TITLE 31 – MONEY AND FINANCE SUBTITLE I – GENERAL CHAPTER 5 – OFFICE OF MANAGEMENT AND BUDGET

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31 USC Sec. 501 01/03/2012 (112-90)

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TITLE 31 – MONEY AND FINANCE

SUBTITLE I – GENERAL

CHAPTER 5 – OFFICE OF MANAGEMENT AND BUDGET

SUBCHAPTER I – ORGANIZATION

-HEAD-

Sec. 501. Office of Management and Budget

-STATUTE-

The Office of Management and Budget is an office in the Executive

Office of the President.

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(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 886.)

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HISTORICAL AND REVISION NOTES

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Revised Source (U.S. Code Source (Statutes at Large)

Section

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501 31:16(1st sentence). June 10, 1921, ch. 18, Sec.

207(1st sentence), 42 Stat.

22; Reorg. Plan No. 1 of 1939,

eff. July 1, 1939, Sec. 1, 53

Stat. 1423; Reorg. Plan No. 2

of 1970, eff. July 1, 1970,

Sec. 102(a), 84 Stat. 2085;

restated Mar. 2, 1974, Pub. L.

93-250, Sec. 1, 88 Stat. 11.

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SHORT TITLE OF 1990 AMENDMENT

Pub. L. 101-576, title I, Sec. 101, Nov. 15, 1990, 104 Stat.

2838, provided that: “This Act [enacting sections 503, 504, 901 to

903, and 3515 of this title, amending sections 502, 1105, 3512,

3521, 9105, and 9106 of this title, sections 5313 to 5315 of Title

5, Government Organization and Employees, and section 3533 of Title

42, The Public Health and Welfare, renumbering sections 503 and 504

of this title as 505 and 506 of this title, respectively, enacting

provisions set out as notes under this section and sections 901,

3511, 3515, and 3521 of this title, and amending provisions set out

as a note under section 301 of Title 38, Veterans’ Benefits] may be

cited as the ‘Chief Financial Officers Act of 1990’.”

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TRANSFER OF FUNCTIONS

Pub. L. 104-53, title II, Sec. 211, Nov. 19, 1995, 109 Stat. 535,

as amended by Pub. L. 104-316, title II, Sec. 203, Oct. 19, 1996,

110 Stat. 3845, provided that: “Personnel transferred pursuant to

this section, as in effect immediately before the effective date of

section 303 [203] of the General Accounting Office Act of 1996

[Pub. L. 104-316, Oct. 19, 1996], shall not be separated or reduced

in classification or compensation for one year after any such

transfer, except for cause.”

EMERGENCY PREPAREDNESS FUNCTIONS

For assignment of certain emergency preparedness functions to

Director of the Office of Management and Budget, see Parts 1, 2,

and 28 of Ex. Ord. No. 12656, Nov. 18, 1988, 53 F.R. 47491, set out

as a note under section 5195 of Title 42, The Public Health and

Welfare.

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SERVICE CONTRACT INVENTORY

Pub. L. 111-117, div. C, title VII, Sec. 743, Dec. 16, 2009, 123

Stat. 3216, as amended by Pub. L. 112-74, div. C, title VII, Sec.

740, Dec. 23, 2011, 125 Stat. 939, provided that:

“(a) Service Contract Inventory Requirement. –

“(1) Guidance. – 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.

“(2) Report. – 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.

“(3) Inventory contents. – Not later than December 31, 2010,

and annually thereafter, the head of each executive agency

required to submit an inventory in accordance with the Federal

Activities Inventory Reform Act of 1998 (Public Law 105-270; 31

U.S.C. 501 note), other than the Department of Defense, shall

submit to the Office of Management and Budget an annual inventory

of service contracts awarded or extended through the exercise of

an option, and task orders issued under any such contract, on or

after April 1, 2010, for or on behalf of such agency. For each

service contract, the entry for an inventory under this section

shall include, for the preceding fiscal year, the following:

“(A) 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.

“(B) 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.

“(C) The total dollar amount obligated for services under the

contract and the funding source for the contract.

“(D) The total dollar amount invoiced for services under the

contract.

“(E) The contract type and date of award.

“(F) The name of the contractor and place of performance.

“(G) The number and work location of contractor and

subcontractor employees, expressed as full-time equivalents for

direct labor, compensated under the contract.

“(H) Whether the contract is a personal services contract.

“(I) Whether the contract was awarded on a noncompetitive

basis, regardless of date of award.

“(b) Form. – Reports required under this section shall be

submitted in unclassified form, but may include a classified annex.

“(c) Publication. – Not later than 30 days after the date on

which the inventory under subsection (a)(3) is required to be

submitted to the Office of Management and Budget, the head of each

executive agency shall –

“(1) make the inventory available to the public; and

“(2) publish in the Federal Register a notice that the

inventory is available to the public.

“(d) Government-wide Inventory Report. – 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.

“(e) Review and Planning Requirements. – Not later than 180 days

after the deadline for submitting inventories under subsection

(a)(3) for an executive agency, the head of the executive agency,

or an official designated by the agency head shall –

“(1) review the contracts and information in the inventory;

“(2) ensure that –

“(A) 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;

“(B) the agency is giving special management attention to

functions that are closely associated with inherently

governmental functions;

“(C) the agency is not using contractor employees to perform

inherently governmental functions;

“(D) 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;

“(E) 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

“(F) there are sufficient internal agency resources to manage

and oversee contracts effectively;

“(3) identify contracts that have been poorly performed, as

determined by a contracting officer, because of excessive costs

or inferior quality; and

“(4) identify contracts that should be considered for

conversion to –

“(A) 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

“(B) an alternative acquisition approach that would better

enable the agency to efficiently utilize its assets and achieve

its public mission.

“(f) Report on Actions Taken in Response to Annual Inventory. –

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).

“(g) Submission of Service Contract Inventory Before Public-

private Competition. – 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.

“(h) GAO Reports on Implementation. –

“(1) Report on guidance. – 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 and

the Committee on Appropriations of the House of Representatives.

“(2) Reports on inventories. –

“(A) Initial inventory. – 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.

“(B) Second inventory. – 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.

“(3) Periodic briefings. – The Comptroller General shall

provide periodic briefings, as may be requested by the

Committees, on matters related to implementation of this section.

“(i) Executive Agency Defined. – 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].”

REQUIREMENT FOR DEBRIEFINGS RELATED TO CONVERSION OF FUNCTIONS FROM

PERFORMANCE BY FEDERAL EMPLOYEES TO PERFORMANCE BY A CONTRACTOR

Pub. L. 111-84, div. A, title III, Sec. 326, Oct. 28, 2009, 123

Stat. 2254, provided that: “The Administrator for Federal

Procurement Policy shall revise the Federal Acquisition Regulation

to allow for debriefings of Federal employee representatives

designated pursuant to 3551(2)(B) of title 31, United States Code,

to the same extent and under the same circumstances as any offeror,

in the case of a conversion of any function from performance by

Federal employees to performance by a contractor. Such debriefings

will conform to the requirements of section 2305(b)(6)(A) of title

10, United States Code, section 303B(f) of the Federal Property and

Administrative Services Act of 1949 ([former] 41 U.S.C. 253b(f))

[now 41 U.S.C. 3705], and subparts 15.505 and 15.506 (as in effect

on the date of the enactment of this Act [Oct. 28, 2009]) of the

Federal Acquisition Regulation.”

COMPREHENSIVE ANALYSIS AND DEVELOPMENT OF SINGLE GOVERNMENT-WIDE

DEFINITION OF INHERENTLY GOVERNMENTAL FUNCTION AND CRITERIA FOR

CRITICAL FUNCTIONS

Pub. L. 110-417, [div. A], title III, Sec. 321, Oct. 14, 2008,

122 Stat. 4411, provided that:

“(a) Development and Implementation. – The Director of the Office

of Management and Budget, in consultation with appropriate

representatives of the Chief Acquisition Officers Council under

section 16A of the Office of Federal Procurement Policy Act

([former] 41 U.S.C. 414b) [now 41 U.S.C. 1311 et seq.] and the

Chief Human Capital Officers Council under section 1401 of title 5,

United States Code, shall –

“(1) 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;

“(2) develop a single consistent definition for such term that

would –

“(A) address any deficiencies in the existing definitions, as

determined pursuant to paragraph (1);

“(B) reasonably apply to all Federal departments and

agencies; and

“(C) 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;

“(3) develop criteria to be used by the head of each such

department or agency to –

“(A) identify critical functions with respect to the unique

missions and structure of that department or agency; and

“(B) 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;

“(4) in addition to the actions described under paragraphs (1),

(2), and (3), provide criteria that would identify positions

within Federal departments and agencies that are to be performed

by officers or employees of the Federal Government or members of

the Armed Forces to ensure that the head of each Federal

department or agency –

“(A) develops and maintains sufficient organic expertise and

technical capability;

“(B) 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

“(C) develops guidance to manage internal decisions regarding

staffing in an integrated manner to ensure officers or

employees of the Federal Government or members of the Armed

Forces are filling critical management roles by identifying –

“(i) functions, activities, or positions, or some

combination thereof, or

“(ii) additional mechanisms and factors, including the

management or oversight of awarded contracts, statutory

mandates, and international obligations; and

“(5) solicit the views of the public regarding the matters

identified in this section.

“(b) Definitions of Inherently Governmental Function. – The

definitions of inherently governmental function described in this

subsection are the definitions of such term that are contained in –

“(1) the Federal Activities Inventory Reform Act of 1998

(Public Law 105-270; 31 U.S.C. 501 note);

“(2) section 2383 of title 10, United States Code;

“(3) Office of Management and Budget Circular A-76;

“(4) the Federal Acquisition Regulation; and

“(5) 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.

“(c) Report to Congress. – Not later than one year after the date

of the enactment of this Act [Oct. 14, 2008], the Director of the

Office of Management and Budget, in consultation with the Chief

Acquisition Officers Council and the Chief Human Capital Officers

Council, shall submit to the Committees on Armed Services of the

Senate and House of Representatives, the Committee on Homeland

Security and Governmental Affairs in the Senate, and the Committee

on Oversight and Government Reform of the House of Representatives

a report on the actions taken by the Director under this section.

Such report shall contain each of the following:

“(1) 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.

“(2) Such legislative recommendations as the Director

determines are necessary to further the purposes of this section.

“(3) A description of such steps as may be necessary –

“(A) 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;

“(B) 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

“(C) to develop any necessary implementing guidance under

this section for agency staffing and contracting decisions,

along with appropriate milestones.

“(d) Regulations. – 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.”

PUBLIC-PRIVATE COMPETITION

Pub. L. 110-161, div. D, title VII, Sec. 739, Dec. 26, 2007, 121

Stat. 2029, as amended by Pub. L. 111-8, div. D, title VII, Secs.

735, 736, Mar. 11, 2009, 123 Stat. 689, provided that:

“(a) Requirement for Public-Private Competition. –

“(1) Notwithstanding any other provision of law, none of the

funds appropriated by this or any other 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 [Dec. 26, 2007], is performed by Federal employees unless –

“(A) 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;

“(B) the Competitive Sourcing Official determines that, 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 –

“(i) 10 percent of the most efficient organization’s

personnel-related costs for performance of that activity or

function by Federal employees; or

“(ii) $10,000,000; and

“(C) the contractor does not receive an advantage for a

proposal that would reduce costs for the Federal Government by –

“(i) 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;

“(ii) 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

“(iii) 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.

“(2) This paragraph shall not apply to –

“(A) the Department of Defense;

“(B) section 44920 of title 49, United States Code;

“(C) a commercial or industrial type function that –

“(i) 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

“(ii) 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.];

“(D) depot contracts or contracts for depot maintenance as

provided in sections 2469 and 2474 of title 10, United States

Code; or

“(E) 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].

“(b) Guidelines on Insourcing New and Contracted Out Functions. –

“(1) Guidelines required. – (A) 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.

“(B) 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.

“(2) Special consideration for certain functions. – The

guidelines and procedures required under paragraph (1) shall

provide for special consideration to be given to using Federal

employees to perform any function that –

“(A) is performed by a contractor and –

“(i) has been performed by Federal employees at any time

during the previous 10 years;

“(ii) is a function closely associated with the performance

of an inherently governmental function;

“(iii) has been performed pursuant to a contract awarded on

a non-competitive basis; or

“(iv) 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

“(B) 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.

“(3) Exclusion of certain functions from competitions. – The

head of an executive agency may not conduct a public-private

competition under Office of Management and Budget Circular A-76

or any other provision of law or regulation before –

“(A) in the case of a new agency function, assigning the

performance of the function to Federal employees;

“(B) in the case of any agency function described in

paragraph (2), converting the function to performance by

Federal employees; or

“(C) in the case of an agency function performed by Federal

employees, expanding the scope of the function.

“(4) Deadline. – (A) 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].

“(B) 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 of

the House of Representatives, and the Committee on Homeland

Security and Governmental Affairs of the Senate.

“(5) Definitions. – In this subsection:

“(A) The term ‘inherently governmental functions’ has the

meaning given such term in subpart 7.5 of part 7 of the Federal

Acquisition Regulation.

“(B) The term ‘functions closely associated with inherently

governmental functions’ means the functions described in

section 7.503(d) of the Federal Acquisition Regulation.

“(6) Applicability. – This subsection shall not apply to the

Department of Defense.

“(c) Bid Protests by Federal Employees in Actions Under Office of

Management and Budget Circular A-76. –

“(1) Eligibility to protest. –

“(A) [Amended section 3551 of this title.]

“(B)(i) [Enacted section 3557 of this title.]

“(ii) [Amended chapter analysis preceding section 3501 of

this title.]

“(2) [Amended section 1491 of title 28, Judiciary and Judicial

Procedure.]

“(3) Applicability. – Subparagraph (B) of section 3551(2) of

title 31, United States Code (as added by paragraph (1)), and

paragraph (5) of section 1491(b) of title 28, United States Code

(as added by paragraph (2)), shall apply to –

“(A) 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

“(B) 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].

“(d) Limitation. – (1) None of the funds available in this Act

[titles I to III and V to VII of div. D of Pub. L. 110-161, see

Tables for classification] may be used –

“(A) by the Office of Management and Budget to direct or

require another agency to take an action specified in paragraph

(2); or

“(B) 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.

“(2) 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.

“(e) Applicability. – This section shall apply with respect to

fiscal year 2008 and each succeeding fiscal year.”

COMPETITIVE SOURCING ACTIVITIES

Pub. L. 108-199, div. F, title VI, Sec. 647(b), (d), (f), Jan.

23, 2004, 118 Stat. 361, 362, provided that:

“(b) Not later than 120 days following the enactment of this Act

[Jan. 23, 2004] 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.

“(d) 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.

“(f) 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].”

Pub. L. 108-108, title III, Sec. 340(a), (b), (f), Nov. 10, 2003,

117 Stat. 1315, 1317, as amended by Pub. L. 108-447, div. E, title

III, Sec. 332(c), Dec. 8, 2004, 118 Stat. 3100, provided that:

“(a) Justification of Competitive Sourcing Activities. – (1) 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.

“(2) Paragraph (1) applies to programs, projects, and activities –

“(A) of the Department of the Interior for which funds are

appropriated by this Act [see Tables for classification];

“(B) of the Forest Service; and

“(C) of the Department of Energy for which funds are

appropriated by this Act.

