithstanding section 121(b), for the
management and accountability of personal
property, establish thresholds for acquisitions
of personal property for which executive
agencies shall establish and maintain property
records in a centralized system.
* * * * * * *
Subchapter II--Use of Property
* * * * * * *
SEC. 524. DUTIES OF EXECUTIVE AGENCIES.
(a) Required.--Each executive agency shall--
(1) * * *
* * * * * * *
(11) * * *
(A) * * *
(B) * * *
(i) * * *
* * * * * * *
(xi) any additional information
required by the Administrator of
General Services to carry out section
623; [and]
(12) provide to the Federal Real Property Council and
the Administrator of General Services the information
described in paragraph (11)(B) to be used for the
establishment and maintenance of the database described
in section 21 of the Federal Assets Sale and Transfer
Act of 2016; and
(13) in accordance with guidance from the
Administrator of General Services--
(A) on an annual basis, conduct an inventory
and assessment of capitalized personal property
to identify excess capitalized personal
property under its control, including
evaluating--
(i) the age and condition of the
property;
(ii) the extent to which the
executive agency utilizes the personal
property;
(iii) the extent to which the mission
of the executive agency is dependent on
the personal property; and
(iv) any other aspect of the personal
property that the Administrator
determines is useful or necessary for
the executive agency to evaluate; and
(B) on a regular basis, conduct an inventory
and assessment of accountable personal property
under its control, including evaluating--
(i) the age and condition of the
property;
(ii) the extent to which the
executive agency utilizes the personal
property;
(iii) the extent to which the mission
of the executive agency is dependent on
the personal property; and
(iv) any other aspect of the personal
property that the Administrator
determines is useful or necessary for
the executive agency to evaluate.
[all]