31 U.S.C. § 501: Office of Management and Budget

The Office of Management and Budget is an office in the Executive Office of the President. “This Act may be cited as the ‘Disaster Resiliency Planning Act’. the Committee on Homeland Security and Governmental Affairs of the Senate; and the Committee on Oversight and Reform [now Committee on Oversight and Accountability] of the House of Representatives. The term ‘agency’ has the meaning given the term in section 306 of title 5 , United States Code. The term ‘Director’ means the Director of the Office of Management and Budget. The term ‘real property’ has the meaning given the term in section 1.856–10 of title 26, Code of Federal Regulations, or any successor thereto. Not later than 180 days after the date of enactment of this Act [ Dec. 5, 2022 ], the Director shall establish guidance requiring the head of each agency to incorporate natural disaster resilience into real property asset management and investment decisions made by the agency. The guidance required under subsection (a) shall direct each head of an agency to incorporate assessments of natural disaster risk information conducted by the agency, such as from vulnerability and other risk assessments, into real property asset management investment decisions made by the agency. The Director may periodically update the guidance required under subsection (a) as the Director may determine necessary for the purpose of further enhancing natural disaster resilience. the Comptroller General of the United States; the Administrator of the Federal Emergency Management Agency; and any other relevant entities, as determined by the Director. Not later than 1 year after the date of enactment of this Act, the Director shall submit to the appropriate congressional committees a report that describes the guidance required under subsection (a). Not later than 2 years after the date of enactment of this Act, the Director shall brief the appropriate congressional committees on the implementation of the guidance required under subsection (a) across agencies.” Robust criteria for identifying and documenting incremental risks and mitigating controls related to the funding. Guidance for documenting the linkage between the incremental risks related to disaster funding and efforts to address known internal control risks.” Not later than March 1, 2010 , the Director of the Office of Management and Budget shall develop and disseminate guidance to aid executive agencies in establishing systems for the collection of information required to meet the requirements of this section and to ensure consistency of inventories across agencies. Not later than July 31, 2010 , the Director of the Office of Management and Budget shall submit a report to Congress on the status of efforts to enable executive agencies to prepare the inventories required under paragraph (3), including the development, as appropriate, of guidance, methodologies, and technical tools. A description of the services purchased by the executive agency and the role the services played in achieving agency objectives, regardless of whether such a purchase was made through a contract or task order. The organizational component of the executive agency administering the contract, and the organizational component of the agency whose requirements are being met through contractor performance of the service. The total dollar amount obligated for services under the contract and the funding source for the contract. The total dollar amount invoiced for services under the contract. The contract type and date of award. The name of the contractor and place of performance. The number and work location of contractor and subcontractor employees, expressed as full-time equivalents for direct labor, compensated under the contract. Whether the contract is a personal services contract. Whether the contract was awarded on a noncompetitive basis, regardless of date of award. Reports required under this section shall be submitted in unclassified form, but may include a classified annex. make the inventory available to the public; and publish in the Federal Register a notice that the inventory is available to the public. Not later than 90 days after the deadline for submitting inventories under subsection (a)(3), and annually thereafter, the Director of the Office of Management and Budget shall submit to Congress and make publicly available on the Office of Management and Budget website a report on the inventories submitted. The report shall identify whether each agency required to submit an inventory under subsection (a)(3) has met such requirement and summarize the information submitted by each executive agency required to have a Chief Financial Officer pursuant to section 901 of title 31 , United States Code. review the contracts and information in the inventory; each contract in the inventory that is a personal services contract has been entered into, and is being performed, in accordance with applicable laws and regulations; the agency is giving special management attention to functions that are closely associated with inherently governmental functions; the agency is not using contractor employees to perform inherently governmental functions; the agency has specific safeguards and monitoring systems in place to ensure that work being performed by contractors has not changed or expanded during performance to become an inherently governmental function; the agency is not using contractor employees to perform critical functions in such a way that could affect the ability of the agency to maintain control of its mission and operations; and there are sufficient internal agency resources to manage and oversee contracts effectively; identify contracts that have been poorly performed, as determined by a contracting officer, because of excessive costs or inferior quality; and performance by Federal employees of the executive agency in accordance with agency insourcing guidelines required under section 736 of the