Conforming changes are made in the provision at FAR 52.222-33, Notice of Requirement for Project Labor Agreement, and the clause at FAR 52.222-34, Project Labor Agreement. See 22.504(d)(3) and 22.505(b)(3). 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. The definitions of construction, labor organization, and large-scale construction project are revised to reflect the definitions in E.O. Use the PDF linked in the document sidebar for the official electronic format. Labor organizations. This threshold will be subject to the periodic adjustment for inflation of statutory acquisition-related dollar thresholds in accordance with FAR 1.109, 41 U.S.C. (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. et seq., Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). 3. Executive Order 14063 (2022) On February 4, 2022, President Biden signed Executive Order 14063: Use of Project Labor Agreements For Federal Construction Projects . regulatory information on FederalRegister.gov with the objective of This site displays a prototype of a Web 2.0 version of the daily Sec. A likely reduction in the number of potential offerors is not, by itself, sufficient to except a contract from coverage under this authority unless it is coupled with the finding that the reduction would not allow for adequate competition at a fair and reasonable price. Executive Order 14063Use of Project Labor Agreements for Federal Construction Projects | The American Presidency Project Joseph R. Biden 46th President of the United States: 2021 present Executive Order 14063Use of Project Labor Agreements for Federal Construction Projects February 04, 2022 40 U.S.C. Comments received generally will be posted without change to Also, it is estimated that 1 hour is required by one member of the contractor's workforce to submit the PLA to the Government on behalf of the contractor. publication in the future. OMB Control Number 9000-0175, Use of Project Labor Agreements for Federal Construction Projects, was approved in FAR case 2009-005 (see section G of that rule's preamble). Federal Register. 6. The Regulatory Secretariat Division has submitted a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. has no substantive legal effect. costs of labor or materials, supply chain costs). Removing from paragraph (c)(1) and all and adding and in its place; v. Removing from paragraph (c)(4) the project and adding the term of the project in its place; The revisions and additions read as follows: Labor organization Federal Register provide legal notice to the public and judicial notice The offerors are alerted in the provision at FAR 52.222-33, Notice of Requirement for Project Labor Agreement, that a PLA may be required at the order stage. If your comment cannot be submitted using Relevant information about this document from Regulations.gov provides additional context. The National Space Council (Council), as authorized under Title V of Public Law 100-685, advises and assists the President regarding national space policy and strategy. Information about this document as published in the Federal Register. The Executive Order directs the Departments of Defense and Labor, along with the Office of Management and Budget, to lead a training strategy for the contracting workforce on Project Labor. http://www.regulations.gov The decision regarding whether to grant an exception for an order under an IDIQ contract should be made prior to issuing the notice of intent to place an order. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. Currently, the regulations at FAR 22.5 encourage the use of PLAs for large-scale federal construction projects, which is defined as projects with a total cost of $25 million or more. This document has been published in the Federal Register. Consistent with his campaign pledge to be the most union-friendly president in U.S. history, President Biden's Executive Order 14063, signed on Feb. 4, 2022, entitled Use of Project Labor Agreements for Federal Construction Projects, is likely to impact $262 billion in federal construction projects and 200,000 workers. 152(5) of which building and construction employees are members, as described in 29 U.S.C. the Federal Register. 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. (2) The Offeror shall not require subcontractors to enter into a project labor agreement with any particular labor organization when the project labor agreement includes multiple signatory labor organizations representing the same trade. (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. (2) Use the clause with its Alternate I if an agency allows submission of the project labor agreement after contract award except when Alternate II is used. The Government estimates that each respondent will require between 40 (low) and 80 (high) hours to implement a PLA for a project. . provides an exception from the PLA requirements that, with a written explanation, may be granted by a senior official. Contracting officers may coordinate with agency labor advisors, as appropriate. Large-scale construction projects often have multiple employers at a single location and a lack of permanent workforce, which makes it difficult for Federal contractors to predict labor costs when bidding on contracts and to ensure that a steady supply of labor exists on the contracts being performed. 