HR 5450 RFS 
(3) the term ‘‘life-cycle cost’’ means the total of 
the direct, indirect, recurring, and nonrecurring 
costs, including the construction of facilities and civil 
servant costs, and other related expenses incurred or 
estimated to be incurred in the design, development, 
verification, production, operation, maintenance, 
support, and retirement of a program over its 
planned lifespan, without regard to funding source 
or management control; and 
(4) the term ‘‘major program’’ means an activ-
ity approved to proceed to implementation that has 
an 
estimated 
life-cycle 
cost 
of 
more 
than 
$250,000,000. 
SEC. 17. LIMITATIONS ON OFF-SHORE PERFORMANCE OF 
CONTRACTS FOR THE PROCUREMENT OF 
GOODS AND SERVICES. 
(a) CONVERSIONS TO CONTRACTOR PERFORMANCE 
OF ADMINISTRATION ACTIVITIES.—Except as provided in 
subsection (c), an activity or function of the Administra-
tion that is converted to contractor performance under Of-
fice of Management and Budget Circular A-76 may not 
be performed by the contractor or any subcontractor at 
a location outside the United States. 
(b) CONTRACTS FOR THE PROCUREMENT OF SERV-
ICES.—(1) Except as provided in subsection (c), a contract 
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HR 5450 RFS 
for the procurement of goods or services that is entered 
into by the Administrator may not be performed outside 
the United States unless it is to meet a requirement of 
the Administration for goods or services specifically at a 
location outside the United States. 
(2) The President may waive the prohibition in para-
graph (1) in the case of any contract for which the Presi-
dent determines in writing that it is necessary in the na-
tional security interests of the United States for goods or 
services under the contract to be performed outside the 
United States. 
(3) The Administrator may waive the prohibition in 
paragraph (1) in the case of any contract for which the 
Administrator determines in writing that essential goods 
or services under the contract are only available from a 
source outside the United States. 
(c) EXCEPTION.—Subsections (a) and (b)(1) shall 
not apply to the extent that the activity or function under 
the contract was previously performed by Federal Govern-
ment employees outside the United States. 
(d) CONSISTENCY WITH INTERNATIONAL AGREE-
MENTS.—The provisions of this section shall not apply to 
the extent that they are inconsistent with obligations of 
the United States under international agreements. 
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SEC. 18. RECORDKEEPING AND REPORTING REQUIRE-
MENT. 
The Administrator shall transmit to Congress, not 
later than 120 days after the end of each fiscal year begin-
ning with the first fiscal year after the date of enactment 
of this Act, a report on the contracts and subcontracts 
performed overseas and the amount of purchases directly 
or indirectly by the Administration from foreign entities 
in that fiscal year. The report shall separately indicate— 
(1) the contracts and subcontracts and their 
dollar values for which the Administrator determines 
that essential goods or services under the contract 
are available only from a source outside the United 
States; and 
(2) the items and their dollar values for which 
the Buy American Act was waived pursuant to obli-
gations of the United States under international 
agreements. 
Passed the House of Representatives September 20, 
2006. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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