Use of Project Labor Agreements for Federal Construction Projects, 6985-6987 [E9-3113]

Download as PDF Federal Register / Vol. 74, No. 27 / Wednesday, February 11, 2009 / Presidential Documents 6985 Presidential Documents Executive Order 13502 of February 6, 2009 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 the efficient 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 for them to predict labor costs when bidding on contracts and to ensure a steady supply of labor on contracts being performed. Challenges also arise due to the fact that construction projects typically involve multiple employers at a single location. 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 frictions 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 larger projects, which are generally more complex and of longer duration, these problems tend to be more pronounced. (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. Accordingly, it is the policy of the Federal Government to encourage executive agencies to consider requiring the use of project labor agreements in connection with large-scale construction projects in order to promote economy and efficiency in Federal procurement. Sec. 2. Definitions. (a) The term ‘‘labor organization’’ as used in this order means a labor organization as defined in 29 U.S.C. 152(5). (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. (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. rwilkins on PROD1PC63 with MISCELLANEOUS (d) The term ‘‘executive agency’’ as used in this order has the same meaning as in 5 U.S.C. 105, but excludes the Government Accountability Office. (e) The term ‘‘project labor agreement’’ as used in this order 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. (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) VerDate Nov<24>2008 18:52 Feb 10, 2009 Jkt 217001 PO 00000 Frm 00001 Fmt 4790 Sfmt 4790 E:\FR\FM\11FEE3.SGM 11FEE3 6986 Federal Register / Vol. 74, No. 27 / Wednesday, February 11, 2009 / Presidential Documents advance the Federal Government’s 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. (b) If an executive agency determines under subsection (a) that the use of a project labor agreement will satisfy the criteria in clauses (i) and (ii) of that subsection, the agency may, if appropriate, require that every contractor or subcontractor on the project agree, for that project, to negotiate or become a party to a project labor agreement with one or more appropriate labor organizations. Sec. 4. 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 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 (f) fully conform to all statutes, regulations, and Executive Orders. Sec. 5. This order does not require an executive agency to use a project labor agreement on any construction project, nor does it preclude the use of a project labor agreement in circumstances not covered by this order, including leasehold arrangements and projects receiving Federal financial assistance. This order also does not require contractors or subcontractors to enter into a project labor agreement with any particular labor organization. Sec. 6. Within 120 days of the date of this order, the Federal Acquisition Regulatory Council (FAR Council), to the extent permitted by law, shall take whatever action is required to amend the Federal Acquisition Regulation to implement the provisions of this order. Sec. 7. The Director of OMB, in consultation with the Secretary of Labor and with other officials as appropriate, shall provide the President within 180 days of this order, recommendations about whether broader use of project labor agreements, with respect to both construction projects undertaken under Federal contracts and construction projects receiving Federal financial assistance, would help to promote the economical, efficient, and timely completion of such projects. Sec. 8. Revocation of Prior Orders, Rules, and Regulations. Executive Order 13202 of February 17, 2001, and Executive Order 13208 of April 6, 2001, are revoked. The heads of executive agencies shall, to the extent permitted by law, revoke expeditiously any orders, rules, or regulations implementing Executive Orders 13202 and 13208. rwilkins on PROD1PC63 with MISCELLANEOUS Sec. 9. 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 the application of the provisions of such to any person or circumstance shall not be affected thereby. Sec. 10. General. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) authority granted by law to an executive department, agency, or the head thereof; or (ii) functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. VerDate Nov<24>2008 18:52 Feb 10, 2009 Jkt 217001 PO 00000 Frm 00002 Fmt 4790 Sfmt 4790 E:\FR\FM\11FEE3.SGM 11FEE3 Federal Register / Vol. 74, No. 27 / Wednesday, February 11, 2009 / Presidential Documents 6987 (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (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. Sec. 11. 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 action taken by the FAR Council under section 6 of this order. THE WHITE HOUSE, February 6, 2009. [FR Doc. E9–3113 Filed 2–10–09; 1:00 pm] VerDate Nov<24>2008 18:52 Feb 10, 2009 Jkt 217001 PO 00000 Frm 00003 Fmt 4790 Sfmt 4790 E:\FR\FM\11FEE3.SGM 11FEE3 OB#1.EPS</GPH> rwilkins on PROD1PC63 with MISCELLANEOUS Billing code 3195–W9–P