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. Register documents. Sec. (iii) Requiring a project labor agreement on the project would otherwise be inconsistent with statutes, regulations, Executive orders, or Presidential memoranda. Request for Comments Regarding Paperwork Burden. (d) Any project labor agreement reached pursuant to this clause does not change the terms of this contract or provide for any price adjustment by the Government. (1) The Contractor shall require subcontractors engaged in construction on the construction project to agree to any project labor agreement negotiated by the prime contractor pursuant to this clause, and shall include the substance of paragraphs (d) through (f) of this clause in all subcontracts with subcontractors engaged in construction on the construction project. Subcontracts. Severability. The additions and amendments in Annex 3 shall take effect on December 27, 2023, and shall apply in accordance with section 539E (f) of the NDAA FY 2022 (10 U.S.C. These tools are designed to help you understand the official document https://www.regulations.gov, Any project labor agree-ment reached pursuant to this order shall: bind all contractors and subcontractors on the construction project through the inclusion of appropriate specifications in all relevant solicitation provisions and contract documents; also directs the Office of Management and Budget (OMB) to issue implementation guidance to agencies on exceptions and reporting. Requiring a PLA would substantially reduce the number of potential bidders so as to frustrate full and open competition, Counts are subject to sampling, reprocessing and revision (up or down) throughout the day. The documents posted on this site are XML renditions of published Federal Agency-head responsibilities at FAR 7.103(x) pertaining to the use of PLAs are revised to reflect the change in policy consistent with other requirements of agency planners. They secure the commitment of all stakeholders on a construction site that the project will proceed efficiently without unnecessary interruptions. This repetition of headings to form internal navigation links About the Federal Register 9000-0066, Labor-related Requirements, in all correspondence. Definitions. Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. The annual reporting burden for FAR provision 52.222-33, Notice of Requirement for Project Labor Agreement, is estimated based upon the ranges described above and illustrated as follows: The application of the provision is expanded to recognize IDIQ contracts and the resultant ability to require or not require PLAs on an order-by-order basis under the IDIQ. approximately two to three days after submission to verify posting. Start Printed Page 51045 The clause at FAR 52.222-34 allows the contracting officer to choose when to require the executed PLA, with the order offer, after the offer but prior to order award, or after award of the order. This PDF is Select the link Comment Now that corresponds with FAR Case 2022-003. Follow the instructions provided on the screen. Please submit comments only and cite FAR Case 2022-003 in all correspondence related to this case. (2) Use the provision with its Alternate I if the agency will require the submission of a project labor agreement from only the apparent successful offeror, prior to contract award. The senior procurement executive may grant an exception from the requirements at 22.503(b), providing a specific written explanation of why at least one of the following conditions exists with respect to the particular contract: (i) Requiring a project labor agreement on the project would not advance the Federal Government's interests in achieving economy and efficiency in Federal procurement. B. Document page views are updated periodically throughout the day and are cumulative counts for this document. This rule affects the certification and information collection requirements in the provision at FAR 52.222-33, Notice of Requirement for Project Labor Agreement, and the FAR clause at 52.222-34, Project Labor Agreements. . To confirm receipt of your comment(s), please check Start Printed Page 7364. The requirement for a PLA flows down to subcontractors through FAR clause 52.222-34, paragraph (c). 