Congress agrees to merger of GSA funds

The House on Monday passed legislation allowing the General Services Administration to merge revolving funds for two acquisition units -- a key step in an ongoing reorganization -- advancing the measure to the White House for President Bush's signature.

The House approved the bill (H.R. 2066) by voice vote. The Senate passed an amended version of the bill earlier this month.

The legislation would allow GSA to complete the merger of its Federal Technology Service and Federal Supply Service into a single entity. Combining the revolving funds for the two procurement groups into a new Federal Acquisition Service fund could improve the agency's financial outlook, as the technology service has recently run at a loss while the supply service has generated a surplus.

"This legislation removes the old structures that inhibit efficient federal purchases," said Rep. Tom Davis, R-Va. "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 e-mail are now as ubiquitous as desks and phones."

The Senate amendments to the original House bill removed a requirement that GSA appoint five regional executives for the new, blended organization.