Improving Federal Contractor Operations by Revoking Executive Order 13495
Signed: October 31, 2019
Published: November 5, 2019
Document Number: 2019-24288
đSummary
This executive order revokes Executive Order 13495, which had required certain new federal service contractors to offer existing workers on the prior contract a first chance at keeping their jobs. It affects federal agencies, the Department of Labor, and companies that take over federal service contracts, as well as workers who previously had that hiring preference. It directs the Department of Labor, the Federal Acquisition Regulatory Council, and agencies to quickly remove any rules, guidance, or programs that were used to carry out the old order. It also requires the Department of Labor to immediately end any ongoing investigations or enforcement actions that were based on the revoked order.
đźBusiness Impact
This order most affects **federal service contractors** that frequently win âfollow-onâ contractsâe.g., **facilities management/janitorial, security, call centers, IT help desks, food services, logistics, and other outsourced on-site services**âbecause it **removes the prior âright of first refusalâ requirement** to offer jobs to the incumbent contractorâs workforce. Compliance burden drops: businesses no longer need to follow EO 13495 nondisplacement procedures (offers, recordkeeping, and related DOL enforcement), creating an opportunity to **restructure staffing, change labor mix, or renegotiate wages/benefits** at transitionâthough they should still watch **Service Contract Act (SCA)** wage determinations, collective bargaining obligations, and any **agency- or contract-specific clauses** that may still drive continuity. Immediate actions: **review current solicitations and contracts** to confirm the nondisplacement clause is removed/being removed, **update transition playbooks and HR policies** (hiring plans, communications, and onboarding timelines), and **coordinate with counsel/HR** to manage risks around unions, incumbent employee relations, and state/local worker retention laws that could still apply. If youâre bidding, consider
Full Text
Executive Order 13897 of October 31, 2019
Improving Federal Contractor Operations by Revoking Executive Order 13495
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Federal Property and Administrative Services Act, 40 U.S.C. 101 et seq., and in order to promote economy and efficiency in Federal Government procurement, it is hereby ordered as follows:
Section 1 . Revocation of Prior Order.Executive Order 13495 of January 30, 2009 (Nondisplacement of Qualified Workers Under Service Contracts), which requires that successor Federal contractors in certain circumstances offer a right of first refusal of employment to employees employed under the predecessor contract, is hereby revoked.
Sec. 2 . Agency Implementation. The Secretary of Labor (Secretary), the Federal Acquisition Regulatory Council, and heads of executive departments and agencies shall, consistent with law, promptly move to rescind any orders, rules, regulations, guidelines, programs, or policies implementing or enforcing Executive Order 13495.
Sec. 3 . Enforcement. The Secretary shall terminate, effective immediately, any investigations or compliance actions based on Executive Order 13495.
Sec. 4 . General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department, agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
( printed page 59710)(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE,
October 31, 2019.