1 | 1 | | I |
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2 | 2 | | 119THCONGRESS |
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3 | 3 | | 1 |
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4 | 4 | | STSESSION H. R. 1554 |
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5 | 5 | | To require that the Federal Government procure from the private sector |
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6 | 6 | | the goods and services necessary for the operations and management |
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7 | 7 | | of certain Government agencies, and for other purposes. |
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8 | 8 | | IN THE HOUSE OF REPRESENTATIVES |
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9 | 9 | | FEBRUARY25, 2025 |
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10 | 10 | | Mr. B |
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11 | 11 | | EANof Florida (for himself, Mr. CLINE, and Mr. STUTZMAN) introduced |
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12 | 12 | | the following bill; which was referred to the Committee on Oversight and |
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13 | 13 | | Government Reform |
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14 | 14 | | A BILL |
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15 | 15 | | To require that the Federal Government procure from the |
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16 | 16 | | private sector the goods and services necessary for the |
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17 | 17 | | operations and management of certain Government agen- |
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18 | 18 | | cies, and for other purposes. |
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19 | 19 | | Be it enacted by the Senate and House of Representa-1 |
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20 | 20 | | tives of the United States of America in Congress assembled, 2 |
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21 | 21 | | SECTION 1. SHORT TITLE. 3 |
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22 | 22 | | This Act may be cited as the ‘‘Freedom from Govern-4 |
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23 | 23 | | ment Competition Act of 2025’’. 5 |
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24 | 24 | | SEC. 2. FINDINGS. 6 |
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25 | 25 | | Congress makes the following findings: 7 |
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28 | 28 | | •HR 1554 IH |
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29 | 29 | | (1) Private sector business concerns, which are 1 |
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30 | 30 | | free to respond to the private or public demands of 2 |
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31 | 31 | | the marketplace, constitute the strength of the 3 |
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32 | 32 | | United States economic system. 4 |
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33 | 33 | | (2) Competitive private enterprises are the most 5 |
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34 | 34 | | productive, efficient, and effective sources of goods 6 |
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35 | 35 | | and services. 7 |
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36 | 36 | | (3) Unfair Government competition with the 8 |
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37 | 37 | | private sector of the economy is detrimental to the 9 |
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38 | 38 | | United States economic system. 10 |
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39 | 39 | | (4) Unfair Government competition with the 11 |
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40 | 40 | | private sector of the economy is at an unacceptably 12 |
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41 | 41 | | high level, both in scope and in dollar volume. 13 |
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42 | 42 | | (5) Current law and policy have failed to ad-14 |
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43 | 43 | | dress adequately the problem of unfair Government 15 |
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44 | 44 | | competition with the private sector of the economy. 16 |
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45 | 45 | | (6) It is in the public interest that the Federal 17 |
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46 | 46 | | Government establish a consistent policy to rely on 18 |
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47 | 47 | | the private sector of the economy to provide goods 19 |
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48 | 48 | | and services necessary for or beneficial to the oper-20 |
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49 | 49 | | ation and management of Federal agencies and to 21 |
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50 | 50 | | avoid unfair Government competition with the pri-22 |
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51 | 51 | | vate sector of the economy. 23 |
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52 | 52 | | SEC. 3. DEFINITIONS. 24 |
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53 | 53 | | In this Act, the term ‘‘agency’’ means— 25 |
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56 | 56 | | •HR 1554 IH |
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57 | 57 | | (1) an executive department as defined by sec-1 |
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58 | 58 | | tion 101 of title 5, United States Code; 2 |
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59 | 59 | | (2) a military department as defined by section 3 |
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60 | 60 | | 102 of such title; and 4 |
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61 | 61 | | (3) an independent establishment as defined by 5 |
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62 | 62 | | section 104(l) of such title. 6 |
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63 | 63 | | SEC. 4. PROCUREMENT FROM PRIVATE SOURCES. 7 |
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64 | 64 | | (a) P |
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65 | 65 | | OLICY.—In the process of governing, the Fed-8 |
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66 | 66 | | eral Government should not compete with its citizens. The 9 |
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67 | 67 | | competitive enterprise system, characterized by individual 10 |
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68 | 68 | | freedom and initiative, is the primary source of national 11 |
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69 | 69 | | economic strength. In recognition of this principle, it has 12 |
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70 | 70 | | been and continues to be the general policy of the Federal 13 |
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71 | 71 | | Government— 14 |
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72 | 72 | | (1) to rely on commercial sources to supply the 15 |
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73 | 73 | | products and services the Government needs; 16 |
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74 | 74 | | (2) to refrain from providing a product or serv-17 |
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75 | 75 | | ice if the product or service can be procured more 18 |
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76 | 76 | | economically from a commercial source; and 19 |
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77 | 77 | | (3) to utilize Federal employees to perform in-20 |
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78 | 78 | | herently governmental functions (as that term is de-21 |
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79 | 79 | | fined in section 5 of the Federal Activities Inventory 22 |
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80 | 80 | | Reform Act of 1998 (Public Law 105–270; 112 23 |
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81 | 81 | | Stat. 2384)). 24 |
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84 | 84 | | •HR 1554 IH |
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85 | 85 | | (b) GENERALRULE.—Except as provided in sub-1 |
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86 | 86 | | section (c) and notwithstanding any other provision of law, 2 |
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87 | 87 | | each agency shall obtain all goods and services necessary 3 |
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88 | 88 | | for or beneficial to the accomplishment of its authorized 4 |
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89 | 89 | | functions by procurement from private sources. 5 |
