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B-335829 Dec 27, 2023 1 (2023-12-27)

handle is hein.gao/gaoprd0001 and id is 1 raw text is: G U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 B-335829 December 27, 2023 The Honorable Bernard Sanders Chairman The Honorable Bill Cassidy Ranking Member Committee on Health, Education, Labor, and Pensions United States Senate The Honorable Virginia Foxx Chairwoman The Honorable Bobby Scott Ranking Member Committee on Education and the Workforce House of Representatives Subject: Department of Labor: Nondisplacement of Qualified Workers Under Service Contracts Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Labor (DOL) entitled Nondisplacement of Qualified Workers Under Service Contracts (RIN: 1235-AA42). We received the rule on December 14, 2023. It was published in the Federal Register as a final rule on December 14, 2023. 88 Fed. Reg. 86736. The effective date is February 12, 2024. According to DOL, the final rule establishes standards and procedures for implementing and enforcing the nondisplacement protections of Executive Order 14055. DOL stated the Order requires that when a service contract with the federal government expires and a follow-on contract is awarded for the same or similar services, the federal government's procurement interests in economy and efficiency are best served when the successor contractor or subcontractor hires the predecessor's employees, thus avoiding displacement of these employees. The Order, DOL explained, provides that contractors and subcontractors performing on covered federal service contracts must in good faith offer service employees employed under the predecessor contract a right of first refusal of employment. Enclosed is our assessment of DOL's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Shari Brewster, Assistant General Counsel, at (202) 512-6398. Shirley A. Jones Managing Associate General Counsel

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