[(b) Repealed. Pub. L. 108-447, div. E, title III, Sec. 332(c),

Dec. 8, 2004, 118 Stat. 3100.]

“(f) Competitive Sourcing Study Defined. – In this subsection

[probably means “this section”], the term ‘competitive sourcing

study’ means a study on subjecting work performed by Federal

Government employees or private contractors to public-private

competition or on converting the Federal Government employees or

the work performed by such employees to private contractor

performance under the Office of Management and Budget Circular A-76

or any other administrative regulation, directive, or policy.”

STUDY OF POLICIES AND PROCEDURES FOR TRANSFER OF COMMERCIAL

ACTIVITIES

Pub. L. 106-398, Sec. 1 [[div. A], title VIII, Sec. 832], Oct.

30, 2000, 114 Stat. 1654, 1654A-221, provided that the Comptroller

General was to convene a panel of experts to study the policies and

procedures governing the transfer of commercial activities for the

Federal Government from Government personnel to Federal contractors

and to appoint highly qualified and knowledgeable persons, from

appropriate governmental agencies and private industry, to serve on

the panel, whose chairman would be the Comptroller General or a

designated individual within the GAO, and provided that interested

parties would be allowed to participate, that the panel would have

access to necessary information from Federal agencies, and that the

Comptroller General was to submit a report of the panel on the

results of the study to Congress no later than May 1, 2002.

USE OF PRIVATE ENTERPRISES

Pub. L. 106-53, title II, Sec. 227, Aug. 17, 1999, 113 Stat. 298,

provided that:

“(a) In General. – 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).

“(b) Compliance With Other Law. –

“(1) Inventory and review. – 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.

“(2) Architectural and engineering services. – 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].”

FEDERAL ACTIVITIES INVENTORY REFORM

Pub. L. 110-28, title VI, Sec. 6201, May 25, 2007, 121 Stat. 171,

provided that: “Hereafter, Federal employees at the National Energy

Technology Laboratory shall be classified as inherently

governmental for the purpose of the Federal Activities Inventory

Reform Act of 1998 [Pub. L. 105-270] (31 U.S.C. 501 note).”

Pub. L. 110-28, title VI, Sec. 6602(b), May 25, 2007, 121 Stat.

178, provided that: “Hereafter, Federal employees at the Mine

Safety and Health Administration shall be classified as inherently

governmental for the purpose of the Federal Activities Inventory

Reform Act of 1998 [Pub. L. 105-270] (31 U.S.C. 501 note).”

Pub. L. 105-270, Oct. 19, 1998, 112 Stat. 2382, as amended by

Pub. L. 108-271, Sec. 8(b), July 7, 2004, 118 Stat. 814; Pub. L.

109-115, div. A, title VIII, Sec. 840, Nov. 30, 2005, 119 Stat.

2505, provided that:

“SECTION 1. SHORT TITLE.

“This Act may be cited as the ‘Federal Activities Inventory

Reform Act of 1998’.

“SEC. 2. ANNUAL LISTS OF GOVERNMENT ACTIVITIES NOT INHERENTLY

GOVERNMENTAL IN NATURE.

“(a) 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:

“(1) The fiscal year for which the activity first appeared on a

list prepared under this section.

“(2) The number of full-time employees (or its equivalent) that

are necessary for the performance of the activity by a Federal

Government source.

“(3) The name of a Federal Government employee responsible for

the activity from whom additional information about the activity

may be obtained.

“(b) OMB 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.

“(c) Public Availability of Lists. –

“(1) Publication. – Upon the completion of the review and

consultation regarding a list of an executive agency –

“(A) 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

“(B) 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.

“(2) Changes. – If 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 –

“(A) make each such change available to the public and

transmit a copy of the change to Congress; and

“(B) publish in the Federal Register a notice that the change

is available to the public.

“(d) Competition 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.

“(e) Realistic 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.

“SEC. 3. CHALLENGES TO THE LIST.

“(a) Challenge 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.

“(b) Interested Party Defined. – For the purposes of this

section, the term ‘interested party’, with respect to an activity

referred to in subsection (a), means the following:

“(1) A private sector source that –

“(A) is an actual or prospective offeror for any contract, or

other form of agreement, to perform the activity; and

“(B) 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.

“(2) A representative of any business or professional

association that includes within its membership private sector

sources referred to in paragraph (1).

“(3) An officer or employee of an organization within an

executive agency that is an actual or prospective offeror to

perform the activity.

“(4) 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).

“(c) Time 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.

“(d) Initial Decision. – Within 28 days after an executive agency

receives a challenge, an official designated by the head of the

executive agency shall –

“(1) decide the challenge; and

“(2) 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).

“(e) Appeal. –

“(1) 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).

“(2) Decision 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.

“SEC. 4. APPLICABILITY.

“(a) Executive Agencies Covered. – Except as provided in

subsection (b), this Act applies to the following executive

agencies:

“(1) Executive department. – An executive department named in

section 101 of title 5, United States Code.

“(2) Military department. – A military department named in

section 102 of title 5, United States Code.

“(3) Independent establishment. – An independent establishment,

as defined in section 104 of title 5, United States Code.

“(b) Exceptions. – This Act does not apply to or with respect to

the following:

“(1) Government accountability office. – The Government

Accountability Office.

“(2) Government corporation. – A Government corporation or a

Government controlled corporation, as those terms are defined in

section 103 of title 5, United States Code.

“(3) Nonappropriated 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.

“(4) Certain 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).

“(5) 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.

“SEC. 5. DEFINITIONS.

“In this Act:

“(1) Federal 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 the activity.

“(2) Inherently governmental function. –

“(A) Definition. – 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.

“(B) Functions 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 –

“(i) to bind the United States to take or not to take some

action by contract, policy, regulation, authorization, order,

or otherwise;

“(ii) 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;

“(iii) to significantly affect the life, liberty, or

property of private persons;

“(iv) to commission, appoint, direct, or control officers

or employees of the United States; or

“(v) 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.

“(C) Functions excluded. – The term does not normally include

“(i) gathering information for or providing advice,

opinions, recommendations, or ideas to Federal Government

officials; or

“(ii) 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).

“SEC. 6. EFFECTIVE DATE.

“This Act shall take effect on October 1, 1998.”

PURPOSE OF AMENDMENTS BY PUB. L. 104-316

Pub. L. 104-316, title II, Sec. 201, Oct. 19, 1996, 110 Stat.

3842, provided that: “The purpose of this title [see Tables for

classification] is to amend provisions of law to reflect, update,

and enact transfers and subsequent delegations of functions made

under section 211 of the Legislative Branch Appropriations Act,

1996 (Public Law 104-53, 109 Stat. 535) [see Transfer of Functions

note above], as in effect immediately before this title takes

effect [Oct. 19, 1996].”

DEPARTMENT OF COMMERCE FRANCHISE FUND PILOT

Pub. L. 108-199, div. B, title II, Sec. 206, Jan. 23, 2004, 118

Stat. 73, provided that: “Hereafter, the Secretary of Commerce may

use the Commerce franchise fund for expenses and equipment

necessary for the maintenance and operation of such administrative

services as the Secretary determines may be performed more

advantageously as central services, pursuant to section 403 of

Public Law 103-356 [set out below]: Provided, That any inventories,

equipment, and other assets pertaining to the services to be

provided by such fund, either on hand or on order, less the related

liabilities or unpaid obligations, and any appropriations made for

the purpose of providing capital shall be used to capitalize such

fund: Provided further, That such fund shall be paid in advance

from funds available to the Department and other Federal agencies

for which such centralized services are performed, at rates which

will return in full all expenses of operation, including accrued

leave, depreciation of fund plant and equipment, amortization of

automated data processing software and systems (either acquired or

donated), and an amount necessary to maintain a reasonable

operating reserve, as determined by the Secretary: Provided

further, That such fund shall provide services on a competitive

basis: Provided further, That an amount not to exceed 4 percent of

the total annual income to such fund may be retained in the fund

for fiscal year 2004 and each fiscal year thereafter, to remain

available until expended, to be used for the acquisition of capital

equipment, and for the improvement and implementation of department

financial management, automated data processing, and other support

systems: Provided further, That such amounts retained in the fund

for fiscal year 2004 and each fiscal year thereafter shall be

available for obligation and expenditure only in accordance with

section 605 of this Act [118 Stat. 93]: Provided further, That no

later than 30 days after the end of each fiscal year, amounts in

excess of this reserve limitation shall be deposited as

miscellaneous receipts in the Treasury.”

Similar provisions were contained in the following prior

appropriation acts:

Pub. L. 108-7, div. B, title II, Sec. 207, Feb. 20, 2003, 117

Stat. 77.

Pub. L. 107-77, title II, Sec. 207, Nov. 28, 2001, 115 Stat. 778.

Pub. L. 106-553, Sec. 1(a)(2) [title II, Sec. 208], Dec. 21,

2000, 114 Stat. 2762, 2762A-79.

Pub. L. 106-113, div. B, Sec. 1000(a)(1) [title II, Sec. 209],

Nov. 29, 1999, 113 Stat. 1535, 1501A-33.

Pub. L. 105-277, div. A, Sec. 101(b) [title II, Sec. 209], Oct.

21, 1998, 112 Stat. 2681-50, 2681-87.

DEPARTMENT OF THE INTERIOR FRANCHISE FUND PILOT

Pub. L. 104-208, div. A, title I, Sec. 101(d) [title I, Sec.

113], Sept. 30, 1996, 110 Stat. 3009-181, 3009-200, as amended by

Pub. L. 108-7, div. F, title I, Sec. 149, Feb. 20, 2003, 117 Stat.

245, provided that: “There is hereby established in the Treasury a

franchise fund pilot, as authorized by section 403 of Public Law

103-356 [set out below], to be available as provided in such

section for costs of capitalizing and operating administrative

services as the Secretary determines may be performed more

advantageously as central services: Provided, That any inventories,

equipment, and other assets pertaining to the services to be

provided by such fund, either on hand or on order, less the related

liabilities or unpaid obligations, and any appropriations made

prior to the current year for the purpose of providing capital

shall be used to capitalize such fund: Provided further, That such

fund may be paid in advance from funds available to the Department

and other Federal agencies for which such centralized services are

performed, at rates which will return in full all expenses of

operation, including accrued leave, depreciation of fund plant and

equipment, amortization of automatic data processing (ADP) software

and systems (either acquired or donated) and an amount necessary to

maintain a reasonable operating reserve, as determined by the

Secretary: Provided further, That such fund shall provide services

on a competitive basis: Provided further, That an amount not to

exceed four percent of the total annual income to such fund may be

retained in the fund for fiscal year 1997 and each fiscal year

thereafter, to remain available until expended, to be used for the

acquisition of capital equipment, and for the improvement and

implementation of Department financial management, ADP, and other

support systems: Provided further, That no later than thirty days

after the end of each fiscal year amounts in excess of this reserve

limitation shall be transferred to the Treasury: Provided further,

That such franchise fund pilot shall terminate pursuant to section

403(f) of Public Law 103-356.”

DEPARTMENT OF VETERANS AFFAIRS FRANCHISE FUND PILOT

Pub. L. 108-447, div. I, title I, Sec. 108, Dec. 8, 2004, 118

Stat. 3292, provided that: “Notwithstanding any other provision of

law, the Department of Veterans Affairs shall continue the

Franchise Fund pilot program authorized to be established by

section 403 of Public Law 103-356 [set out below] until October 1,

2005: Provided, That the Franchise Fund, established by title I of

Public Law 104-204 [set out as a note under section 301 of Title

38, Veterans’ Benefits] to finance the operations of the Franchise

Fund pilot program, shall continue until October 1, 2005.”

Similar provisions were contained in the following prior

appropriation acts:

Pub. L. 108-199, div. G, title I, Sec. 108, Jan. 23, 2004, 118

Stat. 369.

Pub. L. 108-7, div. K, title I, Sec. 108, Feb. 20, 2003, 117

Stat. 481.

Pub. L. 107-73, title I, Sec. 108, Nov. 26, 2001, 115 Stat. 658.

DEPARTMENT OF HOMELAND SECURITY WORKING CAPITAL FUND

Pub. L. 112-74, div. D, title V, Sec. 504, Dec. 23, 2011, 125

Stat. 969, provided that: “The Department of Homeland Security

Working Capital Fund, established pursuant to section 403 of Public

Law 103-356 (31 U.S.C. 501 note), shall continue operations as a

permanent working capital fund for fiscal year 2012: Provided, That

none of the funds appropriated or otherwise made available to the

Department of Homeland Security may be used to make payments to the

Working Capital Fund, except for the activities and amounts allowed

in the President’s fiscal year 2012 budget: Provided further, That

funds provided to the Working Capital Fund shall be available for

obligation until expended to carry out the purposes of the Working

Capital Fund: Provided further, That all departmental components

shall be charged only for direct usage of each Working Capital Fund

service: Provided further, That funds provided to the Working

Capital Fund shall be used only for purposes consistent with the

contributing component: Provided further, That the Working Capital

Fund shall be paid in advance or reimbursed at rates which will

return the full cost of each service: Provided further, That the

Working Capital Fund shall be subject to the requirements of

section 503 of this Act [125 Stat. 968].”

Similar provisions were contained in the following prior

appropriation acts:

Pub. L. 111-83, title V, Sec. 504, Oct. 28, 2009, 123 Stat. 2169.

Pub. L. 110-329, div. D, title V, Sec. 504, Sept. 30, 2008, 122

Stat. 3680.

Pub. L. 110-161, div. E, title V, Sec. 524, Dec. 26, 2007, 121

Stat. 2074.

Pub. L. 109-295, title V, Sec. 526, Oct. 4, 2006, 120 Stat. 1382.

Pub. L. 109-13, div. A, title VI, Sec. 6025, May 11, 2005, 119

Stat. 287, provided that: “The Department of Homeland Security

shall henceforth provide an appropriations justification for the

‘Department of Homeland Security Working Capital Fund’ to the

Committees on Appropriations of the Senate and House of

Representatives: Provided, That an annual appropriations

justification shall be submitted to the Congress as a part of the

President’s budget as submitted under section 1105(a) of Title 31,

United States Code, and shall contain the same level of detail as

the Department’s Congressional appropriations justification in

support of the President’s budget: Provided further, That the

‘Department of Homeland Security Working Capital Fund’

Congressional appropriations justification for fiscal year 2006

shall be submitted within 15 days of enactment of this Act [May 11,

2005]: Provided further, That the Chief Financial Officer shall

ensure that all planned activities and amounts to be funded by the

‘Department of Homeland Security Working Capital Fund’, all

reimbursable agreements, and all uses of the Economy Act [31 U.S.C.

1535] are explicitly identified in each Congressional

appropriations justification in support of the President’s budget

provided for each agency and component of the Department.”

Pub. L. 108-90, title V, Sec. 506, Oct. 1, 2003, 117 Stat. 1153,

provided in part: “That such fund [Federal Emergency Management

Agency Working Capital Fund] shall hereafter be known as the

‘Department of Homeland Security Working Capital Fund’.”

