SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Workforce Reduction and 
Reform Act of 2011''.

SEC. 2. FREEZE ON PAY AND BONUSES OF FEDERAL EMPLOYEES.

    (a) Extension of Pay Freeze for Federal Employees to 3 Years.--
Section 147 of the Continuing Appropriations Act, 2011 (Public Law 111-
242) is amended--
            (1) in subsection (b)(1), by striking ``December 31, 2012'' 
        and inserting ``December 31, 2014''; and
            (2) in subsection (c), by striking ``December 31, 2012'' 
        and inserting ``December 31, 2014''.
    (b) 3-Year Freeze on Bonuses.--
            (1) Definitions.--In this subsection--
                    (A) the term ``agency'' has the meaning given under 
                section 4501(1) of title 5, United States Code; and
                    (B) the term ``employee'' has the meaning given 
                under section 4501(2) of title 5, United States Code.
            (2) Freeze on bonuses.--Notwithstanding any other provision 
        of law, during each of fiscal years 2012, 2013, and 2014, no 
        agency may pay any bonus (including any recruitment or 
        retention bonus) or any cash award (including any performance-
        based cash award under section 4505a of title 5, United States 
        Code, or any similar provision of law) to any employee.

SEC. 3. REDUCTION IN FEDERAL WORKFORCE.

    (a) Definitions.--In this section--
            (1) the term ``agency'' means an Executive agency as 
        defined under section 105 of title 5, United States Code, 
        excluding the Government Accountability Office;
            (2) the term ``Federal employee'' means an employee as 
        defined under section 2105 of title 5, United States Code; and
            (3) the term ``total number of Federal employees'' means 
        the total number of Federal employees in all agencies.
    (b) Limitation.--The President, through the Office of Management 
and Budget (in consultation with the Office of Personnel Management), 
shall take appropriate measures to ensure that, effective beginning in 
fiscal year 2022, the total number of Federal employees shall not 
exceed 85 percent of the total number of Federal employees on September 
30, 2011.
    (c) Monitoring and Notification.--The Office of Management and 
Budget (in consultation with the Office of Personnel Management)--
            (1) shall continuously monitor all agencies and make a 
        determination, as of September 30, 2011, and the last day of 
        each quarter of each fiscal year beginning thereafter, as to 
        whether or not the total number of Federal employees exceeds 
        the maximum number allowable under subsection (b); and
            (2) whenever a determination under paragraph (1) is made 
        that the total number of Federal employees exceeds the maximum 
        number allowable under subsection (b), shall provide written 
        notice to that effect to the President and Congress within 14 
        days after the last day of the quarter to which such 
        determination relates.
    (d) Compliance.--Whenever, with respect to the quarter ending on 
September 30, 2021, or any subsequent quarter, the Office of Management 
and Budget provides written notice under subsection (c)(2) that the 
total number of Federal employees exceeds the maximum number allowable 
under subsection (b), no agency may thereafter appoint any employee to 
fill any vacancy within such agency until the Office of Management and 
Budget provides written notice to the President and Congress of a 
determination under subsection (c)(1) that the total number of Federal 
employees no longer exceeds the maximum number allowable under 
subsection (b). Any notice under the preceding sentence shall be 
provided within 14 days after the last day of the quarter to which the 
determination relates.
    (e) Waiver.--This section may be waived upon a determination by the 
President that--
            (1) the existence of a state of war or other national 
        security concern so requires; or
            (2) the existence of an extraordinary emergency threatening 
        life, health, public safety, property, or the environment so 
        requires.
    (f) Counting Rule.--For purposes of this section, any determination 
of the number of employees in an agency shall be expressed on a full-
time equivalent basis.
    (g) Limitation on Procurement of Service Contracts.--The President, 
through the Office of Management and Budget (in consultation with the 
Office of Personnel Management), shall take appropriate measures to 
ensure that there is no increase in the procurement of service 
contracts by reason of the enactment of this section, except in cases 
in which a cost comparison demonstrates that such contracts would be to 
the financial advantage of the Government.
    (h) Regulations.--Any regulations necessary to carry out this 
section may be prescribed by the President or his designee.

SEC. 4. REDUCTION IN CONTRACT EMPLOYEES.

