Use of Project Labor Agreements for Federal Construction Projects
| Published date | 09 February 2022 |
| Citation | 87 FR 7363 |
| Record Number | 2022-02869 |
| Section | Presidential Documents |
| Court | Executive Office Of The President |
Federal Register, Volume 87 Issue 27 (Wednesday, February 9, 2022)
[Federal Register Volume 87, Number 27 (Wednesday, February 9, 2022)]
[Presidential Documents]
[Pages 7363-7366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02869] Presidential Documents
Federal Register / Vol. 87 , No. 27 / Wednesday, February 9, 2022 /
Presidential Documents
[[Page 7363]]
Executive Order 14063 of February 4, 2022
Use of Project Labor Agreements for Federal
Construction Projects
By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including the Federal Property and
Administrative Services Act, 40 U.S.C. 101 et seq., and
in order to promote economy and efficiency in the
administration and completion of Federal construction
projects, it is hereby ordered that:
Section 1. Policy. (a) Large-scale construction
projects pose special challenges to efficient and
timely procurement by the Federal Government.
Construction employers typically do not have a
permanent workforce, which makes it difficult to
predict labor costs when bidding on contracts and to
ensure a steady supply of labor on contracts being
performed. Challenges also arise because construction
projects typically involve multiple employers at a
single location, and a labor dispute involving one
employer can delay the entire project. A lack of
coordination among various employers, or uncertainty
about the terms and conditions of employment of various
groups of workers, can create friction and disputes in
the absence of an agreed-upon resolution mechanism.
These problems threaten the efficient and timely
completion of construction projects undertaken by
Federal contractors. On large-scale projects, which are
generally more complex and of longer duration, these
problems tend to be more pronounced.
(b) Project labor agreements are often effective in
preventing these problems from developing because they
provide structure and stability to large-scale
construction projects. Such agreements avoid labor-
related disruptions on projects by using dispute-
resolution processes to resolve worksite disputes and
by prohibiting work stoppages, including strikes and
lockouts. They secure the commitment of all
stakeholders on a construction site that the project
will proceed efficiently without unnecessary
interruptions. They also advance the interests of
project owners, contractors, and subcontractors,
including small businesses. For these reasons, owners
and contractors in both the public and private sector
routinely use project labor agreements, thereby
reducing uncertainties in large-scale construction
projects. The use of project labor agreements is fully
consistent with the promotion of small business
interests.
(c) Accordingly, it is the policy of the Federal
Government for agencies to use project labor agreements
in connection with large-scale construction projects to
promote economy and efficiency in Federal procurement.
Sec. 2. Definitions. For purposes of this order:
(a) ``Labor organization'' means a labor
organization as defined in 29 U.S.C. 152(5) of which
building and construction employees are members, as
described in 29 U.S.C. 158(f).
(b) ``Construction'' means construction,
reconstruction, rehabilitation, modernization,
alteration, conversion, extension, repair, or
improvement of buildings, structures, highways, or
other real property.
(c) ``Large-scale construction project'' means a
Federal construction project within the United States
for which the total estimated cost of the construction
contract to the Federal Government is $35 million or
more. The Federal Acquisition Regulatory Council (FAR
Council), in consultation with the Council of Economic
Advisers, may adjust this threshold based on inflation
using the process at 41 U.S.C. 1908.
[[Page 7364]]
(d) ``Agency'' means an executive department or
agency, including an independent establishment subject
to the Federal Property and Administrative Services
Act, 40 U.S.C. 102(4)(A).
(e) ``Project labor agreement'' means a pre-hire
collective bargaining agreement with one or more labor
organizations that establishes the terms and conditions
of employment for a specific construction project and
is an agreement described in 29 U.S.C. 158(f).
Sec. 3. Project Labor Agreement Presumption. Subject to
sections 5 and 6 of this order, in awarding any
contract in connection with a large-scale construction
project, or obligating funds pursuant to such a
contract, agencies shall require every contractor or
subcontractor engaged in construction on the project to
agree, for that project, to negotiate or become a party
to a project labor agreement with one or more
appropriate labor organizations.
Sec. 4. Requirements of Project Labor Agreements. Any
project labor agreement reached pursuant to this order
shall:
(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 on the
construction project 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 term of 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
(f) fully conform to all statutes, regulations,
Executive Orders, and Presidential Memoranda.