Financial Services and General Government Appropriations Act, 2009 ( Public Law 111–8 , division D) [amending provisions set out as a note below]; or an alternative acquisition approach that would better enable the agency to efficiently utilize its assets and achieve its public mission. Not later than one year after submitting an annual inventory under subsection (a)(3), the head of each executive agency submitting such an inventory shall submit to the Office of Management and Budget a report summarizing the actions taken pursuant to subsection (e), including any actions taken to consider and convert functions from contractor to Federal employee performance. The report shall be included as an attachment to the next annual inventory and made publicly available in accordance with subsection (c). Notwithstanding any other provision of law, beginning in fiscal year 2011, if an executive agency has not submitted to the Office of Management and Budget the inventory required under subsection (a)(3) for the prior fiscal year, the agency may not begin, plan for, or announce a study or public-private competition regarding the conversion to contractor performance of any function performed by Federal employees pursuant to Office of Management and Budget Circular A–76 or any other administrative regulation or directive until such time as the inventory is submitted for the prior fiscal year. Not later than 120 days after submission of the report by the Director of the Office of Management and Budget required under subsection (a)(2), the Comptroller General of the United States shall report on the guidance issued and actions taken by the Director. The report shall be submitted to the Committee on Homeland Security and Governmental Affairs and the Committee on Appropriations of the Senate and the Committee on Oversight and Government Reform [now Committee on Oversight and Accountability] and the Committee on Appropriations of the House of Representatives. Not later than September 30, 2011 , the Comptroller General of the United States shall submit a report to the Committees named in the preceding paragraph on the initial implementation by executive agencies of the inventory requirement in subsection (a)(3) with respect to inventories required to be submitted by December 31, 2010 . Not later than September 30, 2012 , the Comptroller General shall submit a report to the same Committees on annual inventories required to be submitted by December 31, 2011 . The Comptroller General shall provide periodic briefings, as may be requested by the Committees, on matters related to implementation of this section. In this section, the term ‘executive agency’ has the meaning given the term in section 4 of the Office of Federal Procurement Policy Act ([former] 41 U.S.C. 403 ) [see 41 U.S.C. 133 ].” review the definitions of the term ‘inherently governmental function’ described in subsection (b) to determine whether such definitions are sufficiently focused to ensure that only officers or employees of the Federal Government or members of the Armed Forces perform inherently governmental functions or other critical functions necessary for the mission of a Federal department or agency; address any deficiencies in the existing definitions, as determined pursuant to paragraph (1); reasonably apply to all Federal departments and agencies; and ensure that the head of each such department or agency is able to identify each position within that department or agency that exercises an inherently governmental function and should only be performed by officers or employees of the Federal Government or members of the Armed Forces; identify critical functions with respect to the unique missions and structure of that department or agency; and identify each position within that department or agency that, while the position may not exercise an inherently governmental function, nevertheless should only be performed by officers or employees of the Federal Government or members of the Armed Forces to ensure the department or agency maintains control of its mission and operations; develops and maintains sufficient organic expertise and technical capability; develops guidance to implement the definition of inherently governmental as described in paragraph (2) and the criteria for critical functions as described in paragraph (3) in a manner that is consistent with agency missions and operational goals; and functions, activities, or positions, or some combination thereof, or additional mechanisms and factors, including the management or oversight of awarded contracts, statutory mandates, and international obligations; and solicit the views of the public regarding the matters identified in this section. the Federal Activities Inventory Reform Act of 1998 ( Public Law 105–270 ; 31 U.S.C. 501 note); section 2383 of title 10 , United States Code [now 10 U.S.C. 4508 ]; Office of Management and Budget Circular A–76; the Federal Acquisition Regulation; and any other relevant Federal law or regulation, as determined by the Director of the Office of Management and Budget in consultation with the Chief Acquisition Officers Council and the Chief Human Capital Officers Council. A description of the actions taken by the Director under this section to develop a single definition of inherently governmental function and criteria for critical functions. Such legislative recommendations as the Director determines are necessary to further the purposes of this section. to ensure that the single definition and criteria developed under this section are consistently applied through all Federal regulations, circulars, policy letters, agency guidance, and other documents; to repeal any existing Federal regulations, circular, policy letters, agency guidance and other documents determined to be superseded by the definition and criteria developed under this section; and to develop any necessary implementing guidance under this section for agency staffing and contracting decisions, along with appropriate