    (a) Definitions.--In this section, the term ``agency'' means an 
Executive agency as defined under section 105 of title 5, United States 
Code, excluding the Government Accountability Office.
    (b) Limitation.--The President, through the Office of Management 
and Budget (in consultation with the Office of Personnel Management), 
shall take appropriate measures to ensure that, effective beginning in 
fiscal year 2022, the total number of contract employees shall not 
exceed 85 percent of the total number of contract employees on 
September 30, 2011.
    (c) Monitoring and Notification.--The Office of Management and 
Budget (in consultation with the Office of Personnel Management)--
            (1) shall continuously monitor all agencies and make a 
        determination, as of September 30, 2011, and the last day of 
        each quarter of each fiscal year beginning thereafter, as to 
        whether or not the total number of contract employees exceeds 
        the maximum number allowable under subsection (b); and
            (2) whenever a determination under paragraph (1) is made 
        that the total number of contract employees exceeds the maximum 
        number allowable under subsection (b), shall provide written 
        notice to that effect to the President and Congress within 14 
        days after the last day of the quarter to which such 
        determination relates.
    (d) Compliance.--Whenever, with respect to the quarter ending on 
September 30, 2021, or any subsequent quarter, the Office of Management 
and Budget provides written notice under subsection (c)(2) that the 
total number of contract employees exceeds the maximum number allowable 
under subsection (b), no agency may thereafter appoint any employee to 
fill any vacancy within such agency until the Office of Management and 
Budget provides written notice to the President and Congress of a 
determination under subsection (c)(1) that the total number of contract 
employees no longer exceeds the maximum number allowable under 
subsection (b). Any notice under the preceding sentence shall be 
provided within 14 days after the last day of the quarter to which the 
determination relates.
    (e) Waiver.--This section may be waived upon a determination by the 
President that--
            (1) the existence of a state of war or other national 
        security concern so requires; or
            (2) the existence of an extraordinary emergency threatening 
        life, health, public safety, property, or the environment so 
        requires.
    (f) Counting Rule.--For purposes of this section, any determination 
of the number of contact employees shall be expressed on a full-time 
equivalent basis.
    (g) Regulations.--Any regulations necessary to carry out this 
section may be prescribed by the President or his designee.

SEC. 5. LIMITATION OF GOVERNMENT TRAVEL COSTS.

    (a) Definition.--In this section, the term ``agency''--
            (1) has the meaning given under section 5701(1) of title 5, 
        United States Code; and
            (2) does not include the Department of Defense.
    (b) Limitation.--
            (1) In general.--Notwithstanding any other provision of 
        law, the total amount which is paid or reimbursed by an agency 
        under subchapter I of chapter 57 of title 5, United States Code 
        (relating to travel and subsistence expenses; mileage 
        allowances for official travel by Federal employees) may not--
                    (A) for each of fiscal years 2012 and 2013, exceed 
                50 percent of the total amount so paid or reimbursed by 
                such agency for fiscal year 2011; and
                    (B) for fiscal year 2014, exceed 25 percent of the 
                total amount so paid or reimbursed by such agency for 
                fiscal year 2011.
            (2) Exceptions.--For purposes of carrying out paragraph 
        (1), there shall not be taken into account the amounts paid or 
        reimbursed for--
                    (A) any subsistence or travel expenses for 
                threatened law enforcement personnel, as described in 
                section 5706a of title 5, United States Code; or
                    (B) any other expenses for which an exception is 
                established under paragraph (3) for reasons relating to 
                national security or public safety.
            (3) Regulations.--Any regulations necessary to carry out 
        this subsection shall, in consultation with the Director of the 
        Office of Management and Budget, be prescribed by the same 
        respective authorities as are responsible for prescribing 
        regulations under section 5707 of title 5, United States Code.
    (c) Reserve Travel Amount.--
            (1) Definition.--In this subsection, the term ``reserve 
        travel amount'' means an amount equal to 10 percent of the 
        total amount of appropriations made available to an agency in 
        any fiscal year for purposes of payment or reimbursement by 
        that agency under subchapter I of chapter 57 of title 5, United 
        States Code (relating to travel and subsistence expenses; 
        mileage allowances for official travel by Federal employees).
            (2) Requirement.--For each of fiscal years 2012 through 
        2014, each agency shall have a reserve travel amount available 
        for expenditure or obligation on September 1 of each such 
        fiscal year for purposes of payment or reimbursement by that 
        agency under subchapter I of chapter 57 of title 5, United 
        States Code (relating to travel and subsistence expenses; 
        mileage allowances for official travel by Federal employees).
Federal Workforce Reduction and Reform Act of 2011 - Amends the Continuing Appropriations Act, 2011, to extend the freeze on statutory pay adjustments for federal civilian employees and increases in the rates of basic pay for senior executives or senior-level employees through December 31, 2014. Prohibits agencies from paying bonuses (including any recruitment or retention bonus) or cash awards (including performance-based cash awards) to employees during FY2012-FY2014.

Requires the Office of Management and Budget (OMB) to: (1)  take appropriate measures to ensure that the total number of federal employees or contract employees, beginning in FY2022, does not exceed 85% of the total number of federal employees on September 30, 2011; (2) continuously monitor all agencies, make a determination on whether the total number of federal employees in any quarter of a fiscal year exceeds the maximum number allowed by this Act, and notify the President and Congress if the number exceeds the maximum; and (3) ensure that there is no increase in the procurement of service contracts due to this Act unless a cost comparison demonstrates that such contracts would be financially advantageous to the federal government.

Prohibits a federal agency from filling any vacancy until OMB provides written notice to the President and Congress that the number of federal or contract employees does not exceed the limitation imposed by this Act.

Allows the President to waive the workforce limitations imposed by this Act if the President determines that the existence of a state or war or other national security concern or the existence of an extraordinary emergency threatening life, health, public safety, property, or the environment so requires.

Imposes limitations on the amount allowed for the reimbursement of travel costs incurred by federal employees (except employees of the Department of Defense [DOD]) in FY2012-FY2014 unless such expenses are incurred by threatened law enforcement personnel or for reasons relating to national security or public safety.
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