“Persuasive evidence,” including alleged violations of a contractor's lack of compliance with tax laws, or substantial noncompliance with antitrust, labor employment, worker safety, environmental or consumer protection laws may cause a prospective contractor to be denied a federal contract.
On January 30, 2009 President Obama signed Executive Order 13496, “Notification of Employee Rights Under Federal Labor Laws”, which gives the Secretary of Labor sweeping new powers over federal government contracts. If a contractor fails to comply with provisions outlined in Executive Order 13496, the “contract may be cancelled, terminated, or suspended in whole or in part, and the contractor may be declared ineligible for further Government contracts.” In other words, federal contractors and their subcontractors could lose their contract and/or face debarment (blacklisting) for failing to post the Notice or comply with its provisions.