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)).

Parent topic: Subpart 22.5 - Use of Project Labor Agreements for Federal Construction Projects