Presidential Documents

Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / Presidential Documents 7363 

Executive Order 14063 of February 4, 2022 

Use of Project Labor Agreements for Federal Construction 

Projects 

By the authority vested in me as President by the Constitution and the 

laws of the United States of America, including the Federal Property and 

Administrative Services Act, 40 U.S.C. 101 et seq., and in order to promote 

economy and efficiency in the administration and completion of Federal 

construction projects, it is hereby ordered that: 

Section 1. Policy. (a) Large-scale construction projects pose special challenges 

to efficient and timely procurement by the Federal Government. Construction 

employers typically do not have a permanent workforce, which makes it 

difficult to predict labor costs when bidding on contracts and to ensure 

a steady supply of labor on contracts being performed. Challenges also 

arise because construction projects typically involve multiple employers 

at a single location, and a labor dispute involving one employer can delay 

the entire project. A lack of coordination among various employers, or 

uncertainty about the terms and conditions of employment of various groups 

of workers, can create friction and disputes in the absence of an agreedupon resolution mechanism. These problems threaten the efficient and timely 

completion of construction projects undertaken by Federal contractors. On 

large-scale projects, which are generally more complex and of longer duration, 

these problems tend to be more pronounced. 

(b) Project labor agreements are often effective in preventing these problems 

from developing because they provide structure and stability to large-scale 

construction projects. Such agreements avoid labor-related disruptions on 

projects by using dispute-resolution processes to resolve worksite disputes 

and by prohibiting work stoppages, including strikes and lockouts. They 

secure the commitment of all stakeholders on a construction site that the 

project will proceed efficiently without unnecessary interruptions. They also 

advance the interests of project owners, contractors, and subcontractors, 

including small businesses. For these reasons, owners and contractors in 

both the public and private sector routinely use project labor agreements, 

thereby reducing uncertainties in large-scale construction projects. The use 

of project labor agreements is fully consistent with the promotion of small 

business interests. 

(c) Accordingly, it is the policy of the Federal Government for agencies 

to use project labor agreements in connection with large-scale construction 

projects to promote economy and efficiency in Federal procurement. 

Sec. 2. Definitions. For purposes of this order: 

(a) ‘‘Labor organization’’ means a labor organization as defined in 29 

U.S.C. 152(5) of which building and construction employees are members, 

as described in 29 U.S.C. 158(f). 

(b) ‘‘Construction’’ means construction, reconstruction, rehabilitation, modernization, alteration, conversion, extension, repair, or improvement of buildings, structures, highways, or other real property. 

(c) ‘‘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. The Federal 

Acquisition Regulatory Council (FAR Council), in consultation with the 

Council of Economic Advisers, may adjust this threshold based on inflation 

using the process at 41 U.S.C. 1908. 


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(d) ‘‘Agency’’ means an executive department or agency, including an 

independent establishment subject to the Federal Property and Administrative Services Act, 40 U.S.C. 102(4)(A). 

(e) ‘‘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). 

Sec. 3. Project Labor Agreement Presumption. Subject to sections 5 and 

6 of this order, in awarding any contract in connection with a large-scale 

construction project, or obligating funds pursuant to such a contract, agencies 

shall require every contractor or subcontractor engaged in construction on 

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

a project labor agreement with one or more appropriate labor organizations. 

Sec. 4. Requirements of Project Labor Agreements. Any project labor agreement reached pursuant to this order shall: 

(a) bind all contractors and subcontractors on the construction project 

through the inclusion of appropriate specifications in all relevant solicitation 

provisions and contract documents; 

(b) allow all contractors and subcontractors on the construction project 

to compete for contracts and subcontracts without regard to whether they 

are otherwise parties to collective bargaining agreements; 

(c) contain guarantees against strikes, lockouts, and similar job disruptions; 

(d) set forth effective, prompt, and mutually binding procedures for resolving labor disputes arising during the term of the project labor agreement; 

(e) provide other mechanisms for labor-management cooperation on matters 

of mutual interest and concern, including productivity, quality of work, 

safety, and health; and 

(f) fully conform to all statutes, regulations, Executive Orders, and Presidential Memoranda. 

Sec. 5. Exceptions Authorized by Agencies. A senior official within an 

agency may grant an exception from the requirements of section 3 of this 

order for a particular contract by, no later than the solicitation date, providing 

a specific written explanation of why at least one of the following circumstances exists with respect to that contract: 

(a) Requiring a project labor agreement on the project would not advance 

the Federal Government’s interests in achieving economy and efficiency 

in Federal procurement. Such a finding shall be based on the following 

factors: 

(i) The project is of short duration and lacks operational complexity; 

(ii) The project will involve only one craft or trade; 

(iii) The project will involve specialized construction work that is available 

from only a limited number of contractors or subcontractors; 

(iv) The agency’s need for the project is of such an unusual and compelling 

urgency that a project labor agreement would be impracticable; or 

(v) The project implicates other similar factors deemed appropriate in 

regulations or guidance issued pursuant to section 8 of this order. 

