Friday, January 30th, 2009 at 12:00 am
Executive Order -- Economy in Government Contracting
For Immediate Release January 30, 2009
EXECUTIVE ORDER
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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.
BARACK OBAMA
THE WHITE HOUSE,
January 30, 2009.
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