The Biden administration’s controversial rule requiring anti-competitive and costly government-mandated project labor agreements on federal construction projects of $35 million or more is one step closer to being published in the Federal Register for public comments.
On July 22, the White House Office of Management and Budget’s Office of Information and Regulatory Affairs concluded its review of the Federal Acquisition Regulation Council’s FAR Case 2022-003, Use of Project Labor Agreements For Federal Construction Projects. The rulemaking will eventually implement President Biden’s Feb. 4, 2022, Executive Order 14063, which requires controversial PLAs on federal contracts of $35 million or more.
ABC blasted the Biden administration’s pro-PLA EO, calling it anti-competitive for small businesses and costly for taxpayers, and has met with OIRA, other federal agency stakeholders and lawmakers in opposition to the EO and forthcoming regulation. ABC predicts the rule, once finalized, is likely to increase infrastructure costs by 12% to 20%, exacerbate the construction industry’s skilled labor shortage of 650,000 workers in 2022, and undermine efforts by merit shop firms, associations and stakeholders to invest in workforce development, including government-registered apprenticeship programs.
Once published in the Federal Register, ABC will analyze the impact of the rule, encourage members to comment on it and conduct industry outreach and educational webinars on the issue and rulemaking.
Since the EO was announced, ABC, merit shop stakeholders and GOP governors have pushed back on Biden administration schemes to mandate PLAs on federal contracts and encourage PLA mandates on over $94 billion in state and local projects receiving federal assistance.
ABC and industry stakeholders are urging lawmakers to cosponsor federal legislation restricting government-mandated PLAs on federal and federally assisted construction projects via this ABC grassroots campaign.
Learn more about government-mandated PLAs and Biden administration pro-PLA policies via ABC’s PLA FAQs document and coalition website, BuildAmericaLocal.com.
For questions or comments about the forthcoming rulemaking, email [email protected]