Pub. L. 104-204, title III, Sept. 26, 1996, 110 Stat. 2915, as

amended by Pub. L. 109-295, title VI, Sec. 612(c), Oct. 4, 2006,

120 Stat. 1410, provided in part: “For the establishment of a

working capital fund for the Federal Emergency Management Agency,

to be available without fiscal year limitation, for expenses and

equipment necessary for maintenance and operations of such

administrative services as the Administrator determines may be

performed more advantageously as central services: Provided, That

any inventories, equipment, and other assets pertaining to the

services to be provided by such fund, either on hand or on order,

less the related liabilities or unpaid obligations, and any

appropriations made hereafter for the purpose of providing capital,

shall be used to capitalize such fund: Provided further, That such

fund shall be reimbursed or credited with advance payments from

applicable appropriations and funds of the Federal Emergency

Management Agency, other Federal agencies, and other sources

authorized by law for which such centralized services are

performed, including supplies, materials, and services, at rates

that will return in full all expenses of operation, including

accrued leave, depreciation of fund plant and equipment,

amortization of automated data processing (ADP) software and

systems (either acquired or donated), and an amount necessary to

maintain a reasonable operating reserve as determined by the

Administrator: Provided further, That income of such fund may be

retained, to remain available until expended, for purposes of the

fund: Provided further, That fees for services shall be established

by the Administrator at a level to cover the total estimated costs

of providing such services, such fees to be deposited in the fund

shall remain available until expended for purposes of the fund:

Provided further, That such fund shall terminate in a manner

consistent with section 403(f) of Public Law 103-356 [set out

below].”

[For transfer of all functions, personnel, assets, components,

authorities, grant programs, and liabilities of the Federal

Emergency Management Agency, including the functions of the Under

Secretary for Federal Emergency Management relating thereto, to the

Federal Emergency Management Agency, see section 315(a)(1) of Title

6, Domestic Security.]

[For transfer of functions, personnel, assets, and liabilities of

the Federal Emergency Management Agency, including the functions of

the Director of the Federal Emergency Management Agency relating

thereto, to the Secretary of Homeland Security, and for treatment

of related references, see former section 313(1) and sections

551(d), 552(d), and 557 of Title 6, Domestic Security, and the

Department of Homeland Security Reorganization Plan of November 25,

2002, as modified, set out as a note under section 542 of Title 6.]

FRANCHISE FUND PILOT PROGRAMS

Pub. L. 103-356, title IV, Sec. 403, Oct. 13, 1994, 108 Stat.

3413, as amended by Pub. L. 104-208, div. A, title I, Sec. 101(f)

[title VI, Sec. 627], Sept. 30, 1996, 110 Stat. 3009-314, 3009-360;

Pub. L. 107-67, title VI, Sec. 634, Nov. 12, 2001, 115 Stat. 553;

Pub. L. 108-7, div. J, title VI, Sec. 633, Feb. 20, 2003, 117 Stat.

471; Pub. L. 108-136, div. A, title XIV, Sec. 1426, Nov. 24, 2003,

117 Stat. 1670; Pub. L. 108-199, div. F, title VI, Sec. 632, Jan.

23, 2004, 118 Stat. 357; Pub. L. 108-447, div. H, title VI, Sec.

632, Dec. 8, 2004, 118 Stat. 3280; Pub. L. 109-90, title V, Sec.

539, Oct. 18, 2005, 119 Stat. 2088; Pub. L. 109-115, div. A, title

VIII, Sec. 831, Nov. 30, 2005, 119 Stat. 2503; Pub. L. 110-161,

div. D, title VII, Sec. 730, Dec. 26, 2007, 121 Stat. 2026,

provided that:

“(a) Establishment. – 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 Government Reform] of

the House of Representatives, shall designate the agencies.

“(b) Uses. – 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.

“(c) Funding. – (1) 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.

“(2) 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.

“(3) 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.

“(d) Report on Pilot Programs. – Within 6 months after the end of

fiscal year 1997, the Director of the Office of Management and

Budget shall forward a report on the results of the pilot programs

to the Committees on Appropriations of the Senate and of the House

of Representatives, and to the Committee on Governmental Affairs

[now Committee on Homeland Security and Governmental Affairs] of

the Senate and the Committee on Government Operations [now

Committee on Oversight and Government Reform] of the House of

Representatives. The report shall contain the financial and program

performance results of the pilot programs, including

recommendations for –

“(1) the structure of the fund;

“(2) the composition of the funding mechanism;

“(3) the capacity of the fund to promote competition; and

“(4) the desirability of extending the application and

implementation of franchise funds to other Federal agencies.

“(e) Procurement. – Nothing in this section shall be construed as

relieving any agency of any duty under applicable procurement laws.

“(f) Termination of Certain Authority. – The authority of the

Secretary of Homeland Security to carry out a pilot program under

this section shall terminate on October 1, 2008.”

[Pub. L. 109-289, div. B, title II, Sec. 21068, as added by Pub.

L. 110-5, Sec. 2, Feb. 15, 2007, 121 Stat. 57, provided that:

“Section 403(f) of Public Law 103-356 (31 U.S.C. 501 note) shall be

applied by substituting the date specified in section 106 of this

division [Sept. 30, 2007] for ‘October 1, 2006′.”]

[Pub. L. 109-115, div. A, title VIII, Sec. 831, Nov. 30, 2005,

119 Stat. 2503, provided in part: “That this provision [amending

section 403(f) of Pub. L. 103-356, set out above, by substituting

“October 1, 2006” for “October 1, 2005″] shall not apply to the

Department of Homeland Security.”]

[Pub. L. 109-90, title V, Sec. 539, Oct. 18, 2005, 119 Stat.

2088, amended section 403(f) of Pub. L. 103-356, set out above, by

substituting “October 1, 2006” for “October 1, 2005”, for

activities related to the Department of Homeland Security Working

Capital Fund.]

[Pub. L. 108-199, div. F, title VI, Sec. 632, Jan. 23, 2004, 118

Stat. 357, which directed the amendment of subsec. (f) of section

403 of Pub. L. 103-356, set out above, by substituting “October 1,

2004” for “October 1, 2003”, was executed by making the

substitution for “December 31, 2004” to reflect the probable intent

of Congress.]

SIMPLIFICATION OF MANAGEMENT REPORTING PROCESS

Pub. L. 103-356, title IV, Sec. 404, Oct. 13, 1994, 108 Stat.

3414, as amended by Pub. L. 104-208, div. A, title I, Sec. 101(f)

[title VI, Sec. 646], Sept. 30, 1996, 110 Stat. 3009-314, 3009-366;

Pub. L. 106-113, div. B, Sec. 1000(a)(5) [title II, Sec. 241], Nov.

29, 1999, 113 Stat. 1536, 1501A-303, provided that:

“(a) In General. – To improve the efficiency of executive branch

performance in implementing statutory requirements for financial

management reporting to the Congress and its committees, the

Director of the Office of Management and Budget may adjust the

frequency and due dates of or consolidate any statutorily required

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 under any laws for which the Office of Management and

Budget has financial management responsibility, including –

“(1) chapters 5, 9, 11, 33, 35, 37, 39, 75, and 91 of title 31,

United States Code;

“(2) the Federal Civil Penalties Inflation Adjustment Act of

1990 (28 U.S.C. 2461 note; Public Law 101-410; 104 Stat. 890).

“(b) Application. – 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.

“(c) Adjustments in Reporting. – The Director may consolidate or

adjust the frequency and due dates of any statutorily required

reports under subsections (a) and (b) only after –

“(1) 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 Government Reform]; and

“(2) 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.”

FINDINGS AND PURPOSES OF CHIEF FINANCIAL OFFICERS ACT OF 1990

Pub. L. 101-576, title I, Sec. 102, Nov. 15, 1990, 104 Stat.

2838, provided that:

“(a) Findings. – The Congress finds the following:

“(1) 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.

“(2) 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.

“(3) Billions of dollars are lost each year through fraud,

waste, abuse, and mismanagement among the hundreds of programs in

the Federal Government.

“(4) These losses could be significantly decreased by improved

management, including improved central coordination of internal

controls and financial accounting.

“(5) 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.

“(6) 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.

“(b) Purposes. – The purposes of this Act [see Short Title of

1990 Amendment note above] are the following:

“(1) 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.

“(2) 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.

“(3) 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.”

DUTIES AND FUNCTIONS OF DEPARTMENT OF THE TREASURY

Pub. L. 101-576, title II, Sec. 204, Nov. 15, 1990, 104 Stat.

2842, provided that: “Nothing in this Act [see Short Title of 1990

Amendment note above] shall be construed to interfere with the

exercise of the functions, duties, and responsibilities of the

Department of the Treasury, as in effect immediately before the

enactment of this Act [Nov. 15, 1990].”

REORGANIZATION PLAN NO. 2 OF 1970

EFF. JULY 1, 1970, 35 F.R. 7959, 84 STAT. 2085, AS AMENDED PUB. L.

97-258, SEC. 5(B), SEPT. 13, 1982, 96 STAT. 1068, 1085

Prepared by the President and Transmitted to the Senate and the

House of Representatives in Congress Assembled March 12, 1970,

Pursuant to the Provisions of Chapter 9 of Title 5 of the United

States Code.

OFFICE OF MANAGEMENT AND BUDGET; DOMESTIC COUNCIL

PART I. OFFICE OF MANAGEMENT AND BUDGET

SECTION 101. TRANSFER OF FUNCTIONS TO THE PRESIDENT

There are hereby transferred to the President of the United

States all functions vested by law (including reorganization plan)

in the Bureau of the Budget or the Director of the Bureau of the

Budget.

SEC. 102. OFFICE OF MANAGEMENT AND BUDGET

[Repealed. Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat.

1068, 1085. Section designated the Bureau of the Budget as the

Office of Management and Budget, provided for the officers and

their duties, and provided for performance of the duties of the

Director in the event of absence or disability or a vacancy in the

office of Director.]

SEC. 103. RECORDS, PROPERTY, PERSONNEL, AND FUNDS

[Repealed. Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat.

1068, 1085. Section provided that the records, property, personnel,

and unexpended balances etc., of the Bureau of the Budget shall

become those of the Office of Management and Budget.]

PART II. DOMESTIC COUNCIL

SEC. 201. ESTABLISHMENT OF THE COUNCIL

(a) There is hereby established in the Executive Office of the

President a Domestic Council, hereinafter referred to as the

Council.

(b) The Council shall be composed of the following:

The President of the United States

The Vice President of the United States

The Attorney General

Secretary of Agriculture

Secretary of Commerce

Secretary of Health, Education, and Welfare

Secretary of Housing and Urban Development

Secretary of the Interior

Secretary of Labor

Secretary of Transportation

Secretary of the Treasury

and such other officers of the Executive Branch as the President

may from time to time direct.

(c) The President of the United States shall preside over

meetings of the Council: Provided, That, in the event of his

absence, he may designate a member of the Council to preside.

SEC. 202. FUNCTIONS OF THE COUNCIL

The Council shall perform such functions as the President may

from time to time delegate or assign thereto.

SEC. 203. EXECUTIVE DIRECTOR

The staff of the Council shall be headed by an Executive Director

who shall be an assistant to the President designated by the

President. The Executive Director shall perform such functions as

the President may from time to time direct.

PART III. TAKING EFFECT

SEC. 301. EFFECTIVE DATE

The provisions of this reorganization plan shall take effect as

provided by section 906(a) of title 5 of the United States Code, or

on July 1, 1970, whichever is later.

MESSAGE OF THE PRESIDENT

To the Congress of the United States:

We in government often are quick to call for reform in other

institutions, but slow to reform ourselves. Yet nowhere today is

modern management more needed than in government itself.

In 1939, President Franklin D. Roosevelt proposed and the

Congress accepted a reorganization plan that laid the groundwork

for providing managerial assistance for a modern Presidency.

The plan placed the Bureau of the Budget within the Executive

Office of the President. It made available to the President direct

access to important new management instruments. The purpose of the

plan was to improve the administration of the Government – to

ensure that the Government could perform “promptly, effectively,

without waste or lost motion.”

Fulfilling that purpose today is far more difficult – and more

important – than it was 30 years ago.

Last April, I created a President’s Advisory Council on Executive

Organization and named to it a distinguished group of outstanding

experts headed by Roy L. Ash. I gave the Council a broad charter to

examine ways in which the Executive Branch could be better

organized. I asked it to recommend specific organizational changes

that would make the Executive Branch a more vigorous and more

effective instrument for creating and carrying out the programs

that are needed today. The Council quickly concluded that the place

to begin was in the Executive Office of the President itself. I

agree.

The past 30 years have seen enormous changes in the size,

structure and functions of the Federal Government. The budget has

grown from less than $10 billion to $200 billion. The number of

civilian employees has risen from one million to more than two and

a half million. Four new Cabinet departments have been created,

along with more than a score of independent agencies. Domestic

policy issues have become increasingly complex. The

interrelationships among Government programs have become more

intricate. Yet the organization of the President’s policy and

management arms has not kept pace.

Over three decades, the Executive Office of the President has

mushroomed but not by conscious design. In many areas it does not

provide the kind of staff assistance and support the President

needs in order to deal with the problems of government in the

1970s. We confront the 1970s with a staff organization geared in

large measure to the tasks of the 1940s and 1950s.

One result, over the years, has been a tendency to enlarge the

immediate White House staff – that is, the President’s personal

staff, as distinct from the institutional structure – to assist

with management functions for which the President is responsible.

This has blurred the distinction between personal staff and

management institutions; it has left key management functions to be

performed only intermittently and some not at all. It has

perpetuated outdated structures.

Another result has been, paradoxically, to inhibit the delegation

of authority to Departments and agencies.

A President whose programs are carefully coordinated, whose

information system keeps him adequately informed, and whose

organizational assignments are plainly set out, can delegate

authority with security and confidence. A President whose office is

deficient in these respects will be inclined, instead, to retain

close control of operating responsibilities which he cannot and

should not handle.

Improving the management processes of the President’s own office,

therefore, is a key element in improving the management of the

entire Executive Branch, and in strengthening the authority of its

Departments and agencies. By providing the tools that are needed to

reduce duplication, to monitor performance and to promote greater

efficiency throughout the Executive Branch, this also will enable

us to give the country not only more effective but also more

economical government – which it deserves.

To provide the management tools and policy mechanisms needed for

the 1970s, I am today transmitting to the Congress Reorganization

Plan No. 2 of 1970, prepared in accordance with Chapter 9 of Title

5 of the United States Code.

This plan draws not only on the work of the Ash Council itself,

but also on the work of others that preceded – including the

pioneering Brownlow Committee of 1936, the two Hoover Commissions,

the Rockefeller Committee, and other Presidential task forces.

Essentially, the plan recognizes that two closely connected but

basically separate functions both center in the President’s office:

policy determination and executive management. This involves (1)

what government should do, and (2) how it goes about doing it.

My proposed reorganization creates a new entity to deal with each

of these functions:

– It establishes a Domestic Council, to coordinate policy

formulation in the domestic area. This Cabinet group would be

provided with an institutional staff, and to a considerable

degree would be a domestic counterpart to the National

Security Council.

– It establishes an Office of Management and Budget, which would

be the President’s principal arm for the exercise of his

managerial functions.

