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 
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 
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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- 
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-
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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-
ently governmental functions, functions closely related to 
inherently governmental functions, or mission-essential 
functions using any relevant public-private competition 
processes. 
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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, 
a function closely related to an inherently govern-
mental function, or a mission-essential function; 
(2) the contract is not actually an unauthorized 
personal services contract; and 
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(3) performance by employees of the agency of 
the function to be performed by a contractor was ex-
plicitly considered, with particular consideration 
given if such function is comparable to functions al-
ready performed by Federal employees in the execu-
tive agency or another executive agency, either cur-
rently or within the last 10 years. 
(c) REPORTS REQUIRED.— 
(1) IN GENERAL.—Not later than November 1, 
2011, and annually thereafter, the head of each cov-
ered executive agency shall submit to the Director of 
the Office of Management and Budget a report on 
each of the service contracts for new work entered 
into during the previous fiscal year. 
(2) CONTENT.—Each report submitted under 
paragraph (1) shall describe the following: 
(A) Each function or functions performed 
under a contract with a contractor, the approxi-
mate number of employees used by contractors 
under each such contract, the date each such 
contract was entered into, the duration of each 
contract, and each certification required under 
subsection (b). 
(B) Each new function that was assigned 
by the executive agency to employees of the 
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