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‘‘(D) determines whether the submitted offers
meet the needs of the executive agency with respect to
factors other than cost, including quality, reliability,
and timeliness;
‘‘(E) examines the cost of performance of the
function by agency civilian employees and the cost of
performance of the function by one or more contrac-
tors to demonstrate whether converting to performance
by a contractor will result in savings to the Govern-
ment over the life of the contract, including—
‘‘(i) the estimated cost to the Government
(based on offers received) for performance of the
function by a contractor;
‘‘(ii) the estimated cost to the Government
for performance of the function by agency civil-
ian employees; and
‘‘(iii) an estimate of all other costs and ex-
penditures that the Government would incur be-
cause of the award of such a contract;
‘‘(F) requires continued performance of the func-
tion by agency civilian employees unless the difference
in the cost of performance of the function by a con-
tractor compared to the cost of performance of the
function by agency civilian employees would, over all
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performance periods required by the solicitation, be
equal to or exceed the lesser of—
‘‘(i) 10 percent of the personnel-related costs
for performance of that function in the agency
tender; or
‘‘(ii) $10,000,000; and
‘‘(G) examines the effect of performance of the
function by a contractor on the agency mission asso-
ciated with the performance of the function.
‘‘(2) A function that is performed by the executive
agency and is reengineered, reorganized, modernized, up-
graded, expanded, or changed to become more efficient, but
still essentially provides the same service, shall not be con-
sidered a new requirement.
‘‘(3) In no case may a function being performed by
executive agency personnel be—
‘‘(A) modified, reorganized, divided, or in any
way changed for the purpose of exempting the conver-
sion of the function from the requirements of this sec-
tion; or
‘‘(B) converted to performance by a contractor to
circumvent a civilian personnel ceiling.
‘‘(b) REQUIREMENT TO CONSULT EMPLOYEES.—(1)
Each civilian employee of an executive agency responsible
for determining under Office of Management and Budget
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Circular A–76 whether to convert to contractor performance
any function of the executive agency—
‘‘(A) shall, at least monthly during the develop-
ment and preparation of the performance work state-
ment and the management efficiency study used in
making that determination, consult with civilian em-
ployees who will be affected by that determination
and consider the views of such employees on the devel-
opment and preparation of that statement and that
study; and
‘‘(B) may consult with such employees on other
matters relating to that determination.
‘‘(2)(A) In the case of employees represented by a labor
organization accorded exclusive recognition under section
7111 of title 5, consultation with representatives of that
labor organization shall satisfy the consultation require-
ment in paragraph (1).
‘‘(B) In the case of employees other than employees re-
ferred to in subparagraph (A), consultation with appro-
priate representatives of those employees shall satisfy the
consultation requirement in paragraph (1).
‘‘(C) The head of each executive agency shall prescribe
regulations to carry out this subsection. The regulations
shall include provisions for the selection or designation of
appropriate representatives of employees referred to in