I 
109TH CONGRESS 
1ST SESSION H. R. 3406 
To protect United States workers from competition of foreign workforces 
for performance of Federal and State contracts. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 22, 2005 
Ms. DELAURO (for herself, Mr. DINGELL, Ms. SOLIS, Mr. KILDEE, Mr. 
BRADY of Pennsylvania, Mr. SANDERS, and Mr. CONYERS) introduced 
the following bill; which was referred to the Committee on Government 
Reform 
A BILL 
To protect United States workers from competition of foreign 
workforces for performance of Federal and State contracts. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘United States Workers 
Protection Act of 2005’’. 
SEC. 2. LIMITATIONS ON OFF-SHORE PERFORMANCE OF 
CONTRACTS. 
(a) LIMITATIONS.—
(1) IN GENERAL.—The Office of Federal Pro-
curement Policy Act (41 U.S.C. 403 et seq.) is 
amended by adding at the end the following new sec-
tion: 
‘‘SEC. 42. LIMITATIONS ON OFF-SHORE PERFORMANCE OF 
CONTRACTS. 
‘‘(a) CONVERSIONS TO CONTRACTOR PERFORMANCE 
OF FEDERAL ACTIVITIES.—An activity or function of an 
executive agency that is converted to contractor perform-
ance under Office of Management and Budget Circular 
A–76 may not be performed by the contractor or any sub-
contractor at a location outside the United States except 
to the extent that such activity or function was previously 
performed by Federal Government employees outside the 
United States. 
‘‘(b) OTHER FEDERAL CONTRACTS.—(1) A contract 
that is entered into by the head of an executive agency 
may not be performed outside the United States except 
to meet a requirement of the executive agency for the con-
tract to be performed specifically at a location outside the 
United States. 
‘‘(2) The prohibition in paragraph (1) does not apply 
in the case of a contract of an executive agency if— 
‘‘(A) the President determines in writing that it 
is necessary in the national security interests of the
United States for the contract to be performed out-
side the United States; or 
‘‘(B) the head of such executive agency makes 
a determination and reports such determination on 
a timely basis to the Director of the Office of Man-
agement and Budget that— 
‘‘(i) the property or services needed by the 
executive agency are available only by means of 
performance of the contract outside the United 
States; and 
‘‘(ii) no property or services available by 
means of performance of the contract inside the 
United States would satisfy the executive agen-
cy’s need. 
‘‘(3) Paragraph (1) does not apply to the perform-
ance of a contract outside the United States under the 
exception provided in subsection (a). 
‘‘(c) STATE CONTRACTS.—(1) Except as provided in 
paragraph (2), funds appropriated for financial assistance 
for a State may not be disbursed to or for such State dur-
ing a fiscal year unless the chief executive of that State 
has transmitted to the Administrator for Federal Procure-
ment Policy, not later than April 1 of the preceding fiscal 
year, a written certification that none of such funds will
be expended for the performance outside the United States 
of contracts entered into by such State. 
‘‘(2) The prohibition on disbursement of funds to or 
for a State under paragraph (1) does not apply with re-
spect to the performance of a State contract outside the 
United States if— 
‘‘(A) the chief executive of such State— 
‘‘(i) determines that the property or serv-
ices needed by the State are available only by 
means of performance of the contract outside 
the United States and no property or services 
available by means of performance of the con-
tract inside the United States would satisfy the 
State’s need; and 
‘‘(ii) transmits a notification of such deter-
mination to the head of the executive agency of 
the United States that administers the author-
ity under which such funds are disbursed to or 
for the State; and 
‘‘(B) the head of the executive agency receiving 
the notification of such determination— 
‘‘(i) confirms that the facts warrant the 
determination; 
‘‘(ii) approves the determination; and
‘‘(iii) transmits a notification of the ap-
proval of the determination to the Director of 
the Office of Management and Budget. 
‘‘(3) In this subsection, the term ‘State’ means each 
of the several States of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, the Virgin 
Islands, Guam, American Samoa, and the Trust Territory 
of the Pacific Islands. 
‘‘(d) INAPPLICABILITY OF LIMITATIONS.—The limi-
tations in subsections (b) and (c) shall not apply to pro-
curement covered by the Agreement on Government Pro-
curement of the World Trade Organization (as described 
in section 101(d)(17) of the Uruguay Round Agreement 
Act (19 U.S.C. 3511(d)(17))). 
‘‘(e) RESPONSIBILITIES OF OMB.—The Director of 
the Office of Management and Budget shall— 
‘‘(1) maintain— 
‘‘(A) the waivers granted under subsection 
(b)(2), together with the determinations and 
certifications on which such waivers were based; 
and 
‘‘(B) the notifications received under sub-
section (c)(2)(B)(iii); and
‘‘(2) submit to Congress promptly after the end 
of each quarter of each fiscal year a report that sets 
forth— 
‘‘(A) the waivers that were granted under 
subsection (b)(2) during such quarter; and 
‘‘(B) the notifications that were received 
under subsection (c)(2)(B)(iii) during such 
quarter. 
‘‘(f) ANNUAL GAO REVIEW.—The Comptroller Gen-
eral shall— 
‘‘(1) review, each fiscal year, the waivers grant-
ed during such fiscal year under subsection (b)(2) 
and the disbursements of funds authorized pursuant 
to the exception in subsection (c)(2); and 
‘‘(2) promptly after the end of such fiscal year, 
transmit to Congress a report containing a list of 
the contracts covered by such waivers and exception 
together with a brief description of the performance 
of each such contract outside the United States.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions in section 1(b) of such Act is amended by add-
ing at the end the following new item: 
‘‘Sec. 42. Limitations on off-shore performance of contracts.’’. 
(b) INAPPLICABILITY
TO STATES DURING FIRST 
TWO FISCAL YEARS.—Section 42(c) of the Office of Fed-
eral Procurement Policy Act (as added by subsection (a))
shall not apply to disbursements of funds to a State dur-
ing the fiscal year in which this Act is enacted and the 
next fiscal year. 
SEC. 3. REPEAL OF SUPERSEDED LAW. 
Section 647 of the Transportation, Treasury, and 
Independent Agencies Appropriations Act, 2004 (division 
F of Public Law 108–199) is amended by striking sub-
section (e). 
SEC. 4. EFFECTIVE DATE AND APPLICABILITY. 
This Act and the amendments made by this Act shall 
take effect 30 days after the date of the enactment of this 
Act and, subject to subsection (b) of section 2, shall apply 
with respect to new contracts entered into on or after such 
date. 
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