Bill Summary
The Freedom from Government Competition Act of 2019 is a bill that aims to reduce the involvement of the government in providing goods and services, and instead rely on private sector businesses to supply these goods and services. This legislation recognizes that private businesses are the most efficient and effective sources for these goods and services. It also states that government competition with the private sector is harmful to the economy and that current laws and policies have not adequately addressed this issue. The Act requires that agencies procure necessary goods and services from private sources, except in certain exemptions such as national defense or when there are no private sources available. It also outlines the methods for procuring goods and services from the private sector and allows for the use of federal employees to provide these services only after a thorough analysis has been conducted. The Director of the Office of Management and Budget is responsible for promulgating regulations to implement this Act and conduct annual evaluations of the activities carried out by each agency. The Act also includes a schedule for the transfer of commercial activities to the private sector within 5 years of its enactment.
Possible Impacts
1. This legislation would potentially impact private sector businesses by mandating that the federal government must procure goods and services from them rather than producing them itself. This could create increased competition and opportunities for these businesses, but may also require them to meet certain standards and regulations in order to be eligible for government contracts.
2. This legislation could affect government agencies by requiring them to rely on private sector sources for goods and services, rather than producing them in-house. This could lead to potential cost savings for the government, but may also require agencies to adapt to working with private companies and managing contracts.
3. Individuals who work for government agencies or private companies that provide goods and services to the government may be affected by this legislation. They may experience changes to their job responsibilities, as well as potential job growth or loss depending on the impact of the legislation on their industry.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5329 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 5329
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
December 5, 2019
Mr. Steube introduced the following bill; which was referred to the
Committee on Oversight and 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 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 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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