Executive Order 13897, published in the Federal Register on Nov. 5, 2019, revoked a previous Executive Order (No. 13495, issued Jan. 9, 2009, titled Nondisplacement of Qualified Workers Under Service Contracts). Executive Order 13495 had required service contractors and their subcontractors to offer employees of the predecessor contractor a right of first refusal of those employment positions subject to the Service Contract Act. We previously discussed this order in depth here. 

This final rule, issued May 6, 2020, deletes all references to this requirement by deleting FAR subpart 22.12 and clause FAR 52.222-17 which provided:

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.

References to this requirement will also be removed from FAR clauses 2.101 and 52.212-5.

There are no longer any restrictions to require contractors winning follow on contracts to offer employment to employees of the incumbent contractor. The effective date of this final rule was June 5, 2020.

The Department of Labor rescinded its implementing regulation on Jan. 31, 2020.