Federal agencies will be issuing a final rule that will remove the infamous nondisplacement of qualified workers clause from the FAR.
The final rule went into effect June 5, 2020. Let’s take a look.
The new rule, issued May 6, 2020, implements Executive Order 13897, “Improving Federal Contractor Operations by Revoking Executive Order 13495” (published in the Federal Register on November 5, 2019, at 84 FR 59709), which Koprince Law LLC previously blogged about.
The prior Executive Order, through FAR 22.1207, implemented the nondisplacement of qualified workers requirement, which is currently found at FAR 52.222-17. This FAR clause applied to service contractors and their subcontractors and required that:
The Contractor and its subcontractors shall, except as otherwise provided herein, in good faith offer those service employees employed under the predecessor contract whose employment will be terminated as a result of award of this contract or the expiration of the contract under which the service employees were hired, a right of first refusal of employment under this contract in positions for which the service employees are qualified.
Though this requirement was implemented with good intentions, such as promoting the continuity of knowledge and experience while reducing unemployment during contractor transitions, it also placed substantial burdens on contractors pursuing and performing federal contracts.