Use of Project Labor Agreements for Federal Construction Projects, 7363-7366 [2022-02869]

Agencies

• Executive Office of the President

[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

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                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