I
119THCONGRESS
1
STSESSION H. R. 1554
To require that the Federal Government procure from the private sector
the goods and services necessary for the operations and management
of certain Government agencies, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY25, 2025
Mr. B
EANof Florida (for himself, Mr. CLINE, and Mr. STUTZMAN) introduced
the following bill; which was referred to the Committee on Oversight and
Government Reform
A BILL
To require that the Federal Government procure from the
private sector the goods and services necessary for the
operations and management of certain Government agen-
cies, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Freedom from Govern-4
ment Competition Act of 2025’’. 5
SEC. 2. FINDINGS. 6
Congress makes the following findings: 7
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(1) Private sector business concerns, which are 1
free to respond to the private or public demands of 2
the marketplace, constitute the strength of the 3
United States economic system. 4
(2) Competitive private enterprises are the most 5
productive, efficient, and effective sources of goods 6
and services. 7
(3) Unfair Government competition with the 8
private sector of the economy is detrimental to the 9
United States economic system. 10
(4) Unfair Government competition with the 11
private sector of the economy is at an unacceptably 12
high level, both in scope and in dollar volume. 13
(5) Current law and policy have failed to ad-14
dress adequately the problem of unfair Government 15
competition with the private sector of the economy. 16
(6) It is in the public interest that the Federal 17
Government establish a consistent policy to rely on 18
the private sector of the economy to provide goods 19
and services necessary for or beneficial to the oper-20
ation and management of Federal agencies and to 21
avoid unfair Government competition with the pri-22
vate sector of the economy. 23
SEC. 3. DEFINITIONS. 24
In this Act, the term ‘‘agency’’ means— 25
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(1) an executive department as defined by sec-1
tion 101 of title 5, United States Code; 2
(2) a military department as defined by section 3
102 of such title; and 4
(3) an independent establishment as defined by 5
section 104(l) of such title. 6
SEC. 4. PROCUREMENT FROM PRIVATE SOURCES. 7
(a) P
OLICY.—In the process of governing, the Fed-8
eral Government should not compete with its citizens. The 9
competitive enterprise system, characterized by individual 10
freedom and initiative, is the primary source of national 11
economic strength. In recognition of this principle, it has 12
been and continues to be the general policy of the Federal 13
Government— 14
(1) to rely on commercial sources to supply the 15
products and services the Government needs; 16
(2) to refrain from providing a product or serv-17
ice if the product or service can be procured more 18
economically from a commercial source; and 19
(3) to utilize Federal employees to perform in-20
herently governmental functions (as that term is de-21
fined in section 5 of the Federal Activities Inventory 22
Reform Act of 1998 (Public Law 105–270; 112 23
Stat. 2384)). 24
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(b) GENERALRULE.—Except as provided in sub-1
section (c) and notwithstanding any other provision of law, 2
each agency shall obtain all goods and services necessary 3
for or beneficial to the accomplishment of its authorized 4
functions by procurement from private sources. 5
(c) E
XEMPTIONS.—Subsection (b) shall not apply to 6
an agency with respect to goods or services if— 7
(1) the goods or services are required by law to 8
be produced or performed, respectively, by the agen-9
cy; or 10
(2) the head of the agency determines and cer-11
tifies to Congress in accordance with regulations 12
promulgated by the Director of the Office of Man-13
agement and Budget that— 14
(A) Federal Government production, man-15
ufacture, or provision of a good or service is 16
necessary for the national defense or homeland 17
security; 18
(B) a good or service is so critical to the 19
mission of the agency or so inherently govern-20
mental in nature that it is in the public interest 21
to require production or performance, respec-22
tively, by Government employees; or 23
(C) there is no private source capable of 24
providing the good or service. 25
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(d) METHOD OFPROCUREMENT.—The provision of 1
goods and services not exempt by subsection (c)(1) or 2
(c)(2) shall be performed by an entity in the private sector 3
through— 4
(1) the divestiture of Federal involvement in the 5
provision of a good or service; 6
(2) the award of a contract to an entity in the 7
private sector, using competitive procedures, as de-8
fined in section 152 of title 41, United States Code, 9
and section 2302 of title 10, United States Code; or 10
(3) conducting a public-private competitive 11
sourcing analysis in accordance with the procedures 12
established by the Office of Management and Budg-13
et and determining that using the assets, facilities, 14
and performance of the private sector is in the best 15
interest of the United States and that production or 16
performance, respectively, by the private sector pro-17
vides the best value to the taxpayer. 18
(e) C
ONTRACTEDACTIVITIES.—The head of an agen-19
cy may utilize Federal employees to provide goods or serv-20
ices previously provided by an entity in the private sector 21
upon completion of a public-private competitive sourcing 22
analysis described in subsection (d)(3), and after making 23
a determination that the provision of such goods or serv-24
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ices by Federal employees provides the best value to the 1
taxpayer. 2
(f) R
EGULATIONS.—The Director of the Office of 3
Management and Budget shall promulgate such regula-4
tions as the Director considers necessary to carry out this 5
section. In promulgating such regulations, the Director 6
shall assure that any State or territory, or political sub-7
division of a State or territory, complies with the policy 8
and implements the requirements of this section when ex-9
pending Federal funds. 10
SEC. 5. STUDY AND REPORT. 11
The Director of the Office of Management and Budg-12
et, after consultation with the Comptroller General of the 13
United States, shall carry out a study to evaluate the ac-14
tivities carried out in each agency, including those identi-15
fied as commercial and inherently governmental in nature 16
in the inventory prepared pursuant to the Federal Activi-17
ties Inventory Reform Act of 1998 (Public Law 105–270; 18
31 U.S.C. 501 note) and shall transmit a report to the 19
Congress prior to June 30 of each year. The report shall 20
include— 21
(1) an evaluation of the justification for ex-22
empting activities pursuant to section 4(c); and 23
(2) a schedule for the transfer of commercial 24
activities to the private sector, pursuant to section 25
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4(d), to be completed within 5 years after the date 1
on which such report is transmitted to the Congress. 2
Æ
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