Freedom from Government Competition Act of 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
Resolution provisions
Identified Gains
- Private contractors
- Small businesses
- Federal procurement offices
- OMB management officials
Identified Costs
- Federal agencies
- Federal employees
- OMB
- Agency managers
Sponsors
Legislative Progress
In CommitteeMr. Bean of Florida (for himself, Mr. Cline, and Mr. …
Referred to the House Committee on Oversight and Government Reform.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Federal agencies, Federal procurement offices, OMB
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
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