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“(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.

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