agency, including, for each function, a brief de-
scription of the work, a determination of the 
dollar value, and the number of new Federal 
employees who were hired or transferred from 
the performance of other functions. 
(C) Any obstacles to assigning new func-
tions to Federal employees, as well as rec-
ommendations for legislation to overcome those 
obstacles. 
(d) PUBLICATION OF REPORTS REQUIRED.—The Di-
rector of the Office of Management and Budget shall 
promptly publish in the Federal Register information 
about obtaining each report prepared under subsection (c), 
including the names, addresses, and telephone numbers of 
the officials from whom the reports may be obtained. The 
reports shall also be made available on a publicly available 
Internet Web site. The Director shall remove proprietary 
and confidential information from reports made available 
pursuant to this section. 
SEC. 7. TRANSITION TO FEDERAL EMPLOYEE PERFORM-
ANCE OF CERTAIN FUNCTIONS. 
(a) REPORT ON FUNCTIONS THAT SHOULD BE PER-
FORMED BY FEDERAL EMPLOYEES.— 
(1) REPORT REQUIRED.—Not later than 180 
days after the date of the enactment of this Act, the 
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head of each executive agency shall submit to the 
Director of the Office of Management and Budget a 
report, to be known as the ‘‘Functions At Risk Re-
port’’, that— 
(A) describes any function that is, in whole 
or in part, an inherently governmental function, 
a function closely related to an inherently gov-
ernmental function, or a mission-essential func-
tion and which, despite the requirement that 
such function only be performed by Federal em-
ployees, is actually performed, in whole or in 
part, by a contractor (in this section referred to 
as an ‘‘at-risk function’’); 
(B) describes the number of contractor em-
ployees performing the function, in whole or in 
part, and the nature of their work; 
(C) includes a plan for ensuring that the 
function is performed by Federal employees; 
(D) identifies any impediments to carrying 
out such plan; and 
(E) includes any recommendations for ad-
ditional legislation necessary to implement this 
section. 
(2) LIMITATION ON DESIGNEE.—The head of 
an affected executive agency may not assign respon-
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sibility for compliance with the report requirement 
established by this subsection below the level of an 
assistant secretary. 
(3) PUBLICATION
OF
REPORTS
REQUIRED.— 
The Director of the Office of Management and 
Budget shall promptly publish in the Federal Reg-
ister information about obtaining each report pre-
pared under paragraph (1), including the names, ad-
dresses, and telephone numbers of the officials from 
whom the reports may be obtained. The reports shall 
also be made available on a publicly available Inter-
net Web site. The Director shall remove proprietary 
and confidential information from reports made 
available pursuant to this section. 
(b) REQUIREMENT TO REDUCE NUMBER OF AT- 
RISK FUNCTIONS.—The head of each executive agency 
shall reduce the total number of contractor employees re-
ported in that executive agency’s Functions At Risk Re-
port by— 
(1) 5 percent within 1 year after the date of the 
enactment of this Act; 
(2) 10 percent within 2 years after the date of 
the enactment of this Act; 
(3) 20 percent within 3 years after the date of 
the enactment of this Act; 
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(4) 40 percent within 4 years after the date of 
the enactment of this Act; 
(5) 60 percent within 5 years after the date of 
the enactment of this Act; and 
(6) 70 percent within 6 years after the date of 
the enactment of this Act. 
(c) EVALUATION OF SCHEDULE.—The Comptroller 
General of the United States shall— 
(1) evaluate the success of the incremental 
schedule required under subsection (b) in ensuring 
that functions that should be performed by Federal 
employees are actually performed by Federal em-
ployees; and 
(2) provide recommendations for future legisla-
tion, particularly with respect to addresses remain-
ing at-risk functions. 
(d) SUSPENSION
OF REDUCTION SCHEDULE RE-
QUIREMENT.—The Director of the Office of Management 
and Budget may suspend the requirement to reduce posi-
tions pursuant to subsection (b) for a particular executive 
agency for a specific period of time upon certifying to the 
Committee on Government Oversight and Reform of the 
House of Representatives and the Committee on Home-
land Security and Governmental Affairs of the Senate that 
compliance during that specific period of time would un-
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dermine national security, homeland security, or patient 
care. 
SEC. 8. ESTABLISHMENT OF INVENTORIES AND REVIEWS 
OF CONTRACTS FOR SERVICES. 
(a) IN GENERAL.—Not later than June 30, 2012, 
and annually thereafter, the head of each executive agency 
subject to the Federal Activities Inventory Reform Act of 
1998 (Public Law 105–270; 31 U.S.C. 1501 note), other 
than the Department of Defense, shall submit to the Di-
rector of the Office of Management and Budget an annual 
inventory of the activities performed during the preceding 
fiscal year pursuant to contracts for services for or on be-
half of such agency. 
(b) CONTENT.—The entry for an activity on an in-
ventory under this section shall include, for the fiscal year 
covered by such entry, the following: 
(1) The functions performed by the contractor. 
(2) Information regarding the contractor, the 
part of the executive agency administering the con-
tract, and the part of the agency whose require-
ments are being met through contractor performance 
of the function. 
(3) The funding source for the contract under 
which the function is performed. 
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