Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1554 Compare Versions

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11 I
22 119THCONGRESS
33 1
44 STSESSION H. R. 1554
55 To require that the Federal Government procure from the private sector
66 the goods and services necessary for the operations and management
77 of certain Government agencies, and for other purposes.
88 IN THE HOUSE OF REPRESENTATIVES
99 FEBRUARY25, 2025
1010 Mr. B
1111 EANof Florida (for himself, Mr. CLINE, and Mr. STUTZMAN) introduced
1212 the following bill; which was referred to the Committee on Oversight and
1313 Government Reform
1414 A BILL
1515 To require that the Federal Government procure from the
1616 private sector the goods and services necessary for the
1717 operations and management of certain Government agen-
1818 cies, and for other purposes.
1919 Be it enacted by the Senate and House of Representa-1
2020 tives of the United States of America in Congress assembled, 2
2121 SECTION 1. SHORT TITLE. 3
2222 This Act may be cited as the ‘‘Freedom from Govern-4
2323 ment Competition Act of 2025’’. 5
2424 SEC. 2. FINDINGS. 6
2525 Congress makes the following findings: 7
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2929 (1) Private sector business concerns, which are 1
3030 free to respond to the private or public demands of 2
3131 the marketplace, constitute the strength of the 3
3232 United States economic system. 4
3333 (2) Competitive private enterprises are the most 5
3434 productive, efficient, and effective sources of goods 6
3535 and services. 7
3636 (3) Unfair Government competition with the 8
3737 private sector of the economy is detrimental to the 9
3838 United States economic system. 10
3939 (4) Unfair Government competition with the 11
4040 private sector of the economy is at an unacceptably 12
4141 high level, both in scope and in dollar volume. 13
4242 (5) Current law and policy have failed to ad-14
4343 dress adequately the problem of unfair Government 15
4444 competition with the private sector of the economy. 16
4545 (6) It is in the public interest that the Federal 17
4646 Government establish a consistent policy to rely on 18
4747 the private sector of the economy to provide goods 19
4848 and services necessary for or beneficial to the oper-20
4949 ation and management of Federal agencies and to 21
5050 avoid unfair Government competition with the pri-22
5151 vate sector of the economy. 23
5252 SEC. 3. DEFINITIONS. 24
5353 In this Act, the term ‘‘agency’’ means— 25
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5757 (1) an executive department as defined by sec-1
5858 tion 101 of title 5, United States Code; 2
5959 (2) a military department as defined by section 3
6060 102 of such title; and 4
6161 (3) an independent establishment as defined by 5
6262 section 104(l) of such title. 6
6363 SEC. 4. PROCUREMENT FROM PRIVATE SOURCES. 7
6464 (a) P
6565 OLICY.—In the process of governing, the Fed-8
6666 eral Government should not compete with its citizens. The 9
6767 competitive enterprise system, characterized by individual 10
6868 freedom and initiative, is the primary source of national 11
6969 economic strength. In recognition of this principle, it has 12
7070 been and continues to be the general policy of the Federal 13
7171 Government— 14
7272 (1) to rely on commercial sources to supply the 15
7373 products and services the Government needs; 16
7474 (2) to refrain from providing a product or serv-17
7575 ice if the product or service can be procured more 18
7676 economically from a commercial source; and 19
7777 (3) to utilize Federal employees to perform in-20
7878 herently governmental functions (as that term is de-21
7979 fined in section 5 of the Federal Activities Inventory 22
8080 Reform Act of 1998 (Public Law 105–270; 112 23
8181 Stat. 2384)). 24
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8585 (b) GENERALRULE.—Except as provided in sub-1
8686 section (c) and notwithstanding any other provision of law, 2
8787 each agency shall obtain all goods and services necessary 3
8888 for or beneficial to the accomplishment of its authorized 4
8989 functions by procurement from private sources. 5
9090 (c) E
9191 XEMPTIONS.—Subsection (b) shall not apply to 6
9292 an agency with respect to goods or services if— 7
9393 (1) the goods or services are required by law to 8
9494 be produced or performed, respectively, by the agen-9
9595 cy; or 10
9696 (2) the head of the agency determines and cer-11
9797 tifies to Congress in accordance with regulations 12
9898 promulgated by the Director of the Office of Man-13
9999 agement and Budget that— 14
100100 (A) Federal Government production, man-15
101101 ufacture, or provision of a good or service is 16
102102 necessary for the national defense or homeland 17
103103 security; 18
104104 (B) a good or service is so critical to the 19
105105 mission of the agency or so inherently govern-20
106106 mental in nature that it is in the public interest 21
107107 to require production or performance, respec-22
108108 tively, by Government employees; or 23
109109 (C) there is no private source capable of 24
110110 providing the good or service. 25
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114114 (d) METHOD OFPROCUREMENT.—The provision of 1
115115 goods and services not exempt by subsection (c)(1) or 2
116116 (c)(2) shall be performed by an entity in the private sector 3
117117 through— 4
118118 (1) the divestiture of Federal involvement in the 5
119119 provision of a good or service; 6
120120 (2) the award of a contract to an entity in the 7
121121 private sector, using competitive procedures, as de-8
122122 fined in section 152 of title 41, United States Code, 9
123123 and section 2302 of title 10, United States Code; or 10
124124 (3) conducting a public-private competitive 11
125125 sourcing analysis in accordance with the procedures 12
126126 established by the Office of Management and Budg-13
127127 et and determining that using the assets, facilities, 14
128128 and performance of the private sector is in the best 15
129129 interest of the United States and that production or 16
130130 performance, respectively, by the private sector pro-17
131131 vides the best value to the taxpayer. 18
132132 (e) C
133133 ONTRACTEDACTIVITIES.—The head of an agen-19
134134 cy may utilize Federal employees to provide goods or serv-20
135135 ices previously provided by an entity in the private sector 21
136136 upon completion of a public-private competitive sourcing 22
137137 analysis described in subsection (d)(3), and after making 23
138138 a determination that the provision of such goods or serv-24
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142142 ices by Federal employees provides the best value to the 1
143143 taxpayer. 2
144144 (f) R
145145 EGULATIONS.—The Director of the Office of 3
146146 Management and Budget shall promulgate such regula-4
147147 tions as the Director considers necessary to carry out this 5
148148 section. In promulgating such regulations, the Director 6
149149 shall assure that any State or territory, or political sub-7
150150 division of a State or territory, complies with the policy 8
151151 and implements the requirements of this section when ex-9
152152 pending Federal funds. 10
153153 SEC. 5. STUDY AND REPORT. 11
154154 The Director of the Office of Management and Budg-12
155155 et, after consultation with the Comptroller General of the 13
156156 United States, shall carry out a study to evaluate the ac-14
157157 tivities carried out in each agency, including those identi-15
158158 fied as commercial and inherently governmental in nature 16
159159 in the inventory prepared pursuant to the Federal Activi-17
160160 ties Inventory Reform Act of 1998 (Public Law 105–270; 18
161161 31 U.S.C. 501 note) and shall transmit a report to the 19
162162 Congress prior to June 30 of each year. The report shall 20
163163 include— 21
164164 (1) an evaluation of the justification for ex-22
165165 empting activities pursuant to section 4(c); and 23
166166 (2) a schedule for the transfer of commercial 24
167167 activities to the private sector, pursuant to section 25
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171171 4(d), to be completed within 5 years after the date 1
172172 on which such report is transmitted to the Congress. 2
173173 Æ
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