Presidential Documents

6101 

Federal Register 

Vol. 74, No. 22 

Wednesday, February 4, 2009 

Title 3— 

The President 

Executive Order 13494 of Economy in Government Contracting 

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 contract. 

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 labormanagement 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 consultants; 

(c) holding meetings (including paying the salaries of the attendees at 

meetings held for this purpose); and 

(d) planning or conducting activities by managers, supervisors, or union 

representatives during work hours. 

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 reimbursement. 

6102 Federal Register / Vol. 74, No. 22 / Wednesday, February 4, 2009 / Presidential Documents 

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 order. 

Sec. 7. (a) This order shall be implemented consistent with applicable law 

and subject to the availability of appropriations. 

(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. 

THE WHITE HOUSE, 

January 30, 2009. 

[FR Doc. E9–2483 

Filed 2–3–09; 8:45 am] 

Billing code 3195–W9–P 


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