Economy in Government Contracting

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Part II

The President

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Executive Order 13494--Economy in Government Contracting

Executive Order 13495--Nondisplacement of Qualified Workers Under
Service Contracts

Executive Order 13496--Notification of Employee Rights Under Federal
Labor Laws

Executive Order 13497--Revocation of Certain Executive Orders
Concerning Regulatory Planning and Review

Presidential Determination No. 2009-15 of January 27, 2009--Unexpected
Urgent Refugee and Migration Needs Related to Gaza

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Title 3--
The President

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.

THE WHITE HOUSE,

January 30, 2009.