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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: February 22, 2001

FROM: Barry McVay, CPCM

SUBJECT: Executive Order 13204, Revocation of Executive Order on Nondisplacement of Qualified Workers Under Certain Contracts

SOURCE: Federal Register; February 22, 2001, Vol. 66, No. 36, page 11228

AGENCIES: The President

ACTION: Issuance of Executive Order

SYNOPSIS: On February 17, 2001, President Bush issued Executive Order 13204 revoking Executive Order 12933, which required that successive contractors on contracts for building services at public buildings offer a right of first refusal of employment to employees of the prior contractor.

EDITOR'S NOTE: President Bush also issued two other executive orders that pertain to labor on federal contracts. See today's FEDERAL CONTRACT DISPATCHES "Executive Order 13201, Notification of Employee Rights Concerning Payment of Union Dues or Fees," and "Executive Order 13202, Preservation of Open Competition and Government Neutrality Towards Government Contractors' Labor Relations on Federal and Federally-Funded Construction Projects."

EFFECTIVE DATE: February 17, 2001.

SUPPLEMENTAL INFORMATION: On October 20, 1994, President Clinton issued Executive Order 12933, directing federal agencies to include in public building maintenance contracts a clause that requires successor contractors to give their predecessors' employees the right of first refusal to employment openings under the new contract. On August 21, 1997, Federal Acquisition Circular (FAC) 97-01 added FAR Subpart 22.12, Nondisplacement of Qualified Workers Under Certain Contracts, and FAR clause 52.222-50, Nondisplacement of Qualified Workers. FAR Subpart 22.12 and FAR 52.222-50 applied to contracts over $100,000 for building services such as janitorial, window washing, food services, laundry, protective services, lawn and grounds care, and repair of heating and air conditioning systems.

Executive Order 13204 directs the FAR Council and federal agencies to "promptly move to rescind any orders, rules, regulations, guidelines, or policies implementing or enforcing Executive Order 12933..." Also, it directs the Secretary of Labor to terminate immediately "any investigations or other compliance actions based on Executive Order 12933 of October 20, 1994."

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

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