President Trump Revokes Executive Order Providing for Nondisplacement of Qualified Workers

Under Executive Order 13495, the policy of the Federal Government was that all Service Contract Act covered contracts over the simplified acquisition threshold were to include a contract clause requiring contractors to make good-faith offers of employment to predecessor SCA-covered employees.  However, on October 31, 2019, President Trump issued an “Executive Order on Improving Federal Contractor Operations by Revoking Executive Order 13495” which requires the “Secretary of Labor (Secretary), the Federal Acquisition Regulatory Council, and heads of executive departments and agencies . . . , consistent with law, [to] promptly move to rescind any orders, rules, regulations, guidelines, programs, or policies implementing or enforcing Executive Order 13495.”

While the Department of Labor’s guidance with respect to Executive Order 13495 appears to have been removed from its website, it will likely be some time before the effects of President Trump’s actions are fully realized. For example, FAR § 52.222-17 – Nondisplacement of Qualified Workers will need to be formally rescinded – and will remain in the Federal Acquisition Regulations until that time.

Therefore, during this transition period, contractors should carefully review all new solicitations and contracts to ensure that the agency has not included Executive Order 13495 or its implementing FAR regulations and, if an agency has included those in a newly issued solicitation, the contractor should take exception to those requirements.

If you have questions regarding this revocation and how it may apply to your government contract, please contact us here or call us at 703-288-2800.