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AGC Submits Regulatory Comments on Administration Plan to Implement Project Labor Agreements; Comment Period Extended

On August 13, AGC submitted comments on the July 14, 2009 Federal Acquisition Regulation (FAR) Council notice of proposed rulemaking, which implemented President Obama's Executive Order 13502 to create new FAR contract clauses to be included in Federal contracts should an agency choose to require a Project Labor Agreement (PLA) on a particular Federal construction project. The proposed rule encourages (not requires) agencies to consider (not necessarily adopt) a PLA requirement on large-scale construction projects (defined as projects with a total cost to the federal government of $25 million or more) on a project-by-project basis where certain criteria are met. AGC's comments focused on this vague and subjective set of requirements agencies had to meet to impose a PLA on a project. AGC also pointed out that the agency requirement that the PLA must "allow all contractors and subcontractors to compete for contracts and subcontracts without regard to whether they are otherwise parties to collective bargaining agreements" is ostensibly a fair principle, but is unrealistic, considering the very burdensome changes that a public PLA typically imposes on open shop contractors operations. The comment period on the proposed rule relating to project labor agreements was subsequently extended for 30 days, with a new deadline of September 23. If you would like to submit your views, you can send comments by mail to General Services Administration, Regulatory Secretariat (VPR), 1800 F Street, NW, Room 4041, ATTN: Hada Flowers, Washington, D.C. 20405, or by fax to (202) 501-4067. Comments can also be submitted online via the federal eRulemaking portal by clicking here. Read more about AGC's Comments and the Proposed Rule here.