Subpart 22.5 - Use of Project Labor

Agreements for Federal Construction

Projects

Parent topic: Part 22 - Application of Labor Laws to Government Acquisitions

22.501 Scope of subpart.

This subpart prescribes policies and procedures to implement Executive Order 14063, Use of Project

Labor Agreements for Federal Construction Projects, dated February 4, 2022 (3 CFR, 2023 Comp.,

pp 335–338).

22.502 Definitions.

As used in this subpartConstruction means construction, reconstruction, rehabilitation, modernization, alteration,

conversion, extension, repair, or improvement of buildings, structures, highways, or other real

property.

Labor organization means a labor organization as defined in 29 U.S.C. 152(5) of which building and

construction employees are members.

Large-scale construction project means a Federal construction project within the United States for

which the total estimated cost of the construction contract to the Federal Government is $35 million

or more.

Project labor agreement means a pre-hire collective bargaining agreement with one or more labor

organizations that establishes the terms and conditions of employment for a specific construction

project and is an agreement described in 29 U. S.C. 158(f).

22.503 Policy.

(a) Executive Order (E.O.) 14063, Use of Project Labor Agreements for Federal Construction

Projects, requires agencies to use project labor agreements in large-scale construction projects to

promote economy and efficiency in the administration and completion of Federal construction

projects.

(b) When awarding a contract in connection with a large-scale construction project (see 22.502),

agencies shall require use of project labor agreements for contractors and subcontractors engaged

in construction on the project, unless an exception at 22.504(d) applies.

(c) An agency may require the use of a project labor agreement on projects where the total cost to

the Federal Government is less than that for a large-scale construction project, if appropriate.
(1) An agency may, if appropriate, require that every contractor and subcontractor engaged in

construction on the project agree, for that project, to negotiate or become a party to a project labor

agreement with one or more labor organizations if the agency decides that the use of project labor

agreements will—

(i) Advance the Federal Government's interest in achieving economy and efficiency in Federal

procurement, producing labor-management stability, and ensuring compliance with laws and

regulations governing safety and health, equal employment opportunity, labor and employment

standards, and other matters; and

(ii) Be consistent with law.

(2) Agencies may consider the following factors in deciding whether the use of a project labor

agreement is appropriate for a construction project where the total cost to the Federal Government

is less than that for a large-scale construction project:

(i) The project will require multiple construction contractors and/or subcontractors employing

workers in multiple crafts or trades.

(ii) There is a shortage of skilled labor in the region in which the construction project will be sited.

(iii) Completion of the project will require an extended period of time.

(iv) Project labor agreements have been used on comparable projects undertaken by Federal, State,

municipal, or private entities in the geographic area of the project.

(v) A project labor agreement will promote the agency's long term program interests, such as

facilitating the training of a skilled workforce to meet the agency's future construction needs.

(vi) Any other factors that the agency decides are appropriate.

(d) For indefinite-delivery indefinite-quantity (IDIQ) contracts the use of a project labor agreement

may be required on an order-by-order basis rather than for the entire contract. For an order at or

above $35 million an agency shall require the use of a project labor agreement unless an exception

applies. See 22.504(d)(3) and 22.505(b)(3).

22.504 General requirements for project labor agreements.

(a) General. Project labor agreements established under this subpart shall fully conform to all

statutes, regulations, and Executive orders.

(b) Requirements. A project labor agreement shall-

(1) Bind all contractors and subcontractors engaged in construction on the construction project to

comply with the project labor agreement;

(2) Allow all contractors and subcontractors to compete for contracts and subcontracts without

regard to whether they are otherwise parties to collective bargaining agreements;

(3) Contain guarantees against strikes, lockouts, and similar job disruptions;
(4) Set forth effective, prompt, and mutually binding procedures for resolving labor disputes arising

during the term of the project labor agreement;

(5) Provide other mechanisms for labor-management cooperation on matters of mutual interest and

concern, including productivity, quality of work, safety, and health; and

(6) Include any additional requirements as the agency deems necessary to satisfy its needs.

(c) Labor organizations. An agency may not require contractors or subcontractors to enter into a

project labor agreement with any particular labor organization.

(d) Exceptions to project labor agreement requirements—

(1) Exception. The senior procurement executive may grant an exception from the requirements at

22.503(b), providing a specific written explanation of why at least one of the following conditions

exists with respect to the particular contract:

(i) Requiring a project labor agreement on the project would not advance the Federal Government's

interests in achieving economy and efficiency in Federal procurement. The exception shall be based

on one or more of the following factors:

(A) The project is of short duration and lacks operational complexity.

(B) The project will involve only one craft or trade.

(C) The project will involve specialized construction work that is available from only a limited

number of contractors or subcontractors.

(D) The agency's need for the project is of such an unusual and compelling urgency that a project

labor agreement would be impracticable.

(ii) Market research indicates that requiring a project labor agreement on the project would

substantially reduce the number of potential offerors to such a degree that adequate competition at

a fair and reasonable price could not be achieved. (See 10.002(b)(1) and 36.104). A likely reduction

in the number of potential offerors is not, by itself, sufficient to except a contract from coverage

under this authority unless it is coupled with the finding that the reduction would not allow for

adequate competition at a fair and reasonable price.

(iii) Requiring a project labor agreement on the project would otherwise be inconsistent with

Federal statutes, regulations, Executive orders, or Presidential memoranda.

(2) Considerations. When determining whether the exception in paragraph (d)(1)(ii) of this section

applies, contracting officers shall consider current market conditions and the extent to which price

fluctuations may be attributable to factors other than the requirement for a project labor agreement

( e.g., costs of labor or materials, supply chain costs). Agencies may rely on price analysis conducted

on recent competitive proposals for construction projects of a similar size and scope.

(3) Timing of the exception —

(i) Contracts other than IDIQ contracts. The exception must be granted for a particular contract by

the solicitation date.

(ii) IDIQ contracts. An exception shall be granted prior to the solicitation date if the basis for the
exception cited would apply to all orders. Otherwise, exceptions shall be granted for each order by

the time of the notice of the intent to place an order ( e.g., 16.505(b)(1)).

22.505 Solicitation provision and contract clause.

When a project labor agreement is used for a construction project, the contracting officer shall—

(a)

(1) Insert the provision at 52.222-33, Notice of Requirement for Project Labor Agreement, in

solicitations containing the clause 52.222–34, Project Labor Agreement.

(2) Use the provision with its Alternate I if the agency will require the submission of a project labor

agreement from only the apparent successful offeror, prior to contract award.

(3) Use the provision with its Alternate II if an agency allows submission of a project labor

agreement after contract award except when Alternate III is used.

(4) Use the provision with its Alternate III when Alternate II of 52.222-34 is used.

(b)

(1) Insert the clause at 52.222-34, Project Labor Agreement, in solicitations and contracts associated

with the construction project.

(2) Use the clause with its Alternate I if an agency allows submission of the project labor agreement

after contract award except when Alternate II is used.

(3) Use the clause with its Alternate II in IDIQ contracts when the agency will have project labor

agreements negotiated on an order-by-order basis and anticipates one or more orders may not use a

project labor agreement.