Economy in Government Contracting
Headline: Orders Removal of Contractor Persuasion Costs from Government Contracts
What it does: Agencies must treat contractor costs used to persuade workers about union organizing as unallowable and exclude them from contract billings.
- Stops government payment for contractor anti-union materials, legal fees, and meetings.
- Forces contractors to exclude these costs from billing and proposals.
- The Federal Acquisition Regulatory Council will issue rules to implement the order.
Summary
This order bars the federal government from reimbursing contractors for costs used to persuade employees about union organizing or collective bargaining. It says costs not directly tied to providing goods or services are unallowable and lists examples such as preparing materials, hiring legal counsel, holding meetings, and manager activities during work hours.
The rule applies to federal contracting departments and any companies that do business with the government and directs the Federal Acquisition Regulatory Council to issue rules and agencies to cooperate. The stated purpose is to reduce government spending and keep the government neutral in labor disputes.
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