Executives Orders

Title 3 - Executive Order 13494 of Economy in Government Contracting

Presidential Documents

Federal Register

Wednesday, February 4, 2009

Keywords: Government Contracting, Federal Funds

Reviewer: Linda Wright

According to the “Federal Register” President Obama issued three Executive Orders in late January 2009 and early February 2009. The three orders are Executive Orders 13494 Economy in Government Contracting, 13495 Nondisplacement of Qualified Workers Under Service Contracts and 13496 Notification of Employee Rights Under Federal Labor Laws. These orders are expected to help structure government contractors. Contracting with the federal government has become very complicated.

Executive Order 13494 “Economy in Government Contracting” forbids federal contactors from using federal funds on any effort to persuade workers against forming a union. “Economy in Government Contracting “ prevents such contractors from using federal funds in preparing or distributing materials that oppose unionization, hiring consultants for union avoidance campaigns, holding meetings with supervisors and managers about union avoidance efforts during work hours, or holding meetings of salaried employees to discuss union avoidance. Executive Order 13494 does not prevent federal contractors from engaging in union activities, only in federal funds for such activities.

Executive Order 13495 “Nondisplacement of Qualified Workers under Service Contracts“Executive Order 13495 requires that federal government terminates a contract granted under the Service Contract Act with one business and offers that government work to another business, the new contractor must offer all of the employees of the old contract the right to first- refusal on any position under the new contract for which they qualified. Executive Order 13495 prevents an established union from being removed when federal government chooses to change service providers. Under...