The Domestic Council will be primarily concerned with what we do;

the Office of Management and Budget will be primarily concerned

with how we do it, and how well we do it.

DOMESTIC COUNCIL

The past year’s experience with the Council for Urban Affairs has

shown how immensely valuable a Cabinet-level council can be as a

forum for both discussion and action on policy matters that cut

across departmental jurisdictions.

The Domestic Council will be chaired by the President. Under the

plan, its membership will include the Vice President, and the

Secretaries of the Treasury, Interior, Agriculture, Commerce,

Labor, Health, Education and Welfare, Housing and Urban

Development, and Transportation, and the Attorney General. I also

intend to designate as members the Director of the Office of

Economic Opportunity and, while he remains a member of the Cabinet,

the Postmaster General. (Although I continue to hope that the

Congress will adopt my proposal to create, in place of the Post

Office Department, a self-sufficient postal authority.) The

President could add other Executive Branch officials at his

discretion.

The Council will be supported by a staff under an Executive

Director who will also be one of the President’s assistants. Like

the National Security Council staff, this staff will work in close

coordination with the President’s personal staff but will have its

own institutional identity. By being established on a permanent,

institutional basis, it will be designed to develop and employ the

“institutional memory” so essential if continuity is to be

maintained, and if experience is to play its proper role in the

policy-making process.

There does not now exist an organized, institutionally-staffed

group charged with advising the President on the total range of

domestic policy. The Domestic Council will fill that need. Under

the President’s direction, it will also be charged with integrating

the various aspects of domestic policy into a consistent whole.

Among the specific policy functions in which I intend the

Domestic Council to take the lead are these:

– Assessing national needs, collecting information and

developing forecasts, for the purpose of defining national

goals and objectives.

– Identifying alternative ways of achieving these objectives,

and recommending consistent, integrated sets of policy

choices.

– Providing rapid response to Presidential needs for policy

advice on pressing domestic issues.

– Coordinating the establishment of national priorities for the

allocation of available resources.

– Maintaining a continuous review of the conduct of ongoing

programs from a policy standpoint, and proposing reforms as

needed.

Much of the Council’s work will be accomplished by temporary, ad

hoc project committees. These might take a variety of forms, such

as task forces, planning groups or advisory bodies. They can be

established with varying degrees of formality, and can be set up to

deal either with broad program areas or with specific problems. The

committees will draw for staff support on Department and agency

experts, supplemented by the Council’s own staff and that of the

Office of Management and Budget.

Establishment of the Domestic Council draws on the experience

gained during the past year with the Council for Urban Affairs, the

Cabinet Committee on the Environment and the Council for Rural

Affairs. The principal key to the operation of these Councils has

been the effective functioning of their various subcommittees. The

Councils themselves will be consolidated into the Domestic Council;

Urban, Rural and Environment subcommittees of the Domestic Council

will be strengthened, using access to the Domestic Council staff.

Overall, the Domestic Council will provide the President with a

streamlined, consolidated domestic policy arm, adequately staffed,

and highly flexible in its operation. It also will provide a

structure through which departmental initiatives can be more fully

considered, and expert advice from the Departments and agencies

more fully utilized.

OFFICE OF MANAGEMENT AND BUDGET

Under the reorganization plan, the technical and formal means by

which the Office of Management and Budget is created is by re-

designating the Bureau of the Budget as the Office of Management

and Budget. The functions currently vested by law in the Bureau, or

in its director, are transferred to the President, with the

provision that he can then re-delegate them.

As soon as the reorganization plan takes effect, I intend to

delegate those statutory functions to the Director of the new

Office of Management and Budget, including those under section 212

of the Budget and Accounting Act, 1921 [31 U.S.C. 1113].

However, creation of the Office of Management and Budget

represents far more than a mere change of name for the Bureau of

the Budget. It represents a basic change in concept and emphasis,

reflecting the broader management needs of the Office of the

President.

The new Office will still perform the key function of assisting

the President in the preparation of the annual Federal budget and

overseeing its execution. It will draw upon the skills and

experience of the extraordinarily able and dedicated career staff

developed by the Bureau of the Budget. But preparation of the

budget as such will no longer be its dominant, overriding concern.

While the budget function remains a vital tool of management, it

will be strengthened by the greater emphasis the new office will

place on fiscal analysis. The budget function is only one of

several important management tools that the President must now

have. He must also have a substantially enhanced institutional

staff capability in other areas of executive management –

particularly in program evaluation and coordination, improvement of

Executive Branch organization, information and management systems,

and development of executive talent. Under this plan, strengthened

capability in these areas will be provided partly through internal

reorganization, and it will also require additional staff

resources.

The new Office of Management and Budget will place much greater

emphasis on the evaluation of program performance: on assessing the

extent to which programs are actually achieving their intended

results, and delivering the intended services to the intended

recipients. This is needed on a continuing basis, not as a one-time

effort. Program evaluation will remain a function of the individual

agencies as it is today. However, a single agency cannot fairly be

expected to judge overall effectiveness in programs that cross

agency lines – and the difference between agency and Presidential

perspectives requires a capacity in the Executive Office to

evaluate program performance whenever appropriate.

The new Office will expand efforts to improve interagency

cooperation in the field. Washington-based coordinators will help

work out interagency problems at the operating level, and assist in

developing efficient coordinating mechanisms throughout the

country. The success of these efforts depends on the experience,

persuasion, and understanding of an Office which will be an

expediter and catalyst. The Office will also respond to requests

from State and local governments for assistance on

intergovernmental programs. It will work closely with the Vice

President and the Office of Intergovernmental Relations.

Improvement of Government organization, information and

management systems will be a major function of the Office of

Management and Budget. It will maintain a continuous review of the

organizational structures and management processes of the Executive

Branch, and recommend needed changes. It will take the lead in

developing new information systems to provide the President with

the performance and other data that he needs but does not now get.

When new programs are launched, it will seek to ensure that they

are not simply forced into or grafted onto existing organizational

structures that may not be appropriate. Resistance to

organizational change is one of the chief obstacles to effective

government; the new Office will seek to ensure that organization

keeps abreast of program needs.

The new Office will also take the lead in devising programs for

the development of career executive talent throughout the

Government. Not the least of the President’s needs as Chief

Executive is direct capability in the Executive Office for insuring

that talented executives are used to the full extent of their

abilities. Effective, coordinated efforts for executive manpower

development have been hampered by the lack of a system for

forecasting the needs for executive talent and appraising

leadership potential. Both are crucial to the success of an

enterprise – whether private or public.

The Office of Management and Budget will be charged with advising

the President on the development of new programs to recruit, train,

motivate, deploy, and evaluate the men and women who make up the

top ranks of the civil service, in the broadest sense of that term.

It will not deal with individuals, but will rely on the talented

professionals of the Civil Service Commission and the Departments

and agencies themselves to administer these programs. Under the

leadership of the Office of Management and Budget there will be

joint efforts to see to it that all executive talent is well

utilized wherever it may be needed throughout the Executive Branch,

and to assure that executive training and motivation meet not only

today’s needs but those of the years ahead.

Finally, the new Office will continue the Legislative Reference

functions now performed by the Bureau of the Budget, drawing

together agency reactions on all proposed legislation, and helping

develop legislation to carry out the President’s program. It also

will continue the Bureau’s work of improving and coordinating

Federal statistical services.

SIGNIFICANCE OF THE CHANGES

The people deserve a more responsive and more effective

Government. The times require it. These changes will help provide

it.

Each reorganization included in the plan which accompanies this

message is necessary to accomplish one or more of the purposes set

forth in Section 901(a) of Title 5 of the United States Code. In

particular, the plan is responsive to Section 901(a)(1), “to

promote the better execution of the laws, the more effective

management of the Executive Branch and of its agencies and

functions, and the expeditious administration of the public

business;” and Section 901(a)(3), “to increase the efficiency of

the operations of the Government to the fullest extent

practicable.”

The reorganizations provided for in this plan make necessary the

appointment and compensation of new officers, as specified in

Section 102(c) of the plan. The rates of compensation fixed for

these officers are comparable to those fixed for other officers in

the Executive Branch who have similar responsibilities.

While this plan will result in a modest increase in direct

expenditures, its strengthening of the Executive Office of the

President will bring significant indirect savings, and at the same

time will help ensure that people actually receive the return they

deserve for every dollar the Government spends. The savings will

result from the improved efficiency these changes will provide

throughout the Executive Branch – and also from curtailing the

waste that results when programs simply fail to achieve their

objectives. It is not practical, however, to itemize or aggregate

these indirect expenditure reductions which will result from the

reorganization.

I expect to follow with other reorganization plans, quite

possibly including ones that will affect other activities of the

Executive Office of the President. Our studies are continuing. But

this by itself is a reorganization of major significance, and a key

to the more effective functioning of the entire Executive Branch.

These changes would provide an improved system of policy making

and coordination, a strengthened capacity to perform those

functions that are now the central concerns of the Bureau of the

Budget, and a more effective set of management tools for the

performance of other functions that have been rapidly increasing in

importance.

The reorganization will not only improve the staff resources

available to the President, but will also strengthen the advisory

roles of those members of the Cabinet principally concerned with

domestic affairs. By providing a means of formulating integrated

and systematic recommendations on major domestic policy issues, the

plan serves not only the needs of the President but also the

interests of the Congress.

This reorganization plan is of major importance to the

functioning of modern government. The national interest requires

it. I urge that the Congress allow it to become effective.

Richard Nixon.

The White House, March 12, 1970.

-TRANS-

ABOLITION OF DOMESTIC COUNCIL

Domestic Council, established by Reorg. Plan No. 2 of 1970, Sec.

201, eff. July 1, 1970, 35 F.R. 7959, 84 Stat. 2086, set out above,

abolished by Reorg. Plan No. 1 of 1977, Sec. 3, 42 F.R. 56101, 91

Stat. 1633, set out in the Appendix to Title 5, Government

Organization and Employees, effective on or before Apr. 1, 1978, at

such time as specified by President. Section 5D of Reorg. Plan No.

1 of 1977 transferred all functions vested in Domestic Council to

President with power to delegate performance of such transferred

functions within Executive Office of President.

-EXEC-

EX. ORD. NO. 11541. PRESCRIBING DUTIES OF OFFICE OF MANAGEMENT AND

BUDGET AND DOMESTIC COUNCIL

Ex. Ord. No. 11541, July 1, 1970, 35 F.R. 10737, as amended by

Ex. Ord. No. 12013, Oct. 7, 1977, 42 F.R. 54931; Ex. Ord. No.

12027, Dec. 5, 1977, 42 F.R. 61851; Ex. Ord. No. 12107, Dec. 28,

1978, 44 F.R. 1055; Ex. Ord. No. 12318, Aug. 21, 1981, 46 F.R.

42833, provided:

By virtue of the authority vested in me by the Constitution and

statutes of the United States, including section 301 of Title 3 of

the United States Code, and pursuant to Reorganization Plan No. 2

of 1970 (hereinafter referred to as “the Plan”) [set out as a note

under this section], it is ordered as follows:

Section 1. (a) All functions transferred to the President of the

United States by Part I of the Plan (including the function vested

by section 102(f) of designating the officials of the Office of

Management and Budget who shall act as Director during the absence

or disability of the Deputy Director or in the event of a vacancy

in the office of Deputy Director) are hereby delegated to the

Director of the Office of Management and Budget in the Executive

Office of the President. Such functions shall be carried out by the

Director under the direction of the President and pursuant to such

further instructions as the President from time to time may issue.

(b) All outstanding delegations, rules, regulations, orders,

circulars, bulletins, or other forms of Executive or administrative

action issued or taken by or relating to the Bureau of the Budget

or the Director of the Bureau of the Budget prior to the effective

date of this order shall, until amended or revoked, remain in full

force and effect as if issued or taken by or relating to the Office

of Management and Budget or the Director of the Office of

Management and Budget.

(c) The delegation to the Director of the Office of Management

and Budget, pursuant to subsection (a) of this Section, of the

functions vested in the Director of the Bureau of the Budget by

Section 103 of the Budget and Accounting Procedures Act of 1950 (31

U.S.C. 18b) [31 U.S.C. 1104(d)] and subsequently transferred to the

President by Part I of Reorganization Plan No. 2 of 1970 (5 U.S.C.

App.), shall be implemented in accord with Section 3(a) of the

Paperwork Reduction Act of 1980 (94 Stat. 2825; 44 U.S.C. 3503

note), to the extent that provision is applicable.

(d) The delegation to the Director of the Office of Management

and Budget of the following executive development and personnel

functions (which have been transferred to the Office of Personnel

Management) is terminated on December 4, 1977:

(1) Providing overall Executive Branch leadership, regulation,

and guidance in executive personnel selection, development and

management.

(2) Studying and reporting on issues relating to position

classification and the compensation of Federal civilian employees,

including linkages among pay systems, and providing reports on

average grade levels, work-years and personnel costs of Federal

civilian employees.

(3) Providing primary Executive Branch leadership in (i)

developing and reviewing a program of policy guidance to

departments and agencies for the organization of management

responsibility under the Federal Labor Relations program; and (ii)

monitoring issues and trends in labor management relations for

referral to appropriate Executive Branch officials including the

Federal Labor Relations Council.

Sec. 2. (a) Under the direction of the President and subject to

such further instructions as the President from time to time may

issue, the Domestic Council in the Executive Office of the

President shall (1) receive and develop information necessary for

assessing national domestic needs and defining national domestic

goals, and develop for the President alternative proposals for

reaching those goals; (2) collaborate with the Office of Management

and Budget and others in the determination of national domestic

priorities for the allocation of available resources; (3)

collaborate with the Office of Management and Budget and others to

assure a continuing review of ongoing programs from the standpoint

of their relative contributions to national goals as compared with

their use of available resources; and (4) provide policy advice to

the President on domestic issues.

(b) The organizations listed herein are terminated and the

functions heretofore assigned to them shall be performed by the

Domestic Council:

Council for Urban Affairs (Executive Order No. 11452 of January

23, 1969)

Cabinet Committee on the Environment (Executive Order No. 11472

of May 29, 1969, as amended by Executive Order No. 11514 of March

5, 1970)

Council for Rural Affairs (Executive Order No. 11493 of November

13, 1969)

Sec. 3. This order shall be effective July 1, 1970.

SUPERSEDURE OF EX. ORD. NO. 11541

Supersedure of Ex. Ord. No. 11541 to the extent that it is

inconsistent with Ex. Ord. No. 11609, July 22, 1971, 36 F.R. 13747,

see section 11(6) of Ex. Ord. No. 11609, set out as a note under

section 301 of Title 3, The President; with Ex. Ord. No. 11713,

Apr. 21, 1973, 38 F.R. 10069, see section 3 of Ex. Ord. No. 11713,

set out as a note under section 301 of Title 3; with Ex. Ord. No.

11717, May 9, 1973, 38 F.R. 12315, see section 5 of Ex. Ord. No.

11717, set out below.

EXECUTIVE ORDER NO. 11647

Ex. Ord. No. 11647, Feb. 10, 1972, 37 F.R. 3167, as amended by

Ex. Ord. No. 11731, July 23, 1973, 38 F.R. 19903; Ex. Ord. No.

