be submitted to the Committee on Government Reform of
the House of Representatives and to the Committee on
Governmental Affairs of the Senate.
(f) PUBLICATION.—The Director of the Office of
Management and Budget shall promptly publish in the
Federal Register notices including a description of when
the reports referred to in this section are available to the
public and the names, addresses, and telephone numbers
of the officials from whom the reports may be obtained.
(g) AVAILABILITY ON INTERNET.—After the excision
of proprietary information, the reports referred to in this
section shall be made available through the Internet.
(h) REVIEW.—The Director of the Office of Manage-
ment and Budget shall review the reports referred to in
this section and consult with the head of the agency re-
garding the content of such reports.
SEC. 6. REQUIREMENT FOR PUBLIC-PRIVATE COMPETI-
TION.
(a) IN GENERAL.—After the date of the enactment
of this Act and the expiration of the suspension authority
in section 4 of this Act, any decision by an agency to pri-
vatize, outsource, contract or contract out, including the
exercise of options, extensions, and renewals of any con-
tracting efforts, for the performance of a function shall
be based on the results of a public-private competition
process that—
(1) formally compares the costs of Federal em-
ployee performance of the function with the costs of
the performance by a contractor;
(2) employs the most efficient organization
process described in OMB Circular A–76; and
(3) is conducted in consultation or through bar-
gaining with the exclusive representative of the Fed-
eral employees performing the function, if applicable.
This subsection applies only to contracting efforts under-
taken on or after the date of the enactment of this Act.
(b) DETERMINATION OF COSTS.—(1) An agency shall
commence or continue the performance of a function by
Federal employees if, under a cost comparison performed
pursuant to a public-private competition process described
in subsection (a), the agency determines that at least a
10-percent cost savings would not be achieved by perform-
ance of the function by a contractor.
(2) During the temporary suspension established in
section 4 of this Act, an agency may undertake a con-
tracting effort made pursuant to the issuance of a waiver
granted under section 4 for a function that is not cur-
rently performed by Federal employees if the agency has
determined the total cost to the agency of performing the
function by a contractor and the total cost to the agency
of having those services performed by Federal employees
and that the contractor performance costs are less than
the Federal employee performance costs.
(c) INAPPLICABILITY
OF CERTAIN LIMITATION.—
Notwithstanding any limitation on the number of Federal
employees established by law, regulation, or policy, an
agency may continue to employ, or may hire, such Federal
employees as are necessary to perform work acquired
through public-private competition required by this sec-
tion.
SEC. 7. REVIEW OF CONTRACTOR PERFORMANCE.
(a) IN GENERAL.—If a report completed pursuant to
section 5 indicates that, for 2 consecutive years, the actual
cost of privatization, outsourcing, contracting, or con-
tracting out of a particular function exceeds the antici-
pated cost of contractor performance, based on the award
(referred to in section 5(b)(3)(G)), or fails to substantially
meet quality control standards (referred to in section
5(b)(3)(J)), the agency shall either conduct a new public-
private competition or convert the function to performance
by Federal employees not later than the earlier of the date
of the expiration of the contract or the beginning of the
first fiscal year which is not more than 12 months after
the initial determination that the cost of a contracting ef-
fort exceeds the anticipated cost of contractor performance
or that quality standards have not been substantially met.
Any resulting terminations for convenience may be under-
taken without cost to the United States Government. This
subsection applies only to contracting efforts undertaken
on or after the date of the enactment of this Act.
(b) PUBLIC-PRIVATE COMPETITION.—For each fiscal
year, an agency shall subject to public-private competition
an equivalent number of Federal employee positions and
positions held by non-Federal employees under a contract
between an agency and an individual or entity.
(c) INAPPLICABILITY
OF CERTAIN LIMITATION.—
Notwithstanding any limitation on the number of Federal
employees established by law, regulation, or policy, an
agency may continue to employ or may hire such Federal
employees as are necessary to perform work acquired
through public-private competition required by this sec-
tion.
SEC. 8. SURVEY OF WAGES AND BENEFITS PROVIDED BY
CONTRACTORS.
(a) REQUIREMENT TO CONDUCT SURVEY.—Using
information provided by agencies, the Secretary of Labor
shall conduct a survey of the wages and quantifiable bene-
fits provided by contractors to non-Federal personnel
working in various occupations under contracts between
agencies and individuals or entities that were entered into
during the 2 fiscal years immediately preceding the date
of the enactment of this Act.
(b) REVIEW.—(1) The Director of the Office of Per-
sonnel Management shall—
(A) review the analysis prepared by the Sec-
retary of Labor under subsection (a) and determine
the extent to which the wages and quantifiable bene-
fits paid by contractors are comparable to the wages
and quantifiable benefits earned by Federal employ-
ees; and
(B) issue a report on the findings of the review.
(2) Not later than 180 days after the date of the en-
actment of this Act, the report shall be submitted to the
Committee on Government Reform of the House of Rep-
resentatives and to the Committee on Governmental Af-
fairs of the Senate, and published in the Federal Register.
(c) GUIDANCE.—The Director of the Office of Man-
agement and Budget shall issue guidance to implement
the provisions of this section.
SEC. 9. COMPTROLLER GENERAL REPORTS.
The Comptroller General shall report to the Com-
mittee on Government Reform of the House of Represent-
atives and the Committee on Governmental Affairs of the
Senate every 60 days after the date of the enactment of
this Act on the compliance by agencies with the require-
ments of this Act.
SEC. 10. APPLICABILITY.
This Act does not apply with respect to the following:
(1) The General Accounting Office.
(2) Depot-level maintenance and repair of the
Department of Defense (as defined in section 2460
of title 10, United States Code).
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