On February 4, 2022, President Biden signed Executive Order (EO) 14063 on “Use of Project Labor Agreements (PLA) For Federal Construction Projects” that will require every prime contractor and subcontractor—with limited exceptions—to engage in negotiation or agree to PLAs on federal construction projects valued at $35 million or more.
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 hurt union contractors, open-shop contractors, and fails to promote economy and efficiency in federal procurement.
To that later point, according to an AGC of America analysis of data obtained via a Construction Advocacy Fund-financed lawsuit under the Freedom of Information Act, the Department of Defense federal construction agencies—which perform the lion’s share of federal construction—rejected PLA mandates 99.4 percent of the time even when encouraged to do so under the Obama-Biden Administration. The data AGC obtained clearly disprove and undermine the reasoning set forth by the Biden Administration that government-mandated PLAs promote economy and efficiency for federal construction projects.
Take action now and tell President Biden to withdraw this EO and Congress to pass the Fair and Open Competition Act (H.R. 1284 / S. 403). The Fair and Open Competition Act would ensure open competition and federal government neutrality towards the labor relations of construction contractors on direct federal (i.e., projects for federal agencies like the Army Corps of Engineers, General Services Administration and Department of Veterans Affairs) and federal-aid (i.e., federally funded transportation projects for state departments of transportation) construction projects. The bill would not prohibit all PLAs. A firm would still be allowed to voluntarily enter into a PLA.
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