(a) Authority. This subpart implements the Presidential memorandum of June 5, 1997, on using project labor agreements (PLAs) on Federal construction projects. The Presidential memorandum authorizes executive departments and agencies to require PLAs on large and significant construction projects for facilities to be owned by a Federal department or agency.
(b) Applicability. These policies and procedures apply to all GSA activities authorized to award contracts for construction of facilities to be owned by a Federal department or agency. You may use a PLA in leasehold arrangements, Federally funded projects, and other appropriate circumstances.
(c) Definitions.
“Construction” means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. The terms buildings, structures, or other real property are defined further in Federal Acquisition Regulation (FAR) 36.102.
“Labor organization” means a labor organization engaged in an industry affecting commerce, and any agent of such an organization, and includes any organization of any kind, and any agency, or employee representation committee, group, association, or plan so engaged in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours, or other terms or conditions of employment, and any conference, general committee, joint or system board, or joint council so engaged which is subordinate to a national or international labor organization (42 U.S.C. 2000e(d)).
“Large and significant project” means a Federal construction project with a total cost to the Federal Government of more than $5 million.
“Project Labor Agreement” (PLA) means an agreement between the contractor, subcontractors, and the union(s) representing workers. Under a PLA, the contractor and subcontractors on a project and the union(s) agree on terms and conditions of employment for the project, establishing a framework for labor-management cooperation to advance the Government's procurement interest in cost, efficiency, and quality.
(d) Policy.
(1) You may, on a project-by-project basis, use a PLA on a large and significant project when both of the following conditions apply:
(i) A PLA will advance the Government’s procurement interests.
(ii) No laws that apply to the specific construction project preclude the use of the PLA.
(2) Do not require any contractor to enter into a PLA with any particular labor organization.
(3) The use of a PLA is not intended to create any right or benefit, substantive or procedural, enforceable by a nonfederal party against the United States, its departments, and agencies, its officers or employees, or any other person.
(e) Procedures .
(1) As part of procurement planning for construction projects with a total estimated cost to the Federal Government of more than $5 million, you may consider requiring a PLA.
(2) To require a PLA, you must determine whether use of a PLA will advance the Government’s procurement interests in all the following areas:
(i) Cost, efficiency, and quality.
(ii) Promoting labor-management stability.
(iii) Promoting compliance with applicable legal requirements governing safety and health, equal employment opportunity, labor and employment standards, and other matters.
(3) In making the determination required by paragraph (b) of this section, consult with the agency project or program manager and obtain guidance from the Agency Labor Advisor and assigned legal counsel. You should consider the following factors:
(i) Whether past experience with construction projects in the location where the project will be performed indicates that a PLA will be effective.
(ii) Whether delays in performance of the construction contract would have significant adverse impact on the mission of the agency or operation of the installation or facility.
(iii) Whether any law applies to the specific construction project that would impede use of a PLA.
(iv) Whether the labor organizations in the area can provide a reliable source of skilled, experienced building trades workers in all crafts needed on the job site for the project’s duration (taking into consideration other major construction work in the area).
(v) Whether the Government can benefit from uniform work rules and working conditions and established procedures for resolving labor disputes, no strike/no lock-out protections.
(vi) Whether the Government can benefit from increased stability and labor peace that derives from greater labor-management cooperation.
(vii) Whether the requirements for a PLA will unreasonably restrict competition.
(viii) Other relevant information.
(4) Document the rationale supporting your decision to require a PLA in the contract file.
(5) Provide the following information to the Agency Labor Advisor (GSA Acquisition Policy Division (MVP)):
(i) A brief description of the project.
(ii) The estimated cost.
(iii) A copy of the document supporting your decision to require a PLA.
(iv) A copy of the solicitation.
