ACTIVITIES INVENTORY REFORM ACT OF 1998
Public Law 105-270
a process for identifying the functions of the Federal Government that
are not inherently governmental functions, and for other purposes. <<NOTE:
Oct. 19, 1998 - [S. 314]>>
enacted by the Senate and House of Representatives of the United States
of America in Congress assembled, <<NOTE: Federal Activities Inventory
Reform Act of 1998. 31 USC 501 note.>>
1. SHORT TITLE.
Act may be cited as the "Federal Activities Inventory Reform Act of
2. <<NOTE: Records.>> ANNUAL LISTS OF GOVERNMENT ACTIVITIES
NOT INHERENTLY GOVERNMENTAL IN NATURE.
Deadline.>> Lists Required.--Not later than the end of the third
quarter of each fiscal year, the head of each executive agency shall
submit to the Director of the Office of Management and Budget a list
of activities performed by Federal Government sources for the executive
agency that, in the judgment of the head of the executive agency, are
not inherently governmental functions. The entry for an activity on
the list shall include the following:
fiscal year for which the activity first appeared on a list prepared
under this section.
number of full-time employees (or its equivalent) that are necessary
for the performance of the activity by a Federal Government source.
name of a Federal Government employee responsible for the activity from
whom additional information about the activity may be obtained.
Review and Consultation.--The Director of the Office of Management and
Budget shall review the executive agency's list for a fiscal year and
consult with the head of the executive agency regarding the content
of the final list for that fiscal year.
Availability of Lists.--
the completion of the review and consultation regarding a list of an
head of the executive agency shall promptly transmit a copy of the list
to Congress and make the list available to the public; and
Federal Register, Publication.>> the Director of the Office
of Management and Budget shall promptly publish in the Federal
Register a notice that the list is available to the public.
the list changes after the publication of the notice as a result of
the resolution of a challenge under section 3, the head of the executive
agency shall promptly--
each such change available to the public and transmit a copy of the
change to Congress; and
112 STAT. 2383]]
Federal Register, Publication.>> publish in the Federal Register
a notice that the change is available to the public.
Required.--Within a reasonable time after the date on which a notice
of the public availability of a list is published under subsection (c),
the head of the executive agency concerned shall review the activities
on the list. Each time that the head of the executive agency considers
contracting with a private sector source for the performance of such
an activity, the head of the executive agency shall use a competitive
process to select the source (except as may otherwise be provided in
a law other than this Act, an Executive order, regulations, or any executive
branch circular setting forth requirements or guidance that is issued
by competent executive authority). The Director of the Office of Management
and Budget shall issue guidance for the administration of this subsection.
and Fair Cost Comparisons.--For the purpose of determining whether to
contract with a source in the private sector for the performance of
an executive agency activity on the list on the basis of a comparison
of the costs of procuring services from such a source with the costs
of performing that activity by the executive agency, the head of the
executive agency shall ensure that all costs (including the costs of
quality assurance, technical monitoring of the performance of such function,
liability insurance, employee retirement and disability benefits, and
all other overhead costs) are considered and that the costs considered
are realistic and fair.
3. CHALLENGES TO THE LIST.
Authorized.--An interested party may submit to an executive agency a
challenge of an omission of a particular activity from, or an inclusion
of a particular activity on, a list for which a notice of public availability
has been published under section 2.
Party Defined.--For the purposes of this section, the term "interested
party", with respect to an activity referred to in subsection (a), means
private sector source that--
an actual or prospective offeror for any contract, or other form of
agreement, to perform the activity; and
a direct economic interest in performing the activity that would be
adversely affected by a determination not to procure the performance
of the activity from a private sector source.
representative of any business or professional association that includes
within its membership private sector sources referred to in paragraph
officer or employee of an organization within an executive agency that
is an actual or prospective offeror to perform the activity.
head of any labor organization referred to in section 7103(a)(4) of
title 5, United States Code, that includes within its membership officers
or employees of an organization referred to in paragraph (3).
for Submission.--A challenge to a list shall be submitted to the executive
agency concerned within 30 days after the publication of the notice
of the public availability of the list under section 2.
112 STAT. 2384]]
Deadline.>> Initial Decision.--Within 28 days after an executive
agency receives a challenge, an official designated by the head of the
executive agency shall--
the challenge; and
to the party submitting the challenge a written notification of the
decision together with a discussion of the rationale for the decision
and an explanation of the party's right to appeal under subsection (e).
Deadline.>> Authorization of appeal.--An interested party
may appeal an adverse decision of the official to the head of the
executive agency within 10 days after receiving a notification
of the decision under subsection (d).
on appeal.--Within 10 days after the head of an executive agency receives
an appeal of a decision under paragraph (1), the head of the executive
agency shall decide the appeal and transmit to the party submitting
the appeal a written notification of the decision together with a discussion
of the rationale for the decision.
Agencies Covered.--Except as provided in subsection
Act applies to the following executive agencies:
department.--An executive department named in section 101 of title 5,
United States Code.
department.--A military department named in section 102 of title 5,
United States Code.
establishment.--An independent establishment, as defined in section
104 of title 5, United States Code.
Act does not apply to or with respect to the following:
accounting office.--The General Accounting Office.
corporation.--A Government corporation or a Government controlled corporation,
as those terms are defined in section 103 of title 5, United States
funds instrumentality.--A part of a department or agency if all of the
employees of that part of the department or agency are employees referred
to in section 2105(c) of title 5, United States Code.
depot-level maintenance and repair.--Depot-level maintenance and repair
of the Department of Defense (as defined in section 2460 of title 10,
United States Code).
government source.--The term "Federal Government source", with
respect to performance of an activity, means any organization within
an executive agency that uses Federal Government employees to perform
term "inherently governmental function" means a function that
is so intimately related to the public interest as to require
performance by Federal Government employees.
112 STAT. 2385]]
included.--The term includes activities that require either the exercise
of discretion in applying Federal Government authority or the making
of value judgments in making decisions for the Federal Government, including
judgments relating to monetary transactions and entitlements. An inherently
governmental function involves, among other things, the interpretation
and execution of the laws of the United States so as--
bind the United States to take or not to take some action by contract,
policy, regulation, authorization, order, or otherwise;
determine, protect, and advance United States economic, political, territorial,
property, or other interests by military or diplomatic action, civil
or criminal judicial proceedings, contract management, or otherwise;
to significantly affect the life, liberty, or property of private persons;
commission, appoint, direct, or control officers or employees of the
United States; or
exert ultimate control over the acquisition, use, or disposition of
the property, real or personal, tangible or intangible, of the United
States, including the collection, control, or disbursement of appropriated
and other Federal funds.
excluded.--The term does not normally include--
information for or providing advice, opinions, recommendations, or ideas
to Federal Government officials; or
function that is primarily ministerial and internal in nature (such
as building security, mail operations, operation of cafeterias, housekeeping,
facilities operations and maintenance, warehouse operations, motor vehicle
fleet management operations, or other routine electrical or mechanical
6. EFFECTIVE DATE.
shall take effect on October 1, 1998.
October 19, 1998.
REPORTS: No. 105-269 (Comm. on Governmental Affairs).
CONGRESSIONAL RECORD, Vol. 144 (1998):
considered and passed Senate.
considered and passed House.