CHAPTER 5 - OFFICE OF MANAGEMENT AND BUDGET

Title 31 > CHAPTER 5

Sections (18)

§ 501 Office of Management and Budget

The Office of Management and Budget is an office in the Executive Office of the President. ( Pub. L. 97–258 , Sept. 13, 1982 , 96 Stat. 886 .)

“SECTION 1 SHORT TITLE.

“This Act may be cited as the ‘Disaster Resiliency Planning Act’.

“SEC. 2 DEFINITIONS.

“In this Act: The term ‘appropriate congressional committees’ means— the Committee on Homeland Security and Governmental Affairs of the Senate; and the Committee on Oversight and Reform [now Committee on Oversight and Accountability] of the House of Representatives. The term ‘agency’ has the meaning given the term in section 306 of title 5 , United States Code. The term ‘Director’ means the Director of the Office of Management and Budget. The term ‘real property’ has the meaning given the term in section 1.856–10 of title 26, Code of Federal Regulations, or any successor thereto.

“SEC. 3 GUIDANCE.

(“(a) In General.— Not later than 180 days after the date of enactment of this Act [ Dec. 5, 2022 ], the Director shall establish guidance requiring the head of each agency to incorporate natural disaster resilience into real property asset management and investment decisions made by the agency.

(“(b) Contents.— The guidance required under subsection (a) shall direct each head of an agency to incorporate assessments of natural disaster risk information conducted by the agency, such as from vulnerability and other risk assessments, into real property asset management investment decisions made by the agency.

(“(c) Modification.— The Director may periodically update the guidance required under subsection (a) as the Director may determine necessary for the purpose of further enhancing natural disaster resilience.

(“(d) Consultation.— In developing the guidance required under subsection (a), the Director may consult with appropriate entities, including— the Comptroller General of the United States; the Administrator of the Federal Emergency Management Agency; and any other relevant entities, as determined by the Director.

(“(e) Report.— Not later than 1 year after the date of enactment of this Act, the Director shall submit to the appropriate congressional committees a report that describes the guidance required under subsection (a). Not later than 2 years after the date of enactment of this Act, the Director shall brief the appropriate congressional committees on the implementation of the guidance required under subsection (a) across agencies.”

“SECTION 1 SHORT TITLE.

“This Act may be cited as the ‘Federal Activities Inventory Reform Act of 1998’.

“SEC. 2 ANNUAL LISTS OF GOVERNMENT ACTIVITIES NOT INHERENTLY GOVERNMENTAL IN NATURE.

(“(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: The fiscal year for which the activity first appeared on a list prepared under this section. The number of full-time employees (or its equivalent) that are necessary for the performance of the activity by a Federal Government source. 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.— Upon the completion of the review and consultation regarding a list of an executive agency— 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 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. 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— make each such change available to the public and transmit a copy of the change to Congress; and 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.

“SEC. 3 CHALLENGES TO THE LIST.

(“(a) Challenge Authorized.— An interested party may submit to an executive agency a challenge of an omission of a particular activity from, or an inclusion of a particular activity on, a list for which a notice of public availability has been published under section 2.

(“(b) Interested Party Defined.— For the purposes of this section, the term ‘interested party’, with respect to an activity referred to in subsection (a), means the following: A private sector source that— is an actual or prospective offeror for any contract, or other form of agreement, to perform the activity; and has a direct economic interest in performing the activity that would be adversely affected by a determination not to procure the performance of the activity from a private sector source. A representative of any business or professional association that includes within its membership private sector sources referred to in paragraph (1). An officer or employee of an organization within an executive agency that is an actual or prospective offeror to perform the activity. The head of any labor organization referred to in section 7103(a)(4) of title 5 , United States Code, that includes within its membership officers or employees of an organization referred to in paragraph (3).

(“(c) Time for Submission.— A challenge to a list shall be submitted to the executive agency concerned within 30 days after the publication of the notice of the public availability of the list under section 2.

(“(d) Initial Decision.— Within 28 days after an executive agency receives a challenge, an official designated by the head of the executive agency shall— decide the challenge; and transmit to the party submitting the challenge a written notification of the decision together with a discussion of the rationale for the decision and an explanation of the party’s right to appeal under subsection (e).

(“(e) Appeal.— An interested party may appeal an adverse decision of the official to the head of the executive agency within 10 days after receiving a notification of the decision under subsection (d). Within 10 days after the head of an executive agency receives an appeal of a decision under paragraph (1), the head of the executive agency shall decide the appeal and transmit to the party submitting the appeal a written notification of the decision together with a discussion of the rationale for the decision.

“SEC. 4 APPLICABILITY.

(“(a) Executive Agencies Covered.— Except as provided in subsection (b), this Act applies to the following executive agencies: An executive department named in section 101 of title 5 , United States Code. A military department named in section 102 of title 5 , United States Code. An independent establishment, as defined in section 104 of title 5 , United States Code.