milestones. Not later than 180 days after submission of the report required by subsection (c), the Director of the Office of Management and Budget shall issue regulations to implement actions taken under this section to develop a single definition of inherently governmental function and criteria for critical functions.” the conversion is based on the result of a public-private competition that includes a most efficient and cost effective organization plan developed by such activity or function; 10 percent of the most efficient organization’s personnel-related costs for performance of that activity or function by Federal employees; or $10,000,000; and not making an employer-sponsored health insurance plan available to the workers who are to be employed in the performance of that activity or function under the contract; offering to such workers an employer-sponsored health benefits plan that requires the employer to contribute less towards the premium or subscription share than the amount that is paid by the Federal Government for health benefits for civilian employees under chapter 89 of title 5, United States Code; or offering to such workers a retirement benefit that in any year costs less than the annual retirement cost factor applicable to Federal employees under chapter 84 of title 5, United States Code. the Department of Defense; section 44920 of title 49 , United States Code; is included on the procurement list established pursuant to section 2 of the Javits-Wagner-O’Day Act ([former] 41 U.S.C. 47 ) [now 41 U.S.C. 8503 ]; or is planned to be converted to performance by a qualified nonprofit agency for the blind or by a qualified nonprofit agency for other severely handicapped individuals in accordance with that Act [now 41 U.S.C. 8501 et seq.]; depot contracts or contracts for depot maintenance as provided in sections 2469 and 2474 of title 10, United States Code; or activities that are the subject of an ongoing competition that was publicly announced prior to the date of enactment of this Act [ Dec. 26, 2007 ]. The heads of executive agencies subject to the Federal Activities Inventory Reform Act of 1998 ( Public Law 105–270 ; 31 U.S.C. 501 note) shall devise and implement guidelines and procedures to ensure that consideration is given to using, on a regular basis, Federal employees to perform new functions and functions that are performed by contractors and could be performed by Federal employees. The guidelines and procedures required under subparagraph (A) may not include any specific limitation or restriction on the number of functions or activities that may be converted to performance by Federal employees. has been performed by Federal employees at any time during the previous 10 years; is a function closely associated with the performance of an inherently governmental function; has been performed pursuant to a contract awarded on a non-competitive basis; or has been performed poorly, as determined by a contracting officer during the 5-year period preceding the date of such determination, because of excessive costs or inferior quality; or is a new requirement, with particular emphasis given to a new requirement that is similar to a function previously performed by Federal employees or is a function closely associated with the performance of an inherently governmental function. in the case of a new agency function, assigning the performance of the function to Federal employees; in the case of any agency function described in paragraph (2), converting the function to performance by Federal employees; or in the case of an agency function performed by Federal employees, expanding the scope of the function. The head of each executive agency shall implement the guidelines and procedures required under this subsection by not later than 120 days after the date of the enactment of this subsection [ Mar. 11, 2009 ]. Not later than 210 days after the date of the enactment of this subsection, the Government Accountability Office shall submit a report on the implementation of this subsection to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Oversight and Government Reform [now Committee on Oversight and Accountability] of the House of Representatives, and the Committee on Homeland Security and Governmental Affairs of the Senate. The term ‘inherently governmental functions’ has the meaning given such term in subpart 7.5 of part 7 of the Federal Acquisition Regulation. The term ‘functions closely associated with inherently governmental functions’ means the functions described in section 7.503(d) of the Federal Acquisition Regulation. This subsection shall not apply to the Department of Defense. protests and civil actions that challenge final selections of sources of performance of an activity or function of a Federal agency that are made pursuant to studies initiated under Office of Management and Budget Circular A–76 on or after January 1, 2004 ; and any other protests and civil actions that relate to public-private competitions initiated under Office of Management and Budget Circular A–76, or a decision to convert a function performed by Federal employees to private sector performance without a competition under Office of Management and Budget Circular A–76, on or after the date of the enactment of this Act [ Dec. 26, 2007 ]. by the Office of Management and Budget to direct or require another agency to take an action specified in paragraph (2); or by an agency to take an action specified in paragraph (2) as a result of direction or requirement from the Office of Management and Budget. An action specified in this paragraph is the preparation for, undertaking, continuation of, or completion of a public-private competition or direct conversion under Office of Management and Budget Circular A–76 or any other administrative regulation, directive, or policy. This section shall apply with respect to fiscal year 2008 and each succeeding fiscal year.” the total number of competitions completed; the total number of competitions announced, together with a list of the activities covered by such competitions; the total number (expressed as a full-time employee equivalent number) of the Federal employees studied under completed competitions; 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; the incremental cost directly attributable to conducting the competitions identified under paragraphs (1) and (2), including costs attributable to paying outside consultants and contractors; an estimate of the total anticipated savings, or a quantifiable description of improvements in service or performance, derived from completed competitions; actual savings, or a quantifiable description of improvements in service or performance, derived from the implementation of competitions completed after May 29, 2003 ; 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 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. 