Title 5, Government Organization and EmployeesRelease 119-110

§3703 Assignment of Employees to Private Sector Organizations

Title 5 › PART III — EMPLOYEES › Subpart B — Employment and Retention › CHAPTER 37 — INFORMATION TECHNOLOGY EXCHANGE PROGRAM › § 3703

Last updated Sep 22, 2026|Official source

Summary

An agency can send an employee to work at a private company and, while the employee is there, they are treated as still on detail to their regular job at the agency. The employee keeps their federal workers’ compensation coverage, rights, and benefits (under subchapter I of chapter 81), and the time counts as U.S. employment. If the private company or its insurance pays the employee or dependents for the same injury or death and the company paid the insurance premium, that payment is subtracted from the federal compensation that would otherwise be paid. Travel, moving, and pay can be reimbursed by the private company or not, under the same rules as other government details (see section 3375), and any reimbursements go back to the agency’s travel or pay funds. The Federal Tort Claims Act and other federal tort laws apply, and the agency and company can agree on who supervises the employee. Each agency head must try to make at least 20 percent of that year’s assignments to small businesses (as defined by the SBA under section 3(a)(2) of the Small Business Act). A “year” is the 12 months starting when this law was enacted and each following 12-month period; assignments counted are those that start in that year. If an agency misses the 20 percent goal, it must report within 90 days after year end to the House and Senate committees on Government Reform/Governmental Affairs and Small Business, listing how many assignments it made, how many (and what percent) went to small businesses, and why it missed the goal. The 20 percent rule does not apply to agencies that make fewer than 5 assignments in a year.

Full Legal Text

Title 5, §3703

Government Organization and Employees, Source: USLM XML via OLRC

(a)In General.—
An employee of an agency assigned to a private sector organization under this chapter is deemed, during the period of the assignment, to be on detail to a regular work assignment in his agency.
(b)Coordination With Chapter 81.—
Notwithstanding any other provision of law, an employee of an agency assigned to a private sector organization under this chapter is entitled to retain coverage, rights, and benefits under subchapter I of chapter 81, and employment during the assignment is deemed employment by the United States, except that, if the employee or the employee’s dependents receive from the private sector organization any payment under an insurance policy for which the premium is wholly paid by the private sector organization, or other benefit of any kind on account of the same injury or death, then, the amount of such payment or benefit shall be credited against any compensation otherwise payable under subchapter I of chapter 81.
(c)Reimbursements.—
The assignment of an employee to a private sector organization under this chapter may be made with or without reimbursement by the private sector organization for the travel and transportation expenses to or from the place of assignment, subject to the same terms and conditions as apply with respect to an employee of a Federal agency or a State or local government under section 3375, and for the pay, or a part thereof, of the employee during assignment. Any reimbursements shall be credited to the appropriation of the agency used for paying the travel and transportation expenses or pay.
(d)Tort Liability; Supervision.—
The Federal Tort Claims Act and any other Federal tort liability statute apply to an employee of an agency assigned to a private sector organization under this chapter. The supervision of the duties of an employee of an agency so assigned to a private sector organization may be governed by an agreement between the agency and the organization.
(e)Small Business Concerns.—
(1)In general.—
The head of each agency shall take such actions as may be necessary to ensure that, of the assignments made under this chapter from such agency to private sector organizations in each year, at least 20 percent are to small business concerns.
(2)Definitions.—
For purposes of this subsection
(A)
(B)the term “year” refers to the 12-month period beginning on the date of the enactment of this chapter, and each succeeding 12-month period in which any assignments under this chapter may be made; and
(C)the assignments “made” in a year are those commencing in such year.
(3)Reporting requirement.—
An agency which fails to comply with paragraph (1) in a year shall, within 90 days after the end of such year, submit a report to the Committees on Government Reform and Small Business of the House of Representatives and the Committees on Governmental Affairs and Small Business of the Senate. The report shall include—
(A)the total number of assignments made under this chapter from such agency to private sector organizations in the year;
(B)of that total number, the number (and percentage) made to small business concerns; and
(C)the reasons for the agency’s noncompliance with paragraph (1).
(4)Exclusion.—
This subsection shall not apply to an agency in any year in which it makes fewer than 5 assignments under this chapter to private sector organizations.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Tort Claims Act, referred to in subsec. (d), is title IV of act Aug. 2, 1946, ch. 753, 60 Stat. 842, which was classified principally to chapter 20 (§§ 921, 922, 931–934, 941–946) of former Title 28, Judicial Code and Judiciary. Title IV of act Aug. 2, 1946, was substantially repealed and reenacted as section 1346(b) and 2671 et seq. of Title 28, Judiciary and Judicial Procedure, by act June 25, 1948, ch. 646, 62 Stat. 992, the first section of which enacted Title 28. The Federal Tort Claims Act is also commonly used to refer to chapter 171 of Title 28, Judiciary and Judicial Procedure. For complete classification of title IV to the Code, see Tables. For distribution of former sections of Title 28 into the revised Title 28, see Table at the beginning of Title 28. section 3(a)(2) of the Small Business Act, referred to in subsec. (e)(2)(A), is classified to section 632(a)(2) of Title 15, Commerce and Trade. The date of the enactment of this chapter, referred to in subsec. (e)(2)(B), is the date of enactment of Pub. L. 107–347, which was approved Dec. 17, 2002.

Statutory Notes and Related Subsidiaries

Change of Name

Committee on Government Reform of House of Representatives changed to Committee on Oversight and Government Reform of House of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007. Committee on Oversight and Government Reform of House of Representatives changed to Committee on Oversight and Reform of House of Representatives by House Resolution No. 6, One Hundred Sixteenth Congress, Jan. 9, 2019. Committee on Oversight and Reform of House of Representatives changed to Committee on Oversight and Accountability of House of Representatives by House Resolution No. 5, One Hundred Eighteenth Congress, Jan. 9, 2023. Committee on Oversight and Accountability of House of Representatives changed to Committee on Oversight and Government Reform of House of Representatives by House Resolution No. 5, One Hundred Nineteenth Congress, Jan. 3, 2025. Committee on Governmental Affairs of Senate changed to Committee on Homeland Security and Governmental Affairs of Senate, effective Jan. 4, 2005, by Senate Resolution No. 445, One Hundred Eighth Congress, Oct. 9, 2004. Committee on Small Business of Senate changed to Committee on Small Business and Entrepreneurship of Senate. See Senate Resolution No. 123, One Hundred Seventh Congress, June 29, 2001.

Effective Date

Section effective 120 days after Dec. 17, 2002, see section 402(a) of Pub. L. 107–347, set out as a note under section 3601 of Title 44, Public Printing and Documents.

Reference

Citations & Metadata

Citation

5 U.S.C. § 3703

Title 5, Government Organization and Employees

Last Updated

Sep 22, 2026

Release point: 119-110