11892, Dec. 31, 1975, 41 F.R. 751; Ex. Ord. No. 12038, Feb. 3,

1978, 43 F.R. 4957, which established Federal Regional Councils,

was revoked by section 1-307 of Ex. Ord. No. 12149, July 20, 1979,

44 F.R. 43248.

EX. ORD. NO. 11717. TRANSFER OF CERTAIN FUNCTIONS FROM OFFICE OF

MANAGEMENT AND BUDGET TO GENERAL SERVICES ADMINISTRATION AND

DEPARTMENT OF COMMERCE

Ex. Ord. No. 11717, May 9, 1973, 38 F.R. 12315, provided:

By virtue of the authority vested in me as President by the

Constitution and Statutes of the United States, particularly by

section 301 of title 3 of the United States Code, the Federal

Property and Administrative Services Act of 1949, as amended, the

Budget and Accounting Act, 1921, as amended, the Budget and

Accounting Procedures Act of 1950, as amended, and Reorganization

Plan No. 2 of 1970 [set out as a note above], it is hereby ordered

as follows:

Section 1. There are hereby transferred to the Administrator of

General Services all functions that were being performed in the

Office of Management and Budget on April 13, 1973 by:

(1) The Financial Management Branch, the Procurement and Property

Management Branch, and the Management Systems Branch of the

Organization and Management Systems Division; and

(2) the Management Information and Computer Systems Division with

respect to policy control over automatic data processing (except

those functions relating to the establishment of Government-wide

automatic data-processing standards).

Sec. 2. There are hereby transferred to the Secretary of Commerce

all functions being performed on the date of this order in the

Office of Management and Budget relating to the establishment of

Government-wide automatic data processing standards, including the

function of approving standards on behalf of the President pursuant

to section 111(f)(2) of the Federal Property and Administrative

Services Act of 1949, as amended [former 40 U.S.C. 759(f)(2)].

Sec. 3. (a) The functions transferred to the Administrator of the

General Services Administration and to the Secretary of Commerce by

this order do not include those performed in connection with the

general oversight responsibilities of the Director of the Office of

Management and Budget, as the head of that agency and as Assistant

to the President for executive management, and the functions

transferred by this order shall be performed subject to such

general oversight to the same extent that other functions of the

General Services Administration and the Department of Commerce,

respectively, are so performed.

(b) The functions vested in the President by the first sentence

of section 111(g) of the Federal Property and Administrative

Services Act of 1949, as amended [former 40 U.S.C. 759(g)], with

respect to fiscal control of automatic data processing activities

shall continue to be performed by the Director of the Office of

Management and Budget. No function vested by statute in the

Director shall be deemed to be affected by the provisions of this

order.

Sec. 4. So much of the personnel, property, records and

unexpended balances of appropriations, allocations, and other funds

employed, used, held, available, or to be made available, in

connection with the functions transferred by this order as the

Director of the Office of Management and Budget shall determine,

shall be transferred to the Department of Commerce and the General

Services Administration, respectively, at such times as the

Director shall specify.

Sec. 5. Executive Order No. 11541 of July 1, 1970, is hereby

superseded to the extent that it is inconsistent with this order.

Sec. 6. This order shall be effective as of April 15, 1973.

Richard Nixon.

SUPERSEDURE OF EX. ORD. NO. 11717

Ex. Ord. No. 11717 superseded to the extent that it is

inconsistent with Ex. Ord. No. 11893, Dec. 31, 1975, 41 F.R. 1040,

see section 4 of Ex. Ord. No. 11893, set out as a note under

section 4252 of Title 42, The Public Health and Welfare.

EXECUTIVE ORDER NO. 12013

Ex. Ord. No. 12013, Oct. 7, 1977, 42 F.R. 54931, which related to

transfer of certain statistical functions and the establishment of

the Statistical Policy Coordination Committee, was revoked by

section 4(a) of Ex. Ord. No. 12318, Aug. 21, 1981, 46 F.R. 42833,

set out below.

EX. ORD. NO. 12027. TRANSFER OF CERTAIN EXECUTIVE DEVELOPMENT AND

OTHER PERSONNEL FUNCTIONS

Ex. Ord. No. 12027, Dec. 5, 1977, 42 F.R. 61851, as amended by

Ex. Ord. No. 12107, Dec. 28, 1978, 44 F.R. 1055, provided:

By virtue of the authority vested in me by the Constitution and

statutes of the United States of America, including Reorganization

Plan No. 2 of 1970 (5 U.S.C. App.), Section 202 of the Budget and

Accounting Procedures Act of 1950 (31 U.S.C. 581c) [31 U.S.C.

1531], and Section 301 of Title 3 of the United States Code, and as

President of the United States of America, in order to transfer

certain functions from the Director of the Office of Management and

Budget to the Office of Personnel Management, it is hereby ordered

as follows:

Section 1. The following functions which heretofore have been

performed by the Director of the Office of Management and Budget,

either alone or in conjunction with the Office of Personnel

Management, are hereby reassigned and delegated to the Office of

Personnel Management:

(a) Providing overall Executive Branch leadership, regulation,

and guidance in executive personnel selection, development, and

management including:

(1) Devising and establishing programs and encouraging agencies

to devise and establish programs to forecast the need for career

executive talent and to select, train, develop, motivate, deploy

and evaluate the men and women who make up the top ranks of Federal

civil service;

(2) Initiating and leading efforts to ensure that potential

executive talent is identified, developed and well utilized

throughout the Executive Branch and;

(3) Ensuring that executive training and motivation meet current

and future needs.

(b) Studying and reporting on issues relating to position

classification and the compensation of Federal civilian employees,

including linkages among pay systems, and providing reports on

average grade levels, work-years and personnel costs of Federal

civilian employees.

(c) Providing primary Executive Branch leadership in (1)

developing and reviewing a program of policy guidance to

departments and agencies for the organization of management’s

responsibility under the Federal Labor Relations program; and (2)

monitoring issues and trends in labor management relations for

referral to appropriate Executive Branch officials including the

Federal Labor Relations Council.

Sec. 2. Section 1 of Executive Order No. 11541, as amended [set

out above], is further amended by adding thereto the following new

subsection:

“(d) The delegation to the Director of the Office of Management

and Budget of the following executive development and personnel

functions (which have been transferred to the Office of Personnel

Management) is terminated on December 4, 1977:

“(1) Providing overall Executive Branch leadership, regulation,

and guidance in executive personnel selection, development and

management.

“(2) Studying and reporting on issues relating to position

classification and the compensation of Federal civilian employees,

including linkages among pay systems, and providing reports on

average grade levels, work-years and personnel costs of Federal

civilian employees.

“(3) Providing primary Executive Branch leadership in (i)

developing and reviewing a program of policy guidance to

departments and agencies for the organization of management

responsibility under the Federal Labor Relations program; and (ii)

monitoring issues and trends in labor management relations for

referral to appropriate Executive Branch officials including the

Federal Labor Relations Council.”.

Sec. 3. Executive Order No. 11491, as amended [5 U.S.C. 7101

note], is further amended by amending Section 25(a) to read as

follows:

“The Office of Personnel Management, in conjunction with the

Director of the Office of Management and Budget, shall establish

and maintain a program for the policy guidance of agencies on labor-

management relations in the Federal service and shall periodically

review the implementation of these policies. The Office of

Personnel Management shall be responsible for the day-to-day policy

guidance under that program. The Office of Personnel Management

also shall continuously review the operation of the Federal labor-

management relations program to assist in assuring adherence to

its provisions and merit system requirements; implement technical

advice and information programs for the agencies; assist in the

development of programs for training agency personnel and

management officials in labor-management relations; and, from time

to time, report to the Council on the state of the program with any

recommendations for its improvement.”.

Sec. 4. Section 5(a) of Executive Order No. 11636 of December 17,

1971 [formerly set out as a note under 22 U.S.C. 801], establishing

an Employee-Management Relations Commission as a committee of the

Board of the Foreign Service, is amended by deleting: “The

representative of the Office of Management and Budget shall be the

Chairman of the Commission” and substituting therefor “The

representative of the Office of Personnel Management shall be the

Chairman of the Commission”.

Sec. 5. The records, property, personnel, and unexpended balances

of appropriations, available or to be made available, which relate

to the functions transferred or reassigned by this Order from the

Office of Management and Budget to the Office of Personnel

Management, are hereby transferred to the Office of Personnel

Management.

Sec. 6. The Director of the Office of Management and Budget shall

make such determinations, issue such orders, and take all actions

necessary or appropriate to effectuate the transfers or

reassignments provided by this Order, including the transfer of

funds, records, property, and personnel.

Sec. 7. This Order shall be effective December 4, 1977.

Jimmy Carter.

EXECUTIVE ORDER NO. 12074

Ex. Ord. No. 12074, Aug. 16, 1978, 43 F.R. 36875, which related

to urban and community impact analyses, was revoked by Ex. Ord. No.

12350, Mar. 9, 1982, 47 F.R. 10503.

EXECUTIVE ORDER NO. 12149

Ex. Ord. No. 12149, July 20, 1979, 44 F.R. 43247, which

established Federal Regional Councils, was revoked by section 4(b)

of Ex. Ord. No. 12314, July 22, 1981, 46 F.R. 38330.

EXECUTIVE ORDER NO. 12301

Executive Order No. 12301, Mar. 26, 1981, 46 F.R. 19211, as

amended by Ex. Ord. No. 13118, Sec. 10(5), Mar. 31, 1999, 64 F.R.

16598, which established the President’s Council on Integrity and

Efficiency in Federal programs, was revoked by Ex. Ord. No. 12625,

Jan. 27, 1988, 53 F.R. 2812, formerly set out below.

EXECUTIVE ORDER NO. 12314

Ex. Ord. No. 12314, July 22, 1981, 46 F.R. 38329, which

established Federal Regional Councils, was revoked by Ex. Ord. No.

12407, Feb. 22, 1983, 48 F.R. 7717.

EX. ORD. NO. 12318. TRANSFER OF CERTAIN STATISTICAL POLICY

FUNCTIONS

Ex. Ord. No. 12318, Aug. 21, 1981, 46 F.R. 42833, provided:

By virtue of the authority vested in me as President by the

Constitution and statutes of the United States, including

Reorganization Plan No. 2 of 1970 (5 U.S.C. App.), Section 202 of

the Budget and Accounting Procedures Act of 1950 (31 U.S.C. 581c)

[31 U.S.C. 1531], Section 3(a) of the Paperwork Reduction Act of

1980 (Public Law 96-511, 94 Stat. 2825, 44 U.S.C. 3503 note), and

Section 301 of Title 3 of the United States Code, and in order to

transfer, redelegate, and reassign certain statistical policy

functions from the Secretary of Commerce to the Director of the

Office of Management and Budget, and to require redelegation of

certain functions to the Administrator for the Office of

Information and Regulatory Affairs, it is hereby ordered as

follows:

Section 1. Sec. 1(c) of Executive Order No. 11541 of July 1,

1970, as amended [set out as a note above], is amended by deleting

the last phrase “is terminated on October 9, 1977” and substituting

therefor “shall be implemented in accord with Section 3(a) of the

Paperwork Reduction Act of 1980 (94 Stat. 2825; 44 U.S.C. 3503

note), to the extent that provision is applicable”.

Sec. 2. Executive Order No. 10253 of July 11, 1951, as amended

[31 U.S.C. 1104 note], is further amended as follows:

(a) “Secretary of Commerce” is deleted in Section 1 and “Director

of the Office of Management and Budget” is substituted therefor.

(b) “Secretary” is deleted wherever it appears in Sections 1, 2,

4, 5, and 6 and “Director” is substituted therefor.

(c) “Department of Commerce” is deleted in Section 6 and “Office

of Management and Budget” is substituted therefor.

(d) Section 7 is deleted and a new Section 7 is substituted

therefor as follows:

“Sec. 7. As required by Section 3(a) of the Paperwork Reduction

Act of 1980 (94 Stat. 2825; 44 U.S.C. 3503 note), the Director

shall redelegate to the Administrator for the Office of Information

and Regulatory Affairs, Office of Management and Budget, all

functions, authority, and responsibility under Section 103 of the

Budget and Accounting Procedures Act of 1950 (31 U.S.C. 18b) [31

U.S.C. 1104(d)] which have been vested in the Director by this

Order.”

(e) Section 8 is revoked.

Sec. 3. Executive Order No. 10033, as amended [22 U.S.C. 286f

note], is further amended as follows:

(a) “Secretary of Commerce, hereinafter referred to as the

Secretary,”, is deleted in Section 1 and “Director of the Office of

Management and Budget, hereinafter referred to as the Director,”,

is substituted therefor.

(b) “Secretary” is deleted wherever it appears in Sections 2(a),

2(b), 2(c), 3, 4, and 5 and “Director” is substituted therefor.

(c) Section 7 is revoked.

Sec. 4. (a) Executive Order No. 12013 is revoked.

(b) Section 4 of Executive Order No. 11961, as amended [22 U.S.C.

3101 note], is further amended by deleting “the Secretary of

Commerce shall perform the functions set forth in Sections 4(a)(3)

and 5(c) of the Act” [22 U.S.C. 3103(a)(3), 3104(c)], and

substituting therefor “the Secretary of Commerce shall perform the

function of making periodic reports to the Committees of the

Congress as set forth in Section 4(a)(3) of the Act” [22 U.S.C.

3103(a)(3)].

Sec. 5. The records, property, personnel, and unexpended balances

of appropriations, available or to be made available, which relate

to the functions transferred or reassigned from the Secretary of

Commerce to the Director of the Office of Management and Budget by

the delegations made in this Order, are hereby transferred to the

Director of the Office of Management and Budget.

Sec. 6. The Director of the Office of Management and Budget shall

make such determinations, issue such orders, and take all steps

necessary or appropriate to ensure or effectuate the transfers or

reassignments provided by this Order, including the transfer of

funds, records, property, and personnel.

Sec. 7. Any rules, regulations, orders, directives, circulars, or

other actions taken pursuant to the functions transferred or

reassigned from the Secretary of Commerce to the Director of the

Office of Management and Budget by the delegations made in this

Order, shall remain in effect until amended, modified, or revoked

pursuant to the delegations made in this Order.

Sec. 8. This Order shall be effective August 23, 1981.

Ronald Reagan.

EXECUTIVE ORDER NO. 12479

Ex. Ord. No. 12479, May 24, 1984, 49 F.R. 22243, which

established President’s Council on Management Improvement, assigned

functions of Council and responsibilities of Chairman, and provided

for administrative support, was revoked by Ex. Ord. No. 12816, Oct.

14, 1992, 57 F.R. 47562, formerly set below.

EXECUTIVE ORDER NO. 12552

Ex. Ord. No. 12552, Feb. 25, 1986, 51 F.R. 7041, which provided

for establishment of a comprehensive program for improvement of

productivity throughout all Executive departments and agencies, was

superseded by Ex. Ord. No. 12637, Apr. 27, 1988, 53 F.R. 15349,

formerly set out below, and was revoked by Ex. Ord. No. 13048, Sec.

5, June 10, 1997, 62 F.R. 32469, set out below.

