Thoughts on Government-Mandated PLAs?

With the federal government seeking to mandate PLAs, AGC needs your help completing a quick survey to help relay their impact on your construction business.

On February 4, President Biden signed E.O. 14063 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. (AGC Memo)  Rest assured, AGC of America will rigorously explore every possibly avenue—including legal options—to push back against this E.O., as underscored in the association’s statement.  To further this discussion, AGC needs members who perform direct federal work to:

  • Fill out this survey to provide the association with critical information on this subject.

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 E.O. and adding a federal contracts clause to applicable federal construction contracts—which is expected to take many months. 

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.  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 rejected PLA mandates 99.4 percent of the time even when encouraged to do so under the Obama-Biden Administration. 

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

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