PSC Welcomes Final Regulations Repealing Nondisplacement of Federal Contractors Executive Order

Arlington, Va. (May 6, 2020) The Professional Services Council (PSC) today welcomed the final Federal Acquisition Regulation (FAR) that repeals rules implementing the rescinded 2009 Executive Order (EO) on Nondisplacement of Federal Contractors. 

“PSC applauds the Federal Acquisition Regulatory Council’s issuance of final regulations that will close the rulebook on the ill-advised non-displacement of federal contractor regulations,” said PSC Executive Vice President and Counsel Alan Chvotkin. “Today’s action provides the contractor community with the flexibilities to recruit the needed talent to fulfill government mission needs.”

The original Executive Order—EO 13495 (1/30/09)—required a successor contractor on an agency’s covered contract to offer the predecessor’s qualified employees the right of first refusal to work on the new contract. The FAR rule was issued in December 2012 and became effective January 18, 2013. At that time and over the years, PSC has expressed concerns with several aspects of the rule and its implementation. 

On October 31, 2019, the President issued a new executive order revoking EO 13495 and directing the Department of Labor to terminate any investigations or compliance actions. The rule published today, which takes effect on June 5, repeals the FAR clauses used to implement the 2012 regulations. 

“The non-displacement EO has been on PSC’s list of problematic orders since it was issued and was among a list of EOs PSC provided to the Trump transition team," Chvotkin continued. “PSC is grateful that the administration has put the last nail in the coffin on this EO. We will continue to highlight for elimination onerous compliance requirements that do not improve performance.”