[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3766 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 3766

 To ensure that the business of the Federal Government is conducted in 
     the public interest and in a manner that provides for public 
    accountability, efficient delivery of services, reasonable cost 
  savings, and prevention of unwarranted Government expenses, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 29, 2000

  Mr. Wynn (for himself, Mr. Kanjorski, Mr. Bonior, Mr. Conyers, Mr. 
   Waxman, Mr. Dixon, Mr. Lantos, Mr. Towns, Mr. Sabo, Mr. Lewis of 
   Georgia, Ms. DeLauro, Mr. Strickland, Mr. Frost, Mr. Kildee, Mr. 
  Pallone, Ms. McKinney, Mr. Kucinich, Mr. Filner, Mr. Cummings, Mr. 
Brown of Ohio, Mr. Andrews, Ms. Norton, Mr. Hill of Indiana, Mr. Ford, 
   Ms. Schakowsky, Mr. Abercrombie, Mr. Thompson of Mississippi, Ms. 
   Kaptur, Mr. Davis of Illinois, Ms. Roybal-Allard, Mr. Bishop, Mr. 
Underwood, Mrs. Jones of Ohio, Mr. Capuano, Mr. Sanders, Mr. Dicks, Mr. 
    Klink, Mr. Frank of Massachusetts, Mr. Fattah, Mr. Dingell, Mr. 
  Tierney, Mr. Shows, Ms. Brown of Florida, Mr. Kind, Ms. Rivers, Mr. 
  Owens, Mr. Hinchey, Mr. Gutierrez, Mr. Hilliard, Ms. Stabenow, Ms. 
   Kilpatrick, Mr. Menendez, Mr. Evans, Mr. Hoyer, Mr. Mascara, Mr. 
Jackson of Illinois, Ms. Carson, Mr. Baldacci, Mr. Levin, Mr. Becerra, 
    Ms. Hooley of Oregon, Mr. Rush, and Mr. Stupak) introduced the 
   following bill; which was referred to the Committee on Government 
                                 Reform

_______________________________________________________________________

                                 A BILL


 
 To ensure that the business of the Federal Government is conducted in 
     the public interest and in a manner that provides for public 
    accountability, efficient delivery of services, reasonable cost 
  savings, and prevention of unwarranted Government expenses, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Truthfulness, 
Responsibility, and Accountability in Contracting Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Temporary suspension of new contracting out, privatization, 
                            outsourcing, contracting, and other such 
                            initiatives; waiver authority.
Sec. 5. Agency reporting systems and required reports.
Sec. 6. Requirement for public-private competition.
Sec. 7. Review of contractor performance.
Sec. 8. Survey of wages and benefits provided by contractors.
Sec. 9. Comptroller General reports.
Sec. 10. Applicability.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) There has been a major increase in service contracting 
        (relying on private contractors to provide services to the 
        Federal Government) since 1993.
            (2) Federal agencies have been increasing reliance on 
        service contracting even though there are no reliable and 
        comprehensive reporting systems in place to determine whether 
        service contracting has achieved measurable cost savings or 
        improved Government services for taxpayers.
            (3) Federal agencies have contracted out work that either 
        is being performed or could be performed by Federal employees 
        without any public-private competition.
            (4) Federal employees are being replaced by contractor 
        employees without even knowing with certainty if the result is 
        reduced costs or improved services.
            (5) Federal agencies do not have systems in place to 
        provide for work currently performed by Federal contractors to 
        be performed by Federal employees, even after a determination 
        that in-house performance would be more efficient and more cost 
        effective.
            (6) Arbitrary personnel ceilings, used to reduce the size 
        of the Federal workforce, are--
                    (A) forcing agencies to lay off Federal employees 
                who could perform at least some of this work 
                effectively and at a savings to the taxpayer;
                    (B) preventing agencies from hiring new Federal 
                employees who could perform this work effectively and 
                at a savings to taxpayers; and
                    (C) forcing agencies to give work to private 
                contractors without any public-private competition, 
                often at higher costs.
            (7) Public-private competition must be used equitably in 
        order to be fair to both taxpayers and Federal employees.
            (8) It would be in the best interests of taxpayers if 
        Federal contractors faced the same level of public-private 
        competition as that experienced by Federal employees, 
        especially when it has been reliably determined that the 
        Federal contractor workforce is almost twice as large as the 
        Federal employee workforce.
            (9) In order to satisfactorily address these serious 
        problems, Federal service contracting should be temporarily 
        suspended.
            (10) This suspension should affect only new contracts, and 
        include a waiver to allow agencies to enter into new contracts 
        in certain circumstances in order to preclude any serious 
        Federal Government disruption.
    (b) Purposes.--The purposes of this Act are to--
            (1) improve the ability of the Federal Government to carry 
        out its mission and perform its business in the public interest 
        in a cost-effective manner; and
            (2) temporarily suspend new Federal service contracting 
        until agencies have--
                    (A) established comprehensive and reliable 
                reporting systems to track the costs of service 
                contracting;
                    (B) prevented work from being given to contractors 
                without public-private competitions; and
                    (C) subjected work performed by Federal contractors 
                to the same level of public-private competition as that 
                experienced by Federal employees.