(b) Based on an inclusive market analysis, requiring a project labor agreement on the project would substantially reduce the number of potential 

bidders so as to frustrate full and open competition. 

(c) Requiring a project labor agreement on the project would otherwise 

be inconsistent with statutes, regulations, Executive Orders, or Presidential 

Memoranda. 

Sec. 6. Reporting. (a) To the extent permitted by law and consistent with 

national security and executive branch confidentiality interests, agencies 

shall publish, on a centralized public website, data showing the use of 


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project labor agreements on large-scale construction projects, as well as 

descriptions of the exceptions granted under section 5 of this order. 

(b) On a quarterly basis, agencies shall report to the Office of Management 

and Budget (OMB) on their use of project labor agreements on large-scale 

construction projects and on the exceptions granted under section 5 of 

this order. 

Sec. 7. Nothing in this order precludes an agency from requiring the use 

of a project labor agreement in circumstances not covered by this order, 

including projects where the total cost to the Federal Government is less 

than that for a large-scale construction project, or projects receiving any 

form of Federal financial assistance (including loans, loan guarantees, revolving funds, tax credits, tax credit bonds, and cooperative agreements). This 

order also does not require contractors or subcontractors to enter into a 

project labor agreement with any particular labor organization. 

Sec. 8. Regulations and Implementation. (a) Within 120 days of the date 

of this order, the FAR Council, to the extent permitted by law, shall propose 

regulations implementing the provisions of this order. The FAR Council 

shall consider and evaluate public comments on the proposed regulations 

and shall promptly issue a final rule, to the extent permitted by law. 

(b) The Director of OMB shall, to the extent permitted by law, issue 

guidance to implement the requirements of sections 5 and 6 of this order. 

Sec. 9. Contracting Officer Training. Within 90 days of the date of this 

order, the Secretary of Defense, the Secretary of Labor, and the Director 

of OMB shall coordinate in designing a training strategy for agency contracting officers to enable those officers to effectively implement this order. 

Within 180 days of the date of the publication of proposed regulations, 

the Secretary of Defense, the Secretary of Labor, and the Director of OMB 

shall provide a report to the Assistant to the President for Economic Policy 

and Director of the National Economic Council on the contents of the training 

strategy. 

Sec. 10. Revocation of Prior Orders, Rules, and Regulations. Executive Order 

13502 of February 6, 2009 (Use of Project Labor Agreements for Federal 

Construction Projects), is revoked as of the effective date of the final regulations issued by the FAR Council under section 8(a) of this order. Upon 

Executive Order 13502’s revocation, the heads of agencies shall consider, 

to the extent permitted by law, revoking any orders, rules, or regulations 

implementing Executive Order 13502. 

Sec. 11. Severability. If any provision of this order, or the application of 

such provision to any person or circumstance, is held to be invalid, the 

remainder of this order and its application to any other person or circumstance shall not be affected thereby. 

Sec. 12. Effective Date. This order shall be effective immediately and shall 

apply to all solicitations for contracts issued on or after the effective date 

of the final regulations issued by the FAR Council under section 8(a) of 

this order. For solicitations issued between the date of this order and the 

effective date of the final regulations issued by the FAR Council under 

section 8(a) of this order, or solicitations that have already been issued 

and are outstanding as of the date of this order, agencies are strongly 

encouraged, to the extent permitted by law, to comply with this order. 

Sec. 13. General Provisions. (a) Nothing in this order shall be construed 

to impair or otherwise affect: 

(i) the authority granted by law to an executive department or agency, 

or the head thereof; or 

(ii) the functions of the Director of the Office of Management and Budget 

relating to budgetary, administrative, or legislative proposals. 

(b) This order shall be implemented consistent with applicable law and 

subject to the availability of appropriations. 


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(c) This order is not intended to, and does not, create any right or benefit, 

substantive or procedural, enforceable at law or in equity by any party 

against the United States, its departments, agencies, or entities, its officers, 

employees, or agents, or any other person. 

THE WHITE HOUSE, 

February 4, 2022. 

[FR Doc. 2022–02869 

Filed 2–8–22; 8:45 am] 

Billing code 3395–F2–P 


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