Public Law 108-199
 
Making appropriations for Agriculture, Rural Development, Food and Drug 
 Administration, and Related Agencies for the fiscal year ending 
 September 30, 2004, and for other purposes. [H.R. 2673]
 
SECTION 1. SHORT TITLE.
 
 This Act may be cited as the ``Consolidated Appropriations Act, 
2004.
 
 Sec. 647. (a) Limitation on Conversion to Contractor Performance.--
None of the funds appropriated by this Act shall be available to convert to contractor 
performance an activity or function of an executive agency, that on or after the date of 
enactment of this Act, is performed by more than 10 Federal employees unless--
 (1) the conversion is based on the result of a public-
 private competition plan that includes a most efficient and cost 
 effective organization plan developed by such activity or 
 function; and
 (2) the Competitive Sourcing Official considers, as part of 
 the cost or price evaluation, whether over all performance 
 periods stated in the solicitation of offers for performance of 
 the activity or function, the cost of performance of the 
 activity or function by a contractor would be less costly to the 
 executive agency by an amount that equals or exceeds the lesser 
 of--
 (A) 10 percent of the most efficient organization's 
 personnel-related costs for performance of that activity 
 or function by Federal employees; or
  (B) $10,000,000.
 
 (b) <<NOTE: Deadline. Reports. 31 USC 501 note.>> Not later than 120 
days following the enactment of this Act and not later than December 31 
of each year thereafter, the head of each executive agency shall submit 
to Congress a report on the competitive sourcing activities on the list 
required under the Federal Activities Inventory Reform Act of 1998 
(Public Law 105-270; 31 U.S.C. 501 note) that were performed for such 
executive agency during the previous fiscal year by Federal Government 
sources. The report shall include--
 (1) the total number of competitions completed;
 (2) the total number of competitions announced, together 
 with a list of the activities covered by such competitions;
 (3) the total number (expressed as a full-time employee 
 equivalent number) of the Federal employees studied under 
 completed competitions;
 (4) the total number (expressed as a full-time employee 
 equivalent number) of the Federal employees that are being 
 studied under competitions announced but not completed;
 (5) the incremental cost directly attributable to conducting 
 the competitions identified under paragraphs (1) and (2), 
 including costs attributable to paying outside consultants and 
 contractors;
 (6) an estimate of the total anticipated savings, or a 
 quantifiable description of improvements in service or 
 performance, derived from completed competitions;
 (7) actual savings, or a quantifiable description of 
 improvements in service or performance, derived from the 
 implementation of competitions completed after May 29, 2003;
 (8) the total projected number (expressed as a full-time 
 employee equivalent number) of the Federal employees that are to 
 be covered by competitions scheduled to be announced in the 
 fiscal year covered by the next report required under this 
  section; and
 (9) a general description of how the competitive sourcing 
 decisionmaking processes of the executive agency are aligned 
 with the strategic workforce plan of that executive agency.
 
 (c) The head of an executive agency may not be required, under 
Office of Management and Budget Circular A-76 or any other policy, 
directive, or regulation, to automatically limit to 5 years or less the 
performance period in a letter of obligation, or other agreement, issued 
to executive agency employees, if such a letter or other agreement was 
issued as the result of a public-private competition conducted in 
accordance with the circular.
 
 (d) <<NOTE: 31 USC 501 note.>> Hereafter, the head of an executive 
agency may expend funds appropriated or otherwise made available for any 
purpose to the executive agency under this or any other Act to monitor 
(in the administration of responsibilities under Office of Management 
and Budget Circular A-76 or any related policy, directive, or 
regulation) the performance of an activity or function of the executive 
agency that has previously been subjected to a public-private 
competition under such circular.
 
 (e) An activity or function of an executive agency that is converted 
to contractor performance under Office of Management and Budget Circular 
A-76 may not be performed by the contractor at a location outside the 
United States except to the extent that such activity or function was 
previously performed by Federal Government employees outside the United 
States.
 
 (f) <<NOTE: 31 USC 501 note.>> In this section, the term ``executive 
agency'' has the meaning given such term in section 4 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403).