EX. ORD. NO. 12615. PERFORMANCE OF COMMERCIAL ACTIVITIES

Ex. Ord. No. 12615, Nov. 19, 1987, 52 F.R. 44853, provided:

By the authority vested in me as President by the Constitution

and laws of the United States of America, and in order to

facilitate ongoing efforts to ensure that the Federal Government

acquires needed goods and services in the most economical and

efficient manner, it is hereby ordered as follows:

Section 1. The head of each Executive department and agency

shall, to the extent permitted by law:

(a) Ensure that new Federal Government requirements for

commercial activities are provided by private industry, except

where statute or national security requires government performance

or where private industry costs are unreasonable;

(b) Identify by April 29, 1988, in cooperation with the Director

of the Office of Management and Budget all commercial activities

currently performed by government. The department and agency heads

are encouraged to consult with the President’s Commission on

Privatization in making such identification;

(c) Schedule, by June 30, 1988, all commercial activities

identified pursuant to subsection (b) for study in accordance with

the procedures of OMB Circular No. A-76, as revised, and the

Supplement thereto, to determine whether they could be performed

more economically by private industry;

(d) Meet the study goals for Fiscal Year 1988 set forth in

“Management of the United States Government, Fiscal Year 1988”; and

thereafter, beginning with Fiscal Year 1989, conduct annual studies

of not less than 3 percent of the department or agency’s total

civilian population, until all identified potential commercial

activities have been studied;

(e) Include in each annual budget proposal to the Office of

Management and Budget estimates of expected yearly budget savings

from the privatization of commercial activities projected to be

accomplished following the completion of scheduled studies, unless

an exception is authorized by the Director of the Office of

Management and Budget. These estimates shall be based on analysis

of savings under previous studies and estimated savings to be

achieved from future conversions to contract. A department or

agency proposal may reflect retention of expected first-year

savings as negotiated with the Office of Management and Budget for

use as incentive compensation to reward employees covered by the

studies for their productivity efforts, or for use in other

productivity enhancement projects;

(f) Develop and maintain an effective job placement program for

government employees affected by privatization initiatives and

cooperate fully in interagency placement efforts;

(g) Designate a senior-level official to coordinate the OMB

Circular No. A-76 studies and other privatization efforts; and

(h) Report to the President on progress each quarter, through the

Director of the Office of Management and Budget.

Sec. 2. The Director of the Office of Management and Budget

shall, to the extent permitted by law:

(a) Issue guidance to departments and agencies to implement this

Order. Such guidance shall be designed to ensure an equitable cost

comparison of government-operated commercial activities with

private industry performance of the same activities, and to improve

the efficiency in the conduct of studies;

(b) Publish for public review (i) not later than 30 days after

its completion, the inventory of commercial activities identified

pursuant to section 1(b) and the activities scheduled for study by

departments and agencies in Fiscal Year 1988 pursuant to section

1(c); and (ii) not later than 30 days before the start of each

successive fiscal year, the list of activities to be reviewed

during that year pursuant to section 1(d); and

(c) Establish a tracking system to monitor, on a quarterly basis,

progress by departments and agencies in carrying out this Order.

Sec. 3. The Director of the Office of Personnel Management, in

consultation with the heads of other Executive departments and

agencies, shall review and revise, as necessary and to the extent

permitted by law, personnel policies and regulations in order (a)

to ensure that government managers have the flexibility to organize

in the most effective and efficient manner to achieve levels of

productivity comparable with those of private industry, and (b) to

reduce any adverse effects of productivity improvements on

employees.

Sec. 4. For purposes of this Order, the terms “commercial

activity,” “conversion to contract,” and “cost comparison” shall

have the meanings set forth in OMB Circular No. A-76, as revised.

Sec. 5. Nothing in this Order shall be construed to confer a

private right of action on any person, or to add in any way to

applicable procurement procedures required by existing law.

Ronald Reagan.

EXECUTIVE ORDER NO. 12625

Ex. Ord. No. 12625, Jan. 27, 1988, 53 F.R. 2812, which

established President’s Council on Integrity and Efficiency as an

interagency committee, was revoked by Ex. Ord. No. 12805, May 11,

1992, 57 F.R. 20627, formerly set out below.

EXECUTIVE ORDER NO. 12637

Ex. Ord. No. 12637, Apr. 27, 1988, 53 F.R. 15349, which

established a productivity improvement program for the Federal

Government, was revoked by Ex. Ord. No. 13048, Sec. 5, June 10,

1997, 62 F.R. 32469, set out below.

EX. ORD. NO. 12803. INFRASTRUCTURE PRIVATIZATION

Ex. Ord. No. 12803, Apr. 30, 1992, 57 F.R. 19063, provided:

By the authority vested in me as President by the Constitution

and the laws of the United States of America, and in order to

ensure that the United States achieves the most beneficial economic

use of its resources, it is hereby ordered as follows:

Section 1. Definitions. For purposes of this order:

(a) “Privatization” means the disposition or transfer of an

infrastructure asset, such as by sale or by long-term lease, from a

State or local government to a private party.

(b) “Infrastructure asset” means any asset financed in whole or

in part by the Federal Government and needed for the functioning of

the economy. Examples of such assets include, but are not limited

to: roads, tunnels, bridges, electricity supply facilities, mass

transit, rail transportation, airports, ports, waterways, water

supply facilities, recycling and wastewater treatment facilities,

solid waste disposal facilities, housing, schools, prisons, and

hospitals.

(c) “Originally authorized purposes” means the general objectives

of the original grant program; however, the term is not intended to

include every condition required for a grantee to have obtained the

original grant.

(d) “Transfer price” means: (i) the amount paid or to be paid by

a private party for an infrastructure asset, if the asset is

transferred as a result of competitive bidding; or (ii) the

appraised value of an infrastructure asset, as determined by the

head of the executive department or agency and the Director of the

Office of Management and Budget, if the asset is not transferred as

a result of competitive bidding.

(e) “State and local governments” means the government of any

State of the United States, the District of Columbia, any

commonwealth, territory, or possession of the United States, and

any county, municipality, city, town, township, local public

authority, school district, special district, intrastate district,

regional or interstate governmental entity, council of governments,

and any agency or instrumentality of a local government, and any

federally recognized Indian Tribe.

Sec. 2. Fundamental Principles. Executive departments and

agencies shall be guided by the following objectives and

principles: (a) Adequate and well-maintained infrastructure is

critical to economic growth. Consistent with the principles of

federalism enumerated in Executive Order No. 12612 [formerly set

out under section 601 of Title 5, Government Organization and

Employees], and in order to allow the private sector to provide for

infrastructure modernization and expansion, State and local

governments should have greater freedom to privatize infrastructure

assets.

(b) Private enterprise and competitively driven improvements are

the foundation of our Nation’s economy and economic growth. Federal

financing of infrastructure assets should not act as a barrier to

the achievement of economic efficiencies through additional private

market financing or competitive practices, or both.

(c) State and local governments are in the best position to

assess and respond to local needs. State and local governments

should, subject to assuring continued compliance with Federal

requirements that public use be on reasonable and nondiscriminatory

terms, have maximum possible freedom to make decisions concerning

the maintenance and disposition of their federally financed

infrastructure assets.

(d) User fees are generally more efficient than general taxes as

a means to support infrastructure assets. Privatization

transactions should be structured so as not to result in

unreasonable increases in charges to users.

Sec. 3. Privatization Initiative. To the extent permitted by law,

the head of each executive department and agency shall undertake

the following actions:

(a) Review those procedures affecting the management and

disposition of federally financed infrastructure assets owned by

State and local governments and modify those procedures to

encourage appropriate privatization of such assets consistent with

this order;

(b) Assist State and local governments in their efforts to

advance the objectives of this order; and

(c) Approve State and local governments’ requests to privatize

infrastructure assets, consistent with the criteria in section 4 of

this order and, where necessary, grant exceptions to the

disposition requirements of the “Uniform Administrative

Requirements for Grants and Cooperative Agreements to State and

Local Governments” common rule, or other relevant rules or

regulations, for infrastructure assets; provided that the transfer

price shall be distributed, as paid, in the following manner: (i)

State and local governments shall first recoup in full the

unadjusted dollar amount of their portion of total project costs

(including any transaction and fix-up costs they incur) associated

with the infrastructure asset involved; (ii) if proceeds remain,

then the Federal Government shall recoup in full the amount of

Federal grant awards associated with the infrastructure asset, less

the applicable share of accumulated depreciation on such asset

(calculated using the Internal Revenue Service accelerated

depreciation schedule for the categories of assets in question);

and (iii) finally, the State and local governments shall keep any

remaining proceeds.

Sec. 4. Criteria. To the extent permitted by law, the head of an

executive department or agency shall approve a request in

accordance with section 3(c) of this order only if the grantee: (a)

Agrees to use the proceeds described in section 3(c)(iii) of this

order only for investment in additional infrastructure assets

(after public notice of the proposed investment), or for debt or

tax reduction; and

(b) Demonstrates that a market mechanism, legally enforceable

agreement, or regulatory mechanism will ensure that: (i) the

infrastructure asset or assets will continue to be used for their

originally authorized purposes, as long as needed for those

purposes, even if the purchaser becomes insolvent or is otherwise

hindered from fulfilling the originally authorized purposes; and

(ii) user charges will be consistent with any current Federal

conditions that protect users and the public by limiting the

charges.

Sec. 5. Government-wide Coordination and Review. In implementing

Executive Order Nos. 12291 and 12498 [formerly set out under

section 601 of Title 5, Government Organization and Employees] and

OMB Circular No. A-19, the Office of Management and Budget, to the

extent permitted by law and consistent with the provisions of those

authorities, shall take action to ensure that the policies of the

executive department and agencies are consistent with the

principles, criteria, and requirements of this order. The Office of

Management and Budget shall review the results of implementing this

order and report thereon to the President 1 year after the date of

this order.

Sec. 6. Preservation of Existing Authority. Nothing in this order

is in any way intended to limit any existing authority of the heads

of executive departments and agencies to approve privatization

proposals that are otherwise consistent with law.

Sec. 7. Judicial Review. This order is intended only to improve

the internal management of the executive branch, and is not

intended to create any right or benefit, substantive or procedural,

enforceable by a party against the United States, its agencies or

instrumentalities, its officers or employees, or any other person.

George Bush.

EXECUTIVE ORDER NO. 12805

Ex. Ord. No. 12805, May 11, 1992, 57 F.R. 20627, which related to

integrity and efficiency in Federal programs, was omitted from the

Code pursuant to Pub. L. 110-409, Sec. 7(c)(2), Oct. 14, 2008, 122

Stat. 4313, which provided that Ex. Ord. No. 12805, as in effect

before Oct. 14, 2008, was to have no force or effect on and after

the earlier of either the date on which the Council of the

Inspectors General on Integrity and Efficiency becomes effective

and operational or the last day of the 180-day period beginning on

Oct. 14, 2008. See section 7(c)(2) of Pub. L. 110-409, set out as

an Effective Date; Existing Executive Orders note under section 11

of the Inspector General Act of 1978, Pub. L. 95-452, in the

Appendix to Title 5, Government Organization and Employees.

EXECUTIVE ORDER NO. 12816

Ex. Ord. No. 12816, Oct. 14, 1992, 57 F.R. 47562, which

established the President’s Council on Management Improvement and

provided for its membership, functions, etc., was revoked by Ex.

Ord. No. 13048, Sec. 5, June 10, 1997, 62 F.R. 32469, set out

below.

EX. ORD. NO. 12837. DEFICIT CONTROL AND PRODUCTIVITY IMPROVEMENT IN

THE ADMINISTRATION OF THE FEDERAL GOVERNMENT

Ex. Ord. No. 12837, Feb. 10, 1993, 58 F.R. 8205, provided:

By the authority vested in me as President by the Constitution

and the laws of the United States of America, including the Budget

and Accounting Act of 1921, as amended (31 U.S.C. 1101 et seq.),

and section 301 of title 3, United States Code, and in order to

assist in the control of the Federal deficit and improve the

administrative productivity of the Federal Government, it is hereby

ordered as follows:

Section 1. All executive departments and agencies shall include a

separate category for “administrative expenses” when submitting

their appropriation requests to the Office of Management and Budget

(OMB) for fiscal years 1994 through 1997. The Director of OMB

(Director), in consultation with the agencies, shall establish and

revise as necessary a definition of administrative expenses for the

agencies. All questions regarding the definition of administrative

expenses shall be resolved by the Director.

Sec. 2. The purpose of this order is to achieve real reductions

in the administrative costs of Federal agencies. In order to

accomplish that goal, agencies shall submit budgets that reflect

the following reductions from the fiscal year 1993 baseline:

(a) For fiscal year 1994, all agencies shall submit budget

requests that reflect no less than a 3 percent reduction in

administrative expenses from the amount made available for fiscal

year 1993 adjusted for inflation;

(b) For fiscal year 1995, all agencies shall submit budget

requests that reflect no less than a 6 percent reduction in

administrative expenses from the amounts made available for fiscal

year 1993 adjusted for inflation;

(c) For fiscal year 1996, all agencies shall submit budget

requests that reflect no less than a 9 percent reduction in

administrative expenses from the amounts made available for fiscal

year 1993 adjusted for inflation;

(d) For fiscal year 1997, all agencies shall submit budget

requests that reflect no less than a 14 percent reduction in

administrative expenses from the amounts made available for fiscal

year 1993 adjusted for inflation.

Sec. 3. The Director shall review agency requests for

administrative expenses. The Director shall ensure that all agency

requests for such expenses are reduced in accordance with section

2. To the extent that any agency fails to comply with the mandates

of section 2, the Director is authorized to reduce the request for

administrative expenses in that agency’s budget to achieve the

appropriate reduction.

Sec. 4. All independent regulatory commissions and agencies are

requested to comply with the provisions of this order.

William J. Clinton.

EX. ORD. NO. 12862. SETTING CUSTOMER SERVICE STANDARDS

Ex. Ord. No. 12862, Sept. 11, 1993, 58 F.R. 48257, provided:

Putting people first means ensuring that the Federal Government

provides the highest quality service possible to the American

people. Public officials must embark upon a revolution within the

Federal Government to change the way it does business. This will

require continual reform of the executive branch’s management

practices and operations to provide service to the public that

matches or exceeds the best service available in the private

sector.

NOW, THEREFORE, to establish and implement customer service

standards to guide the operations of the executive branch, and by

the authority vested in me as President by the Constitution and the

laws of the United States, it is hereby ordered:

Section 1. Customer Service Standards. In order to carry out the

principles of the National Performance Review, the Federal

Government must be customer-driven. The standard of quality for

services provided to the public shall be: Customer service equal to

the best in business. For the purposes of this order, “customer”

shall mean an individual or entity who is directly served by a

department or agency. “Best in business” shall mean the highest

quality of service delivered to customers by private organizations

providing a comparable or analogous service.

All executive departments and agencies (hereinafter referred to

collectively as “agency” or “agencies”) that provide significant

services directly to the public shall provide those services in a

manner that seeks to meet the customer service standard established

herein and shall take the following actions:

(a) identify the customers who are, or should be, served by the

agency;

(b) survey customers to determine the kind and quality of

services they want and their level of satisfaction with existing

services;

(c) post service standards and measure results against them;

(d) benchmark customer service performance against the best in

business;

(e) survey front-line employees on barriers to, and ideas for,

matching the best in business;

(f) provide customers with choices in both the sources of service

and the means of delivery;

(g) make information, services, and complaint systems easily

accessible; and

(h) provide means to address customer complaints.

