II 

109TH CONGRESS 

1ST SESSION S. 1185 

To protect United States workers from competition of foreign workforces 

for performance of Federal and State contracts. 

IN THE SENATE OF THE UNITED STATES 

JUNE 7, 2005 

Mr. DODD introduced the following bill; which was read twice and referred to 

the Committee on Homeland Security and Governmental Affairs 

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.— 

9 (1) IN GENERAL.—The Office of Federal Pro10 curement Policy Act (41 U.S.C. 403 et seq.) is 
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1 amended by adding at the end the following new sec2 tion: 

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

4 CONTRACTS. 

5 ‘‘(a) CONVERSIONS TO CONTRACTOR PERFORMANCE

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

7 executive agency that is converted to contractor perform8 ance under Office of Management and Budget Circular 

9 A–76 may not be performed by the contractor or any sub10 contractor at a location outside the United States except 

11 to the extent that such activity or function was previously 

12 performed by Federal Government employees outside the 

13 United States. 

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

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

16 may not be performed outside the United States except 

17 to meet a requirement of the executive agency for the con18 tract to be performed specifically at a location outside the 

19 United States. 

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

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

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

23 is necessary in the national security interests of the 

24 United States for the contract to be performed out25 side the United States; or 
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1 ‘‘(B) the head of such executive agency makes 

2 a determination and reports such determination on 

3 a timely basis to the Director of the Office of Man4 agement and Budget that— 

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

6 executive agency are available only by means of 

7 performance of the contract outside the United 

8 States; and 

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

10 means of performance of the contract inside the 

11 United States would satisfy the executive agen12 cy’s need. 

13 ‘‘(3) Paragraph (1) does not apply to the perform14 ance of a contract outside the United States under the 

15 exception provided in subsection (a). 

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

17 paragraph (2), funds appropriated for financial assistance 

18 for a State may not be disbursed to or for such State dur19 ing a fiscal year unless the chief executive of that State 

20 has transmitted to the Administrator for Federal Procure21 ment Policy, not later than April 1 of the preceding fiscal 

22 year, a written certification that none of such funds will 

23 be expended for the performance outside the United States 

24 of contracts entered into by such State. 
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1 ‘‘(2) The prohibition on disbursement of funds to or 

2 for a State under paragraph (1) does not apply with re3 spect to the performance of a State contract outside the 

4 United States if— 

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

6 ‘‘(i) determines that the property or serv7 ices needed by the State are available only by 

8 means of performance of the contract outside 

9 the United States and no property or services 

10 available by means of performance of the con11 tract inside the United States would satisfy the 

12 State’s need; and 

13 ‘‘(ii) transmits a notification of such deter14 mination to the head of the executive agency of 

15 the United States that administers the author16 ity under which such funds are disbursed to or 

17 for the State; and 

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

19 the notification of such determination— 

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

21 determination; 

22 ‘‘(ii) approves the determination; and 

23 ‘‘(iii) transmits a notification of the ap24 proval of the determination to the Director of 

25 the Office of Management and Budget. 
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1 ‘‘(3) In this subsection, the term ‘State’ means each 

2 of the several States of the United States, the District 

3 of Columbia, the Commonwealth of Puerto Rico, the Com4 monwealth of the Northern Mariana Islands, the Virgin 

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

6 of the Pacific Islands. 

7 ‘‘(d) INAPPLICABILITY OF LIMITATIONS.—The limi8 tations in subsections (b) and (c) shall not apply to pro9 curement covered by the Agreement on Government Pro10 curement of the World Trade Organization (as described 

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

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

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

14 the Office of Management and Budget shall— 

15 ‘‘(1) maintain— 

16 ‘‘(A) the waivers granted under subsection 

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

18 certifications on which such waivers were based; 

19 and 

20 ‘‘(B) the notifications received under sub21 section (c)(2)(B)(iii); and 

22 ‘‘(2) submit to Congress promptly after the end 

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

24 forth— 
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1 ‘‘(A) the waivers that were granted under 

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

3 ‘‘(B) the notifications that were received 

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

5 quarter. 

6 ‘‘(f) ANNUAL GAO REVIEW.—The Comptroller Gen7 eral shall— 

8 ‘‘(1) review, each fiscal year, the waivers grant9 ed during such fiscal year under subsection (b)(2) 

10 and the disbursements of funds authorized pursuant 

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

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

13 transmit to Congress a report containing a list of 

14 the contracts covered by such waivers and exception 

15 together with a brief description of the performance 

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

17 (2) CLERICAL AMENDMENT.—The table of sec18 tions in section 1(b) of such Act is amended by add19 ing at the end the following new item:

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

20 (b) INAPPLICABILITY TO STATES DURING FIRST

21 TWO FISCAL YEARS.—Section 42(c) of the Office of Fed22 eral Procurement Policy Act (as added by subsection (a)) 

23 shall not apply to disbursements of funds to a State dur24 ing the fiscal year in which this Act is enacted and the 

25 next fiscal year. 
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1 SEC. 3. REPEAL OF SUPERSEDED LAW. 

2 Section 647 of the Transportation, Treasury, and 

3 Independent Agencies Appropriations Act, 2004 (division 

4 F of Public Law 108–199) is amended by striking sub5 section (e). 

6 SEC. 4. EFFECTIVE DATE AND APPLICABILITY. 

7 This Act and the amendments made by this Act shall 

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

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

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

11 date.

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