Sec. 5. Exceptions Authorized by Agencies. A senior
official within an agency may grant an exception from
the requirements of section 3 of this order for a
particular contract by, no later than the solicitation
date, providing a specific written explanation of why
at least one of the following circumstances exists with
respect to that contract:
(a) Requiring a project labor agreement on the
project would not advance the Federal Government's
interests in achieving economy and efficiency in
Federal procurement. Such a finding shall be based on
the following factors:
(i) The project is of short duration and lacks operational complexity;
(ii) The project will involve only one craft or trade;
(iii) The project will involve specialized construction work that is
available from only a limited number of contractors or subcontractors;
(iv) The agency's need for the project is of such an unusual and compelling
urgency that a project labor agreement would be impracticable; or
(v) The project implicates other similar factors deemed appropriate in
regulations or guidance issued pursuant to section 8 of this order.
(b) Based on an inclusive market analysis,
requiring a project labor agreement on the project
would substantially reduce the number of potential
bidders so as to frustrate full and open competition.
(c) Requiring a project labor agreement on the
project would otherwise be inconsistent with statutes,
regulations, Executive Orders, or Presidential
Memoranda.
Sec. 6. Reporting. (a) To the extent permitted by law
and consistent with national security and executive
branch confidentiality interests, agencies shall
publish, on a centralized public website, data showing
the use of
[[Page 7365]]
project labor agreements on large-scale construction
projects, as well as descriptions of the exceptions
granted under section 5 of this order.
(b) On a quarterly basis, agencies shall report to
the Office of Management and Budget (OMB) on their use
of project labor agreements on large-scale construction
projects and on the exceptions granted under section 5
of this order.
Sec. 7. Nothing in this order precludes an agency from
requiring the use of a project labor agreement in
circumstances not covered by this order, including
projects where the total cost to the Federal Government
is less than that for a large-scale construction
project, or projects receiving any form of Federal
financial assistance (including loans, loan guarantees,
revolving funds, tax credits, tax credit bonds, and
cooperative agreements). This order also does not
require contractors or subcontractors to enter into a
project labor agreement with any particular labor
organization.
Sec. 8. Regulations and Implementation. (a) Within 120
days of the date of this order, the FAR Council, to the
extent permitted by law, shall propose regulations
implementing the provisions of this order. The FAR
Council shall consider and evaluate public comments on
the proposed regulations and shall promptly issue a
final rule, to the extent permitted by law.
(b) The Director of OMB shall, to the extent
permitted by law, issue guidance to implement the
requirements of sections 5 and 6 of this order.
Sec. 9. Contracting Officer Training. Within 90 days of
the date of this order, the Secretary of Defense, the
Secretary of Labor, and the Director of OMB shall
coordinate in designing a training strategy for agency
contracting officers to enable those officers to
effectively implement this order. Within 180 days of
the date of the publication of proposed regulations,
the Secretary of Defense, the Secretary of Labor, and
the Director of OMB shall provide a report to the
Assistant to the President for Economic Policy and
Director of the National Economic Council on the
contents of the training strategy.
Sec. 10. Revocation of Prior Orders, Rules, and
Regulations. Executive Order 13502 of February 6, 2009
(Use of Project Labor Agreements for Federal
Construction Projects), is revoked as of the effective
date of the final regulations issued by the FAR Council
under section 8(a) of this order. Upon Executive Order
13502's revocation, the heads of agencies shall
consider, to the extent permitted by law, revoking any
orders, rules, or regulations implementing Executive
Order 13502.
Sec. 11. Severability. If any provision of this order,
or the application of such provision to any person or
circumstance, is held to be invalid, the remainder of
this order and its application to any other person or
circumstance shall not be affected thereby.
Sec. 12. Effective Date. This order shall be effective
immediately and shall apply to all solicitations for
contracts issued on or after the effective date of the
final regulations issued by the FAR Council under
section 8(a) of this order. For solicitations issued
between the date of this order and the effective date
of the final regulations issued by the FAR Council
under section 8(a) of this order, or solicitations that
have already been issued and are outstanding as of the
date of this order, agencies are strongly encouraged,
to the extent permitted by law, to comply with this
order.
Sec. 13. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or
the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.
[[Page 7366]]
(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.
(Presidential Sig.)
THE WHITE HOUSE,
February 4, 2022.
[FR Doc. 2022-02869
Filed 2-8-22; 8:45 am]
Billing code 3395-F2-P