Sec. 2. Report on Customer Service Surveys. By March 8, 1994,

each agency subject to this order shall report on its customer

surveys to the President. As information about customer

satisfaction becomes available, each agency shall use that

information in judging the performance of agency management and in

making resource allocations.

Sec. 3. Customer Service Plans. By September 8, 1994, each agency

subject to this order shall publish a customer service plan that

can be readily understood by its customers. The plan shall include

customer service standards and describe future plans for customer

surveys. It also shall identify the private and public sector

standards that the agency used to benchmark its performance against

the best in business. In connection with the plan, each agency is

encouraged to provide training resources for programs needed by

employees who directly serve customers and by managers making use

of customer survey information to promote the principles and

objectives contained herein.

Sec. 4. Independent Agencies. Independent agencies are requested

to adhere to this order.

Sec. 5. Judicial Review. This order is for the internal

management of the executive branch and does not create any right or

benefit, substantive or procedural, enforceable by a party against

the United States, its agencies or instrumentalities, its officers

or employees, or any other person.

William J. Clinton.

EX. ORD. NO. 12893. PRINCIPLES FOR FEDERAL INFRASTRUCTURE

INVESTMENTS

Ex. Ord. No. 12893, Jan. 26, 1994, 59 F.R. 4233, provided:

A well-functioning infrastructure is vital to sustained economic

growth, to the quality of life in our communities, and to the

protection of our environment and natural resources. To develop and

maintain its infrastructure facilities, our Nation relies heavily

on investments by the Federal Government.

Our Nation will achieve the greatest benefits from its

infrastructure facilities if it invests wisely and continually

improves the quality and performance of its infrastructure

programs. Therefore, by the authority vested in me as President by

the Constitution and the laws of the United States of America, it

is hereby ordered as follows:

Section 1. Scope. The principles and plans referred to in this

order shall apply to Federal spending for infrastructure programs.

For the purposes of this order, Federal spending for infrastructure

programs shall include direct spending and grants for

transportation, water resources, energy, and environmental

protection.

Sec. 2. Principles of Federal Infrastructure Investment.

Each executive department and agency with infrastructure

responsibilities (hereinafter referred to collectively as

“agencies”) shall develop and implement plans for infrastructure

investment and management consistent with the following principles:

(a) Systematic Analysis of Expected Benefits and Costs.

Infrastructure investments shall be based on systematic analysis of

expected benefits and costs, including both quantitative and

qualitative measures, in accordance with the following:

(1) Benefits and costs should be quantified and monetized to

the maximum extent practicable. All types of benefits and costs,

both market and nonmarket, should be considered. To the extent

that environmental and other nonmarket benefits and costs can be

quantified, they shall be given the same weight as quantifiable

market benefits and costs.

(2) Benefits and costs should be measured and appropriately

discounted over the full life cycle of each project. Such

analysis will enable informed tradeoffs among capital outlays,

operating and maintenance costs, and nonmonetary costs borne by

the public.

(3) When the amount and timing of important benefits and costs

are uncertain, analyses shall recognize the uncertainty and

address it through appropriate quantitative and qualitative

assessments.

(4) Analyses shall compare a comprehensive set of options that

include, among other things, managing demand, repairing

facilities, and expanding facilities.

(5) Analyses should consider not only quantifiable measures of

benefits and costs, but also qualitative measures reflecting

values that are not readily quantified.

(b) Efficient Management. Infrastructure shall be managed

efficiently in accordance with the following:

(1) The efficient use of infrastructure depends not only on

physical design features, but also on operational practices. To

improve these practices, agencies should conduct periodic reviews

of the operation and maintenance of existing facilities.

(2) Agencies should use these reviews to consider a variety of

management practices that can improve the return from

infrastructure investments. Examples include contracting

practices that reward quality and innovation, and design

standards that incorporate new technologies and construction

techniques.

(3) Agencies also should use these reviews to identify the

demand for different levels of infrastructure services. Since

efficient levels of service can often best be achieved by

properly pricing infrastructure, the Federal Government – through

its direct investments, grants, and regulations – should promote

consideration of market-based mechanisms for managing

infrastructure.

(c) Private Sector Participation. Agencies shall seek private

sector participation in infrastructure investment and management.

Innovative public-private initiatives can bring about greater

private sector participation in the ownership, financing,

construction, and operation of the infrastructure programs referred

to in section 1 of this order. Consistent with the public interest,

agencies should work with State and local entities to minimize

legal and regulatory barriers to private sector participation in

the provision of infrastructure facilities and services.

(d) Encouragement of More Effective State and Local Programs. To

promote the efficient use of Federal infrastructure funds, agencies

should encourage the State and local recipients of Federal grants

to implement planning and information management systems that

support the principles set forth in section 2(a) through (c) of

this order. In turn, the Federal Government should use the

information from the State and local recipients’ management systems

to conduct the system-level reviews of the Federal Government’s

infrastructure programs that are required by this order.

Sec. 3. Submission of Plans. Agencies shall submit initial plans

to implement these principles to the Director of the Office of

Management and Budget (“OMB”) by March 15, 1994. Agency plans shall

list the actions that will be taken to provide the data and

analysis necessary for supporting infrastructure-related proposals

in future budget submissions. Agency implementation plans should be

consistent with OMB Circular A-94 that outlines the analytical

methods required under the principles set forth in section 2 of

this order.

Sec. 4. Application to Budget Submissions. Beginning with the

fiscal year 1996 budget submission to OMB, each agency should use

these principles to justify major infrastructure investment and

grant programs. Major programs are defined as those programs with

annual budgetary resources in excess of $50 million.

Sec. 5. Application to Legislative Proposals. Beginning March 15,

1994, agencies shall employ the principles set forth in section 2

of this order and, at the request of OMB, shall provide supporting

analyses when requesting OMB clearance for legislative proposals

that would authorize or reauthorize infrastructure programs.

Sec. 6. Guidance. The Office of Management and Budget shall

provide guidance to the agencies on the implementation of this

order.

Sec. 7. Judicial Review. This order is intended only to improve

the internal management of the executive branch and does not create

any right or benefit, substantive or procedural, enforceable by a

party against the United States, its agencies or instrumentalities,

its officers or employees, or any other person.

William J. Clinton.

EX. ORD. NO. 13048. IMPROVING ADMINISTRATIVE MANAGEMENT IN THE

EXECUTIVE BRANCH

Ex. Ord. No. 13048, June 10, 1997, 62 F.R. 32467, as amended by

Ex. Ord. No. 13284, Sec. 7, Jan. 23, 2003, 68 F.R. 4075, provided:

Improvement of Government operations is a continuing process that

benefits from interagency activities. One group dedicated to such

activities is the President’s Council on Management Improvement

(PCMI), established by Executive Order 12479 in 1984, reestablished

by Executive Order 12816 in 1992. In the intervening years, some

activities of the PCMI have been assumed by the President’s

Management Council, the Chief Financial Officers Council, and the

Chief Information Officers Council. These organizations are also

focussed on improving agencies’ use of quality management

principles. Other functions have been assigned to individual

agencies. Nonetheless, remaining administrative management matters

deserve attention across agency lines.

By the authority vested in me as President by the Constitution

and the laws of the United States of America and in order to

improve agency administrative and management practices throughout

the executive branch, I hereby direct the following:

Section 1. Interagency Council on Administrative Management.

(a) Purpose and Membership. An Interagency Council on

Administrative Management (“Council”) is established as an

interagency coordination mechanism. The Council shall be composed

of the Deputy Director for Management of the Office of Management

and Budget, who shall serve as Chair, and one senior administrative

management official from each of the following agencies:

1. Department of State;

2. Department of the Treasury;

3. Department of Defense;

4. Department of Justice;

5. Department of the Interior;

6. Department of Agriculture;

7. Department of Commerce;

8. Department of Labor;

9. Department of Health and Human Services;

10. Department of Housing and Urban Development;

11. Department of Transportation;

12. Department of Energy;

13. Department of Education;

14. Department of Veterans Affairs;

15. Department of Homeland Security;

16. Environmental Protection Agency;

17. Federal Emergency Management Agency;

18. Central Intelligence Agency;

19. Small Business Administration;

20. Department of the Army;

21. Department of the Navy;

22. Department of the Air Force;

23. National Aeronautics and Space Administration;

24. Agency for International Development;

25. General Services Administration;

26. National Science Foundation; and

27. Office of Personnel Management.

Department and agency heads shall advise the Chair of their

selections for membership on the Council. Council membership shall

also include representatives of the Chief Financial Officers

Council, the Chief Information Officers Council, the Federal

Procurement Council, the Interagency Advisory Group of Federal

Personnel Directors, and the Small Agency Council, as well as at-

large members appointed by the Chair, as he deems appropriate. The

Chair shall invite representatives of the Social Security

Administration to participate in the Council’s work, as

appropriate. The Council shall select a Vice Chair from among the

Council’s membership.

(b) The Council shall plan, promote, and recommend improvements

in Government administration and operations and provide advice to

the Chair on matters pertaining to the administrative management of

the Federal Government. The Council shall:

(1) explore opportunities for more effective use of Government

resources;

(2) support activities and initiatives of the President’s

Management Council, the Chief Financial Officers Council, the

Chief Information Officers Council, the Federal Procurement

Council, and the Interagency Advisory Group of Federal Personnel

Directors designed to develop, review, revise, and implement

Governmentwide administrative management policies; and

(3) identify successful administrative management practices,

including quality management practices, and assist in their

Governmentwide dissemination and implementation.

Sec. 2. Responsibilities of the Chair. The Chair or, if the Chair

chooses, the Vice Chair shall:

(1) convene meetings of the Council;

(2) preside at formal council meetings;

(3) establish committees or working groups of the Council, as

necessary for efficient conduct of Council functions; and

(4) appoint, to the extent permitted by law and consistent with

personnel practices, other full-time officers or employees of the

Federal Government to the Council as at-large members for

specific terms, not exceeding 2 years, to provide expertise to

the Council.

Sec. 3. Responsibilities of Agency Heads. To the extent permitted

by law, heads of departments or agencies represented on the Council

shall provide their representatives with administrative support

needed to support Council activities.

Sec. 4. Judicial Review. This order is for the internal

management of the executive branch and does not create any right or

benefit, substantive or procedural, enforceable by a party against

the United States, its agencies or instrumentalities, its officers

or employees, or any other person.

Sec. 5. Revocation. Executive Order 12816 (creating the

President’s Council on Management Improvement), Executive Order

12552 (establishing the executive branch productivity improvement

program) and Executive Order 12637 (revising the executive branch

productivity improvement program) are revoked.

EX. ORD. NO. 13571. STREAMLINING SERVICE DELIVERY AND IMPROVING

CUSTOMER SERVICE

Ex. Ord. No. 13571, Apr. 27, 2011, 76 F.R. 24339, provided:

By the authority vested in me as President by the Constitution

and the laws of the United States of America, and in order to

improve the quality of service to the public by the Federal

Government, it is hereby ordered as follows:

Section 1. Policy. The public deserves competent, efficient, and

responsive service from the Federal Government. Executive

departments and agencies (agencies) must continuously evaluate

their performance in meeting this standard and work to improve it.

To this end, Executive Order 12862 (Setting Customer Service

Standards), issued on September 11, 1993, requires agencies that

provide significant services directly to the public to identify and

survey their customers, establish service standards and track

performance against those standards, and benchmark customer service

performance against the best in business. This effort to “put

people first” was an important step. It was reinforced by a

Presidential Memorandum for the Heads of Executive Departments and

Agencies issued on March 22, 1995 (Improving Customer Service), and

a further Presidential Memorandum issued on March 3, 1998

(Conducting “Conversations with America” to Further Improve

Customer Service).

However, with advances in technology and service delivery systems

in other sectors, the public’s expectations of the Government have

continued to rise. The Government must keep pace with and even

exceed those expectations. Government must also address the need to

improve its services, not only to individuals, but also to private

and Governmental entities to which the agency directly provides

significant services. Government managers must learn from what is

working in the private sector and apply these best practices to

deliver services better, faster, and at lower cost. Such best

practices include increasingly popular lower-cost, self-service

options accessed by the Internet or mobile phone and improved

processes that deliver services faster and more responsively,

reducing the overall need for customer inquiries and complaints.

The Federal Government has a responsibility to streamline and make

more efficient its service delivery to better serve the public.

Sec. 2. Agency Customer Service Plans and Activities. Within 180

days of the date of this order, each agency shall develop, in

consultation with the Office of Management and Budget (OMB), a

Customer Service Plan (plan) to address how the agency will provide

services in a manner that seeks to streamline service delivery and

improve the experience of its customers. As used in this order, the

term “customer” refers to any individual or to any entity,

including a business, tribal, State or local government, or other

agency, to which the agency directly provides significant services.

The plan shall set forth the agency’s approach, intended benefits,

and an implementation timeline for the following actions:

(a) establishing one major initiative (signature initiative) that

will use technology to improve the customer experience;

(b) establishing mechanisms to solicit customer feedback on

Government services and using such feedback regularly to make

service improvements;

(c) setting clear customer service standards and expectations,

including, where appropriate, performance goals for customer

service required by the GPRA (Government Performance and Results)

Modernization Act of 2010 (Public Law 111-352);

(d) improving the customer experience by adopting proven customer

service best practices and coordinating across service channels

(such as online, phone, in-person, and mail services);

(e) streamlining agency processes to reduce costs and accelerate

delivery, while reducing the need for customer calls and inquiries;

and

(f) identifying ways to use innovative technologies to accomplish

the customer service activities above, thereby lowering costs,

decreasing service delivery times, and improving the customer

experience.

Sec. 3. Publication of Agency Customer Service Plans. Each agency

shall publish its plan on its Open Government web page.

Sec. 4. Assistance in Implementation. In consultation with the

heads of executive departments and agencies, the Chief Performance

Officer, who also serves as the Deputy Director for Management of

the OMB, shall develop guidance for implementing the activities

outlined in this order. Such guidance shall include, among other

things, the nature and scope of services to which the order’s

requirements will apply. The Office of Management and Budget, the

General Services Administration, and the Office of Science and

Technology Policy shall assist and support agencies in developing

customer service standards and plans, online posting of customer

service metrics and best practices, expediting review for customer

feedback mechanisms under the Paperwork Reduction Act (44 U.S.C.

3501 et seq.), improving the design and management of agency

websites providing services or information to the public in

compliance with section 508 of the Rehabilitation Act [of 1973] (29

U.S.C. 794d), and using innovative technologies to improve customer

service at lower costs.

Sec. 5. Independent Agencies. Independent agencies are requested

to adhere to this order.

Sec. 6. Privileged Information. Nothing in this order shall

compel or authorize the disclosure of privileged information, law

enforcement information, information affecting national security,

or information the disclosure of which is prohibited by law.

Sec. 7. General Provisions. (a) Nothing in this order shall be

construed to impair or otherwise affect:

(i) authority granted by law to an executive department, agency,

or the head thereof; or

(ii) functions of the Director of the OMB relating to budgetary,

administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable

law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right

or benefit, substantive or procedural, enforceable at law or in

equity by any party against the United States, its departments,

agencies, or entities, its officers, employees, or agents, or any

other person.