6 edition of the Federal Register. Alternate I This implies one third of affected solicitations will require all offerors to provide a PLA, and two thirds of affected solicitations will only require one entity (apparent successful offeror or awardee) to provide a PLA. It is not an official legal edition of the Federal However, this rule does not impose any new requirements on contracts at or below the SAT or for commercial products and commercial services, including COTS items. To reflect the variety of labor categories necessary to estimate the impact, a mean hourly rate of $76.33 is used for this calculation. Amend section 7.103 by revising paragraph (x) to read as follows: (x) Ensuring that agency planners use project labor agreements when required (see subpart 22.5 and 36.104). https://www.regulations.gov, the official SGML-based PDF version on govinfo.gov, those relying on it for About the Federal Register adequate competition at a fair and reasonable price could not be achieved; or. 20113. a. of content. These can be useful e.g., 6. More information and documentation can be found in our . Requiring a PLA would be inconsistent with statutes, regulations, other E.O.s., or Presidential Memoranda. These conditions include when the requirement for a PLA would not advance the Federal Government's interests; where market research indicates a substantial reduction in competition to such a degree that adequate competition at a fair and reasonable price could not be achieved; or where the requirement would be inconsistent with other statutes, regulations, E.O.s, or Presidential memoranda. A project labor agreement (PLA) is defined as 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. These tools are designed to help you understand the official document Amend section 36.104 by adding paragraph (c) to read as follows: (c)(1) Agencies shall require the use of a project labor agreement for Federal construction projects valued at or above $35 million, unless an exception applies (see subpart 22.5). Adding in alphabetical order the definitions Construction and Large-scale construction project in paragraph (a); c. Revising the definition Labor organization in paragraph (a); d. Removing from paragraph (b) this contract in accordance with solicitation provision 52.222-33, Notice of Requirement for Project Labor Agreement and adding the contract in its place; ii. on NARA's archives.gov. Document Drafting Handbook Register documents. (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. DoD, GSA, and NASA will also consider comments from small entities concerning the existing regulations in subparts affected by the rule in accordance with 5 U.S.C. 14065 of Feb 21, 2022 E.O. Applicability to Contracts at or Below the Simplified Acquisition Threshold (SAT) and for Commercial Products (Including Commercially Available Off-the-Shelf (COTS) Items), or for Commercial Services. 2 On February 4, 2022, President Biden issued Executive Order (EO) 14063 requiring the use of project labor agreements (PLAs) for large federal construction projects. The authority citation for 48 CFR parts 1, 7, 22, 36, and 52 continues to read as follows: Authority: Only official editions of the https://www.regulations.gov, The average cost of each award is approximately $114 million. O . explains that the lack of coordination among various employers, or uncertainty about the employment terms and conditions of various groups of workers, can create friction and disputes in the absence of an agreed-upon resolution mechanism. 158(f). 13 (6) Fully conform to all statutes, regulations, Executive orders, and agency requirements. The current FAR provision at 52.222-33, Notice of Requirement for Project Labor Agreement, provides a basic provision and 2 alternative provisions for the contracting officer to select from. (D) The agency's need for the project is of such an unusual and compelling urgency that a project labor agreement would be impracticable. Start Printed Page 51046 13502 with references to the new E.O. The use of project labor agreements is fully consistent with the promotion of small business interests. Notes: See: EO 13660, March 6, 2014; EO 13661, March 16, 2014; EO 13662, March 20, 2014; EO 13685, December 19, 2014; EO 13849, September 20, 2018 Document Citation: 87 FR 10293 Page: 10293-10296 (4 pages) Document Number: 2022-04020 Document Details Document Statistics Page views: If you are using public inspection listings for legal research, you 101 This feature is not available for this document. Therefore, the requirement for PLAs is estimated to apply to 240430 subcontractors (120-215 * 2). 3501-3521) applies because the proposed rule contains information collection requirements. 