ABC filed three sets of comments opposing the use of government-mandated project labor agreements (PLAs) on United States Army Corps of Engineers (USACE) projects in the Savannah, Ga., district; at Fort Campbell in Kentucky; and at the Newtown/Bridgeport Armed Forces Reserve Center in Danbury, Connecticut. The comments were filed in response to requests for information issued by the USACE in October.
ABC argued that PLAs on USACE projects would increase costs, create inefficiencies and interfere with federal contractors’ ability to deliver to taxpayers the best possible construction product at the best possible price. ABC said that PLAs are not necessary to achieve economy and efficiency in federal contracting and referred to the period from 2001 to 2008 when government-mandated PLAs were prohibited on federal construction projects. During this time period, there were no significant labor-related problems such as strikes or labor unrest on federal projects despite the absence of PLAs.
ABC cited cost overruns experienced on many state and local projects subject to a PLA and advised USACE to review a Beacon Hill Institute (BHI) study that estimates government-mandated PLAs on construction projects increase taxpayer construction costs by up to 18 percent compared to projects not subject to a PLA.
Citing several surveys of its members and other open shop contractors, ABC commented that most nonunion contractors would decline to bid on a project that contained a PLA, further reducing competition. ABC pointed out that the foundation for the federal government procurement requirements is the Competition in Contracting Act of 1984 that requires “full and open competition."
“As BHI pointed out, the burden should be on PLA proponents and the Executive Branch to prove that PLAs actually save money. This is particularly true in light of the obvious conflict between government-mandated PLAs and the principles of open competition.”
In addition, ABC called attention to legal concerns about Executive Order 13502 that could arise if the USACE were to impose PLAs, leading to legal costs and project delays. ABC noted several instances where a legal bid protest resulted in a federal agency removing a government-mandated PLA from a project.
“Experience demonstrates that the merit shop philosophy helps construction customers like the USACE provide taxpayer with the best possible construction product at the best possible price,” ABC said.
To read the Savannah, Ga., district comments, click
here.
To read the Fort Campbell comments, click
here.
To read the Newtown/Bridgeport Armed Forces Reserve Center, click
here.
For more information on PLAs, visit
www.TheTruthAboutPLAs.com or visit ABC’s
PLA Facebook page.