February 20, 2013

Contractor Resource: Non-Displacement of Qualified Workers Under Service Contracts

Arnold & Porter Advisory

Companies that provide services to the Federal Government may find a new clause in solicitations and contracts issued after January 17, 2013: Federal Acquisition Regulation (FAR) clause 52.222-17, "Nondisplacement of Qualified Workers (JAN 2013) (E.O.13495)."

All contractors should begin checking services solicitations for FAR 52.222-17 effective immediately. At its core, the clause seeks to protect incumbent workers performing the same or similar work at the same location by requiring prime contractors and their subcontractors to offer qualified, incumbent service employees a right of first refusal to employment on follow-on services contracts. The clause materially alters the transition requirements associated with covered contracts and creates new obligations for outgoing and incoming contractors.


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