Use of Project Labor Agreements for Federal Construction Projects
Feb 9, 2022
Signed by: Joe Biden
Signed on: Feb 4, 2022
Published on: Feb 9, 2022
Feb 9, 2022
Signed by: Joe Biden
Signed on: Feb 4, 2022
Published on: Feb 9, 2022
Summary
Makes federal agencies use project labor agreements for big construction jobs costing $35 million or more to prevent work delays and disputes.
What problem does this solve?
Large government building projects often face delays and cost issues because of labor disputes. This order requires special labor agreements to solve problems quickly and prevent strikes, making projects run smoother.
What does this order do?
Mandates project labor agreements for large projects
Requires federal agencies to make contractors and subcontractors use a project labor agreement (PLA) for any federal construction project costing $35 million or more.
Defines requirements for labor agreements
Specifies that all PLAs must prevent strikes, set up procedures for solving disputes, and allow all contractors to compete, whether they are union or non-union.
Allows for exceptions
Permits a senior agency official to grant an exception if a PLA would not help the government's interests, would reduce competition, or would conflict with other laws.
Requires public reporting
Directs agencies to publish data on a public website showing their use of PLAs and any exceptions they have granted.
Revokes a previous executive order
Cancels Executive Order 13502 from 2009 once the new regulations for this order are finalized.
Who does this affect?
- Federal construction contractors and subcontractors
- Construction labor unions
- Federal government agencies
What is the real world impact?
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Promotes stability on large projects
Ensures large, complex federal construction projects are completed on time and on budget by preventing labor disputes and work stoppages through pre-arranged agreements.
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Strengthens union influence
Mandates that contractors negotiate with labor unions for large projects, potentially giving unions more power and making it harder for non-union contractors to compete for federal work.
When does this start?
This order takes effect immediately, with its main requirements applying to new contracts after final rules are published.
New regulations proposed
Within 120 days of February 4, 2022, the FAR Council must propose new rules to put this order into action.
Training strategy design
Within 90 days of February 4, 2022, a training strategy for contracting officers must be designed.
Training strategy report
Within 180 days after new rules are proposed, a report on the training strategy must be provided to the Assistant to the President for Economic Policy.