On May 3, 2012, the Department of Defense (“DoD”), the General Services Administration (“GSA”), and the National Aeronautics and Space Administration (“NASA”) issued a proposed rule implementing Executive Order 13495, Nondisplacement of Qualified Workers Under Service Contracts (“EO 13495”) and the Department of Labor’s (“DOL’s”) final regulations implementing EO 13495. EO 13495 was initially signed by President Obama on January 30, 2009. It requires federal contractors and subcontractors that are successors to certain government contracts to offer employment on a “first right of refusal” to employees (not including managerial and supervisory employees) employed under the predecessor contract, whose employment would otherwise be terminated at the end of the predecessor contract.
As we previously reported, on August 29, 2011, the DOL issued final regulations that implemented EO 13495 and clarified many of the terms in that Executive Order. The proposed rule issued by DoD, GSA, and NASA would amend the Federal Acquisition Regulations (“FAR”) to add subpart 22.12 and a new clause at FAR 52.222-XX to require service contractors and their subcontractors under successor contracts to offer employees of the predecessor contractor a right of first refusal of employment for all positions for which they are qualified. The proposed rule contemplates amending the FAR clause so that it is virtually identical to DOL’s final regulations, except it will not include provisions concerning the investigative methods, available reviews, or enforcement mechanisms established by the DOL.
Comments on the proposed rule are due by July 2, 2012.
On November 2, 2011, the Department of Defense (“DoD”), General Services Administration (“GSA”), and National Aeronautics and Space Administration (“NASA”) issued a final rule implementing President Obama’s Executive Order 13494, Economy in Government Contracting (“EO 13494”). EO 13494 prohibits government contractors from being reimbursed for activities aimed at influencing employees’ decisions to unionize or bargain collectively.
On November 2, 2011, the Department of Defense (“DoD”), General Services Administration (“GSA”), and the National Aeronautics and Space Administration (“NASA”) published a final rule adopting, without change, the DOL’s May 2010 final rule implementing Executive Order 13496: Notification of Employee Rights under Federal Labor Laws. The final rule requires federal contractors and subcontractors to post a notice in their workplace informing employees of their rights under the National Labor Relations Act (“NLRA”). See our previous Alert on the DOL final rule for more information on the actual poster requirements.
On April 13, 2011, the Obama administration released a draft Executive Order called “Disclosure of Political Spending by Government Contractors” (“Draft Order”) that contemplates requiring federal contractors to disclose political contributions when bidding on federal contracts. As currently drafted, the disclosure obligation would require contractors to disclose contributions of the company and its subsidiaries, affiliates, officers and directors. The Draft Order is intended to “increase transparency and accountability” in the contracting system so that the American public is “ensure[d] efficient and economical procurement process[es].” Continue reading