Barack Obama.

EX. ORD. NO. 13576. DELIVERING AN EFFICIENT, EFFECTIVE, AND

ACCOUNTABLE GOVERNMENT

Ex. Ord. No. 13576, June 13, 2011, 76 F.R. 35297, provided:

By the authority vested in me as President by the Constitution

and the laws of the United States of America, and in order to cut

waste, streamline Government operations, and reinforce the

performance and management reform gains my Administration has

achieved, it is hereby ordered as follows:

Section 1. Policy. My Administration is committed to ensuring

that the Federal Government serves the American people with the

utmost effectiveness and efficiency. Over the last 2 years, we have

made good progress and have saved taxpayer dollars by cutting waste

and increasing the efficiency of Government operations by curbing

uncontrolled growth in contract spending, terminating poorly

performing information technology projects, deploying state of the

art fraud detection tools to crack down on waste, focusing agency

leaders on achieving ambitious improvements in high priority areas,

and opening Government up to the public to increase accountability

and accelerate innovation.

The American people must be able to trust that their Government

is doing everything in its power to stop wasteful practices and

earn a high return on every tax dollar that is spent. To strengthen

that trust and deliver a smarter and leaner Government, my

Administration will reinforce the performance and management reform

gains achieved thus far; systematically identify additional reforms

necessary to eliminate wasteful, duplicative, or otherwise

inefficient programs; and publicize these reforms so that they may

serve as a model across the Federal Government.

The implementation of the American Recovery and Reinvestment Act

of 2009 (Public Law 111-5) (Recovery Act) has seen unprecedented

transparency. The Recovery Accountability and Transparency Board

(RATB) has developed innovative technologies and approaches for

preventing and identifying fraud and abuse that have the potential

to improve performance across all of Government spending.

Sec. 2. Accountable Government Initiative. (a) On September 14,

2010, in a Memorandum to the Senior Executive Service, my

Administration introduced goals for the Accountable Government

Initiative (Initiative). The mission of the Initiative is to

monitor and promote agency progress in making Government work

better, faster, and more efficiently. To hold executive departments

and agencies (agencies) accountable for obtaining results

consistent with this mission, the Vice President shall convene

periodic meetings in which Cabinet members and the Director of the

Office of Management and Budget (OMB) report to him on improvements

implemented under their direction.

(b) The Federal Chief Performance Officer (CPO), who also serves

as the Deputy Director for Management of OMB and the Chair of the

President’s Management Council (PMC), shall work with the PMC to

support agencies’ performance and management reform and cost-

cutting efforts. The CPO will lead OMB and the PMC in identifying

practices that should be adopted across agencies and in

facilitating reforms that require cross-agency coordination and

cooperation. The CPO shall work with agencies to ensure that each

area identified as critical to performance improvement has robust

performance metrics in place, and that these metrics are frequently

analyzed and reviewed by agency leadership. Agencies shall update

these metrics quarterly, as appropriate, on the website

performance.gov.

(c) In accordance with the GPRA Modernization Act of 2010 (31

U.S.C. 1115 et seq.), each agency’s Chief Operating Officer (COO)

shall be designated as the Senior Accountable Official responsible

for leading performance and management reform efforts, and for

reducing wasteful or ineffective programs, policies, and

procedures. In discharging this responsibility, this official shall

be accountable for conducting frequent data-driven reviews of

agency progress toward goals in the areas that OMB identifies as

being critical to performance improvement across agencies or that

the agency head identifies as top near-term priorities. These goals

may include reforming information technology, reducing improper

payments, leveraging the Federal Government’s purchasing scale,

reducing high-risk contracting practices, improving the management

of Federal real estate, enhancing customer service, and achieving

agency and Federal Government priority goals identified pursuant to

the GPRA Modernization Act of 2010.

(d) The Director of OMB shall provide guidance to agencies as

part of the Fiscal Year 2013 budget process for identifying areas

of program overlap and duplication within and across agencies, and

for proposing consolidations and reductions to address those

inefficiencies.

(e) The Chief Financial Officers (CFOs) at all agencies shall be

responsible for achieving agency cost savings. This will include

each agency’s share of the $2.1 billion in administrative cost

savings identified in my Fiscal Year 2012 Budget, and for achieving

those savings as quickly as possible. The CFOs are encouraged to

realize these cost savings by targeting wasteful practices and by

reducing, and identifying alternatives to, discretionary travel,

the use of consultants, and other administrative expenses. The

Federal CFO Council shall provide a monthly report on these efforts

to the PMC, with relevant findings and progress reported on

performance.gov.

Sec. 3. Government Accountability and Transparency Board. (a)

There is hereby established a Government Accountability and

Transparency Board (Board) to provide strategic direction for

enhancing the transparency of Federal spending and advance efforts

to detect and remediate fraud, waste, and abuse in Federal

programs. The Board shall be composed of 11 members designated by

the President from among agency Inspectors General, agency Chief

Financial Officers or Deputy Secretaries, a senior official of OMB,

and such other members as the President shall designate. The

President shall designate a Chair from among the members. Building

on the lessons learned from the successful implementation of the

Recovery Act, the Board shall work with the RATB to apply the

approaches developed by the RATB across Government spending.

(b) Not later than 6 months after the date of this order, the

Board shall submit a report to the President that identifies

implementation guidelines for integrating systems that support the

collection and display of Government spending data, ensuring the

reliability of those data, and broadening the deployment of fraud

detection technologies, including those proven successful during

the implementation of the Recovery Act.

(c) The Director of OMB, in consultation with the Board, shall be

responsible for assisting executive agencies in achieving

objectives in the guidelines identified in subsection (b) above.

(d) The Chair of the Board, in consultation with the Director of

OMB, shall provide monthly updates to the Vice President on the

progress obtained under this order.

Sec. 4. General Provisions. (a) Nothing in this order shall be

construed to impair or otherwise affect:

(i) authority granted by law to a department or agency, or the

head thereof; or

(ii) functions of the Director of the Office of Management and

Budget related to budgetary, administrative, or legislative

proposals.

(b) This order shall be implemented consistent with applicable

law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right

or benefit, substantive or procedural, enforceable at law or in

equity by any party against the United States, its departments,

agencies, or entities, its officers, employees, or agents, or any

other person.

Barack Obama.

IMPLEMENTING MANAGEMENT REFORM IN EXECUTIVE BRANCH

Memorandum of President of the United States, Oct. 1, 1993, 58

F.R. 52393, which directed the head of executive departments and

agencies, and requested independent agencies, to establish a chief

operating officer and implement additional agency management

reforms and established the President’s Management Council to

advise and assist the President and Vice President in ensuring that

such reforms were implemented, was revoked by Memorandum of

President of the United States, July 11, 2001, 66 F.R. 37105, set

out below.

IMPLEMENTING GOVERNMENT REFORM

Memorandum of President of the United States, July 11, 2001, 66

F.R. 37105, provided:

Memorandum for the Heads of Executive Departments and Agencies

Throughout the campaign and in my Budget, I have called for

“active, but limited” Government: one that empowers States, cities,

and citizens to make decisions; ensures results through

accountability; and promotes innovation through competition. Thus,

if reform is to help the Federal Government adapt to a rapidly

changing world, its primary objectives must be a Government that

is:

— Citizen-centered – not bureaucracy centered;

— Results-oriented – not process-oriented; and

— Market-based – actively promoting, not stifling, innovation

and competition.

In order to establish and implement Government reform throughout

the executive branch, I hereby direct the following:

1. Establish Chief Operating Officers.

Each agency head shall designate a Chief Operating Officer, who

shall be the senior official with agency-wide authority on behalf

of the Secretary or agency head. The Chief Operating Officer, the

equivalent of the Deputy Secretary, shall report directly to the

agency head and shall be responsible for:

(a) implementing the President’s and agency head’s goals and

the agency’s mission;

(b) providing overall organization management to improve agency

performance;

(c) assisting the agency head in promoting Government reform,

developing strategic plans, and measuring results; and

(d) overseeing agency-specific efforts to integrate performance

and budgeting, expand competitive sourcing, strengthen their

workforce, improve financial management, advance e-government,

apply information policy and technology policies, and other

Government-wide management reforms.

2. Implement Additional Agency Reforms.

Each agency head shall identify and implement additional changes

within the agency that will promote the principles of government

reform.

3. Establishment of President’s Management Council.

In order to advise and assist the President in ensuring that

Government reform is implemented throughout the executive branch, I

hereby establish the President’s Management Council (“Council”).

The Council shall comprise:

(a) The Deputy Director, Office of Management and Budget;

(b) The Chief Operating Officers from the following agencies:

(1) Department of State;

(2) Department of the Treasury;

(3) Department of Defense;

(4) Department of Justice;

(5) Department of the Interior;

(6) Department of Agriculture;

(7) Department of Commerce;

(8) Department of Labor;

(9) Department of Health and Human Services;

(10) Department of Housing and Urban Development;

(11) Department of Transportation;

(12) Department of Energy;

(13) Department of Education; and

(14) Department of Veterans Affairs.

(c) The following central management agency representatives:

(1) Director of the Office of Personnel Management;

(2) Administrator of General Services;

(d) Chief Operating Officers of the following agencies:

(1) Environmental Protection Agency;

(2) National Aeronautics and Space Administration;

(3) National Science Foundation;

(4) Social Security Administration; and

(5) Federal Emergency Management Agency.

(e) Chief Operating Officers of three other executive branch

agencies designated by the Chairperson, in his or her discretion;

(f) Assistant to the President and Cabinet Secretary;

(g) Deputy Assistant to the President for Management and

Administration; and

(h) Deputy Chief of Staff to the Vice President; and

(i) Such other officials of the executive departments and

agencies as the Director of the Office of Management and Budget

or I may, from time to time, designate.

The Deputy Director of the Office of Management and Budget shall

serve as Chairperson of the Council. The Chairperson of the Council

may appoint a Vice-Chairperson from the Council’s membership to

assist the Chairperson in conducting affairs of the Council.

The functions of the Council shall include, among others:

(a) improving overall executive branch management, including

implementation of the President’s Management Agenda;

(b) coordinating management-related efforts to improve

Government throughout the executive branch and, as necessary,

resolving specific interagency management issues;

(c) ensuring the adoption of new management practices in

agencies throughout the executive branch; and

(d) identifying examples of, and providing mechanisms for,

interagency exchange of information about best management

practices.

The Council shall seek advice and information as appropriate from

nonmember Federal agencies, particularly smaller agencies. The

Council shall also consider the management reform experience of

corporations, nonprofit organizations, State and local governments,

Government employees, public sector unions, and customers of

Government services.

Agencies shall cooperate with the Council and provide such

assistance, information, and advice to the Council as the Council

may request, to the extent permitted by law.

4. Independent Agencies.

Independent agencies are requested to comply with this

memorandum.

5. Revocation and Judicial Review.

(a) the memorandum of October 1, 1993, entitled “Implementing

Management Reform in the Executive Branch” is revoked.

(b) this memorandum is for the internal management of the

executive branch and does not create any right or benefit,

substantive or procedural, enforceable by a party against the

United States, its agencies or instrumentalities, its officers or

employees, or any other person.

6. Publication.

The Director of the Office of Management and Budget is authorized

and directed to publish this memorandum in the Federal Register.

George W. Bush.

GOVERNMENT REFORM FOR COMPETITIVENESS AND INNOVATION

Memorandum of President of the United States, Mar. 11, 2011, 76

F.R. 14273, provided:

Memorandum for the Heads of Executive Departments and Agencies

As I outlined in my State of the Union address to the Congress on

January 25, 2011, winning the future in the global economy will

require reducing our deficit while investing in areas critical to

long-term economic growth and competitiveness such as education,

innovation, and infrastructure. By out-educating, out-innovating,

and out-building our competitors, we will enable our Nation to

grow, create jobs, and thrive in the years ahead.

At the same time, we cannot win the future with a government

built for the past. We live and do business in the information age,

but the organization of the Federal Government has not kept pace.

Government agencies have grown without overall strategic planning

and duplicative programs have sprung up, making it harder for each

to reach its goals. Already, my Administration has taken on this

waste and duplication. My current budget proposes more than 200

terminations, reductions, and savings in agency programs totaling

approximately $30 billion in fiscal year 2012. And in areas as

varied as surface transportation to job training, public health,

and education, I have proposed to consolidate scores of programs

into more focused, effective, and streamlined initiatives.

But we must go further. Winning the future will take a government

that judiciously allocates scarce government resources to maximize

its efficiency and effectiveness so that it can best support

American competitiveness and innovation. Now is the time to act to

consolidate and reorganize the executive branch of the Federal

Government in a way that best serves this goal.

By this memorandum, I assign our Nation’s first Chief Performance

Officer, who also serves as the Deputy Director for Management of

the Office of Management and Budget (the “Chief Performance

Officer”), the responsibility of leading the effort to create a

plan for the restructuring and streamlining of the executive branch

of the Federal Government. The first focus of this effort shall be

on the executive departments and agencies and the functions that

support one of our most important priorities – increasing trade,

exports, and our overall competitiveness (“trade and

competitiveness”).

Accordingly, I direct the following:

(1) The Chief Performance Officer shall establish a Government

Reform for Competitiveness and Innovation Initiative, led by an

Executive Director, to conduct a comprehensive review of the

Federal agencies and programs involved in trade and

competitiveness, including analyzing their scope and effectiveness,

areas of overlap and duplication, unmet needs, and possible cost

savings.

(2) As part of this review, the Chief Performance Officer and

Executive Director shall confer broadly with the heads and staff of

executive departments and agencies, including the offices and

agencies within the Executive Office of the President

(collectively, the “agencies”). They should also consult broadly

with external stakeholders, including Members of Congress, business

leaders, unions, nongovernmental organizations, and government

reform experts, to hear their individual and independent

perspectives on what we are doing well and where we could improve

our effectiveness and efficiency.

(3) Within 90 days from the date of this memorandum, the Chief

Performance Officer shall submit recommendations to me for

presidential and, ultimately, congressional action to restructure

and streamline Federal Government programs focused on trade and

competitiveness, based on the following principles:

(a) the functions of the executive branch of the Federal

Government involved in trade and competitiveness should be

organized so that the Federal Government can most efficiently and

effectively facilitate the competitiveness of American businesses,

large and small, and American workers in the changing global

economy;

(b) the responsibilities, authorities, programs, and requirements

of agencies should be transparent, understandable, and easily

accessible to the American public; and

(c) agencies and programs should be organized to reduce

inefficiencies and overlapping responsibilities or functions,

maximize return on taxpayer dollars, and best serve the American

public.

(4) Agencies shall provide, consistent with law, information and

assistance requested by the Chief Performance Officer and Executive

Director to inform their work as directed by this memorandum.

(5) Agencies shall carry out the provisions of this memorandum to

the extent permitted by law and consistent with their statutory and

regulatory authorities and their enforcement mechanisms.

(6) This memorandum is not intended to, and does not, create any

right or benefit, substantive or procedural, enforceable at law or

in equity, by any party against the United States, its departments,

agencies, or entities, its officers, employees, or agents, or any

other person.

(7) The Director of the Office of Management and Budget is hereby

authorized and directed to publish this memorandum in the Federal

Register.

Barack Obama.

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