Freedom from Government Competition Act of 2023
2/1/2024, 8:30 AMSummary of Bill HR 2744
Bill 118 HR 2744, also known as the Freedom from Government Competition Act of 2023, aims to reduce government competition with private businesses by limiting the ability of federal agencies to provide goods and services that are also available in the private sector. The bill seeks to promote a more level playing field for businesses by requiring federal agencies to conduct cost comparisons before providing goods or services that are available from private sector sources.Under the provisions of the bill, federal agencies would be required to justify their decision to provide goods or services in-house rather than contracting with private businesses. The bill also includes provisions for the establishment of a Government Accountability Office (GAO) review process to ensure compliance with the new regulations.
Supporters of the bill argue that it will help to promote efficiency and cost-effectiveness in government operations by encouraging agencies to utilize private sector resources when appropriate. They believe that reducing government competition with private businesses will lead to a more competitive marketplace and ultimately benefit taxpayers. Opponents of the bill, however, argue that it could lead to the outsourcing of government functions to private companies that may not always have the best interests of the public in mind. They also express concerns about the potential impact on government employees who may lose their jobs as a result of increased outsourcing. Overall, the Freedom from Government Competition Act of 2023 seeks to strike a balance between promoting efficiency in government operations and protecting the interests of both taxpayers and government employees. It will be important to closely monitor the implementation of the bill to assess its impact on government operations and the broader economy.
Congressional Summary of HR 2744
Freedom from Government Competition Act of 2023
This bill requires the federal government to procure from the private sector the goods and services necessary for the operations and management of government agencies.
Specifically, it requires each executive or military department or independent establishment to obtain all goods and services necessary for or beneficial to the accomplishment of its authorized functions by procurement from private sources, with specified exceptions, such as where there is no private source capable of providing the good or service.
The bill requires such private sector provision of goods and services to be performed through (1) the divestiture of federal involvement, (2) the award of a contract using competitive procedures, or (3) conducting a public-private competitive sourcing analysis in accordance with Office of Management and Budget (OMB) procedures and determining that using the private sector is in the best interest of the United States and provides the best value to the taxpayer.
An agency may utilize federal employees to provide goods or services previously provided by a private sector entity upon completion of a public-private competitive sourcing analysis and after determining that provision by federal employees provides the best value.
The OMB must carry out a study to evaluate the activities carried out in each agency.
