On May 6, 2020, the FAR Council issued a final rule amending the FAR to implement President Trump’s October 31, 2019 Executive Order revoking President Obama’s January 30, 2009 Executive Order on the Nondisplacement of Qualified Workers Under Service Contracts. The final rule deletes FAR subpart 22.12 in its entirety and also deletes the corresponding clause of FAR 52.222-17. Following this amendment to the FAR, service contractors and their subcontractors are no longer required to offer incumbent employees a right of first refusal for employment on follow-on contracts. Contracting officers are directed not to take action on complaints filed under the former FAR subpart 22.12.
This amendment comes as a welcome change to service contractors, who now have more flexibility in hiring what they believe is the best workforce for a contract. Although many contractors will continue to recruit experienced incumbent employees, they are no longer compelled to do so if they believe that they have other candidates who are better suited for the roles.