Office of Acquisition and Logistics (OAL)
Acquisition Policy Flash! 24-01
Notice of Injunction from Enforcing E.O. 14026 on Certain Federal Contracts with the States of Texas, Louisiana and Mississippi and their Agencies
Purpose: To notify the VA acquisition workforce of the ongoing litigation challenging Executive Order 14026, which directed federal agencies to enter or renew covered contracts only with entities paying their employees at or above a specified minimum wage, and a 2022 Department of Labor (DOL) Final Rule implementing that executive order (86 Fed. Reg. 67126).
Affected FAR Parts: FAR sections 22.1900-1906 and 52.222-55.
Effective Date: October 4, 2023.
Background: On September 26, 2023, a federal district court in Texas enjoined President Biden and DOL from enforcing Executive Order 14026 or the DOL Final Rule against the States of Texas, Louisiana, and Mississippi and their agencies. See Judgment, Texas v. Biden, No. 6:22-cv-00004, ECF No. 68 (S.D. Tex. Sept. 26, 2023). The injunction does not apply geographically to all contractors or contracts within those three States; rather, it applies only to these three States and their agencies as parties to federal contracts, regardless of the place of performance. The injunction becomes effective October 4, 2023.
On September 29, DOL posted a notice on its website and on the System for Award Management stating: “Based on an order issued by the U.S. District Court for the Southern District of Texas on September 26, 2023, the minimum wage requirements of the final rule implementing Executive Order 14026 are not currently being enforced as to contracts or subcontracts to which the States of Texas, Louisiana, or Mississippi (including their agencies) are a party.”
To further ensure compliance with the court’s injunction, the Department of Justice has advised that agencies should take no action to implement or enforce Executive Order 14026 or the DOL Final Rule against the States of Texas, Louisiana, or Mississippi, or against agencies of those States.
Applicability: This Acquisition Policy Flash contracts with the States of Texas, Louisiana, and Mississippi and their agencies.
Action Required: Heads of the contracting activities will ensure that contracting officers shall not include FAR clause 52.222-55 in any new contract, extension or renewal of an existing contract, or exercise of an option on an existing contract, with the States of Texas, Louisiana, or Mississippi, or agencies of those States.
Additional Information: Direct any questions to the Office of Acquisition and Logistics (003A), Procurement Procurement Guidance and Instruction Service (PGIS) at vapgismailbox@va.gov.
