A new proposed rule would require companies receiving new government contracts, subcontracts, or delivery orders to use the U.S. Citizenship and Immigration Services’ (“USCIS”) E-Verify system to verify that certain employees are eligible to work in the United States. The purported objectives of the proposed rule are to avoid inefficiencies that flow from contracting with employers that use

unstable workforces and the costs of disruptions to Federal contract performance that result when unauthorized aliens are found in, and removed from, workforces supporting Federal contracts.

The Federal Acquisition Regulation (“FAR”) Councils published the proposed rule on June 12, 2008,

implementing Executive Order 13465. The proposed rule would apply to solicitations and contracts issued after the effective date of the final rule and would cover employees in the United States (defined as the 50 States and the District of Columbia, Guam, Puerto Rico and the U.S. Virgin

Islands). In addition, agencies would be encouraged to amend existing indefinite-delivery/indefinitequantity

contracts so that the E-Verify requirement would apply to future orders. Contracts or subcontracts either below the micro-purchase threshold or for commercial off-the-shelf items would be exempt.

For more information see full legal update.