Federal Workforce Reduction and Reform Act of 2011

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.