A bill to protect United States workers from competition of foreign workforces for performance of Federal and State contracts.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States Workers Protection Act 
of 2005''.

SEC. 2. LIMITATIONS ON OFF-SHORE PERFORMANCE OF CONTRACTS.

    (a) Limitations.--
            (1) In general.--The Office of Federal Procurement Policy 
        Act (41 U.S.C. 403 et seq.) is amended by adding at the end the 
        following new section:

``SEC. 42. LIMITATIONS ON OFF-SHORE PERFORMANCE OF CONTRACTS.

    ``(a) Conversions to Contractor Performance of Federal 
Activities.--An activity or function of an executive agency that is 
converted to contractor performance under Office of Management and 
Budget Circular A-76 may not be performed by the contractor or any 
subcontractor at a location outside the United States except to the 
extent that such activity or function was previously performed by 
Federal Government employees outside the United States.
    ``(b) Other Federal Contracts.--(1) A contract that is entered into 
by the head of an executive agency may not be performed outside the 
United States except to meet a requirement of the executive agency for 
the contract to be performed specifically at a location outside the 
United States.
    ``(2) The prohibition in paragraph (1) does not apply in the case 
of a contract of an executive agency if--
            ``(A) the President determines in writing that it is 
        necessary in the national security interests of the United 
        States for the contract to be performed outside the United 
        States; or
            ``(B) the head of such executive agency makes a 
        determination and reports such determination on a timely basis 
        to the Director of the Office of Management and Budget that--
                    ``(i) the property or services needed by the 
                executive agency are available only by means of 
                performance of the contract outside the United States; 
                and
                    ``(ii) no property or services available by means 
                of performance of the contract inside the United States 
                would satisfy the executive agency's need.
    ``(3) Paragraph (1) does not apply to the performance of a contract 
outside the United States under the exception provided in subsection 
(a).
    ``(c) State Contracts.--(1) Except as provided in paragraph (2), 
funds appropriated for financial assistance for a State may not be 
disbursed to or for such State during a fiscal year unless the chief 
executive of that State has transmitted to the Administrator for 
Federal Procurement Policy, not later than April 1 of the preceding 
fiscal year, a written certification that none of such funds will be 
expended for the performance outside the United States of contracts 
entered into by such State.
    ``(2) The prohibition on disbursement of funds to or for a State 
under paragraph (1) does not apply with respect to the performance of a 
State contract outside the United States if--
            ``(A) the chief executive of such State--
                    ``(i) determines that the property or services 
                needed by the State are available only by means of 
                performance of the contract outside the United States 
                and no property or services available by means of 
                performance of the contract inside the United States 
                would satisfy the State's need; and
                    ``(ii) transmits a notification of such 
                determination to the head of the executive agency of 
                the United States that administers the authority under 
                which such funds are disbursed to or for the State; and
            ``(B) the head of the executive agency receiving the 
        notification of such determination--
                    ``(i) confirms that the facts warrant the 
                determination;
                    ``(ii) approves the determination; and
                    ``(iii) transmits a notification of the approval of 
                the determination to the Director of the Office of 
                Management and Budget.
    ``(3) In this subsection, the term `State' means each of the 
several States of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, the Virgin Islands, Guam, American Samoa, and the Trust 
Territory of the Pacific Islands.
    ``(d) Inapplicability of Limitations.--The limitations in 
subsections (b) and (c) shall not apply to procurement covered by the 
Agreement on Government Procurement of the World Trade Organization (as 
described in section 101(d)(17) of the Uruguay Round Agreement Act (19 
U.S.C. 3511(d)(17))).
    ``(e) Responsibilities of OMB.--The Director of the Office of 
Management and Budget shall--
            ``(1) maintain--
                    ``(A) the waivers granted under subsection (b)(2), 
                together with the determinations and certifications on 
                which such waivers were based; and
                    ``(B) the notifications received under subsection 
                (c)(2)(B)(iii); and
            ``(2) submit to Congress promptly after the end of each 
        quarter of each fiscal year a report that sets forth--
                    ``(A) the waivers that were granted under 
                subsection (b)(2) during such quarter; and
                    ``(B) the notifications that were received under 
                subsection (c)(2)(B)(iii) during such quarter.
    ``(f) Annual GAO Review.--The Comptroller General shall--
            ``(1) review, each fiscal year, the waivers granted during 
        such fiscal year under subsection (b)(2) and the disbursements 
        of funds authorized pursuant to the exception in subsection 
        (c)(2); and
            ``(2) promptly after the end of such fiscal year, transmit 
        to Congress a report containing a list of the contracts covered 
        by such waivers and exception together with a brief description 
        of the performance of each such contract outside the United 
        States.''.
            (2) Clerical amendment.--The table of sections in section 
        1(b) of such Act is amended by adding at the end the following 
        new item:

``Sec. 42. Limitations on off-shore performance of contracts.''.
    (b) Inapplicability to States During First Two Fiscal Years.--
Section 42(c) of the Office of Federal Procurement Policy Act (as added 
by subsection (a)) shall not apply to disbursements of funds to a State 
during the fiscal year in which this Act is enacted and the next fiscal 
year.

SEC. 3. REPEAL OF SUPERSEDED LAW.

    Section 647 of the Transportation, Treasury, and Independent 
Agencies Appropriations Act, 2004 (division F of Public Law 108-199) is 
amended by striking subsection (e).

SEC. 4. EFFECTIVE DATE AND APPLICABILITY.

    This Act and the amendments made by this Act shall take effect 30 
days after the date of the enactment of this Act and, subject to 
subsection (b) of section 2, shall apply with respect to new contracts 
entered into on or after such date.

Summary: United States Workers Protection Act of 2005 - Amends the Office of Federal Procurement Policy Act to prohibit: (1) outsourced federal government work from being performed by a contractor or any subcontractor outside the United States unless federal employees previously performed such work outside the United States. (2) work on a contract from being performed outside the United States unless it is necessary in order to meet a requirement for the contract to be performed specifically at a location outside the United States or the President deems it necessary for national security reasons, or the head of the executive agency makes and reports a determination to the Director of the Office of Management and Budget that the property or services needed are available only outside the United States and no property or services available inside the United States would satisfy the agency's need. And (3) federal funds from being disbursed to a state until the Governor of the state has transmitted written certification that none of the funds will be spent for the performance of contracts outside the United States and if the Governor of such state determines that the property and services needed by the state are available only outside the United States and no property or services available inside the United States would satisfy the state's need and transmits a notification of such determination to the agency head administering the authority under which such funds are disbursed to or for such state.