(“(b) Exceptions.— This Act does not apply to or with respect to the following: The Government Accountability Office. A Government corporation or a Government controlled corporation, as those terms are defined in section 103 of title 5 , United States Code. A part of a department or agency if all of the employees of that part of the department or agency are employees referred to in section 2105(c) of title 5 , United States Code. Depot-level maintenance and repair of the Department of Defense (as defined in section 2460 of title 10 , United States Code). Executive agencies with fewer than 100 full-time employees as of the first day of the fiscal year. However, such an agency shall be subject to section 2 to the extent it plans to conduct a public-private competition for the performance of an activity that is not inherently governmental.

“SEC. 5 DEFINITIONS.

“In this Act: The term ‘Federal Government source’, with respect to performance of an activity, means any organization within an executive agency that uses Federal Government employees to perform the activity. The term ‘inherently governmental function’ means a function that is so intimately related to the public interest as to require performance by Federal Government employees. The term includes activities that require either the exercise of discretion in applying Federal Government authority or the making of value judgments in making decisions for the Federal Government, including judgments relating to monetary transactions and entitlements. An inherently governmental function involves, among other things, the interpretation and execution of the laws of the United States so as— to bind the United States to take or not to take some action by contract, policy, regulation, authorization, order, or otherwise; to determine, protect, and advance United States economic, political, territorial, property, or other interests by military or diplomatic action, civil or criminal judicial proceedings, contract management, or otherwise; to significantly affect the life, liberty, or property of private persons; to commission, appoint, direct, or control officers or employees of the United States; or to exert ultimate control over the acquisition, use, or disposition of the property, real or personal, tangible or intangible, of the United States, including the collection, control, or disbursement of appropriated and other Federal funds. The term does not normally include— gathering information for or providing advice, opinions, recommendations, or ideas to Federal Government officials; or any function that is primarily ministerial and internal in nature (such as building security, mail operations, operation of cafeterias, housekeeping, facilities operations and maintenance, warehouse operations, motor vehicle fleet management operations, or other routine electrical or mechanical services).

“SEC. 6 EFFECTIVE DATE.

“This Act shall take effect on October 1, 1998 .”

§ 502 Officers

(a) The head of the Office of Management and Budget is the Director of the Office of Management and Budget. The Director is appointed by the President, by and with the advice and consent of the Senate. Under the direction of the President, the Director shall administer the Office.

(b) The Office has a Deputy Director of the Office of Management and Budget, appointed by the President, by and with the advice and consent of the Senate. The Deputy Director— shall carry out the duties and powers prescribed by the Director; and acts as the Director when the Director is absent or unable to serve or when the office of Director is vacant.

(c) The Office has a Deputy Director for Management appointed by the President, by and with the advice and consent of the Senate. The Deputy Director for Management shall be the chief official responsible for financial management in the United States Government.

(d) The Office has 3 Assistant Directors who shall carry out the duties and powers prescribed by the Director.

(e) The Office may have not more than 6 additional officers, each of whom is appointed in the competitive service by the Director, with the approval of the President. Each additional officer shall carry out the duties and powers prescribed by the Director. The Director shall specify the title of each additional officer.

(f) When the Director and Deputy Director are absent or unable to serve or when the offices of Director and Deputy Director are vacant, the President may designate an officer of the Office to act as Director.

§ 503 Functions of Deputy Director for Management

(a) Subject to the direction and approval of the Director, the Deputy Director for Management shall establish governmentwide financial management policies for executive agencies and shall perform the following financial management functions: Perform all functions of the Director, including all functions delegated by the President to the Director, relating to financial management. Provide overall direction and leadership to the executive branch on financial management matters by establishing financial management policies and requirements, and by monitoring the establishment and operation of Federal Government financial management systems. Review agency budget requests for financial management systems and operations, and advise the Director on the resources required to develop and effectively operate and maintain Federal Government financial management systems and to correct major deficiencies in such systems. Review and, where appropriate, recommend to the Director changes to the budget and legislative proposals of agencies to ensure that they are in accordance with financial management plans of the Office of Management and Budget. Monitor the financial execution of the budget in relation to actual expenditures, including timely performance reports. Oversee, periodically review, and make recommendations to heads of agencies on the administrative structure of agencies with respect to their financial management activities. Develop and maintain qualification standards for agency Chief Financial Officers and for agency Deputy Chief Financial Officers appointed under sections 901 and 903, respectively (excluding any officer designated or appointed under section 901(c)). Provide advice to agency heads with respect to the selection of agency Chief Financial Officers and Deputy Chief Financial Officers (excluding any officer designated or appointed under section 901(c)). Provide advice to agencies regarding the qualifications, recruitment, performance, and retention of other financial management personnel. Assess the overall adequacy of the professional qualifications and capabilities of financial management staffs throughout the Government and make recommendations on ways to correct problems which impair the capacity of those staffs. Settle differences that arise among agencies regarding the implementation of financial management policies. Chair the Chief Financial Officers Council established by section 302 of the Chief Financial Officers Act of 1990. Communicate with the financial officers of State and local governments, and foster the exchange with those officers of information concerning financial management standards, techniques, and processes. Issue such other policies and directives as may be necessary to carry out this section, and perform any other function prescribed by the Director.

