[Congressional Record Volume 165, Number 194 (Thursday, December 5, 2019)]
[Senate]
[Pages S6893-S6894]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. THUNE:
  S. 2990. 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 agencies, and for other purposes; 
to the Committee on Homeland Security and Governmental Affairs.
  Mr. THUNE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2990

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Freedom from Government 
     Competition Act of 2019''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Private sector business concerns, which are free to 
     respond to the private or public demands of the marketplace, 
     constitute the strength of the United States economic system.
       (2) Competitive private enterprises are the most 
     productive, efficient, and effective sources of goods and 
     services.
       (3) Unfair Government competition with the private sector 
     of the economy is detrimental to the United States economic 
     system.
       (4) Unfair Government competition with the private sector 
     of the economy is at an unacceptably high level, both in 
     scope and in dollar volume.
       (5) Current law and policy have failed to address 
     adequately the problem of unfair Government competition with 
     the private sector of the economy.
       (6) It is in the public interest that the Federal 
     Government establish a consistent policy to rely on the 
     private sector of the economy to provide goods and services 
     necessary for or beneficial to the operation and management 
     of Federal agencies and to avoid unfair Government 
     competition with the private sector of the economy.

     SEC. 3. DEFINITIONS.

       In this Act, the term ``agency'' means--
       (1) an executive department as defined by section 101 of 
     title 5, United States Code;
       (2) a military department as defined by section 102 of such 
     title; and
       (3) an independent establishment as defined by section 
     104(l) of such title.

     SEC. 4. PROCUREMENT FROM PRIVATE SOURCES.

       (a) Policy.--In the process of governing, the Federal 
     Government should not compete with its citizens. The 
     competitive enterprise system, characterized by individual 
     freedom and initiative, is the primary source of national 
     economic strength. In recognition of this principle, it has 
     been and continues to be the general policy of the Federal 
     Government--
       (1) to rely on commercial sources to supply the products 
     and services the Government needs;
       (2) to refrain from providing a product or service if the 
     product or service can be procured more economically from a 
     commercial source; and
       (3) to utilize Federal employees to perform inherently 
     governmental functions (as that term is defined in section 5 
     of the Federal Activities Inventory Reform Act of 1998 
     (Public Law 105-270; 112 Stat. 2384)).
       (b) General Rule.--Except as provided in subsection (c) and 
     notwithstanding any other provision of law, each agency shall 
     obtain all goods and services necessary for or beneficial to 
     the accomplishment of its authorized functions by procurement 
     from private sources.
       (c) Exemptions.--Subsection (b) shall not apply to an 
     agency with respect to goods or services if--
       (1) the goods or services are required by law to be 
     produced or performed, respectively, by the agency; or
       (2) the head of the agency determines and certifies to 
     Congress in accordance with regulations promulgated by the 
     Director of the Office of Management and Budget that--
       (A) Federal Government production, manufacture, or 
     provision of a good or service is necessary for the national 
     defense or homeland security;
       (B) a good or service is so critical to the mission of the 
     agency or so inherently governmental in nature that it is in 
     the public interest to require production or performance, 
     respectively, by Government employees; or
       (C) there is no private source capable of providing the 
     good or service.
       (d) Method of Procurement.--The provision of goods and 
     services not exempt under subsection (c) shall be performed 
     by an entity in the private sector through--
       (1) the divestiture of Federal involvement in the provision 
     of a good or service;
       (2) the award of a contract to an entity in the private 
     sector, using competitive procedures, as defined in section 
     152 of title 41, United States Code, and section 2302 of 
     title 10, United States Code; or
       (3) conducting a public-private competitive sourcing 
     analysis in accordance with the procedures established by the 
     Office of Management and Budget and determining that using 
     the assets, facilities, and performance of the private sector 
     is in the best interest of the United States and that 
     production or performance, respectively, by the private 
     sector provides the best value to the taxpayer.
       (e) Contracted Activities.--The head of an agency may 
     utilize Federal employees to provide goods or services 
     previously provided by an entity in the private sector upon 
     completion of a public-private competitive sourcing analysis 
     described in subsection (d)(3), and after making a 
     determination that the provision of such goods or services by 
     Federal employees provides the best value to the taxpayer.

[[Page S6894]]

       (f) Regulations.--The Director of the Office of Management 
     and Budget shall promulgate such regulations as the Director 
     considers necessary to carry out this section. In 
     promulgating such regulations, the Director shall assure that 
     any State or territory, or political subdivision of a State 
     or territory, complies with the policy and implements the 
     requirements of this section when expending Federal funds.

     SEC. 5. STUDY AND REPORT.

       The Director of the Office of Management and Budget, after 
     consultation with the Comptroller General of the United 
     States, shall carry out a study to evaluate the activities 
     carried out in each agency, including those identified as 
     commercial and inherently governmental in nature in the 
     inventory prepared pursuant to the Federal Activities 
     Inventory Reform Act of 1998 (Public Law 105-270; 31 U.S.C. 
     501 note) and shall transmit a report to the Congress prior 
     to June 30 of each year. The report shall include--
       (1) an evaluation of the justification for exempting 
     activities pursuant to section 4(c); and
       (2) a schedule for the transfer of commercial activities to 
     the private sector, pursuant to section 4(d), to be completed 
     within 5 years after the date on which such report is 
     transmitted to the Congress.

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