[Federal Register Volume 74, Number 22 (Wednesday, February 4, 2009)]
[Presidential Documents]
[Pages 6101-6102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-2483]

[[Page 6099]]


Part II

The President


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

                        Presidential Documents 

Federal Register / Vol. 74, No. 22 / Wednesday, February 4, 2009 / 
Presidential Documents


Title 3--
The President

[[Page 6101]]

                Executive Order 13494 of Economy in Government 

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 

                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 
                    (c) holding meetings (including paying the salaries 
                of the attendees at meetings held for this purpose); 
                    (d) planning or conducting activities by managers, 
                supervisors, or union representatives during work 

                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 

[[Page 6102]]

                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 

                Sec. 7. (a) This order shall be implemented consistent 
                with applicable law and subject to the availability of 

                    (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.
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    January 30, 2009.

[FR Doc. E9-2483
Filed 2-3-09; 8:45 am]
Billing code 3195-W9-P