Federal Register / Vol. 88, No. 245 / Friday, December 22, 2023 / Rules and Regulations 88729 

the order. The Contracting Officer will 

require that an executed copy of the 

project labor agreement be submitted to 

the agency— 

(i) With the order offer; 

(ii) Prior to award of the order; or 

(iii) After award of the order. 

(2) The Offeror shall require its 

subcontractors to become a party to the 

resulting project labor agreement for the 

term of the order. 

■ 11. Amend section 52.222–34 by— 

■ a. Revising the date of the clause; 

■ b. Adding in alphabetical order 

definitions for ‘‘Construction’’ and 

‘‘Large-scale construction project’’ and 

revising the definition ‘‘Labor 

organization’’ in paragraph (a); 

■ c. Removing from paragraph (b) ‘‘this 

contract in accordance with solicitation 

provision 52.222–33, Notice of 

Requirement for Project Labor 

Agreement’’ and adding ‘‘the contract’’ 

in its place; 

■ d. Removing from paragraph (c) ‘‘all 

subcontracts’’ and adding 

‘‘subcontracts’’ in its place; 

■ e. In Alternate I: 

■ i. Revising the date and paragraph (b); 

■ ii. Removing from paragraph (c) 

introductory text ‘‘Consistent with 

applicable law, the project’’ and adding 

‘‘The project’’ in its place; 

■ iii. Removing from paragraph (c)(1) 

‘‘and all’’ and adding ‘‘and’’ in its place; 

■ iv. Removing from paragraph (c)(4) 

‘‘the project’’ and adding ‘‘the term of 

the project’’ in its place; and 

■ v. Removing from paragraph (f) 

‘‘clause in all subcontracts’’ and adding 

‘‘clause in subcontracts’’ in its place; 

and 

■ f. Adding Alternate II. 

The revisions and additions read as 

follows: 

52.222–34 Project Labor Agreement. 

* * * * * 

Project Labor Agreement (Jan 2024) 

(a) * * * 

Construction 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(s) to the Federal Government is 

$35 million or more. 

* * * * * 

Alternate I (Jan 2024) * * * 

(b) The Contractor shall— 

(1) Negotiate or become a party to a 

project labor agreement with one or 

more labor organizations for the term of 

this construction contract; and 

(2) Submit an executed copy of the 

project labor agreement to the 

Contracting Officer as required in the 

solicitation. 

* * * * * 

Alternate II (Jan 2024). As prescribed 

in 22.505(b)(3), substitute the following 

paragraphs (b) through (f) for paragraphs 

(b) through (f) of the basic clause: 

(b) When notified by the agency (e.g., 

by the notice of intent to place an order 

under 16.505(b)(1)) that this order will 

use a project labor agreement, the 

Contractor shall negotiate or become a 

party to a project labor agreement with 

one or more labor organizations for the 

term of the order. The Contracting 

Officer shall require that an executed 

copy of the project labor agreement be 

submitted to the agency— 

(1) With the order offer; 

(2) Prior to award of the order; or 

(3) After award of the order. 

(c) The project labor agreement 

reached pursuant to this clause shall— 

(1) Bind the Contractor 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) Fully conform to all statutes, 

regulations, Executive orders, and 

agency requirements. 

(d) Any project labor agreement 

reached pursuant to this clause does not 

change the terms of this contract or 

provide for any price adjustment by the 

Government. 

(e) The Contractor shall maintain in a 

current status throughout the life of the 

order any project labor agreement 

entered into pursuant to this clause. 

(f) Subcontracts. For each order that 

uses a project labor agreement, the 

Contractor shall— 

(1) Require subcontractors engaged in 

construction on the construction project 

to agree to any project labor agreement 

negotiated by the prime contractor 

pursuant to this clause; and 

(2) Include the substance of 

paragraphs (d) through (f) of this clause 

in subcontracts with subcontractors 

engaged in construction on the 

construction project. 

[FR Doc. 2023–27736 Filed 12–21–23; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket No. FAR–2023–0051, Sequence No. 

7] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2024–02; 

Small Entity Compliance Guide 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Small Entity Compliance Guide 

(SECG). 

SUMMARY: This document is issued 

under the joint authority of DoD, GSA, 

and NASA. This Small Entity 

Compliance Guide has been prepared in 

accordance with section 212 of the 

Small Business Regulatory Enforcement 

Fairness Act of 1996. It consists of a 

summary of the rule appearing in 

Federal Acquisition Circular (FAC) 

2024–02, which amends the Federal 

Acquisition Regulation (FAR). 

Interested parties may obtain further 

information regarding this rule by 

referring to FAC 2024–02, which 

precedes this document. 

DATES: December 22, 2023. 

ADDRESSES: The FAC, including the 

SECG, is available at https://

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact the 

analyst whose name appears in the table 

below. Please cite FAC 2024–02 and the 

FAR Case number. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat Division at 202–501–4755 or 

GSARegSec@gsa.gov. An asterisk (*) 

next to a rule indicates that a regulatory 

flexibility analysis has been prepared. 


ddrumheller on DSK120RN23PROD with RULES2
88730 Federal Register / Vol. 88, No. 245 / Friday, December 22, 2023 / Rules and Regulations 

RULES LISTED IN FAC 2024–02 

Subject FAR case Analyst 

* Use of Project Labor Agreements for for Federal Construction Projects ............................................................. 2022–003 Bowman. 

SUPPLEMENTARY INFORMATION: A 

summary for the FAR rule follows. For 

the actual revisions and/or amendments 

made by this FAR rule, refer to the 

specific subject set forth in the 

document preceding this summary. FAC 

2024–02 amends the FAR as follows: 

Use of Project Labor Agreements for 

Federal Construction Projects (FAR 

Case 2022–003) 

This final rule amends the Federal 

Acquisition Regulation (FAR) to 

implement Executive Order (E.O.) 

14063, Use of Project Labor Agreements 

for Federal Construction Projects. E.O. 

14063 expands the definition of 

‘‘construction,’’ raises the threshold for 

a large-scale construction project from 

$25 million to $35 million and 

establishes a series of exceptions to the 

PLA requirements. Additionally, the 

E.O. mandates that Federal Government 

agencies require the use of project labor 

agreements (PLAs) for large-scale 

Federal construction projects, where the 

total estimated cost of the construction 

contract to the Government is $35 

million or more, unless an exception 

applies. The final rule is not expected 

to have a significant economic impact 

on a substantial number of small entities 

participating on a project that requires 

a PLA because the E.O. limits the 

requirement for mandatory PLAs to 

projects exceeding $35 million, unless 

an exception applies. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

[FR Doc. 2023–27737 Filed 12–21–23; 8:45 am] 

BILLING CODE 6820–EP–P 


ddrumheller on DSK120RN23PROD with RULES2