(b) Subject to the direction and approval of the Director, the Deputy Director for Management shall establish general management policies for executive agencies and perform the following general management functions: Coordinate and supervise the general management functions of the Office of Management and Budget. Perform all functions of the Director, including all functions delegated by the President to the Director, relating to— managerial systems, including the systematic measurement of performance; procurement policy; grant, cooperative agreement, and assistance management; information and statistical policy; property management; human resources management; regulatory affairs; and other management functions, including organizational studies, long-range planning, program evaluation, productivity improvement, and experimentation and demonstration programs. Provide complete, reliable, and timely information to the President, the Congress, and the public regarding the management activities of the executive branch. Facilitate actions by the Congress and the executive branch to improve the management of Federal Government operations and to remove impediments to effective administration. Chair the Chief Information Officers Council established under section 3603 of title 44 . Provide leadership in management innovation, through— experimentation, testing, and demonstration programs; and the adoption of modern management concepts and technologies. Work with State and local governments to improve and strengthen intergovernmental relations, and provide assistance to such governments with respect to intergovernmental programs and cooperative arrangements. Review and, where appropriate, recommend to the Director changes to the budget and legislative proposals of agencies to ensure that they respond to program evaluations by, and are in accordance with general management plans of, the Office of Management and Budget. Provide advice to agencies on the qualification, recruitment, performance, and retention of managerial personnel. Perform any other functions prescribed by the Director.

(c) Program and Project Management.— Subject to the direction and approval of the Director, the Deputy Director for Management or a designee shall— adopt governmentwide standards, policies, and guidelines for program and project management for executive agencies; oversee implementation of program and project management for the standards, policies, and guidelines established under subparagraph (A); chair the Program Management Policy Council established under section 1126(b); establish standards and policies for executive agencies, consistent with widely accepted standards for program and project management planning and delivery; engage with the private sector to identify best practices in program and project management that would improve Federal program and project management; conduct portfolio reviews to address programs identified as high risk by the Government Accountability Office; not less than annually, conduct portfolio reviews of agency programs in coordination with Project Management Improvement Officers designated under section 1126(a)(1) to assess the quality and effectiveness of program management; and establish a 5-year strategic plan for program and project management. Paragraph (1) shall not apply to the Department of Defense to the extent that the provisions of that paragraph are substantially similar to or duplicative of— the provisions of chapter 87 of title 10; or policy, guidance, or instruction of the Department related to program management.

§ 504 Office of Federal Financial Management

(a) There is established in the Office of Management and Budget an office to be known as the “Office of Federal Financial Management”. The Office of Federal Financial Management, under the direction and control of the Deputy Director for Management of the Office of Management and Budget, shall carry out the financial management functions listed in section 503(a) of this title .

(b) There shall be at the head of the Office of Federal Financial Management a Controller, who shall be appointed by the President, by and with the advice and consent of the Senate. The Controller shall be appointed from among individuals who possess— demonstrated ability and practical experience in accounting, financial management, and financial systems; and extensive practical experience in financial management in large governmental or business entities.

(c) The Controller of the Office of Federal Financial Management shall be the deputy and principal advisor to the Deputy Director for Management in the performance by the Deputy Director for Management of functions described in section 503(a).

§ 505 Office of Information and Regulatory Affairs

The Office of Information and Regulatory Affairs, established under section 3503 of title 44 , is an office in the Office of Management and Budget. ( Pub. L. 97–258 , Sept. 13, 1982 , 96 Stat. 886 , § 503; renumbered § 505, Pub. L. 101–576, title II, § 202(a) , Nov. 15, 1990 , 104 Stat. 2839 .)

§ 506 Office of Federal Procurement Policy

The Office of Federal Procurement Policy, established under section 1101(a) of title 41 , is an office in the Office of Management and Budget. (Added Pub. L. 97–452, § 1(1)(A) , Jan. 12, 1983 , 96 Stat. 2467 , § 504; renumbered § 506, Pub. L. 101–576, title II, § 202(a) , Nov. 15, 1990 , 104 Stat. 2839 ; amended Pub. L. 111–350, § 5(h)(1) , Jan. 4, 2011 , 124 Stat. 3848 .)

§ 507 Office of Electronic Government

The Office of Electronic Government, established under section 3602 of title 44 , is an office in the Office of Management and Budget. (Added Pub. L. 107–347, title I, § 102(c)(1) , Dec. 17, 2002 , 116 Stat. 2910 .)

§ 521 Employees

The Director of the Office of Management and Budget shall appoint and fix the pay of employees of the Office under regulations prescribed by the President. ( Pub. L. 97–258 , Sept. 13, 1982 , 96 Stat. 886 .)

§ 522 Necessary expenditures

The Director of the Office of Management and Budget may make necessary expenditures for the Office under regulations prescribed by the President. ( Pub. L. 97–258 , Sept. 13, 1982 , 96 Stat. 886 .)