SEC. 3. DEFINITIONS.

    As used in this Act:
            (1) The term ``employee'' means any individual employed--
                    (A) as a civilian in a military department (as 
                defined in section 102 of title 5, United States Code);
                    (B) in an executive agency (as defined in section 
                105 of title 5, United States Code), including an 
                employee who is paid from nonappropriated funds;
                    (C) in those units of the legislative and judicial 
                branches of the Federal Government having positions in 
                the competitive service;
                    (D) in the Library of Congress;
                    (E) in the Government Printing Office; or
                    (F) by the Governors of the Federal Reserve System.
            (2) The term ``agency'' means any department, agency, 
        bureau, commission, activity, or organization of the United 
        States, that employs an employee (as defined in paragraph (1)).
            (3) The term ``non-Federal personnel'' means employed 
        individuals who are not employees, as defined in paragraph (1).
            (4) The term ``contractor'' means an individual or entity 
        that performs a function for an agency under a contract with 
        non-Federal personnel.
            (5) The term ``privatization'' means the end result of the 
        decision of an agency to exit a business line, terminate an 
        activity, or sell Government owned assets or operational 
        capabilities to the non-Federal sector.
            (6) The term ``outsourcing'' means the end result of the 
        decision of an agency to acquire services from external 
        sources, either from a non-Federal source or through 
        interservice support agreements, through a contract.
            (7) The term ``contracting out'' means the conversion by an 
        agency of the performance of a function to the performance by a 
        non-Federal employee under a contract between an agency and an 
        individual or other entity.
            (8) The term ``contracting in'' is the conversion of the 
        performance of a function by non-Federal employees under a 
        contract between an agency and an individual or other entity to 
        the performance by employees.
            (9) The term ``contracting'' means the performance of a 
        function by non-Federal employees under a contract between an 
        agency and an individual or other entity. The term 
        ``contracting'', as used throughout this Act, includes 
        privatization, outsourcing, contracting out, and contracting, 
        unless otherwise specifically provided.

SEC. 4. TEMPORARY SUSPENSION OF NEW CONTRACTING OUT, PRIVATIZATION, 
              OUTSOURCING, CONTRACTING, AND OTHER SUCH INITIATIVES; 
              WAIVER AUTHORITY.

    (a) Suspension.--Beginning on the date of the enactment of this 
Act, no agency shall make a decision, with respect to any function 
performed by the agency, to privatize, outsource, contract out, or 
contract for the performance of such function, or to conduct a study to 
convert the performance of the function to the performance by a 
contractor. This subsection applies only to contracting efforts 
undertaken on or after the date of the enactment of this Act.
    (b) Waiver.--(1) Any agency may submit to the Director of the 
Office of Management and Budget a request for a waiver of this section 
with regard to a particular function. Such a waiver request shall--
            (A) identify the facilities, units, or activities affected;
            (B) specify the reason a waiver is needed;
            (C) identify the duration sought; and
            (D) explain the justification for the waiver.
    (2) The Director of the Office of Management and Budget may grant a 
waiver with regard to a particular function if the Director determines 
that a waiver--
            (A) is necessary for the preservation of national security;
            (B) is critical for the provision of patient care; or
            (C) is necessary to prevent extraordinary economic harm.
    (3) The Director of the Office of Management and Budget may not 
grant a waiver under this section until the Director publishes the 
request of the agency for a waiver in the Federal Register.
    (c) Exceptions.--(1) Subsection (b) shall not apply with regard to 
a function performed by employees within a unit with respect to which a 
labor organization is accorded exclusive recognition under chapter 71 
of title 5, United States Code--
            (A) if the waiver would violate a collective bargaining 
        agreement (as defined in section 7103(a)(8) of title 5, United 
        States Code) between the agency and the labor organization, 
        unless there is another written waiver between the agency and 
        the labor organization; or
            (B) if the waiver is not covered by such a collective 
        bargaining agreement, until there has been consultation or 
        negotiation, as appropriate, by the agency with the labor 
        organization.
    (2) Subsection (b) shall not apply with regard to a function 
performed by employees within any unit with respect to which a labor 
organization has not been accorded exclusive recognition under chapter 
71, title 5, United States Code, unless the agency has consulted with 
the employees in the unit regarding the waiver.

