Executive Order 13673 (the Order) contains new
requirements designed to increase efficiency and cost savings in the Federal
contracting process. By law, Federal agencies already must contract only with
“responsible” sources.
Among other directives, the Order provides explicit
new instructions for Federal contracting officers to consider a contractor’s
compliance with certain Federal and State labor laws as a part of the
determination of contractor “responsibility” that contracting officers
presently must undertake before awarding a Federal contract.
In addition, the Order directs the FAR Council to
propose the rules and regulations necessary to carry out the Order and the
Department to develop guidance to help implement the new requirements.
In this final Guidance, the Department provides
detailed definitions for various terms used in the Order and the FAR rule to categorize
and classify labor law violations, and the Department provides a summary of the
processes through which contracting agencies will assess a contractor’s overall
record of labor law compliance and carry out their other duties under the
Order.
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