Feds Adopt Final Rule on Project Labor Agreements (PLAs)

On February 6, 2009, President Obama issued Executive Order 13502 encouraging the use of Project Labor Agreements on large scale federal construction projects.  

On April 13, 2010, the Department of Defense, General Services Administration, and the National Aeronautics and Space Administration (NASA) adopted a final rule amending the Federal Acquisition Regulation (FAR) to implement the President's Executive Order.  The new regulation becomes effective on May 13, 2010 and applies to construction projects with a cost of $25 million or more. 

There are strong opinions by different interest groups about whether Project Labor Agreements are good public policy.  Labor unions have argued they are effective in ensuring public agencies obtain quality construction and a safe working environment.  Non-union (merit) contractors have argued that Project Labor Agreements restrict competition on public projects to union contractors only.