Biden Administration Revives Nondisplacement of Qualified Workers Under Service Contracts | PilieroMazza, Law Firm, Government Contracts Attorney | PilieroMazza PLLC

On November 18, 2021, the Biden administration announced an Executive Order (EO) that will bring the former EO 13495, Nondisplacement of Qualified Workers Under Service Contracts, back to life. The PO stipulates that if a federal contract subject to the Service Contract Act expires and a follow-up contract is awarded for the same or similar services at the same location, a successor contractor must grant the employees of the previous contractor a right of first refusal (with the exception of employees of management and superiors) before the Positions are given to employees who are not predecessors. Government contractors need to be aware of upcoming regulations when planning new contracts.

While regulations are in the pipeline, the EO is very similar to previous regulations repealed by the Trump administration. The most important provisions include:

• Existing contractors must provide the client with a list of acting employees before the end of the contract period to which the new contractor is entitled;
• Incoming service contractors must submit a written offer of employment to all acting service personnel, if a position is available, with at least 10 days to respond;
• Main contractors must pass the provisions on to subcontractors and ensure in the subcontract that the subcontractors are obliged to provide employee information that is necessary to comply with the PO; and
• The PO does not apply to contracts below the simplified employment threshold or to employees hired as part of a single position, unless the recruitment has been structured in such a way as to avoid this PO.

The Minister of Labor will issue final regulations within 180 days of the EO and the FAR Council will issue an applicable FAR provision 60 days after the final regulations are issued. As with the previous EO 13495, the US Department of Labor will have enforcement powers. The PO applies to alerts issued on or after the entry into force of the final regulations issued by the FAR Council.

https://www.jdsupra.com/legalnews/biden-administration-revives-7087457/