ABC - PLAs Encouraged on Federal Construction Projects Under Final Rule

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Home Page >> Newsroom >> Industry News >> Volume 2010 >> Issue 1 >> PLAs Encouraged on Federal Construction Projects Under Final Rule

PLAS ENCOURAGED ON FEDERAL CONSTRUCTION PROJECTS UNDER FINAL RULE (04/14/2010)

The Federal Acquisitions and Regulation (FAR) council April 13 published a final rule implementing President Obama’s February 2009 Executive Order 13502 encouraging federal agencies to impose anti-competitive and costly project labor agreements (PLAs) on federal construction projects.

Under the rule, federal agencies are encouraged, but not required, to impose PLAs on a case by case basis for projects that cost the federal government at least $25 million. Agencies are given the option to require contractors to submit PLAs at several intervals during the acquisition process: when offers are due, prior to awarding the project to the successful bidder, and after the project has been awarded, forcing the successful bidder to comply with the PLA or lose the project.

Following the publication of the final rule, 2010 ABC National Chairman Jim Elmer, president of James W. Elmer Construction Co., Spokane Wash., chastised the administration for encouraging measures that discriminate against more than 85 percent of the construction industry during a time of 25 percent industry unemployment.

“This final rule shows that the Obama administration is more concerned with paying back its political allies than putting America’s entire construction workforce back to work,” Elmer said. “We will exhaust every opportunity to challenge this policy, which is effectively a federal government endorsement of union set-asides.”

The rule is scheduled to take effect May 12, but federal agencies may start adopting their own PLA policies at any time. ABC is continuing to meet with and educate federal agencies on the negative effect PLAs have on the construction industry and the taxpayer.

The rule does not apply to federally assisted construction projects, although the administration has signaled their intent of expanding the executive order by attaching government-mandated PLA strings to federally assisted construction projects.

For more information on PLAs, visit www.TheTruthAboutPLAs.com or www.abc.org/pla.