AGC Opposes Gov’t Mandated PLA Rule

On October 18, AGC of America formally weighed in against the Biden Administration’s government-mandated project labor agreement proposed rule, amplified by more than 8,500 communications from AGC members against the proposal. 

On October 18, AGC of America submitted extensive comments opposing a federal government-mandated project labor agreement (PLA) proposed rule, which will require every federal prime contractor and subcontractor to engage in negotiation or agree to PLAs on federal construction projects valued at $35 million or more, with limited exceptions. Through the association’s grassroots efforts, AGC members sent more than 8,500 communications against the proposal via formal comments and messages to their federally elected officials.  

AGC urged regulators to rescind the proposed rule for a litany of reasons, including but not limited to:

  • AGC analysis of government data shows that under the Obama-Biden Administration defense agencies chose not to mandate PLAs;
  • AGC survey results reflecting the negative impacts of E.O. 14063 on economy and efficiency in federal procurement;
  • How government mandates for PLAs harm union contractors;
  • How government mandates for PLAs harm open-shop contractors;
  • How the proposed rule violates the Biden Administration’s own equity goals and will result in less small business participation;
  • How the proposed rule goes beyond the statutory authority; and
  • The flawed analysis used by the government to justify the rule and its impacts on the construction industry.

Rest assured, AGC of America will rigorously explore every possible avenue—including legal options—to push back against this E.O., as underscored in the association’s recent statement. This E.O. will repeal and replace the Obama-Biden Administration’s 2009 PLA E.O (E.O. 13502) once the Federal Acquisition Regulation (FAR) Council issues a final regulation—thereby implementing this proposed rule and adding a federal contracts clause to applicable federal construction contracts—which is expected to take several months. AGC will offer its members resources to weigh in on the proposed rule and to contact their members of Congress.

AGC of America neither supports nor opposes contractors’ voluntary use of PLAs on government projects or elsewhere, but strongly opposes any government mandate for contractors’ use of PLAs. AGC is committed to free and open competition for publicly funded work. AGC has long maintained that the federal government should not mandate PLAs. The use of government-mandated PLAs hurts union contractors, open-shop contractors, and fails to promote economy and efficiency in federal procurement

For more information, contact Jordan Howard at [email protected] or (703) 837-5368.

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