SEC. 5. AGENCY REPORTING SYSTEMS AND REQUIRED REPORTS.

    (a) Centralized Reporting System.--Not later than 180 days after 
the date of the enactment of this Act, each agency shall establish a 
centralized reporting system in accordance with guidance promulgated by 
the Office of Management and Budget that allows the agency to generate 
periodic reports on the contracting efforts of the agency. Such 
centralized reporting system shall be designed to enable the agency to 
generate reports on efforts regarding both contracting out and 
contracting in.
    (b) Reports on Contracting Efforts.--(1) Not later than 180 days 
after the date of the enactment of this Act, every agency shall 
generate and submit to the Director of the Office of Management and 
Budget a report on the contracting efforts of the agency undertaken 
during the 2 fiscal years immediately preceding the fiscal year during 
which this Act is enacted. Such report shall comply with the 
requirements in paragraph (3).
    (2) For the current fiscal year and every fiscal year thereafter, 
every agency shall complete and submit to the Director of the Office of 
Management and Budget a report on the contracting efforts undertaken by 
the agency during the current fiscal year. Such reports shall comply 
with the requirements in paragraph (3), and shall be completed and 
submitted not later than the end of the first fiscal quarter of the 
subsequent fiscal year.
    (3) The reports referred to in this subsection shall include the 
following information with regard to each contracting effort undertaken 
by the agency:
            (A) The contract number and the Federal supply class or 
        service code.
            (B) A statement of why the contracting effort was 
        undertaken and an explanation of what alternatives to the 
        contracting effort were considered and why such alternatives 
        were ultimately rejected.
            (C) The names, addresses, and telephone numbers of the 
        officials who supervised the contracting effort.
            (D) The competitive process used or the statutory or 
        regulatory authority relied on to enter into the contract 
        without public-private competition.
            (E) The cost of Federal employee performance at the time 
        the work was contracted out (if the work had previously been 
        performed by Federal employees).
            (F) The cost of Federal employee performance under a Most 
        Efficient Organization plan (if the work was contracted out 
        through OMB Circular A-76).
            (G) The anticipated cost of contractor performance, based 
        on the award.
            (H) The current cost of contractor performance.
            (I) The actual savings, expressed both as a dollar amount 
        and as a percentage of the cost of performance by Federal 
        employees, based on the current cost, and an explanation of the 
        difference, if any.
            (J) A description of the quality control process used by 
        the agency in connection with monitoring the contracting 
        effort, identification of the applicable quality control 
        standards, the frequency of the preparation of quality control 
        reports, and an assessment of whether the contractor met, 
        exceeded, or failed to achieve the quality control standards.
            (K) The number of employees performing the contracting 
        effort under the contract and any related subcontracts.
    (c) Report on Contracting in Efforts.--(1) For the current fiscal 
year and every fiscal year thereafter, every agency shall complete and 
submit to the Director of the Office of Management and Budget a report 
on the contracting efforts undertaken by the agency during the current 
fiscal year. Such reports shall comply with the requirements in 
paragraph (2), and shall be completed and submitted not later than the 
end of the first fiscal quarter of the subsequent fiscal year.
    (2) The reports referred to in paragraph (1) shall include the 
following information for each contracting in effort undertaken by the 
agency:
            (A) A description of the type of work involved.
            (B) A statement of why the contracting in effort was 
        undertaken.
            (C) The names, addresses, and telephone numbers of the 
        officials who supervised the contracting in effort.
            (D) The cost of performance at the time the work was 
        contracted in.
            (E) The current cost of performance by Federal employees or 
        military personnel.
    (d) Report on Employee Positions.--Not later than 30 days after the 
end of the current fiscal year and every fiscal year thereafter, every 
agency shall report on the number of Federal employee positions and 
positions held by non-Federal employees under a contract between the 
agency and an individual or entity that has been subject to public-
private competition.
    (e) Committees to Which Reports Must Be Submitted.--The reports 
referred to in this section shall be submitted to the Committee on 
Government Reform of the House of Representatives and to the Committee 
on Governmental Affairs of the Senate.
    (f) Publication.--The Director of the Office of Management and 
Budget shall promptly publish in the Federal Register notices including 
a description of when the reports referred to in this section are 
available to the public and the names, addresses, and telephone numbers 
of the officials from whom the reports may be obtained.
    (g) Availability on Internet.--After the excision of proprietary 
information, the reports referred to in this section shall be made 
available through the Internet.
    (h) Review.--The Director of the Office of Management and Budget 
shall review the reports referred to in this section and consult with 
the head of the agency regarding the content of such reports.

SEC. 6. REQUIREMENT FOR PUBLIC-PRIVATE COMPETITION.

