The final rule reflects these considerations. They are based on the best information available, but must rely on the recommendations of Government experts. GovInfo Sec. Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). 13202 and E.O. L. 93-638 and various Executive orders. This executive order will repeal and replace Pres. Construction employers typically do not have a permanent workforce, which makes it difficult for them to predict labor costs when bidding on contracts and to ensure a steady supply of labor on contracts being performed. (a) In awarding any contract in connection with a large-scale construction project, or obligating funds pursuant to such a contract, executive agencies may, on a project-by-project basis, require the use of a project labor agreement by a contractor where use of such an agreement will (i) Start Printed Page 6986advance the Federal Governments interest in achieving economy and efficiency in Federal procurement, producing labor-management stability, and ensuring compliance with laws and regulations governing safety and health, equal employment opportunity, labor and employment standards, and other matters, and (ii) be consistent with law. 27, AFL-CIO v. E.P. The Government Accountability Office (GAO), in a 1998 study, described use of project labor agreements in connection with the construction of the Grand Coulee Dam in Washington State in 1938, the Shasta Dam in California in 1940, atomic energy and defense construction projects during and after the Second World War, and construction at Cape Canaveral by NASA during the 1960s. and services, go to For this reason, GSA, DoD, and NASA have amended the final rule to clarify that, as appropriate to advance the economy and efficiency in procurement, an agency may specify the terms and conditions of the project labor agreement in the solicitation and require the successful offeror to become a party to a project labor agreement containing these terms and conditions as a condition of receiving a contract award. (b) Requirements. This request was supposed to be separate from, and in addition to, the request for comments on the regulatory flexibility impact of the proposed rule. ; Associated General Contractors of America v. Metropolitan Water Dist. Document page views are updated periodically throughout the day and are cumulative counts for this document. Abrahams Wolf-Rodda, LLC b. Sec. The rule encourages agency managers and members of the acquisition team to work together in evaluating whether to use a project labor agreement and to start the evaluation early in the planning process, so that all relevant circumstances and the needs of stakeholders can be fully considered in deciding what is best for the agency in meeting its mission. 13502 is an exercise of the President's authority under the Federal Property and Administrative Services Act to prescribe policies and directives governing procurement policy that the President considers necessary to carry out that Act and that are consistent with the Act's purpose of provid[ing] the Federal Government with an economical and efficient procurement system. NTU-Led Coalition Letter Urges President Trump to Overturn Obama Order Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. The Office of Management and Budget (OMB) reviewed this rule under Executive Order 12866 (entitled, Regulatory Planning and Review). 601, et seq. Project labor agreements established under this subpart shall fully conform to all statutes, regulations, and Executive orders. a) Bind all contractors and subcontractors on the construction project through the inclusion of appropriate specifications in all relevant solicitation provisions and contract documents; b) Allow all contractors and subcontractors to compete for contracts and subcontracts without regard to whether they are otherwise parties to collective bargaining agreements; c) Contain guarantees against strikes, lockouts, and similar job disruptions; d) Set forth effective, prompt, and mutually binding procedures for resolving labor disputes arising during the project labor agreement; e) Provide other mechanisms for labor-management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health; and. 12836, and a Presidential Memorandum was issued in 1997 to encourage the use of project labor agreements (see Use of Project Labor Agreements for Federal Construction Projects, June 5, 1997). On February 4, 2022, President Biden signed Executive Order 14063: Use of Project Labor Agreements For Federal Construction Projects. informational resource until the Administrative Committee of the Federal The project labor agreement requirement will impact even small employers who will likely have no labor relations staff who can navigate a project labor agreement.. The rule includes various approaches regarding when to submit an executed project labor agreement on a particular project (. This is a significant regulatory action and, therefore, was subject to review under section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. (c) The term "large-scale construction project" as used in this order means a construction project where the total cost to the Federal Government is $25 million or more. As explained below, GSA, DoD, and NASA believe that amendments made to the final rule allow agencies to fashion requirements as appropriate to meet their procurement needs and ameliorate concerns about the impact of a project labor agreement on particular contractors and subcontractors, including small businesses. ABC Asks President Trump to Rescind Obama's Pro-PLA Policy With the revocation of Executive Order 13202, there is no longer a legal basis for HUD's regulation that implemented that executive order with respect to HUD-assisted projects. Critics cautioned that post-award execution of project labor agreements potentially undercuts key purposes of the agreement, such as addressing potential labor differences before they occur and receiving offers with more accurate pricing. Executive Order 13502 directs agencies to revoke any regulations based on the prior Executive Order 13202. This repetition of headings to form internal navigation links (b) The term "construction" as used in this order means construction, rehabilitation, alteration, conversion, extension, repair, or improvement of buildings, highways, or other real property. (1) Bind all contractors and subcontractors engaged in construction on the construction project to comply with the project labor agreement; (2) Allow all contractors and subcontractors to compete for contracts and subcontracts without regard to whether they are otherwise parties to collective bargaining agreements; (3) Contain guarantees against strikes, lockouts, and similar job disruptions; (4) Set forth effective, prompt, and mutually binding procedures for resolving labor disputes arising during the term of the project labor agreement; (5) Provide other mechanisms for labor-management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health; and. 5 U.S.C. b) The use of a project labor agreement may prevent these problems from developing by providing structure and stability to large-scale construction projects, thereby promoting the efficient and expeditious completion of Federal construction contracts. 13502 in its discussion of general policy. Consistent with the express terms of the E.O., including section 5, which states that the order does not require an executive agency to use a project labor agreement on any construction project, the final rule preserves the flexibility agencies need to evaluate whether a project labor agreement is appropriate for a given construction project. These comments, which were offered principally by Federal agencies, sought to ensure that Government organizations are able to bring their relevant experiences to bear on the circumstances particular to a project. PDF Presidential Documents - GovInfo 14063 addresses the use of PLAs in the government contracts. The only information collection requirement imposed by this rule is the requirement to provide a copy of the project labor agreement to the contracting officer. informational resource until the Administrative Committee of the Federal L. 85-804 to require the use of project labor agreements by contractors and subcontractors at certain of the Department's facilities. regulatory information on FederalRegister.gov with the objective of The commenter stated that the terms and conditions of employment common in union-represented workforces differ from the terms and conditions of employment common for individuals not represented by unions. An agency may seek the views of, confer with, and exchange information with prospective bidders and union representatives as part of the agency's effort to identify appropriate terms and conditions of a project labor agreement for a particular construction project and facilitate agreement on those terms and conditions. A lack of coordination among various employers, or uncertainty about the terms and conditions of employment of various groups of workers can create frictions and disputes in the absence of an agreed-upon resolution mechanism. As a result of the revocation, Executive Order 13502 also removes the prohibition on recipients of HUD funds from requiring the use of project labor agreements in their procurements. As prescribed in 22.505(b)(2), substitute the following paragraphs (b) through (f) for paragraphs (b) and (c) of the basic clause: (b) Consistent with applicable law, the Contractor shall negotiate a project labor agreement with one or more labor organizations for the term of this construction contract. Executive Order 13502 -- Use of Project Labor Agreements for Federal Executive Order 13502, which applies to direct federal procurement of construction, encourages federal agencies to consider requiring the use of project labor agreements in connection with federally procured large-scale construction projects. Register documents. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. 2002). Finally, with respect to recommendations addressing construction projects funded by Federal grants, GSA, DoD, and NASA note that such transactions are outside their policy jurisdiction and the purview of the FAR. Reduce time allocated to document management and Insert Advanced Field to the Labor Agreement with DocHub The Director of the Office of Personnel Management shall take such actions as may be necessary to implement this order.

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