[Senate Report 115-383]
[From the U.S. Government Publishing Office]
Calendar No. 669
115th Congress } { Report
SENATE
2d Session } { 115-383
_______________________________________________________________________
FEDERAL ACQUISITION SAVINGS
ACT OF 2018
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
S. 3251
TO REQUIRE EXECUTIVE AGENCIES TO CONSIDER RENTAL IN
ANY ANALYSIS FOR EQUIPMENT ACQUISITION, AND FOR OTHER PURPOSES
November 26, 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
Chris J. Mulkins, Minority Government Accountability Office Detailee
Laura W. Kilbride, Chief Clerk
Calendar No. 669
115th Congress } { Report
SENATE
2d Session } { 115-383
======================================================================
FEDERAL ACQUISITION SAVINGS ACT OF 2018
_______
November 26, 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. 3251]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (S. 3251) to require
executive agencies to consider rental in any analysis for
equipment acquisition, and for other purposes, 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..........................1
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. 3251, the Federal Acquisition Savings Act of 2018,
requires executive agencies to do a cost-benefit analysis of
the short- and long-term costs of rental, leasing, and
ownership of equipment, and choose the acquisition method that
is most advantageous to the Federal Government.
II. BACKGROUND AND THE NEED FOR LEGISLATION
In February 2018, the Government Accountability Office
(GAO) reported that the Air Force and the Department of
Interior did not consistently conduct a cost-benefit analysis
when purchasing heavy equipment to determine whether a lease
might be more cost effective.\1\ The report also noted that
there are indications that this may be a problem government-
wide, considering that 20 Executive Branch agencies had an
inventory of 136,000 pieces of heavy equipment such as cranes,
forklifts, and backhoes.\2\ This current inventory cost an
estimated $7.4 billion to acquire.\3\
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\1\Gov't Accountability Office, GAO-18-295, Heavy Equipment:
Selected Agencies Should Improve Guidance for Purchases and Leases
(2018), available at https://www.gao.gov/assets/700/690345.pdf.
\2\Id.
\3\Id. (estimated in 2016 dollars).
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On September 5, 2018, the Federal Acquisition Regulatory
Council (FAR Council) proposed changes to the Federal
Acquisition Regulation (FAR) to amend the definition of the
term ``equipment lease'' to clarify that it also includes
equipment rental.\4\ While existing law does not preclude the
rental of equipment, it is not clear in the existing
regulations that an agency should conduct a cost-benefit
analysis for renting in addition to leasing equipment.\5\
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\4\83 Fed. Reg. 45,072 (Sept. 5, 2018) (to be codified at 48 C.F.R.
pt. 7), available at https://www.gpo.gov/fdsys/pkg/FR-2018-09-05/pdf/
2018-19177.pdf.
\5\83 Fed. Reg. 45,073 (Sept. 5, 2018) (to be codified at 48 C.F.R.
pt. 7.4).
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S. 3251 requires Executive Branch agencies to analyze
equipment acquisitions on a case-by-case basis and determine
whether ownership, leasing, or renting is more advantageous to
the Federal Government. Recognizing that the cheapest option
may not always be the most advantageous option, the legislation
requires that factors other than cost also be considered.
III. LEGISLATIVE HISTORY
Senators Gary Peters, James Lankford, and Rand Paul
introduced S. 3251 on July 19, 2018. The bill was referred to
the Committee on Homeland Security and Governmental Affairs on
the same day. The Committee considered S. 3251 at a September
26, 2018, business meeting.
The Committee ordered S. 3251 reported favorably en bloc by
voice vote. Senators present for the vote were Johnson,
Portman, Lankford, Enzi, Hoeven, McCaskill, Carper, Heitkamp,
Peters, Hassan, Harris, and Jones.
IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED
Section 1. Short title
This section established that the bill may be cited as the
``Federal Acquisition Savings Act.''
Section 2. Agency analysis of equipment acquisition
Subsection (a) requires executive agencies to acquire
equipment using the method of acquisition most advantageous to
the Federal Government, based on a case-by-case analysis of
cost and other factors. It requires such agencies to make this
determination based on an analysis of whether to purchase,
rent, or lease the equipment. It also requires the FAR Council
to issue implementation regulations.
Subsection (b) sets an implementation date after the FAR
Council issues the implementation regulations.
Subsection (c) allows the head of an executive agency to
contract with state and local governments if the agency head
determines the agreement satisfies the requirements of
subsection (a).
Subsection (d) sets out exceptions to subsection (a), such
as a disaster declaration or other emergency situations.
Subsection (e) mandates a report be conducted by GAO to
review the quality of the analyses required by subsection (a).
Subsection (f) defines the terms ``executive agency,''
``interagency acquisition,'' ``state,'' and ``local
government.''
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 (UMRA) 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, October 3, 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. 3251, the Federal
Acquisition Savings 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. 3251--Federal Acquisition Savings Act of 2018
S. 3251 would amend the Federal Acquisition Regulation to
require agencies to acquire equipment using a method of
acquisition that is most advantageous to the federal government
on a case-by-case basis. This could include short- and long-
term rental, leases, interagency acquisitions, or acquisition
agreements with state and local governments. The bill also
would require a report within two years by the Government
Accountability Office on equipment acquisitions. According to
the General Services Administration (GSA), agencies are already
required to consider purchasing or leasing when evaluating the
acquisition of equipment and proposed regulations will clarify
leasing and renting as an option. In addition, GSA has proposed
a similar rule. Because CBO expects that S. 3251 would not
materially change how agencies acquire equipment, CBO estimates
that implementing S. 3251 would have no significant effect on
the federal budget.
Enacting S. 3251 could affect direct spending by agencies
not funded through annual appropriations; therefore, pay-as-
you-go procedures apply. CBO estimates, however, that any net
increase in spending by those agencies would not be
significant. S. 3251 would not affect revenues.
CBO estimates that enacting S. 3251 would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
S. 3251 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
On October 4, 2017, CBO transmitted a cost estimate for
H.R. 3071, the Federal Acquisition Savings Act of 2017, as
ordered reported by the House Committee on Oversight and
Government Reform on September 13, 2017. The two pieces of
legislation are similar and the estimated budgetary effects are
the same.
The CBO staff contact for this estimate is Matthew
Pickford. This estimate was approved by H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
Because this legislation would not repeal or amend any
provision of current law, it would make no changes in existing
law within the meaning of clauses (a) and (b) of paragraph 12
of rule XXVI of the Standing Rules of the Senate.