Overlooked Obama Order Limits Contractor Hiring Options

Monday, April 13, 2009

Only ten days after taking office, President Barack Obama changed the way government-hired contractors can hire employees—which may result in less outsourcing of jobs by federal offices. It sometimes happens that the federal government will replace the contractor in charge of a program or task. On January 30, the president signed an executive order that now requires new federal contractors who are awarded these “follow-on” contracts to hire the employees of the former contractor that used to hold the contract. The rationale provided by the White House is that the new rule will help maintain continuity in government operations when switching contractors, by making sure the same people who already know the task are kept around. “A carry-over workforce reduces disruption to the delivery of services during the period of transition between contractors and provides the federal government the benefits of an experienced and trained workforce that is familiar with the federal government’s personnel, facilities and requirements,” states the executive order.

 
But some government contractors believe the change is really intended to make it more difficult for companies to bid on government work at all, which will result in civil servants performing the work. They point to the fact that federal employee unions supported Obama during his campaign and have pushed for more insourcing of government jobs in an effort to end the Bush administration’s attempts to privatize federal responsibilities.
-Noel Brinkerhoff
 
Obama Executive Order Limits Contractors' Hiring Options (by Robert Brodsky, Government Executive)

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