9 Therefore, it is assumed each alternative will apply one third of the time. participants * 40-80 hours * $121.40) + (1 person * 1 hour * $33.21)). c. Removing from paragraph (c) introductory text Consistent with applicable law, the project and adding The project in its place; d. Removing from paragraph (c)(1) offeror and all and adding Offeror and in its place; e. Removing from paragraph (c)(2) offeror and adding Offeror in its place; f. Removing from paragraph (d) this contract and adding the resulting contract in its place; g. Removing from paragraph (e) offeror and adding Offeror in its place; ii. DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to implement an Executive Order pertaining to project labor agreements in Federal construction projects. There is no historical data on when the contracting officer requires the PLA. chapter 137; and 51 U.S.C. 158(f). Exceptions must be based on at least one of the conditions listed at FAR 22.504(d). GSARegSec@gsa.gov. E.O. As prescribed in 22.505(b)(3), substitute the following paragraphs (b) through (f) for paragraphs (b) through (f) of the basic clause: (b) When notified by the agency ( Register, and does not replace the official print version or the official An exception may only apply to the entire IDIQ contract if the basis for the exception cited would apply to all orders. PLAs are agreements between contractors and one or more labor organizations that establish the terms and conditions of employment, such as wage rates and . on NARA's archives.gov. Federal Register provide legal notice to the public and judicial notice 12866, Regulatory Planning and Review, dated September 30, 1993. 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. The burden hour estimates for the provision at FAR 52.222-33 and the clause at FAR 52.222-34 previously included under OMB Control Number 9000-0175 are consolidated with and approved under OMB Control Number 9000-0066, Labor-related Requirements. This rule applies the requirement for PLAs to all construction projects valued at $35 million or more, unless an exception applies. Counts are subject to sampling, reprocessing and revision (up or down) throughout the day. Sec. an estimated 80-144 offerors (20-36 awards * 4 offers). Until the ACFR grants it official status, the XML While the reasons for using PLAs remain largely unchanged from the previous policy, use of a PLA is no longer discretionary for large-scale Federal construction projects. As stated previously, the estimated number of exception requests per year is between 12 and 60; therefore, the anticipated cost for preparing and routing requests is $1,578-$7,892 (12-60 exceptions * 2 hours * $65.77). corresponding official PDF file on govinfo.gov. (iv) Project labor agreements have been used on comparable projects undertaken by Federal, State, municipal, or private entities in the geographic area of the project. An examination of this data reveals that the Government issued an average of 119 large-scale construction awards annually. (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. Reporting. Executive Order 14067Ensuring Responsible Development of Digital Assets | The American Presidency Project Joseph R. Biden 46th President of the United States: 2021 present Executive Order 14067Ensuring Responsible Development of Digital Assets March 09, 2022 E.O. On Friday, February 4, 2022 President Joe Biden signed Executive Order 14063, requiring project labor agreements (PLA) for all federal construction projects costing more than $35 million. It was viewed 42 times while on Public Inspection. In accordance with the E.O., the definition of large-scale federal construction projects is amended from $25 million or more to $35 million or more. On February 4, 2022, President Biden issued Executive Order ("EO") 14063 [1]. 08/18/2022 at 8:45 am. Therefore, the total number of estimated entities that would be required to submit PLAs at the prime contract level is 120-215 entities (40-71 apparent successful offerors or awardees + 80-144 offerors). This PDF is In paragraph (b) introductory text removing the words The project and adding the words A project in their place; The revision and addition read as follows. Sec. of this preamble. and follow the instructions on the site. corresponding official PDF file on govinfo.gov. The Contracting Officer shall require that an executed copy of the project labor agreement be submitted to the agency, (c) The project labor agreement reached pursuant to this clause shall. Based on the information, on average there are approximately 167 eligible awards annually and approximately one award that includes the PLA requirement. 1503 & 1507. The OFR/GPO partnership is committed to presenting accurate and reliable The threshold for a large-scale construction project is increased from $25 million to $35 million. The Government also considered that exceptions to the required use of a PLA may be granted under certain conditions and estimates that approximately 12 to 60 (10 percent to 50 percent of 119) exceptions will be granted for the required use of a PLA each year. that agencies use to create their documents. (b) When awarding a contract in connection with a large-scale construction project (see 22.502), agencies shall require use of project labor agreements for all contractors and subcontractors engaged in construction on the project, unless an exception at 22.504(d) applies. The estimate used in the current information collection was based on PLAs with a total