The Naval Facilities Engineering Command (NAVFAC), after considerable time and effort in evaluating numerous factors and realities in the Federal procurement process, has decided not to utilize Project Labor Agreements (PLAs) in Guam.
In accordance with Executive Order 13502 (EO) and additional Federal regulations, NAVFAC considered requiring the use of a Project Labor Agreement (PLA) for construction projects in Guam and invited AGC to comment. The agency gathered input from industry, organized labor, and government officials from both the federal government and the government of Guam to assess whether requiring a PLA for construction projects on Guam would meet the economy and efficiency goals of the Executive Order. AGC sent extensive comments to NAVFAC detailing numerous considerations that must be made before making a final decision.
Some key considerations NAVFAC researched before making a final decision included the following:
- The Department of Defense (DoD) has executed construction projects in Guam for many decades and has not encountered delays due to labor-management instability.
- PLAs have not been used for any prior DoD construction projects on Guam.
- There is no precedent for strikes or work stoppages by construction workers at military construction projects on Guam.
- There was no evidence that implementation of a PLA and its increased labor costs would bring about enhanced efficiencies that would meet the economic goals of the EO.