On September 23, AGC submitted supplemental comments to a 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.
AGC originally submitted comments on the proposed rule that 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 supplemental comments focused on concerns that a requirement for a PLA might be placed after contract award. AGC opposes this ex post facto imposition as it directly interferes with the relationship between a prime contractor and the subcontractors, and causes massive disruption of the procurement process. AGC strongly urged the FAR Councils to clarify in the Final Rule that agencies, contracting officers and their representatives are forbidden from pursuing such course of action.
Read more about AGC's Comments and the Proposed Rule here.
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