S 785 ISCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 785CommentsClose CommentsPermalink

To require that the Federal Government procure from the private sector the goods and services necessary for the operations and management of certain Government agencies, and for other purposes.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

April 12, 2011CommentsClose CommentsPermalink

Mr. THUNE (for himself, Mr. INHOFE, Mr. ROBERTS, Mr. ISAKSON, and Mr. BARRASSO) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental AffairsCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To require that the Federal Government procure from the private sector the goods and services necessary for the operations and management of certain Government agencies, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Freedom from Government Competition Act’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

Congress makes the following findings:CommentsClose CommentsPermalink





(1) Private sector business concerns, which are free to respond to the private or public demands of the marketplace, constitute the strength of the United States economic system.CommentsClose CommentsPermalink





(2) Competitive private enterprises are the most productive, efficient, and effective sources of goods and services.CommentsClose CommentsPermalink





(3) Unfair Government competition with the private sector of the economy is detrimental to the United States economic system.CommentsClose CommentsPermalink





(4) Unfair Government competition with the private sector of the economy is at an unacceptably high level, both in scope and in dollar volume.CommentsClose CommentsPermalink





(5) Current law and policy have failed to address adequately the problem of unfair Government competition with the private sector of the economy.CommentsClose CommentsPermalink





(6) It is in the public interest that the Federal Government establish a consistent policy to rely on the private sector of the economy to provide goods and services necessary for or beneficial to the operation and management of Federal agencies and to avoid unfair Government competition with the private sector of the economy.CommentsClose CommentsPermalink

SEC. 3. DEFINITIONS.

In this Act, the term ‘agency’ means--CommentsClose CommentsPermalink





(1) an executive department as defined by section 101 of title 5, United States Code;CommentsClose CommentsPermalink





(2) a military department as defined by section 102 of such title; andCommentsClose CommentsPermalink





(3) an independent establishment as defined by section 104(l) of such title.CommentsClose CommentsPermalink

SEC. 4. PROCUREMENT FROM PRIVATE SOURCES.

(a) Policy- In the process of governing, the Federal Government should not compete with its citizens. The competitive enterprise system, characterized by individual freedom and initiative, is the primary source of national economic strength. In recognition of this principle, it has been and continues to be the general policy of the Federal Government--CommentsClose CommentsPermalink





(1) to rely on commercial sources to supply the products and services the Government needs;CommentsClose CommentsPermalink





(2) to refrain from providing a product or service if the product or service can be procured more economically from a commercial source; andCommentsClose CommentsPermalink





(3) to utilize Federal employees to perform inherently governmental functions (as that term is defined in section 5 of the Federal Activities Inventory Reform Act of 1998 (Public Law 105-270; 31 U.S.C. 501 note)).CommentsClose CommentsPermalink





(b) General Rule- Except as provided in subsection (c) and notwithstanding any other provision of law, each agency shall obtain all goods and services necessary for or beneficial to the accomplishment of its authorized functions by procurement from private sources.CommentsClose CommentsPermalink





(c) Exemptions- Subsection (b) shall not apply to an agency with respect to goods or services if--CommentsClose CommentsPermalink





(1) the goods or services are required by law to be produced or performed, respectively, by the agency; orCommentsClose CommentsPermalink





(2) the head of the agency determines and certifies to Congress in accordance with regulations promulgated by the Director of the Office of Management and Budget that--CommentsClose CommentsPermalink





(A) Federal Government production, manufacture, or provision of a good or service is necessary for the national defense or homeland security;CommentsClose CommentsPermalink





(B) a good or service is so inherently governmental in nature that it is in the public interest to require production or performance, respectively, by Government employees; orCommentsClose CommentsPermalink





(C) there is no private source capable of providing the good or service.CommentsClose CommentsPermalink





(d) Method of Procurement- The provision of goods and services not exempt by subsection (c)(1) or (c)(2) shall be performed by an entity in the private sector through--CommentsClose CommentsPermalink





(1) the divestiture of Federal involvement in the provision of a good or service;CommentsClose CommentsPermalink





(2) the award of a contract to an entity in the private sector, using competitive procedures, as defined in section 152 of title 41, United States Code, and section 2302 of title 10, United States Code;CommentsClose CommentsPermalink





(3) converting an activity to performance by a qualified firm under at least 51 percent ownership by an Indian tribe, as defined in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(e)), or a Native Hawaiian Organization, as defined in section 8(a)(15) of the Small Business Act (15 U.S.C. 637(a)(15)); orCommentsClose CommentsPermalink





(4) conducting a public-private competitive sourcing analysis in accordance with the procedures established by the Office of Management and Budget and determining that using the assets, facilities, and performance of the private sector is in the best interest of the United States and that production or performance, respectively, by the private sector provides the best value to the taxpayer.CommentsClose CommentsPermalink





(e) Contracted Activities- The head of an agency may utilize Federal employees to provide goods or services previously provided by an entity in the private sector upon completion of a public-private competitive sourcing analysis described in subsection (d)(4), and after making a determination that the provision of such goods or services by Federal employees provides the best value to the taxpayer.CommentsClose CommentsPermalink





(f) Regulations- The Director of the Office of Management and Budget shall promulgate such regulations as the Director considers necessary to carry out this section. In promulgating such regulations, the Director shall assure that any State or territory, or political subdivision of a State or territory, complies with the policy and implements the requirements of this section when expending Federal funds.CommentsClose CommentsPermalink

SEC. 5. STUDY AND REPORT.

The Director of the Office of Management and Budget, in conjunction with the Comptroller General of the United States, shall carry out a study to evaluate the activities carried out in each agency, including those identified as commercial and inherently governmental in nature in the inventory prepared pursuant to the Federal Activities Inventory Reform Act (Public Law 105-270; 31 U.S.C. 501 note) and shall transmit a report to the Congress prior to June 30 of each year. The report shall include--CommentsClose CommentsPermalink





(1) an evaluation of the justification for exempting activities pursuant to section 4(c); andCommentsClose CommentsPermalink





(2) a schedule for the transfer of commercial activities to the private sector, pursuant to section 4(d), to be completed within 5 years after the date on which such report is transmitted to the Congress.CommentsClose CommentsPermalink