Nondisplacement of Qualified Workers Under Service Contracts
Headline: Requires New Federal Service Contractors to Offer Jobs to Workers
What it does: Agencies must include a contract clause requiring successor contractors to offer predecessor service employees a right of first refusal for qualified positions.
- Reduces job loss by giving service employees first chance at new contract jobs.
- May keep work in the same location to avoid service disruptions.
- Contractors face reporting duties, sanctions, and possible debarment for noncompliance.
Summary
This order requires that when the government replaces a contractor on a service contract, the new contractor must generally offer the predecessor's service employees a right of first refusal for jobs they are qualified to do. It directs agencies to prefer keeping work in the same location when needed and sets limited exclusions and exceptions.
The Labor Secretary must issue implementing rules within 180 days and procurement regulations will be updated afterward. The order allows enforcement, including sanctions and possible debarment for up to three years, and applies to future solicitations once rules are effective.
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