FAR Rule Addresses Displacement of Service Contract Workers

A May 3 proposed FAR rule addresses nondisplacement of qualified workers under service contracts. The proposed rule outlines the government’s policy to require service contractors and their subcontractors under successor contracts to offer employees of the predecessor contractor and its subcontractors a right of first refusal of employment for positions for which they are qualified.  Certain contracts are exempt, and requirements may be waived by the agency head.

The rule contains several reporting requirements. Under proposed FAR 22.1205, the predecessor contractor is required to provide the contracting officer with a certified list of its employees who are qualified to work on the successor contract. The CO in turn must provide the list to the successor contractor in a timely manner. Also, under proposed FAR 22.1206, the CO must ensure the predecessor contractor provides written notice to service employees of their possible right to an offer of employment with the successor contractor. This written notice must be posted in a conspicuous place at the worksite or delivered to the employees individually.

This proposed rule is issued in accordance with Executive Order 13495 and the Department of Labor’s implementing regulations. Comments referencing FAR Case 2011-028 are due July 2, 2012.

About William Van Huis

Bill Van Huis is a Senior Writer/Analyst for Wolters Kluwer Law & Business who tracks and analyzes new regulations impacting federal government contracting. He also follows court decisions involving bid protests and contract disputes. You can find his work in WK publications like Government Contract Reports and the FAR and DFARS Matrix Tools. Bill is a Certified Professional Contracts Manager, and he has a law degree from Southern Illinois University, where he graduated summa cum laude. Prior to joining WK, Bill worked both inside and outside state and local government in the areas of procurement and municipal finance. Bill also worked as a staff attorney for the Illinois Supreme Court.
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