Nondisplacement of Qualified Workers Under Service Contracts – Final Rule (FAR Case 2011–028)
By: Ryan Byrd
This final rule adds FAR subpart 22.12, entitled ‘‘Nondisplacement of Qualified Workers Under Service Contracts,’’ and a related contract clause.
The regulations require that workers on a federal service contract who would otherwise lose their jobs as a result of the completion or expiration of a contract be given the right of first refusal for employment with the successor contractor. The regulations apply to all service contracts (prime and subcontractor) above the simplified acquisition threshold (currently $150,000) and their solicitations, except those excluded, that succeed contracts for the same or similar services at the same location. The FAR excludes certain types of contracts and employees from its requirements, and allows the head of a contracting department or agency to exempt any of its contracts from the regulations if it finds the requirements would not serve the purposes of the Equal Opportunity Act or would impair the federal government’s ability to procure services economically or efficiently.