Economy in Government Contracting
Signed January 30, 2009·Barack Obama·74 FR 6101
Source
Everything on this page is drawn from the Federal Register, the official daily journal of the United States government. Where this page and the source disagree, the source governs.
Plain-language summary
Directs that costs incurred by federal contractors to persuade their employees, or employees of other entities, for or against unionizing or collective bargaining be treated as unallowable expenses that cannot be billed to or reimbursed by the government. Costs for maintaining ordinary labor-management relations, such as labor-management committees and neutral employee publications, remain allowable. Lists examples of unallowable persuasion-related costs, including preparing materials, hiring legal counsel or consultants, holding meetings, and related activities by managers or supervisors during work hours. Instructs the Federal Acquisition Regulatory Council, within 150 days, to issue rules and regulations implementing the order while minimizing compliance costs and avoiding interference with unreimbursed contractor advocacy. Requires other federal contracting agencies to cooperate with the Council. Applies to contracts arising from solicitations issued after the Council's implementing rules take effect, and states it creates no enforceable legal rights for outside parties.
Not written or reviewed by a person. Read the full order below for anything you intend to rely on.
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Legal standing
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Claimed authority
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Federal Property and Administrative Services Act, 40 U.S.C. 101 et seq., it is hereby ordered
Quoted from the order as written. Many orders cite nothing more specific than “the Constitution and the laws”; this reproduces what the order claims, not an assessment of whether it holds.
Disposition
Amended by: EO 13517, October 30, 2009
Compiled after the fact by the National Archives, so recent orders often have none yet. An empty disposition means no record, not no activity.
The order, in full
Executive Order 13494 of Economy in Government
Contracting
Economy in Government Contracting
By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including the Federal Property and
Administrative Services Act, 40 U.S.C. 101 et seq., it
is hereby ordered that:
Section 1. To promote economy and efficiency in
Government contracting, certain costs that are not
directly related to the contractors' provision of goods
and services to the Government shall be unallowable for
payment, thereby directly reducing Government
expenditures. This order is also consistent with the
policy of the United States to remain impartial
concerning any labor-management dispute involving
Government contractors. This order does not restrict
the manner in which recipients of Federal funds may
expend those funds.
Sec. 2. It is the policy of the executive branch in
procuring goods and services that, to ensure the
economical and efficient administration of Government
contracts, contracting departments and agencies, when
they enter into, receive proposals for, or make
disbursements pursuant to a contract as to which
certain costs are treated as unallowable, shall treat
as unallowable the costs of any activities undertaken
to persuade employees--whether employees of the
recipient of the Federal disbursements or of any other
entity--to exercise or not to exercise, or concerning
the manner of exercising, the right to organize and
bargain collectively through representatives of the
employees' own choosing. Such unallowable costs shall
be excluded from any billing, claim, proposal, or
disbursement applicable to any such Federal Government
contract.
Sec. 3. Notwithstanding section 2 of this order,
contracting departments and agencies shall treat as
allowable costs incurred in maintaining satisfactory
relations between the contractor and its employees,
including costs of labor-management committees,
employee publications (other than those undertaken to
persuade employees to exercise or not to exercise, or
concerning the manner of exercising, the right to
organize and bargain collectively), and other related
activities. See 48 C.F.R. 31.205-21.
Sec. 4. Examples of costs unallowable under section 2
of this order include the costs of the following
activities, when they are undertaken to persuade
employees to exercise or not to exercise, or concern
the manner of exercising, rights to organize and
bargain collectively:
(a) preparing and distributing materials;
(b) hiring or consulting legal counsel or
consultants;
(c) holding meetings (including paying the salaries
of the attendees at meetings held for this purpose);
and
(d) planning or conducting activities by managers,
supervisors, or union representatives during work
hours.
Sec. 5. Within 150 days of the effective date of this
order, the Federal Acquisition Regulatory Council (FAR
Council) shall adopt such rules and regulations and
issue such orders as are deemed necessary and
appropriate to carry out this order. Such rules,
regulations, and orders shall minimize the costs of
compliance for contractors and shall not interfere with
the ability of contractors to engage in advocacy
through activities for which they do not claim
reimbursement.
Sec. 6. Each contracting department or agency shall
cooperate with the FAR Council and provide such
information and assistance as the FAR Council may
require in the performance of its functions under this
order.
Sec. 7. (a) This order shall be implemented consistent
with applicable law and subject to the availability of
appropriations.
(b) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.
Sec. 8. This order shall become effective immediately,
and shall apply to contracts resulting from
solicitations issued on or after the effective date of
the action taken by the FAR Council under section 5 of
this order.
(Presidential Sig.)
THE WHITE HOUSE,
January 30, 2009.Reproduced from the Federal Register plain-text record, signed January 30, 2009. Typesetting artifacts are removed; no wording is changed.