Following President Biden’s announcement of Executive Order 14042 (“EO”) on September 9, 2021, several agencies have issued guidance on the EO’s applicability to the contractor community, which we reported on here. Further to GSA’s September 30, 2021 Class Deviation CD-2021-13, on October 6, 2021, GSA reiterated that a mass modification program for all GSA Schedule Contracts would begin on or around October 8, 2021, and no later than October 15, 2021.
This mass modification applies to GSA Schedule Contracts, regardless of whether they are for products, services, or both. The Class Deviation notes that the Safer Federal Workforce Task Force’s guidance “strongly encourages agencies to incorporate the clause into contracts that are solely for products” and explains:
It is not administratively feasible to distinguish FSS contracts that are solely for products from FSS contracts that are primarily for products but also include ancillary-type services (e.g., installation, maintenance, training, ancillary services acquired via the Order-Level Materials SIN, etc.). Requiring the clause in all FSS contracts will simplify compliance tracking, vendor communication, and customer messaging efforts.
To that end, the GSA announcement states that:
The requirements in the Executive Order (EO) are being implemented across all government contracts via a Federal Acquisition Regulation (FAR) deviation. The clause in the FAR deviation will be incorporated into GSA contracts via a bilateral modification.
Notably, GSA contractors are required to accept the bilateral modifications with FAR 52.223-99 included.
We are continuing to monitor developments in this area. Our team is available to help companies navigate the many issues raised by the EO.