Unsustainable Procurements Act of 2009’’ or the 
‘‘CLEAN-UP Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
Sec. 3. Findings. 
Sec. 4. Purposes. 
Sec. 5. General personnel policy. 
Sec. 6. Consideration of in-house performance required for new work. 
Sec. 7. Transition to Federal employee performance of certain functions. 
Sec. 8. Establishment of inventories and reviews of contracts for services. 
Sec. 9. Identifying and addressing shortages of Federal employees. 
Sec. 10. Expedited hiring authority for performance of certain functions by 
Federal employees. 
Sec. 11. Establishment of business process reengineering projects as a pre-
ferred alternative to the OMB Circular A–76 process. 
Sec. 12. Reforms to the OMB Circular A–76 process. 
Sec. 13. Establishment of temporary suspension on use of OMB Circular A–76 
process until reforms required in this Act have been substan-
tially implemented. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) 
INHERENTLY
GOVERNMENTAL
FUNC-
TIONS.—The term ‘‘inherently governmental func-
tions’’ has the meaning given the term under section 
5 of the Federal Activities Inventory Act of 1998 
(31 U.S.C. 501 note) and subpart 7.5 of part 7 of 
the Federal Acquisition Regulation. 
(2) FUNCTIONS CLOSELY ASSOCIATED WITH IN-
HERENTLY GOVERNMENTAL FUNCTIONS.—The term 
‘‘functions closely associated with inherently govern-
mental functions’’ means the functions described in 
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section 7.503(d) of the Federal Acquisition Regula-
tion that are recurring. 
(3) 
MISSION-ESSENTIAL
FUNCTIONS.—The 
term ‘‘mission-essential functions’’ refers to func-
tions that, although neither necessarily inherently 
governmental nor necessarily closely related to an in-
herently governmental function, are nevertheless 
considered by executive agency officials to be more 
appropriate for performance by Federal employees. 
(4) 
BUSINESS
PROCESS
REENGINEERING 
PROJECT.—The 
term 
‘‘business 
process 
re-
engineering project’’ refers to a process whereby an 
existing organization is reinvented, consolidated, or 
expanded to result in a new organization whose per-
formance exceeds that of previous and comparable 
performers, whether performed by Federal employ-
ees or contractors or a combination of Federal em-
ployees and contractors. 
(5) EXECUTIVE AGENCY.—The term ‘‘executive 
agency’’ has the meaning given the term in section 
4 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403). 
(6) 
PERSONAL
SERVICES
CONTRACT.—The 
term ‘‘personal services contract’’ has the meaning 
given to the term under section 37.104 of the Fed-
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eral Acquisition Regulation, unless the functions to 
be performed under the contract are included in 
statutory exceptions, including sections 1296 and 
1091 of title 10, United States Code. 
(7) STANDARD
STUDY.—The term ‘‘standard 
study’’ has the meaning given to the specific type of 
cost-comparison study outlined in attachment B in 
the OMB Circular A–76 process, as revised in May 
2003. 
SEC. 3. FINDINGS. 
Congress makes the following findings: 
(1) Functions that should have been performed 
by Federal employees because they are inherently 
governmental functions, functions that are closely 
related to inherently governmental functions and re-
curring, or mission-essential functions have been 
wrongly outsourced, including preparing budgets, de-
veloping policy, supporting acquisition, developing 
and interpreting regulations, developing reorganiza-
tions, and developing and implementing ‘‘competitive 
sourcing’’ plans. 
(2) Federal agencies have been pushed to 
outsource significant amounts of work with little 
competition, while Federal employees, despite having 
won 83 percent of the OMB Circular A–76 privat-
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ization reviews conducted since the circular was re-
vised in 2003, are rarely given opportunities to per-
form new work or outsourced work. 
(3) The capacity of the Federal Government to 
oversee contractors and the OMB Circular A–76 pri-
vatization process continues to decline, as dem-
onstrated in scandals involving reconstruction efforts 
in Iraq, Hurricane Katrina recovery efforts, and 
conditions at Walter Reed Army Medical Center. 
The Government Accountability Office (GAO), in 
two 2008 reports on the use of ‘‘competitive 
sourcing’’ in different agencies, determined that 
costs of A–76 privatization reviews often exceeded 
savings because of systematically bad direction from 
the Office of Management and Budget. In the latter 
report, on the Department of Labor, GAO wrote, 
‘‘Without a better system to assess performance and 
track all of the costs associated with competitive 
sourcing, DoL cannot reliably assess whether com-
petitive sourcing truly provides the best deal for the 
taxpayers.’’. 
(4) The OMB Circular A–76 process retains 
fundamental inequities. The minimum cost differen-
tial fails to take into account the quantifiable costs 
(such as hiring consultants and diverting Federal 
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employees from their regular duties) of carrying out 
A–76 privatization studies. All in-house bids are 
charged 12 percent of their personnel costs for over-
head costs, even though a Department of Defense 
Inspector General study revealed that overhead costs 
may not differ significantly, if at all, whether the 
functions are kept in-house or contracted out, even 
in the case of studies of large numbers of Federal 
employees. Despite time limits established in law 
and as part of the OMB Circular process A–76 proc-
ess, privatization studies are allowed to continue in-
definitely. The longer an A–76 privatization study 
lasts, the more it costs to conduct, the less likely 
there are to be savings from that study, and the 
more likely it will cost taxpayers more than it will 
save. In fact, given the costs and controversies asso-
ciated with the OMB Circular A–76 privatization 
process, OMB should be encouraging agencies to use 
internal reengineering efforts, as OMB finally did, 
during the last year of George W. Bush’s presidency. 
