I
106TH CONGRESS
2D SESSION
H. R. 4103
To amend the Federal Activities Inventory Reform Act of 1998 to improve
the process for identifying the functions of the Federal Government
that are not inherently governmental functions, for determining the ap-
propriate organizations for the performance of such functions on the
basis of competition, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 28, 2000
Mr. SESSIONS (for himself and Mr. DUNCAN) introduced the following bill;
which was referred to the Committee on Government Reform
A BILL
To amend the Federal Activities Inventory Reform Act of
1998 to improve the process for identifying the functions
of the Federal Government that are not inherently gov-
ernmental functions, for determining the appropriate or-
ganizations for the performance of such functions on
the basis of competition, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES TO FAIR ACT OF
1998.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Federal Activities Inventory Reform Act Amendments of
2000’’.
(b) REFERENCES.—Except as otherwise expressly
provided, whenever in this Act an amendment or repeal
is expressed in terms of an amendment to, or repeal of,
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Fed-
eral Activities Inventory Reform Act of 1998 (Public Law
105–270; 112 Stat. 2382; 31 U.S.C. 501 note).
SEC. 2. ANNUAL LISTS OF GOVERNMENT ACTIVITIES.
(a) LISTS
TO
INCLUDE
INHERENTLY
GOVERN-
MENTAL ACTIVITIES.—Subsection (a) of section 2 is
amended by inserting before the period at the end of the
first sentence the following: ‘‘and those activities per-
formed by Federal Government sources for the executive
agency that, in that official’s judgment, are inherently
governmental functions’’.
(b) DESCRIPTIVE AND EXPLANATORY MATTERS TO
BE INCLUDED.—Such subsection is further amended—
(1) by redesignating paragraph (3) as para-
graph (5);
(2) by inserting after paragraph (2) the fol-
lowing:
‘‘(3) A description of the activity, including—
‘‘(A) a narrative description of the activity;
‘‘(B) the product or service code, if any,
that would be assigned to the activity under the
Federal Procurement Data System if the activ-
ity were performed in the private sector; and
‘‘(C) the Standard Industrial Classification
code, if any, that would be assigned to the ac-
tivity if the activity were performed in the pri-
vate sector.
‘‘(4) The organization within the executive
agency that is performing the activity, or for which
the activity is performed, and the location of that or-
ganization.’’; and
(3) by adding at the end the following:
‘‘(6) The identity of any provision of law or
other authority that, except for subsection (f), would
expressly or impliedly exempt the executive agency
from the requirements of this section or of Office of
Management and Budget Circular A–76 with respect
to any activity that is not an inherently govern-
mental activity, together with a discussion of the ra-
tionale for that exemption.’’.
(c) DEADLINES FOR PUBLICATION OF LISTS AND
CHANGES.—Subsection (c) of such section is amended—
(1) in paragraph (1)(B), by striking ‘‘promptly’’
and inserting ‘‘, not later than 30 working days
after receiving the list,’’; and
(2) in paragraph (2)(B), by inserting after
‘‘(B)’’ the following: ‘‘not later than 30 working
days after the date of the final decision to make the
change,’’.
SEC. 3. NOTIFICATION OF AFFECTED EMPLOYEES.
Section 2 is further amended by adding at the end
the following:
‘‘(f) NOTIFICATION OF AFFECTED EMPLOYEES.—At
the same time that the Director of the Office of Manage-
ment and Budget publishes a notice of the availability of
a list of an executive agency under subsection (c)(1), the
head of the executive agency shall notify each employee
of the executive agency employed in an activity listed as
not being an inherently governmental function that the ac-
tivity may be converted to performance by a private sector
source.’’.
SEC. 4. COMPETITION REQUIREMENTS.
(a) USE OF COMPETITIVE PROCEDURES.—
(1) REQUIREMENT.—The second sentence of
section 2(d) is amended by striking ‘‘use a competi-
tive process’’ and all that follows and inserting ‘‘se-
lect the source using competitive procedures applica-
ble to the executive agency’s procurements.’’.
(2) COMPETITIVE
PROCEDURES
DEFINED.—
Section 5 is amended by adding at the end the fol-
lowing:
‘‘(3) COMPETITIVE
PROCEDURES.—The term
‘competitive procedures’ has the meaning given that
term in section 2302(2) of title 10, United States
Code, and section 309(b) of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C.
259(b)).’’.
(b) COST COMPARISONS.—Section 2(e) is amended to
read as follows:
‘‘(e) COST COMPARISONS.—
‘‘(1) REALISTIC
AND
FAIR
COST
COMPARI-
SONS.—Before determining to contract with a pri-
vate sector source for the performance of an execu-
tive agency activity on the basis of a comparison of
the costs of procuring services from such a source
with the cost of performing that activity by the exec-
utive agency, the head of the executive agency shall
ensure that—
‘‘(A) the cost comparison was conducted in
accordance with—
‘‘(i) Office of Management and Budg-
et Circular A–76; and
‘‘(ii) any provision of law that is ap-
plicable to the cost comparison, including
(if applicable) title IX of the Federal Prop-
erty and Administrative Services Act of
1949 (40 U.S.C. 541 et seq.) relating to
architectural and engineering services (in-
cluding surveying and mapping services);
‘‘(B) all costs have been considered, includ-
ing the costs of quality assurance, technical
monitoring of the performance of such activity,
liability insurance, employee retirement and dis-
ability benefits, and all other overhead costs;
and
‘‘(C) the costs considered are realistic and
fair.
‘‘(2) EXEMPTION.—Notwithstanding any other
provision of law, the performance of an activity that
is not an inherently governmental function may be
converted to performance by a private sector source
without a cost comparison if the activity is per-
formed by fewer than 10 full-time employees of the
United States (or the equivalent in part-time em-