News

ÎÚÑ»´«Ã½-Backed Bill to Ensure Fair and Open Competition on Federal Construction Introduced

Would Prohibit Government-Mandated PLAs on Federal & Federal-Aid Projects

On February 24, Sens. Todd Young (R-Ind.) and Tim Scott (R-S.C.) and Reps. Ted Budd (D-N.C.) and John Moolenaar (R-Mich.) introduced the ÎÚÑ»´«Ã½-supported (bill numbers pending) that would prohibit government-mandated project labor agreements (PLAs) on direct federal (i.e., projects for federal agencies like the Army Corps of Engineers, General Services Administration and Department of Veterans Affairs) and federal-aid (i.e., federally funded transportation projects for state departments of transportation) construction projects. The bill would not prohibit all PLAs, as a firm could still voluntarily enter into a PLA.

The bill is in response to attempts from federal agencies to encourage or mandate contractors to sign a PLA as a condition of winning a federal or federally assisted construction contract and from implementing a preference policy for bids with a PLA.

Under current procurement policies, federal agencies are encouraged to mandate PLAs on projects valued at $25 million or more. ÎÚÑ»´«Ã½ expects additional attempts via legislation or regulation to broaden preferences and mandates to impose more government-mandated PLAs on federal and federally assisted projects in the near future. While ÎÚÑ»´«Ã½ supports the Fair and Open Competition Act, it is not expected to legislatively advance given the political dynamics in Congress.

More information on government-mandated PLAs can be found on the ÎÚÑ»´«Ã½ website.

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