SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Workforce Reduction Through 
Attrition Act''.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``total number of Federal employees'' means 
        the total number of Federal employees in all agencies;
            (2) the term ``Federal employee'' means an employee as 
        defined by section 2105 of title 5, United States Code;
            (3) the term ``agency'' means an executive agency as 
        defined by section 105 of title 5, United States Code, 
        excluding the Government Accountability Office;
            (4) the term ``quarter'' means a period of 3 calendar 
        months ending on March 31, June 30, September 30, or December 
        31; and
            (5) the term ``baseline quarter'' means the quarter in 
        which occurs the date of the enactment of this Act.

SEC. 3. WORKFORCE LIMITS AND REDUCTIONS.

    (a) In General.--The President, through the Office of Management 
and Budget (in consultation with the Office of Personnel Management), 
shall take appropriate measures to ensure that, effective with respect 
to each quarter beginning after the date of the enactment of this Act, 
the total number of Federal employees determined for such quarter does 
not exceed the applicable maximum for such quarter.
    (b) Applicable Maximum.--For purposes of this Act, the ``applicable 
maximum'' for a quarter is--
            (1) in the case of a quarter before the target-attainment 
        quarter, the number equal to--
                    (A) the total number of Federal employees 
                determined for the baseline quarter, reduced by
                    (B) \2/3\ of the number of Federal employees 
                separating from agencies during the period--
                            (i) beginning on the first day following 
                        the baseline quarter; and
                            (ii) ending on the last day of the quarter 
                        to which the applicable maximum is being 
                        applied; and
            (2) in the case of the target-attainment quarter and any 
        subsequent quarter, the number equal to 90 percent of the total 
        number of Federal employees as of September 30, 2012.
    (c) Target-Attainment Quarter.--For purposes of this Act, the term 
``target-attainment quarter'' means the earlier of--
            (1) the first quarter (subsequent to the baseline quarter) 
        for which the total number of Federal employees does not exceed 
        90 percent of the total number of Federal employees as of 
        September 30, 2012; or
            (2) the quarter ending on September 30, 2015.
    (d) Method for Achieving Compliance.--
            (1) In general.--Except as provided in paragraph (2), any 
        reductions necessary in order to achieve compliance with 
        subsection (a) shall be made through attrition.
            (2) Exception.--If, for any quarter, the total number of 
        Federal employees exceeds the applicable maximum for such 
        quarter, then, until the first succeeding quarter for which 
        such total number is determined not to exceed the applicable 
        maximum for such succeeding quarter, reductions shall be made 
        through both attrition and a freeze on appointments.
    (e) Counting Rules.--For purposes of this Act--
            (1) any determination of the total number of Federal 
        employees or the number of Federal employees separating from 
        agencies shall be made--
                    (A) on a full-time equivalent basis; and
                    (B) under section 4; and
            (2) any determination of the total number of Federal 
        employees for a quarter shall be made as of such date or 
        otherwise on such basis as the Office of Management of Budget 
        (in consultation with the Office of Personnel Management) 
        considers to be representative and feasible.
    (f) Waiver Authority.--The President may waive any of the preceding 
provisions of this section, with respect to an individual appointment, 
upon a determination by the President that such appointment is 
necessary due to--
            (1) a state of war or for reasons of national security; or
            (2) an extraordinary emergency threatening life, health, 
        safety, or property.
    (g) Limitation on Procurement of Service Contracts.--The President, 
through the Office of Management and Budget (in consultation with the 
Office of Personnel Management), shall take appropriate measures to 
ensure that there is no increase in the procurement of service 
contracts by reason of the enactment of this Act, except in cases in 
which a cost comparison demonstrates that such contracts would be to 
the financial advantage of the Government.

SEC. 4. MONITORING AND NOTIFICATION.

    The Office of Management and Budget (in consultation with the 
Office of Personnel Management) shall--
            (1) continuously monitor all agencies and, for each quarter 
        to which the requirements of section 3(a) apply, determine 
        whether or not such requirements have been met; and
            (2) not later than 14 days after the end of each quarter 
        described in paragraph (1), submit to the President and each 
        House of Congress, a written determination as to whether or not 
        the requirements of section 3(a) have been met.

SEC. 5. REGULATIONS.

    Any regulations necessary to carry out this Act may be prescribed 
by the President or his designee.
Federal Workforce Reduction Through Attrition Act - Requires the Office of Management and Budget (OMB) to ensure that the total number of federal employees in each calendar quarter after the enactment of this Act does not exceed the applicable maximum for such quarter, as determined under this Act. Sets forth a formula for determining the applicable maximum based upon 90% of the total number of federal employees as of September 30, 2012.  Requires that compliance with such workforce limitation be made through attrition, or through both attrition and a freeze on appointments if the total number of federal employees exceeds the applicable maximum for a quarter. Allows the President to waive such workforce limitation with respect to any individual appointment if the President determines that such appointment is necessary due to: (1) a state of war or for reasons of national security; or (2) an extraordinary emergency threatening life, health, safety, or property.  Requires OMB to continuously monitor all agencies to determine whether the workforce limitation required by this Act has been met.
Federal Workforce Reduction Through Attrition Act