I

104TH CONGRESS

1ST SESSION H. R. 28

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.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 4, 1995

Mr. DUNCAN introduced the following bill; which was referred to the

Committee on Government Reform and Oversight

A BILL

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.

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 ‘‘Freedom from Govern5 ment Competition Act of 1995’’.

6 SEC. 2. FINDINGS.

7 The Congress finds and declares that—
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1 (1) private sector business concerns, which are

2 free to respond to the private or public demands of

3 the marketplace, constitute the strength of the

4 American economic system;

5 (2) competitive private enterprises are the most

6 productive, efficient, and effective sources of goods

7 and services;

8 (3) Government competition with the private

9 sector of the economy is detrimental to the American

10 economic system;

11 (4) Government competition with the private

12 sector of the economy is at an unacceptably high

13 level, both in scope and in dollar volume;

14 (5) current law and policy have failed to ad15 dress adequately the problem of Government com16 petition with the private sector of the economy; and

17 (6) it is in the public interest that the Govern18 ment establish a consistent policy to rely on the pri19 vate sector of the economy to provide goods and

20 services necessary for or beneficial to the operation

21 and management of Government agencies and to

22 avoid Government competition with the private sec23 tor of the economy.

24 SEC. 3. DEFINITIONS.

25 As used in this Act the term ‘‘agency’’ means—
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1 (1) an executive department as defined by sec2 tion 101 of title 5, United States Code;

3 (2) a military department as defined by section

4 102 of such title; and

5 (3) an independent establishment as defined by

6 section 104(l) of such title.

7 SEC. 4. PROCUREMENT FROM PRIVATE SOURCES.

8 (a) GENERAL RULE.—Notwithstanding any other

9 provision of law, each agency shall obtain all goods and

10 services necessary for or beneficial to the accomplishment

11 of its authorized functions by procurement from private

12 sources unless—

13 (1) the goods or services are required by law to

14 be produced or performed, respectively, by the agen15 cy; or

16 (2) the head of the agency determines and cer17 tifies to the Congress in accordance with regulations

18 promulgated by the Director of the Office of Man19 agement and Budget that—

20 (A) Government production, manufacture,

21 or provision of a good or service is necessary for

22 the national defense;

23 (B) a good or service is so inherently gov24 ernmental in nature that it is in the public in-
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1 terest to require production or performance, re2 spectively, by a Government employee; or

3 (C) there is no private source capable of

4 providing the good or service.

5 (b) REGULATIONS.—The Director of the Office of

6 Management and Budget shall promulgate such regula7 tions as the Director considers necessary to carry out sub8 section (a).

9 SEC. 5. STUDY AND REPORT.

10 The Director of the Office of Management and Budg11 et, in conjunction with the Comptroller General of the

12 United States, shall carry out a study to identify all cur13 rent activities of agencies which are inconsistent with the

14 requirements of section 5(a) and shall transmit to the

15 Congress within one year after the date of enactment of

16 this Act a report on such study. The report shall include

17 a list of all activities identified under the preceding sen18 tence and a schedule for the transfer of such activities to

19 the private sector of the economy. The schedule included

20 in the report shall provide for the completion of the trans21 fer within 5 years after the date on which such report is

22 transmitted to the Congress.

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