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[Federal Register Volume 74, Number 27 (Wednesday, February 11, 2009)]
[Presidential Documents]
[Pages 6985-6987]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-3113]




                        Presidential Documents 



Federal Register / Vol. 74, No. 27 / Wednesday, February 11, 2009 / 
Presidential Documents

[[Page 6985]]


                Executive Order 13502 of February 6, 2009

                
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 the efficient 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 for them 
                to predict labor costs when bidding on contracts and to 
                ensure a steady supply of labor on contracts being 
                performed. Challenges also arise due to the fact that 
                construction projects typically involve multiple 
                employers at a single location. 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 
                frictions 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 larger 
                projects, which are generally more complex and of 
                longer duration, these problems tend to be more 
                pronounced.

                    (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. Accordingly, it is the policy of the Federal 
                Government to encourage executive agencies to consider 
                requiring the use of project labor agreements in 
                connection with large-scale construction projects in 
                order to promote economy and efficiency in Federal 
                procurement.

                Sec. 2. Definitions.

                    (a) The term ``labor organization'' as used in this 
                order means a labor organization as defined in 29 
                U.S.C. 152(5).
                    (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.
                    (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.
                    (d) The term ``executive agency'' as used in this 
                order has the same meaning as in 5 U.S.C. 105, but 
                excludes the Government Accountability Office.
                    (e) The term ``project labor agreement'' as used in 
                this order 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. (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)

[[Page 6986]]

                advance the Federal Government's 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.

                    (b) If an executive agency determines under 
                subsection (a) that the use of a project labor 
                agreement will satisfy the criteria in clauses (i) and 
                (ii) of that subsection, the agency may, if 
                appropriate, require that every contractor or 
                subcontractor on the project agree, for that project, 
                to negotiate or become a party to a project labor 
                agreement with one or more appropriate labor 
                organizations.

                Sec. 4. 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 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
                    (f) fully conform to all statutes, regulations, and 
                Executive Orders.

                Sec. 5. This order does not require an executive agency 
                to use a project labor agreement on any construction 
                project, nor does it preclude the use of a project 
                labor agreement in circumstances not covered by this 
                order, including leasehold arrangements and projects 
                receiving Federal financial assistance. This order also 
                does not require contractors or subcontractors to enter 
                into a project labor agreement with any particular 
                labor organization.

                Sec. 6. Within 120 days of the date of this order, the 
                Federal Acquisition Regulatory Council (FAR Council), 
                to the extent permitted by law, shall take whatever 
                action is required to amend the Federal Acquisition 
                Regulation to implement the provisions of this order.

                Sec. 7. The Director of OMB, in consultation with the 
                Secretary of Labor and with other officials as 
                appropriate, shall provide the President within 180 
                days of this order, recommendations about whether 
                broader use of project labor agreements, with respect 
                to both construction projects undertaken under Federal 
                contracts and construction projects receiving Federal 
                financial assistance, would help to promote the 
                economical, efficient, and timely completion of such 
                projects.

                Sec. 8. Revocation of Prior Orders, Rules, and 
                Regulations. Executive Order 13202 of February 17, 
                2001, and Executive Order 13208 of April 6, 2001, are 
                revoked. The heads of executive agencies shall, to the 
                extent permitted by law, revoke expeditiously any 
                orders, rules, or regulations implementing Executive 
                Orders 13202 and 13208.

                Sec. 9. 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 the application of the provisions of 
                such to any person or circumstance shall not be 
                affected thereby.

                Sec. 10. General. (a) Nothing in this order shall be 
                construed to impair or otherwise affect:

  (i) authority granted by law to an executive department, agency, or the 
head thereof; or

  (ii) functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

[[Page 6987]]

                    (b) This order shall be implemented consistent with 
                applicable law and subject to the availability of 
                appropriations.
                    (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.

                Sec. 11. 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 
                action taken by the FAR Council under section 6 of this 
                order.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    February 6, 2009.

[FR Doc. E9-3113
 Filed 2-10-09; 1:00 pm]
Billing code 3195-W9-P