estimated contract value of $25 million or more and the discretionary authority to use them. The final rule implemented E.O. Start Printed Page 51047 and in order to promote economy and efficiency in the administration and completion of Federal construction projects, it is hereby ordered that: Section 1 Conforming changes are made in the clause at FAR 52.222-34, Project Labor Agreement. (See 10.002(b)(1) and 36.104). On large-scale projects, which are generally more complex and of longer duration, these problems tend to be more pronounced. Data generated from the Federal Procurement Data System (FPDS) for fiscal years 2019, 2020, and 2021 has been used as the basis for estimating the number of unique small entities expected to be affected by the change from discretionary to mandatory use of PLAs for large-scale construction projects. Start Printed Page 51051. 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. Until the ACFR grants it official status, the XML establishing the XML-based Federal Register as an ACFR-sanctioned by the notice of intent to place an order under 16.505(b)(1)) that this order will use a project labor agreement, the Contractor shall negotiate or become a party to a project labor agreement with one or more labor organizations for the term of the order. This includes time for offerors to consult with advisors, negotiate, ensure compliance with terms and conditions of the PLA and implement the PLA. that agencies use to create their documents. The proposed rule does not duplicate, overlap, or conflict with any other Federal rules. The E.O. Definitions. This is not the time to negotiate the PLA, which is not an information collection requirement; the time covered is only the time to copy and submit the PLA to the contracting officer. the current document as it appeared on Public Inspection on (3) Use the provision with its Alternate II if an agency allows submission of a project labor agreement after contract award except when Alternate III is used. (c) To estimate the number of offerors that would be required to provide a PLA, the Government estimates an average of 4 offers would be submitted per award; For purposes of this order: (a) Labor organization means a labor organization as defined in 29 U.S.C. For the Government, contracting officers will continue to conduct market research and consider factors to support a decision to use, or not to use, PLAs in large-scale construction projects. 10 This table of contents is a navigational tool, processed from the Register (ACFR) issues a regulation granting it official legal status. legal research should verify their results against an official edition of 804. This rule amends the provision at FAR 52.222-33 and the FAR clause at 52.222-34. The current BLS factor of 42 percent is applied to the mean wage to account for fringe benefits and an additional 12 percent overhead factor is applied (See Attachment C of OMB Circular A-76 Revised issued May 29, 2003), for a total loaded wage of $121.40/hour ($76.33 * 142 percent * 112 percent). (d) For indefinite-delivery indefinite-quantity (IDIQ) contracts the use of a project labor agreement may be required on an order-by-order basis rather than for the entire contract. provide legal notice to the public or judicial notice to the courts. . should verify the contents of the documents against a final, official Removing from the introductory text 22.505(a)(2) and clause and adding 22.505(a)(3) and provision in their places, respectively; The revisions and addition read as follows: (a) It is estimated that 20 percent of the entities will be small entities, therefore approximately 24-43 small entities and 96172 large entities may be required to submit PLAs. The exception may be granted in each of the following circumstances, as provided in the E.O. These problems threaten the efficient and timely completion of construction projects undertaken by Federal contractors. Exception. Sec. All items submitted must cite OMB Control No. : 1. For complete information about, and access to, our official publications (ii) Include the substance of paragraphs (d) through (f) of this clause in all subcontracts with subcontractors engaged in construction on the construction project. 121(c); 10 U.S.C. DoD, GSA, and NASA estimate that 40 to 80 hours of time may be required in total for each party involved in negotiating the PLA on behalf of the contractor. The authority to grant an exception is added at FAR 22.504(d). 801-808), before an interim or final rule takes effect, DoD, GSA, and NASA will send the rule and the Submission of Federal Rules Under the Congressional Review Act form to each House of the Congress and to the Comptroller General of the United States. (b)(1) The apparent successful offeror shall negotiate or become a party to a project labor agreement with one or more labor organizations for the term of the resulting construction contract.

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