I 

109TH CONGRESS 

1ST SESSION H. R. 3406 

To protect United States workers from competition of foreign workforces 

for performance of Federal and State contracts. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 22, 2005 

Ms. DELAURO (for herself, Mr. DINGELL, Ms. SOLIS, Mr. KILDEE, Mr. 

BRADY of Pennsylvania, Mr. SANDERS, and Mr. CONYERS) introduced 

the following bill; which was referred to the Committee on Government 

Reform 

A BILL 

To protect United States workers from competition of foreign 

workforces for performance of Federal and State contracts. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘United States Workers 

5 Protection Act of 2005’’. 

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

7 CONTRACTS. 

8 (a) LIMITATIONS.— 
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1 (1) IN GENERAL.—The Office of Federal Pro2 curement Policy Act (41 U.S.C. 403 et seq.) is 

3 amended by adding at the end the following new sec4 tion: 

5 ‘‘SEC. 42. LIMITATIONS ON OFF-SHORE PERFORMANCE OF 

6 CONTRACTS. 

7 ‘‘(a) CONVERSIONS TO CONTRACTOR PERFORMANCE

8 OF FEDERAL ACTIVITIES.—An activity or function of an 

9 executive agency that is converted to contractor perform10 ance under Office of Management and Budget Circular 

11 A–76 may not be performed by the contractor or any sub12 contractor at a location outside the United States except 

13 to the extent that such activity or function was previously 

14 performed by Federal Government employees outside the 

15 United States. 

16 ‘‘(b) OTHER FEDERAL CONTRACTS.—(1) A contract 

17 that is entered into by the head of an executive agency 

18 may not be performed outside the United States except 

19 to meet a requirement of the executive agency for the con20 tract to be performed specifically at a location outside the 

21 United States. 

22 ‘‘(2) The prohibition in paragraph (1) does not apply 

23 in the case of a contract of an executive agency if— 

24 ‘‘(A) the President determines in writing that it 

25 is necessary in the national security interests of the 
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1 United States for the contract to be performed out2 side the United States; or 

3 ‘‘(B) the head of such executive agency makes 

4 a determination and reports such determination on 

5 a timely basis to the Director of the Office of Man6 agement and Budget that— 

7 ‘‘(i) the property or services needed by the 

8 executive agency are available only by means of 

9 performance of the contract outside the United 

10 States; and 

11 ‘‘(ii) no property or services available by 

12 means of performance of the contract inside the 

13 United States would satisfy the executive agen14 cy’s need. 

15 ‘‘(3) Paragraph (1) does not apply to the perform16 ance of a contract outside the United States under the 

17 exception provided in subsection (a). 

18 ‘‘(c) STATE CONTRACTS.—(1) Except as provided in 

19 paragraph (2), funds appropriated for financial assistance 

20 for a State may not be disbursed to or for such State dur21 ing a fiscal year unless the chief executive of that State 

22 has transmitted to the Administrator for Federal Procure23 ment Policy, not later than April 1 of the preceding fiscal 

24 year, a written certification that none of such funds will 
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1 be expended for the performance outside the United States 

2 of contracts entered into by such State. 

3 ‘‘(2) The prohibition on disbursement of funds to or 

4 for a State under paragraph (1) does not apply with re5 spect to the performance of a State contract outside the 

6 United States if— 

7 ‘‘(A) the chief executive of such State— 

8 ‘‘(i) determines that the property or serv9 ices needed by the State are available only by 

10 means of performance of the contract outside 

11 the United States and no property or services 

12 available by means of performance of the con13 tract inside the United States would satisfy the 

14 State’s need; and 

15 ‘‘(ii) transmits a notification of such deter16 mination to the head of the executive agency of 

17 the United States that administers the author18 ity under which such funds are disbursed to or 

19 for the State; and 

20 ‘‘(B) the head of the executive agency receiving 

21 the notification of such determination— 

22 ‘‘(i) confirms that the facts warrant the 

23 determination; 

24 ‘‘(ii) approves the determination; and 
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1 ‘‘(iii) transmits a notification of the ap2 proval of the determination to the Director of 

3 the Office of Management and Budget. 

4 ‘‘(3) In this subsection, the term ‘State’ means each 

5 of the several States of the United States, the District 

6 of Columbia, the Commonwealth of Puerto Rico, the Com7 monwealth of the Northern Mariana Islands, the Virgin 

8 Islands, Guam, American Samoa, and the Trust Territory 

9 of the Pacific Islands. 

10 ‘‘(d) INAPPLICABILITY OF LIMITATIONS.—The limi11 tations in subsections (b) and (c) shall not apply to pro12 curement covered by the Agreement on Government Pro13 curement of the World Trade Organization (as described 

14 in section 101(d)(17) of the Uruguay Round Agreement 

15 Act (19 U.S.C. 3511(d)(17))). 

16 ‘‘(e) RESPONSIBILITIES OF OMB.—The Director of 

17 the Office of Management and Budget shall— 

18 ‘‘(1) maintain— 

19 ‘‘(A) the waivers granted under subsection 

20 (b)(2), together with the determinations and 

21 certifications on which such waivers were based; 

22 and 

23 ‘‘(B) the notifications received under sub24 section (c)(2)(B)(iii); and 
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1 ‘‘(2) submit to Congress promptly after the end 

2 of each quarter of each fiscal year a report that sets 

3 forth— 

4 ‘‘(A) the waivers that were granted under 

5 subsection (b)(2) during such quarter; and 

6 ‘‘(B) the notifications that were received 

7 under subsection (c)(2)(B)(iii) during such 

8 quarter. 

9 ‘‘(f) ANNUAL GAO REVIEW.—The Comptroller Gen10 eral shall— 

11 ‘‘(1) review, each fiscal year, the waivers grant12 ed during such fiscal year under subsection (b)(2) 

13 and the disbursements of funds authorized pursuant 

14 to the exception in subsection (c)(2); and 

15 ‘‘(2) promptly after the end of such fiscal year, 

16 transmit to Congress a report containing a list of 

17 the contracts covered by such waivers and exception 

18 together with a brief description of the performance 

19 of each such contract outside the United States.’’. 

20 (2) CLERICAL AMENDMENT.—The table of sec21 tions in section 1(b) of such Act is amended by add22 ing at the end the following new item: 

‘‘Sec. 42. Limitations on off-shore performance of contracts.’’. 

23 (b) INAPPLICABILITY TO STATES DURING FIRST

24 TWO FISCAL YEARS.—Section 42(c) of the Office of Fed25 eral Procurement Policy Act (as added by subsection (a)) 
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1 shall not apply to disbursements of funds to a State dur2 ing the fiscal year in which this Act is enacted and the 

3 next fiscal year. 

4 SEC. 3. REPEAL OF SUPERSEDED LAW. 

5 Section 647 of the Transportation, Treasury, and 

6 Independent Agencies Appropriations Act, 2004 (division 

7 F of Public Law 108–199) is amended by striking sub8 section (e). 

9 SEC. 4. EFFECTIVE DATE AND APPLICABILITY. 

10 This Act and the amendments made by this Act shall 

11 take effect 30 days after the date of the enactment of this 

12 Act and, subject to subsection (b) of section 2, shall apply 

13 with respect to new contracts entered into on or after such 

14 date. 

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