TEXT

When a service contract for the maintenance of a public building
expires and a follow-up contract is awarded for the same service,
the successor contractor typically hires the majority of the
predecessor's employees.  On occasion, however, a follow-on
contractor will hire a new work force, and the predecessor's
employees are displaced.

As a buyer and participant in the marketplace, the Government is
concerned about hardships to individuals that may result from the
operation of our procurement system.

Furthermore, the Government's procurement interests in economy
and efficiency benefit from the fact that a carryover work force
will minimize disruption to the delivery of services during any
period of transition and provide the Government the benefits of
an experienced and trained work force rather than one that may
not be familiar with the Government facility.

Therefore, by the authority vested in me as President by the
Constitution and the laws of the United States of America,
including 40 U.S.C. 486(a), and in order to promote economy and
efficiency, it is hereby ordered as follows:

Section 1. Statement of Policy.  It is the policy of the Federal
Government that solicitations and building service contracts for
public buildings shall include a clause that requires the
contractor under a contract that succeeds a contract for
performance of similar services at the same public building to
offer those employees (other than managerial or supervisory
employees) under the predecessor contract whose employment will
be terminated as a result of the award of the successor contract,
a right of first refusal to employment under the contract in
positions for which they are qualified.  There shall be no
employment openings under the contract until such right of first
refusal has been provided.  Nothing in this order shall be
construed to permit a contractor to fail to comply with any
provision of any other Executive order or laws of the United
States.

Sec. 2. Definitions. (a) "Public building" means any Government-
owned building, whether single or multi-tenant occupancy, its
grounds, approaches, and appurtenances  which is generally
suitable for office or storage space or both for the use of one
or more Federal agencies or mixed ownership corporations, and
shall include the following: (1) Federal office buildings; (2)
customhouses; (3) courthouses; (4) border inspection facilities;
(5) warehouses; (6) records centers; (7) appraiser stores; and
(8) relocation facilities and similar Federal facilities; but
shall not include any such buildings; (A) on the public domain
(including that reserved for national forests and other
purposes); (B) on properties of the United States in foreign
countries; (C) on Native American and Native Eskimo properties
held in trust by the United States; (D) on lands used in
connection with Federal programs for agricultural, recreational,
and conservation purposes, including research in connection
therewith; (E) on or used in connection with river, harbor, flood
control, reclamation, or power projects; or for chemical
manufacturing or development projects; or for nuclear production,
research, or development projects; (F) on or used in connection
with housing and residential projects; (G) on properties of the
United States Postal Service; (H) on military installations
(including any fort, camp, post, naval training station,
airfield, proving ground, military supply depot, military school,
or any similar facility of the Department of Defense); (1) on
installations of the National Aeronautic and Space
Administration, except regular office buildings and (J) on
Department of Veterans Affairs installations used for hospital or
domiciliary purposes.

     (b) "Building services contract" means a contract for
     recurring services related to the maintenance of a public
     building, e.g., janitorial, window washing, food service,
     laundry, protective services, lawn and grounds care, and
     inspection, maintenance, and repair of fixed equipment such
     as elevators, air-conditioning, and heating systems.

Sec 3. Exclusions.  This order shall not apply to (a) contracts
under the simplified acquisition threshold;

     (b) contracts awarded pursuant to the Javits-Wagner-O'Day 
     Act, 41 U.S.C. 46-48a; and any future enacted law creating
     an employment preference for some group of workers under
     building services contracts:

     (c) guard, elevator operator, messenger, or custodial
     services provided to the Government under contracts with
     sheltered workshops employing the severely handicapped as
     outlined in the Edgar Amendment, section 505 of the
     Treasury, Postal Services and General Government
     Appropriations Act, 1995, Public Law 103-329;

     (d) agreements for vending facilities entered into under the
     preference provisions of the Randolph-Sheppard Act, 20
     U.S.C. 107; or

     (e) services where the contractor's employees perform work 
     at the public building and at other locations under
     contracts not subject to this order (e.g., pest control or
     trash removal where the contractor's employee visit the site
     periodically and where the employees under the contract
     respond to service calls), provided that employees shall not
     be deployed in a manner that is designed to avoid the
     purposes of this order.