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. In this section, the term ‘executive agency’ has the meaning given such term in section 4 of the Office of Federal Procurement Policy Act ([former] 41 U.S.C. 403 ) [see 41 U.S.C. 133 ].” In each budget submitted by the President to Congress under section 1105 of title 31 , United States Code, for a fiscal year, beginning with fiscal year 2005, amounts requested to perform competitive sourcing studies for programs, projects, and activities listed in paragraph (2) shall be set forth separately from other amounts requested. of the Department of the Interior for which funds are appropriated by this Act [see Tables for classification]; of the Forest Service; and of the Department of Energy for which funds are appropriated by this Act. The Secretary [of the Army] shall comply with the requirements of the Federal Activities Inventory Reform Act of 1998 ( 31 U.S.C. 501 note; Public Law 105–270 ). In carrying out this section, the Secretary shall inventory and review all activities that are not inherently governmental in nature in accordance with the Federal Activities Inventory Reform Act of 1998. Any review and conversion by the Secretary to performance by private enterprise of an architectural or engineering service (including a surveying or mapping service) shall be carried out in accordance with title IX of the Federal Property and Administrative Services Act of 1949 ( 40 U.S.C. 541 et seq.) [now sections 1101–1104 of title 40].” “This Act may be cited as the ‘Federal Activities Inventory Reform Act of 1998’. The fiscal year for which the activity first appeared on a list prepared under this section. The number of full-time employees (or its equivalent) that are necessary for the performance of the activity by a Federal Government source. The name of a Federal Government employee responsible for the activity from whom additional information about the activity may be obtained. 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. the head of the executive agency shall promptly transmit a copy of the list to Congress and make the list available to the public; and 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. make each such change available to the public and transmit a copy of the change to Congress; and publish in the Federal Register a notice that the change is available to the public. 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. 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. 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. is an actual or prospective offeror for any contract, or other form of agreement, to perform the activity; and has 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. A representative of any business or professional association that includes within its membership private sector sources referred to in paragraph (1). An officer or employee of an organization within an executive agency that is an actual or prospective offeror to perform the activity. The 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). 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. decide the challenge; and transmit 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). 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). 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. An executive department named in section 101 of title 5 , United States Code. A military department named in section 102 of title 5 , United States Code. An independent establishment, as defined in section 104 of title 5 , United States Code. The Government Accountability Office. A Government corporation or a Government controlled corporation, as those terms are defined in section 103 of title 5 , United States Code. 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 of the Department of Defense (as defined in section 2460 of title 10 , United States Code). Executive agencies with fewer than 100 full-time employees as of the first day of the fiscal year. However, such an agency shall be subject to section 2 to the extent it plans to conduct a public-private competition for the performance of an activity that is not inherently governmental. 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 the activity. The term ‘inherently governmental function’ means a function that is so intimately related to the public interest as to require performance by Federal Government employees. to bind the United States to take or not to take some action by contract, policy, regulation, authorization, order, or otherwise; to 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; to commission, appoint, direct, or control officers or employees of the United States; or to 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. gathering information for or providing advice, opinions, recommendations, or ideas to Federal Government officials; or any 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 services). “This Act shall take effect on October 1, 1998 .” Section 504 of the Department of Homeland Security Appropriations Act, 2017 (division F of Public Law 115–31 ) [set out above], related