ployees or in a combination of full-time and part-
time employees).’’.
SEC. 5. INAPPLICABILITY OF EXEMPTIONS IN OTHER LAWS.
Section 2 is further amended by adding at the end
the following:
‘‘(g) EXEMPTIONS INAPPLICABLE.—The head of each
executive agency shall carry out this Act notwithstanding
any other provision of law that expressly or impliedly ex-
empts that executive agency from developing an inventory
of activities that are not inherently governmental func-
tions and are performed by the executive agency or by
Federal Government sources for the executive agency. The
head of the executive agency shall include in the annual
list prepared under subsection (a) a notation of each such
exemption that, except for the preceding sentence, would
otherwise apply to the executive agency or any such func-
tion.’’.
SEC. 6. PERFORMANCE FOR OTHER GOVERNMENTAL OR-
GANIZATIONS.
(a) LIMITATIONS.—Section 2 is further amended by
adding at the end the following:
‘‘(h) LIMITATIONS ON PERFORMANCE FOR OTHER
GOVERNMENTAL ORGANIZATIONS.—
‘‘(1) FEDERAL AGENCIES.—An activity that is
not an inherently governmental function may not be
performed for an executive agency by another Fed-
eral Government source under section 1535 of title
31, United States Code, unless, within three years
before the order for that activity is placed with the
other Federal Government source under that section,
performance of that activity by the executive agency
has been justified pursuant to a competition carried
out under Office of Management and Budget Cir-
cular A–76.
‘‘(2) STATE AND LOCAL GOVERNMENTS.—The
head of an executive agency may not take any action
under section 6505 of title 31, United State Code,
to perform for the benefit of an agency of a State
or a political subdivision of a State an activity that
is not an inherently governmental function unless
the head of the executive agency has first—
‘‘(A) solicited offers for the performance of
that activity in accordance with section 18 of
the Office of Federal Procurement Policy Act
(41 U.S.C. 416) and section 8(e) of the Small
Business Act (15 U.S.C. 637(e)); and
‘‘(B) determined on the basis of the re-
sponse to the solicitation that no responsible
private sector source is available to meet the
needs of the executive agency for the perform-
ance of that activity for the executive agency.’’.
(b) STATE DEFINED.—Section 5 is further amended
by adding at the end the following:
‘‘(4) STATE.—The term ‘State’, includes the
District of Columbia, the Commonwealth of Puerto
Rico, and the United States Virgin Islands.’’.
SEC. 7. CHALLENGES TO THE LIST.
(a) MATTERS SUBJECT
TO CHALLENGE.—Section
3(a) is amended by striking ‘‘or an inclusion of a par-
ticular activity on,’’ and inserting ‘‘an inclusion of a par-
ticular activity on, or the classification of any activity on’’.
(b) 
REVISION
OF
DEADLINES.—Section 
is
amended—
(1) in subsection (c), by striking ‘‘30 days’’ and
inserting ‘‘90 working days’’;
(2) in subsection (d), by striking ‘‘28 days’’ and
inserting ‘‘28 working days’’; and
(3) in subsection (e)(2), by striking ‘‘10 days’’
and inserting ‘‘10 working days’’.
(c) PUBLICATION
OF
RESOLUTION
OF
CHAL-
LENGES.—Section 3 is amended by adding at the end the
following:
‘‘(f) PUBLICATION
OF
RESOLUTION
OF
CHAL-
LENGES.—Not later than 30 working days after the head
of an executive agency makes a decision on an appeal
under subsection (e), the head of the executive agency
shall publish in the Federal Register the following:
‘‘(1) FINAL LIST.—A final version of the list
that was challenged.
‘‘(2) SCHEDULE
FOR
REVIEW
OF
LIST.—A
schedule for the review to be conducted of such list
under section 2(d), together with a description of the
intended review.’’.
(d) WORKING DAYS DEFINED.—Section 5 is further
amended by adding at the end the following:
‘‘(5) WORKING DAY.—The term ‘working day’,
in the administration of sections 2 and 3 with re-
spect to a list of an executive agency, means a day
on which the headquarters of the executive agency is
open for the conduct of the executive agency’s busi-
ness.’’.
SEC. 8. PROHIBITION ON CONVERSION TO PERFORMANCE
BY FEDERAL PRISON INDUSTRIES.
Section 4 is amended by adding at the end the fol-
lowing:
‘‘(c) PROHIBITED CONVERSION.—The performance
of an activity of an executive agency that is not an inher-
ently government function may not be converted to per-
formance by a government corporation provided for under
chapter 307 of title 18, United States Code.’’.
SEC. 9. INHERENTLY GOVERNMENTAL FUNCTION NOT TO
INCLUDE RESEARCH AND DEVELOPMENT.
Section 5(2)(C) is amended—
(1) by striking ‘‘or’’ at the end of clause (i);
(2) by striking the period at the end of clause
(ii) and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(iii) the conduct of research and de-
velopment.’’.
SEC. 10. PRIVATE SECTOR SOURCE DEFINED.
Section 5 is further amended by adding at the end
the following:
‘‘(6) PRIVATE SECTOR SOURCE.—The term ‘pri-
vate sector source’ means a person lawfully engaged
in business for profit in the United States.’’.
SEC. 11. REPORT ON PORTABILITY OF FEDERAL PENSION
BENEFITS.
(a) REQUIREMENT.—Not later than 180 days after
the date of the enactment of this Act, the Director of the
Office of Management and Budget shall submit to Con-
gress a report on the portability of Federal pension bene-
fits. The report shall contain—