Sec. 4. Contract Clause.  The following contract clause shall be
included in solicitations and contracts for maintenance of public
buildings that succeed contracts for performance of similar work
at the same public building;

             "NONDISPLACEMENT OF QUALIFIED WORKERS"

     (a) Consistent with the efficient performance of this
     contract, the contractor shall, except as otherwise provided
     herein, in good faith offer those employees (other than
     managerial and supervisory employees) under the predecessor
     contract whose employment will be terminated as a result of
     award of this contract or the expiration of the contract
     under which the employees were hired, a right refusal to
     employment under the contract in positions for which
     employees are qualified.  The contractor shall determine the
     number of employees necessary for efficient performance of
     this contract and may elect to employ fewer employees than
     the predecessor contractor employed in connection with
     performance of the work.  Except as provided in paragraph
     (b), there shall be no employment opening under the
     contract, and the contractor shall not offer employment
     under the contract, to any person prior to having complied
     fully with this obligation.  The contractor shall make an
     express offer of employment to each employee as provided
     herein and shall state the time within which the employee
     must accept such offer, but in no case shall the period
     within which the employee must accept the offer of
     employment be less than 10 days.

     (b) Notwithstanding the contractor's obligation under
     paragraph (a) above, the contractor (1) may employ on the
     contract any employee who has worked for the contractor for
     at least 3 months immediately preceding the commencement of
     this contract and who would otherwise face lay-off or
     discharge, and (2) is not required to offer a right of first
     refusal to any employee(s) of the predecessor contractor who
     are not service employees within the meaning of the
     McNamara-O'Hara Service Contract Act, 41 U.S.C. 357(b), and
     (3) is not required to offer a right of first refusal to any
     employee(s) of the predecessor contractor whom the
     contractor reasonably believes, based on the particular
     employee's past performance, has failed to perform suitably
     on the job.

     (c) In accordance with Federal Acquisition Regulation
     52.222-41(n), the contractor shall, not less than 60 days
     before completion of this contract, furnish the Contracting
     Officer a certified list of the names of all service
     employees working at the Federal facility during the last
     month of contract performance.  The list shall also contain
     anniversary dates of employment on the contract either with
     the current or predecessor contractors of each service
     employee.  The Contracting Officer will provide the list to
     the successor contractor, and the list shall be provided on
     request to employees or their representatives.

     (d) If it is determined, pursuant to regulations issued by 
     the Secretary of Labor, that the contractor is not in
     compliance with the requirements of this clause or any
     regulation or order of the Secretary, appropriate sanctions
     may be imposed and remedies invoked against the contractor,
     as provided in Executive Order No. 12933, the regulations,
     and relevant orders of the Secretary of Labor, or as
     otherwise provided by law."

Sec. 5. Enforcement.  The Secretary of Labor is responsible for
investigating and obtaining compliance with this Executive order.

In such proceedings the Secretary shall have the authority to
issue final orders prescribing appropriate sanctions and
remedies, including, but not limited to, orders requiring
employment and payment of wages lost.  The Secretary also may
provide that where a contractor has failed to comply with any
order of the Secretary or has committed willful violations of
this order or the regulations issued pursuant thereto, to
contractor and its responsible officers, and any firm in which
the contractor has a substantial interest, shall be ineligible to
be awarded any contract or subcontract of the United States for a
period of up to 3 years.  This Executive order creates no rights
under the Contract Disputes Act, and disputes regard the
requirement of the contract clause shall be disposed of only as
provided by the Secretary of Labor in regulations issued under
this Executive order.  To the extent practicable, such
regulations shall favor the resolution of disputes by efficient
and informal alternative dispute resolution methods.  The
Secretary of Labor shall, in consultation with the Federal
Acquisition Regulatory Council, issue regulations, within 180
days of the date of this order, to implement the requirements of
this Executive order.   The Federal Acquisition Regulatory
Council shall issue, within 180 days of the date of this order,
regulations in the Federal Acquisition Regulation to provide for
inclusion of the contract clause in Federal solicitations and
contracts subject to this Executive order.

Sec. 6. Judicial Review.  Nothing in this order is intended to
provide a constitutional or statutory interpretation of any kind
and it is not intended, and should not be construed, to create
any right or benefit, substantive or procedural, enforceable at
law by a party against the United States, it agencies, its
officers, or its employees.  This order is not intended, however,
to preclude judicial review of final decisions by the Secretary
of Labor in accordance with the Administrative Procedure Act, 5
U.S.C. 701 et. seq.

                         /s/William J. Clinton


THE WHITE HOUSE,
October 20, 1994



Correction

     In Presidential document 94-26516 beginning on page 53559 in
the issue of Monday, October 24, 1994, the file line at the end
of the document on page 53561 should read: "Filed 10-21-94; 12:13
pm".