to the operations of a working capital fund, shall apply with respect to funds made available in this Act [div. A of Pub. L. 119–86 , see Tables for classification] in the same manner as such section applied to funds made available in that Act. Funds from such working capital fund may be obligated and expended in anticipation of reimbursements from components of the Department of Homeland Security.” There is authorized to be established on a pilot program basis in each of six executive agencies a franchise fund. The Director of the Office of Management and Budget, after consultation with the chairman and ranking members of the Committees on Appropriations and Governmental Affairs of the Senate, and the Committees on Appropriations and Government Operations [now Committee on Oversight and Accountability] of the House of Representatives, shall designate the agencies. Each such fund may provide, consistent with guidelines established by the Director of the Office of Management and Budget, such common administrative support services to the agency and to other agencies as the head of such agency, with the concurrence of the Director, determines can be provided more efficiently through such a fund than by other means. To provide such services, each such fund is authorized to acquire the capital equipment, automated data processing systems, and financial management and management information systems needed. Services shall be provided by such funds on a competitive basis. There are authorized to be appropriated to the franchise fund of each agency designated under subsection (a) such funds as are necessary to carry out the purposes of the fund, to remain available until expended. To the extent that unexpended balances remain available in other accounts for the purposes to be carried out by the fund, the head of the agency may transfer such balances to the fund. Fees for services shall be established by the head of the agency at a level to cover the total estimated costs of providing such services. Such fees shall be deposited in the agency’s fund to remain available until expended, and may be used to carry out the purposes of the fund. Existing inventories, including inventories on order, equipment, and other assets or liabilities pertaining to the purposes of the fund may be transferred to the fund. the structure of the fund; the composition of the funding mechanism; the capacity of the fund to promote competition; and the desirability of extending the application and implementation of franchise funds to other Federal agencies. Nothing in this section shall be construed as relieving any agency of any duty under applicable procurement laws. The authority of the Secretary of Homeland Security to carry out a pilot program under this section shall terminate on October 1, 2008 .” chapters 5, 9, 11, 33, 35, 37, 39, 75, and 91 of title 31, United States Code; the Federal Civil Penalties Inflation Adjustment Act of 1990 ( 28 U.S.C. 2461 note; Public Law 101–410 ; 104 Stat. 890 ). The authority provided in subsection (a) shall apply only to reports of agencies to the Office of Management and Budget or the President and of agencies or the Office of Management and Budget to the Congress required by statute to be submitted between January 1, 1995 , and April 30, 2000 . consultation with the Chairman of the Senate Committee on Governmental Affairs [now Committee on Homeland Security and Governmental Affairs] and the Chairman of the House of Representatives Committee on Government Operations [now Committee on Oversight and Accountability]; and written notification to the Congress, no later than February 8 of each fiscal year covered under subsection (b) for those reports required to be submitted during that fiscal year.” General management functions of the Office of Management and Budget need to be significantly enhanced to improve the efficiency and effectiveness of the Federal Government. Financial management functions of the Office of Management and Budget need to be significantly enhanced to provide overall direction and leadership in the development of a modern Federal financial management structure and associated systems. Billions of dollars are lost each year through fraud, waste, abuse, and mismanagement among the hundreds of programs in the Federal Government. These losses could be significantly decreased by improved management, including improved central coordination of internal controls and financial accounting. The Federal Government is in great need of fundamental reform in financial management requirements and practices as financial management systems are obsolete and inefficient, and do not provide complete, consistent, reliable, and timely information. Current financial reporting practices of the Federal Government do not accurately disclose the current and probable future cost of operating and investment decisions, including the future need for cash or other resources, do not permit adequate comparison of actual costs among executive agencies, and do not provide the timely information required for efficient management of programs. Bring more effective general and financial management practices to the Federal Government through statutory provisions which would establish in the Office of Management and Budget a Deputy Director for Management, establish an Office of Federal Financial Management headed by a Controller, and designate a Chief Financial Officer in each executive department and in each major executive agency in the Federal Government. Provide for improvement, in each agency of the Federal Government, of systems of accounting, financial management, and internal controls to assure the issuance of reliable financial information and to deter fraud, waste, and abuse of Government resources. Provide for the production of complete, reliable, timely, and consistent financial information for use by the executive branch of the Government and the Congress in the financing, management, and evaluation of Federal programs.”