Federal contractors will have to confirm their employees are legal residents of the USA under an amendment to executive order No. 12989 that President Bush signed Friday.
This
order is designed to promote economy and efficiency in Federal
Government procurement. Stability and dependability are important
elements of economy and efficiency. A contractor whose workforce is
less stable will be less likely to produce goods and services
economically and efficiently than a contractor whose workforce is more
stable. It is the policy of the executive branch to enforce fully the
immigration laws of the United States, including the detection and
removal of illegal aliens and the imposition of legal sanctions against
employers that hire illegal aliens.
Because of the worksite
enforcement policy of the United States and the underlying obligation
of the executive branch to enforce the immigration laws, contractors
that employ illegal aliens cannot rely on the continuing availability
and service of those illegal workers, and such contractors inevitably
will have a less stable and less dependable workforce than 
contractors
that do not employ such persons. Where a contractor assigns illegal
aliens to work on Federal contracts, the enforcement of Federal
immigration laws imposes a direct risk of disruption, delay, and
increased expense in Federal contracting. Such contractors are less
dependable procurement sources, even if they do not knowingly hire or
knowingly continue to employ unauthorized workers.
Contractors that adopt rigorous employment eligibility
confirmation policies are much less likely to face immigration
enforcement actions, because they are less likely to employ
unauthorized workers, and they are therefore generally more efficient
and dependable procurement sources than contractors that do not employ
the best available measures to verify the work eligibility of their
workforce. It is the policy of the executive branch to use an
electronic employment verification system because, among other reasons,
it provides the best available means to confirm the identity and work
eligibility of all employees that join the Federal workforce. Private
employers that choose to contract with the Federal Government should
meet the same standard.