Non-displacement EO is back

      The Biden Administration is reinstating an Obama-era Executive Order regarding Nondisplacement of Qualified Workers Under Service Contracts. The new EO was announced on Nov. 18.

      Under the new EO, when a follow-on contract covered by the Service Contract Act is awarded to a new vendor, for the same or similar services at the same location, the new vendor must offer the previous contractors’ employees (other than managers and supervisors) the right of first refusal for the jobs.

      The new EO is very similar to a former EO of President Obama. President Trump canceled the EO during his term.

      DOL will issue final regulations within 180 days and the FAR Council rules will come 60 days later.

      According to a client alert by PilieroMazza PLLC the new rules are likely to include:

• A requirement that the incumbent contractor must provide a list of incumbent service employees to the contracting officer prior to the end of the contract. The new vendor is entitled to receive a copy of the list;
• A requirement that the incoming contractor must make a written offer of employment to all incumbent service employees to the extent there are positions available, providing at least 10 days to respond;
• The requirements flow down to subcontractors, who must provide employee information as needed to comply with the EO; and
• The EO will not apply to contracts under the simplified acquisition threshold or to employees hired to work on a single job, as long as the hiring was not structured with the intent of avoiding the EO.

More information:
Executive Order: https://bit.ly/3xIi1IR
PilieroMazza client alert: https://bit.ly/3rhCRNQ

(URLs in Set-Aside Alert have been shortened by the bit.ly URL shortener)

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