Federal Performance of Commercial Activities Improvement Act of 1987

Federal Performance of Commercial Activities Improvement Act of 1987 - Requires Federal agencies to procure supplies and services from private sector sources, unless: (1) the supplies or services are required to be provided by an agency under a law which specifically supersedes this Act; (2) the provision of such supplies or services is a Government function; or (3) the head of an agency certifies to the Congress that the Government should provide such supplies or services in the interest of national security or cost effectiveness.

Requires agencies to report to the Congress annually on cost savings resulting from provisions of this Act.

Requires the Director of the Office of Management and Budget to report to the Congress within one year of enactment of this Act on: (1) the implementation of such Act identifying cases where agencies can be, cannot be, or are engaged in the procurement of services from the private sector; and (2) a five-year schedule for the completion of required cost comparisons between private sector sources and agency sources. Requires the Director annually to review agency compliance under such schedule and report results to the Congress.