SEC. 4. PURPOSES. 
The purposes of this Act are as follows: 
(1) To build upon the foundation established by 
the 110th Congress that suspended the use of the 
OMB Circular A–76 privatization process, required 
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all executive agencies to develop policies to promote 
the insourcing of new work and outsourced work, 
and required the Department of Defense to develop 
a comprehensive inventory of its service contracts. 
(2) To establish a policy that provides that— 
(A) Federal employees must perform inher-
ently governmental functions, functions closely 
related to inherently governmental functions, 
and mission essential functions; 
(B) other functions may be performed by 
Federal employees or contractors, depending on 
the needs of executive agencies and all relevant 
public-private competition requirements; and 
(C) Federal employees should not be sub-
ject to headcounts, personnel ceilings, or con-
straints, which force executive agencies to con-
tract out functions without public-private com-
petition. 
(3) To prevent executive agencies from con-
tracting out new functions if those new functions 
should be performed by Federal employees and re-
quire agencies to explain in annual reports to Con-
gress why functions ultimately contracted out were 
not considered for performance by Federal employ-
ees. 
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(4) To require executive agencies— 
(A) to determine which of their functions 
must actually be performed by Federal employ-
ees because the work is inherently govern-
mental, closely related to inherently govern-
mental work, or mission essential, and how 
many contractor employees are currently per-
forming those functions; 
(B) to report on how wrongly contracted 
out work will be insourced; and 
(C) to incrementally insource over several 
years 70 percent of the wrongly contracted out 
workload. 
(5) To require civilian agencies to establish in-
ventories to track the cost and quality, among other 
features, of specific contracts, based on the inven-
tory that the 110th Congress required the Depart-
ment of Defense to establish. 
(6) To require executive agencies to determine 
if they are now experiencing or will experience short-
ages of Federal employees and what their plans are 
for addressing these personnel shortfalls. 
(7) To encourage the use of a regulated alter-
native to the often costly and controversial OMB 
Circular A–76 process, including business process 
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reengineering, which is commonly used by executive 
agencies to generate efficiencies through internal re-
organizations. 
(8) To direct the President to undertake several 
reforms of the OMB Circular A–76 privatization 
process, including imposing time limitations on how 
long privatization studies can last, charging in-house 
bids only for actual overhead costs, and considering 
quantifiable costs of conducting A–76 privatization 
studies in the minimum differential. 
(9) To impose a temporary suspension on the 
use of the OMB Circular A–76 privatization process 
until the reforms required by this Act have been 
substantially implemented, consistent with the tem-
porary suspension on the same process enacted in 
the 110th Congress. 
SEC. 5. GENERAL PERSONNEL POLICY. 
(a) REQUIRED PERFORMANCE OF INHERENTLY GOV-
ERNMENTAL FUNCTIONS
BY FEDERAL EMPLOYEES.— 
The head of each executive agency shall ensure that inher-
ently governmental functions, functions closely related to 
inherently governmental functions, and mission-essential 
functions are performed by Federal employees. 
(b) PERFORMANCE OF OTHER FUNCTIONS BY MORE 
EFFICIENT WORKFORCE IN ACCORDANCE WITH PUBLIC- 
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PRIVATE COMPETITION REQUIREMENTS.—The head of 
each executive agency shall ensure that functions that are 
not inherently governmental functions, functions closely 
related to inherently governmental functions, or mission- 
essential functions are performed by the more efficient 
form of personnel, whether Federal employees, contrac-
tors, or, in the case of the Department of Defense, mili-
tary personnel, consistent with requirements for quality 
and reliability and other needs of that executive agency 
and with all public-private competition requirements. 
(c) USE OF MOST EFFICIENT WORKFORCE.—Not-
withstanding any other provision of law, the heads of exec-
utive agencies shall not be constrained by any in-house 
personnel ceiling, headcount, or staffing limitation in en-
suring that functions are performed in the most efficient 
manner possible. 
(d) 
SHIFTING
FUNCTIONS
BETWEEN 
WORKFORCES.—In developing personnel authorization re-
quests to Congress and in carrying out personnel policies 
generally, the head of each executive agency shall consider 
particularly the advantages of converting from one form 
of personnel (Federal or private contract personnel, or in 
the case of the Department of Defense, Federal, private 
contract, or military personnel) to another form of per-
sonnel for the performance of functions that are not inher-
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ently governmental functions, functions closely related to 
inherently governmental functions, or mission-essential 
functions using any relevant public-private competition 
processes. 
SEC. 6. CONSIDERATION OF IN-HOUSE PERFORMANCE RE-
QUIRED FOR NEW WORK. 
(a) FINDING.—Pursuant to section 739 of the Finan-
cial Services and General Government Appropriations Act, 
2008 (division D of Public Law 110–161; 31 U.S.C. 501 
note) each covered executive agency is required to devise 
and implement guidelines and procedures to ensure that 
consideration is given to using, on a regular basis, Federal 
employees to perform new functions. 
(b) CERTIFICATION REQUIRED BEFORE AWARDING 
A SERVICE CONTRACT.—The Chief Acquisition Officer of 
each executive agency, or, if no such position exists, the 
executive agency’s representative on the Chief Acquisition 
Officers Council, shall, with respect to each service con-
tract entered into by such agency for the performance of 
a function or functions, including the award or placement 
of a task or delivery order or the exercise of an option 
under an existing contract, certify, together with sup-
porting rationales, that— 
(1) each function to be performed under such 
contract is not an inherently governmental function, 
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