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90 | 90 | | (c) E |
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91 | 91 | | XEMPTIONS.—Subsection (b) shall not apply to 6 |
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92 | 92 | | an agency with respect to goods or services if— 7 |
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93 | 93 | | (1) the goods or services are required by law to 8 |
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94 | 94 | | be produced or performed, respectively, by the agen-9 |
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95 | 95 | | cy; or 10 |
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96 | 96 | | (2) the head of the agency determines and cer-11 |
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97 | 97 | | tifies to Congress in accordance with regulations 12 |
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98 | 98 | | promulgated by the Director of the Office of Man-13 |
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99 | 99 | | agement and Budget that— 14 |
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100 | 100 | | (A) Federal Government production, man-15 |
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101 | 101 | | ufacture, or provision of a good or service is 16 |
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102 | 102 | | necessary for the national defense or homeland 17 |
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103 | 103 | | security; 18 |
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104 | 104 | | (B) a good or service is so critical to the 19 |
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105 | 105 | | mission of the agency or so inherently govern-20 |
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106 | 106 | | mental in nature that it is in the public interest 21 |
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107 | 107 | | to require production or performance, respec-22 |
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108 | 108 | | tively, by Government employees; or 23 |
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109 | 109 | | (C) there is no private source capable of 24 |
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110 | 110 | | providing the good or service. 25 |
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113 | 113 | | •HR 1554 IH |
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114 | 114 | | (d) METHOD OFPROCUREMENT.—The provision of 1 |
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115 | 115 | | goods and services not exempt by subsection (c)(1) or 2 |
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116 | 116 | | (c)(2) shall be performed by an entity in the private sector 3 |
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117 | 117 | | through— 4 |
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118 | 118 | | (1) the divestiture of Federal involvement in the 5 |
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119 | 119 | | provision of a good or service; 6 |
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120 | 120 | | (2) the award of a contract to an entity in the 7 |
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121 | 121 | | private sector, using competitive procedures, as de-8 |
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122 | 122 | | fined in section 152 of title 41, United States Code, 9 |
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123 | 123 | | and section 2302 of title 10, United States Code; or 10 |
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124 | 124 | | (3) conducting a public-private competitive 11 |
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125 | 125 | | sourcing analysis in accordance with the procedures 12 |
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126 | 126 | | established by the Office of Management and Budg-13 |
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127 | 127 | | et and determining that using the assets, facilities, 14 |
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128 | 128 | | and performance of the private sector is in the best 15 |
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129 | 129 | | interest of the United States and that production or 16 |
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130 | 130 | | performance, respectively, by the private sector pro-17 |
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131 | 131 | | vides the best value to the taxpayer. 18 |
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132 | 132 | | (e) C |
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133 | 133 | | ONTRACTEDACTIVITIES.—The head of an agen-19 |
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134 | 134 | | cy may utilize Federal employees to provide goods or serv-20 |
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135 | 135 | | ices previously provided by an entity in the private sector 21 |
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136 | 136 | | upon completion of a public-private competitive sourcing 22 |
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137 | 137 | | analysis described in subsection (d)(3), and after making 23 |
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138 | 138 | | a determination that the provision of such goods or serv-24 |
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141 | 141 | | •HR 1554 IH |
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142 | 142 | | ices by Federal employees provides the best value to the 1 |
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143 | 143 | | taxpayer. 2 |
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144 | 144 | | (f) R |
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145 | 145 | | EGULATIONS.—The Director of the Office of 3 |
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146 | 146 | | Management and Budget shall promulgate such regula-4 |
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147 | 147 | | tions as the Director considers necessary to carry out this 5 |
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148 | 148 | | section. In promulgating such regulations, the Director 6 |
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149 | 149 | | shall assure that any State or territory, or political sub-7 |
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150 | 150 | | division of a State or territory, complies with the policy 8 |
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151 | 151 | | and implements the requirements of this section when ex-9 |
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152 | 152 | | pending Federal funds. 10 |
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153 | 153 | | SEC. 5. STUDY AND REPORT. 11 |
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154 | 154 | | The Director of the Office of Management and Budg-12 |
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155 | 155 | | et, after consultation with the Comptroller General of the 13 |
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156 | 156 | | United States, shall carry out a study to evaluate the ac-14 |
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157 | 157 | | tivities carried out in each agency, including those identi-15 |
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158 | 158 | | fied as commercial and inherently governmental in nature 16 |
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159 | 159 | | in the inventory prepared pursuant to the Federal Activi-17 |
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160 | 160 | | ties Inventory Reform Act of 1998 (Public Law 105–270; 18 |
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161 | 161 | | 31 U.S.C. 501 note) and shall transmit a report to the 19 |
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162 | 162 | | Congress prior to June 30 of each year. The report shall 20 |
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163 | 163 | | include— 21 |
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164 | 164 | | (1) an evaluation of the justification for ex-22 |
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165 | 165 | | empting activities pursuant to section 4(c); and 23 |
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166 | 166 | | (2) a schedule for the transfer of commercial 24 |
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167 | 167 | | activities to the private sector, pursuant to section 25 |
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170 | 170 | | •HR 1554 IH |
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171 | 171 | | 4(d), to be completed within 5 years after the date 1 |
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172 | 172 | | on which such report is transmitted to the Congress. 2 |
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173 | 173 | | Æ |
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