Bill Details
HR.1554 - 119th Congress
Status
Latest action
2025-02-25 - Referred to the House Committee on Oversight and Government Reform.
Introduced Date
2025-02-25
Policy Area
Government Operations and Politics
Committees
View committees (1)
Sponsors
Cosponsors
5
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would require federal agencies to generally buy the goods and services they need from private companies instead of making or providing them themselves. The goal is to keep the government from competing with private businesses when commercial providers can do the job more efficiently or at lower cost. The bill still allows the government to do certain work directly when the law requires it, when national defense or homeland security is involved, when the task is truly a government function, or when no private company can provide the service. It would also require the Office of Management and Budget to issue rules, study agency activities each year, and report to Congress on which work should be shifted to the private sector.
- Federal agencies would generally have to obtain all needed goods and services from private sources.
- Government-provided work would be allowed only in limited cases, such as when the work is required by law, needed for defense or homeland security, or cannot be done by a private source.
- If an agency wants to keep doing work that was previously done by a private company, it would need to complete a public-private comparison and show that using federal employees is the best value for taxpayers.
- The Office of Management and Budget would need to write rules for carrying out the bill and ensure that states and local governments using federal funds follow the same policy.
- OMB, working with the Government Accountability Office, would have to study agency activities every year and submit a report to Congress by June 30, including reasons for any exemptions and a plan to move commercial work to the private sector within five years.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1554 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
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
February 25, 2025
Mr. Bean of 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 agencies, 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.
This Act may be cited as the ``Freedom from Government Competition
Act of 2025''.
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 by subsection (c)(1) or (c)(2) 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.
(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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