AGC Submits Comments on Proposed Rule Encouraging Federal Agencies to Consider PLAs

The proposed rule implementing President Obama's executive order encouraging federal contracting agencies to consider imposing project labor agreements (PLAs) on large-scale construction projects fails to substantiate the administration's rationale for imposing PLAs, fails to require an adequate analysis as a condition for imposing a PLA, and should not be expanded to cover federally assisted projects, AGC told the Federal Acquisition Regulation (FAR) Council in comments submitted on August 13. The proposed rule implements the executive order's policy of encouraging (but not requiring) contracting agencies to consider (but not necessarily adopt) a PLA requirement on large-scale construction projects (defined as projects with a total cost to the federal government of $25 million or more). The executive order leaves to the contracting agency discretion to decide whether or not to impose a PLA.  It also directs the Office of Management and Budget to work with the Secretary of Labor and other officials to provide recommendations to the President on whether to broaden the application of PLAs on construction projects awarded under federal contracts and receiving federal financial assistance. While AGC neither supports nor opposes PLAs per se, AGC strongly opposes government-mandated PLAs (GMPLAs) on any publicly funded construction project.  AGC is committed to free and open competition in all public markets and believes that publicly financed contracts should be awarded without regard to the labor relations policy of the contractor.  AGC believes that public owners should not mandate the use of a PLA that would compel any firm to change its labor policy or practices in order to compete for or to perform work on a publicly financed project.  AGC further believes that the proper parties to determine whether to use a PLA and to negotiate the terms of a PLA on any project are the employers that employ workers covered by the agreement and the labor organization representing workers covered by the agreement, rather than the public owner or its representative. For more details, click here. For more information, contact Denise Gold at (703) 837-5326 or goldd@agc.org, or Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.