Right of First Refusal of Employment
Contractors must give qualified, adversely affected Government personnel priority for employment openings and report hires to the Contracting Officer within specified timeframes.
Overview
FAR 52.207-3, "Right of First Refusal of Employment," requires contractors to offer employment opportunities to qualified Government personnel who are adversely affected or separated due to the award of a new contract. This clause ensures that displaced Government employees are given priority for positions under the new contract, provided there are no post-Government employment conflicts of interest. The Contracting Officer must supply the contractor with a list of affected personnel within 10 days of contract award. Contractors are then obligated to report back to the Contracting Officer the names of any listed individuals hired within 90 days of contract performance, with the report due within 120 days of contract performance commencement.
Key Rules
- Right of First Refusal
- Contractors must offer qualified, affected Government personnel the first opportunity for employment openings under the contract, subject to conflict of interest rules.
- Provision of Affected Personnel List
- The Contracting Officer provides a list of affected Government employees to the contractor within 10 days of contract award.
- Reporting Requirement
- Contractors must report to the Contracting Officer the names of any listed individuals hired within 90 days, with the report due within 120 days after contract performance begins.
Responsibilities
- Contracting Officers: Provide the list of affected personnel to the contractor within 10 days of award; receive and review contractor hiring reports.
- Contractors: Offer right of first refusal to qualified personnel; track and report hires from the provided list within specified timeframes.
- Agencies: Oversee compliance with the clause and ensure proper transition of affected personnel.
Practical Implications
This clause helps mitigate the impact of contract transitions on Government employees by prioritizing their reemployment. Contractors must have processes in place to identify qualified candidates, manage communications, and meet reporting deadlines. Failure to comply can result in noncompliance findings or contract issues. Common pitfalls include missing reporting deadlines or overlooking conflict of interest considerations.