Federal Agency Performance Review and Efficiency Act - Amends the Inspector General Act of 1978 to make it the principal duty and responsibility of each Inspector General to review annually the operations, efficiency, and effectiveness of all federal programs within his or her establishment and to report to Congress and the President any recommendations, along with proposed legislation, on whether an abolishment, reorganization, consolidation, or transfer of existing federal programs and agencies is necessary to: (1) reduce federal expenditures; (2) increase efficiency of government operations; (3) eliminate overlap and duplication in federal programs and offices; (4) abolish agencies or programs that no longer serve an important governmental purpose; and (5) identify reductions in amounts of discretionary budget authority or direct spending that can be dedicated to federal deficit reduction.
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