    (a) In General.--After the date of the enactment of this Act and 
the expiration of the suspension authority in section 4 of this Act, 
any decision by an agency to privatize, outsource, contract or contract 
out, including the exercise of options, extensions, and renewals of any 
contracting efforts, for the performance of a function shall be based 
on the results of a public-private competition process that--
            (1) formally compares the costs of Federal employee 
        performance of the function with the costs of the performance 
        by a contractor;
            (2) employs the most efficient organization process 
        described in OMB Circular A-76; and
            (3) is conducted in consultation or through bargaining with 
        the exclusive representative of the Federal employees 
        performing the function, if applicable.
This subsection applies only to contracting efforts undertaken on or 
after the date of the enactment of this Act.
    (b) Determination of Costs.--(1) An agency shall commence or 
continue the performance of a function by Federal employees if, under a 
cost comparison performed pursuant to a public-private competition 
process described in subsection (a), the agency determines that at 
least a 10-percent cost savings would not be achieved by performance of 
the function by a contractor.
    (2) During the temporary suspension established in section 4 of 
this Act, an agency may undertake a contracting effort made pursuant to 
the issuance of a waiver granted under section 4 for a function that is 
not currently performed by Federal employees if the agency has 
determined the total cost to the agency of performing the function by a 
contractor and the total cost to the agency of having those services 
performed by Federal employees and that the contractor performance 
costs are less than the Federal employee performance costs.
    (c) Inapplicability of Certain Limitation.--Notwithstanding any 
limitation on the number of Federal employees established by law, 
regulation, or policy, an agency may continue to employ, or may hire, 
such Federal employees as are necessary to perform work acquired 
through public-private competition required by this section.

SEC. 7. REVIEW OF CONTRACTOR PERFORMANCE.

    (a) In General.--If a report completed pursuant to section 5 
indicates that, for 2 consecutive years, the actual cost of 
privatization, outsourcing, contracting, or contracting out of a 
particular function exceeds the anticipated cost of contractor 
performance, based on the award (referred to in section 5(b)(3)(G)), or 
fails to substantially meet quality control standards (referred to in 
section 5(b)(3)(J)), the agency shall either conduct a new public-
private competition or convert the function to performance by Federal 
employees not later than the earlier of the date of the expiration of 
the contract or the beginning of the first fiscal year which is not 
more than 12 months after the initial determination that the cost of a 
contracting effort exceeds the anticipated cost of contractor 
performance or that quality standards have not been substantially met. 
Any resulting terminations for convenience may be undertaken without 
cost to the United States Government. This subsection applies only to 
contracting efforts undertaken on or after the date of the enactment of 
this Act.
    (b) Public-Private Competition.--For each fiscal year, an agency 
shall subject to public-private competition an equivalent number of 
Federal employee positions and positions held by non-Federal employees 
under a contract between an agency and an individual or entity.
    (c) Inapplicability of Certain Limitation.--Notwithstanding any 
limitation on the number of Federal employees established by law, 
regulation, or policy, an agency may continue to employ or may hire 
such Federal employees as are necessary to perform work acquired 
through public-private competition required by this section.

SEC. 8. SURVEY OF WAGES AND BENEFITS PROVIDED BY CONTRACTORS.

    (a) Requirement To Conduct Survey.--Using information provided by 
agencies, the Secretary of Labor shall conduct a survey of the wages 
and quantifiable benefits provided by contractors to non-Federal 
personnel working in various occupations under contracts between 
agencies and individuals or entities that were entered into during the 
2 fiscal years immediately preceding the date of the enactment of this 
Act.
    (b) Review.--(1) The Director of the Office of Personnel Management 
shall--
            (A) review the analysis prepared by the Secretary of Labor 
        under subsection (a) and determine the extent to which the 
        wages and quantifiable benefits paid by contractors are 
        comparable to the wages and quantifiable benefits earned by 
        Federal employees; and
            (B) issue a report on the findings of the review.
    (2) Not later than 180 days after the date of the enactment of this 
Act, the report shall be submitted to the Committee on Government 
Reform of the House of Representatives and to the Committee on 
Governmental Affairs of the Senate, and published in the Federal 
Register.
    (c) Guidance.--The Director of the Office of Management and Budget 
shall issue guidance to implement the provisions of this section.

SEC. 9. COMPTROLLER GENERAL REPORTS.

    The Comptroller General shall report to the Committee on Government 
Reform of the House of Representatives and the Committee on 
Governmental Affairs of the Senate every 60 days after the date of the 
enactment of this Act on the compliance by agencies with the 
requirements of this Act.

SEC. 10. APPLICABILITY.

    This Act does not apply with respect to the following:
            (1) The General Accounting Office.
            (2) Depot-level maintenance and repair of the Department of 
        Defense (as defined in section 2460 of title 10, United States 
        Code).
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