HR1554-119

In Committee

Freedom from Government Competition Act of 2025

119th Congress Introduced Feb 25, 2025

Summary

What This Bill Does

The Freedom from Government Competition Act establishes a governmentwide policy that federal agencies should not compete with private firms when a good or service can be obtained more economically from commercial sources. Each agency must obtain goods and services needed for its authorized functions by procurement from private sources unless an exception applies, such as inherently governmental work or a legal requirement to produce the item in government. The Director of the Office of Management and Budget, after consulting the Comptroller General, must study agency activities, evaluate justifications for exempting activities, and send Congress an annual report by June 30 that includes a schedule for transferring commercial activities to the private sector within five years. The bill shifts federal operations toward outsourcing and competitive sourcing.

Who Benefits and How

Private contractors benefit because agencies would have to procure more commercial goods and services from private sources. Small businesses benefit if agency commercial activities are opened to competition rather than performed in-house. Federal procurement offices benefit from a clear statutory preference for commercial sourcing when the work is not inherently governmental. OMB management officials benefit from annual reporting authority over agency commercial activities and outsourcing schedules.

Who Bears the Burden and How

Federal agencies must justify exceptions and transfer commercial activities to private sources under OMB schedules. Federal employees performing commercial activities may face outsourcing, reassignment, or job insecurity. OMB must conduct annual studies, evaluate exemptions, consult GAO, and report transfer schedules to Congress. Agency managers must distinguish inherently governmental functions from commercial work and manage procurement transitions.

Key Provisions

  • Requires agencies to obtain covered goods and services by procurement from private sources.
  • Exempts inherently governmental functions and legally required government production.
  • Directs OMB to study agency activities and report annually to Congress.
  • Requires schedules for transferring commercial activities to the private sector within five years.

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

Requires federal agencies to procure commercially available goods and services from private sources unless an exception applies, and directs OMB to report annually on transferring commercial activities to the private sector within five years.

Key Policy Areas

Procurement, Government Operations, Small Business

Primary Purpose

Requires federal agencies to procure commercially available goods and services from private sources unless an exception applies, and directs OMB to report annually on transferring commercial activities to the private sector within five years.

Policy Domains

Procurement Government Operations Small Business

Resolution provisions

Identified Gains
  • Private contractors
  • Small businesses
  • Federal procurement offices
  • OMB management officials
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
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Private contractors: , , ,
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Federal procurement offices: , , ,
Identified Costs
  • Federal agencies
  • Federal employees
  • OMB
  • Agency managers
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
OMB: , , ,
Agency managers: , , ,
Federal agencies: , , ,
Federal employees: , , ,

Legislative Progress

In Committee
Introduced Committee Passed
Feb 25, 2025

Mr. Bean of Florida (for himself, Mr. Cline, and Mr. …

Feb 25, 2025

Referred to the House Committee on Oversight and Government Reform.

Feb 25, 2025

Introduced in House

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Government
12 mentions across 4 clauses
-8 negative ?4 uncertain

Federal agencies, Federal procurement offices, OMB

Government Contractors
4 mentions across 4 clauses
+4 positive

Private contractors

Small Business
4 mentions across 4 clauses
+4 positive

Small businesses

Government Employees
4 mentions across 4 clauses
-4 negative

Federal employees

4/5
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Procurement Government Operations Small Business

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology