While the Giants and the Patriots prepared for their Super Bowl match-up, Indiana’s state government took steps to guarantee Hoosiers the opportunity to work without having to pay dues to a labor union. On Wednesday, Gov. Mitch Daniels signed legislation to make Indiana the 23rd right-to-work state.

The enactment of Indiana’s right-to-work law may be the most significant general labor law reform adopted since the 2010 election. This law gives workers an opportunity to decide whether to join a labor organization, even if their workplace is organized, without having that decision made for them by union bosses.

Courtesy of the National Right to Work Foundation

From our perspective at TheTruthAboutPLAs, this is a very positive development. It will position Indiana to attract investment and this will help create much needed jobs. This is particularly true in the manufacturing and service sectors of Indiana’s economy. There is no doubt it will lead to additional construction jobs, too.

Unfortunately, the right-to-work law does not eliminate the threat of government-mandated project labor agreements (PLAs) in the Hoosier state. As we have explained before, PLA mandates can still occur in right-to-work states, although the PLA cannot require workers to pay full union dues. The PLA can still require contractors to recognize a labor union as the sole representative of all workers on the job, hire some or all of their workers from a union hiring hall, pay into union pension and benefit programs, and follow inefficient union work rules. The right-to-work law removes an important component of PLAs, which is to force workers to join a union as and/or pay union dues as a condition of employment, but the other provisions are burdensome enough that contractors utilizing union labor from local unions participating in PLAs are at a significant competitive advantage over their merit shop counterparts.

Indiana is no stranger to PLA activity. Super Bowl attendees will enjoy the game from Lucas Oil Stadium, a facility constructed under a wasteful and discriminatory PLA mandate. As a result, it was virtually impossible for nonunion construction workers to build this project. This kept 70 percent of Indiana’s construction workforce – those who chose not to join a labor union – from building this project, which was funded in part by their own tax dollars. Out of state license plates from construction union members flooded the area, demonstrating how a PLA does not guarantee local hire.

Additionally, the stadium project was $75 million over budget, despite burning through a $50 million contingency fund.

Lucas Oil Stadium Mid-Construction, Courtesy of Wikipedia

This is just another example of how PLA mandates not only hurt the construction workers and their families, who are deprived of the opportunity to compete for projects, but also average taxpayers.

In an interesting bit of irony, rumors are swirling around Indianapolis that some union members and ‘Occupy’ protesters are planning to protest the right-to-work law at the Super Bowl on Sunday. If protests do happen, we are sure the protesters will say they are standing up for the middle class. Someone should ask them how excluding 72 percent of Indiana’s construction workforce from building the stadium grows the middle class.

“Building this new energy future should be just one part of a broader agenda to repair America’s infrastructure. So much of America needs to be rebuilt. We’ve got crumbling roads and bridges. A power grid that wastes too much energy. An incomplete high-speed broadband network that prevents a small business owner in rural America from selling her products all over the world.

“During the Great Depression, America built the Hoover Dam and the Golden Gate Bridge. After World War II, we connected our States with a system of highways. Democratic and Republican administrations invested in great projects that benefited everybody, from the workers who built them to the businesses that still use them today.

“In the next few weeks, I will sign an Executive Order clearing away the red tape that slows down too many construction projects. But you need to fund these projects. Take the money we’re no longer spending at war, use half of it to pay down our debt, and use the rest to do some nation-building right here at home.

“There’s never been a better time to build, especially since the construction industry was one of the hardest hit when the housing bubble burst. Of course, construction workers weren’t the only ones who were hurt…”

On behalf of the merit shop contracting community, ABC 2012 National Chairman Eric Regelin, president of Granix, LLC, Ellicott City, Md., today reacted to President Obama’s remarks:

“In his speech, the president said ‘we can restore an economy where everyone gets a fair shot, and everyone does their fair share,’” said Regelin. “Yet, one of his first official acts when he took office was to sign an executive order on project labor agreements that discriminates against the 87 percent of the nation’s construction workforce that chooses not to belong to a labor union.

“It is not clear at this point what President Obama meant when he spoke of removing red tape from construction projects, but any sincere effort to do so must involve the elimination of government-mandated project labor agreements and Davis-Bacon wage requirements on taxpayer-funded construction projects,” Regelin said.

“The president’s insistence on a so-called ‘millionaire’s tax’ to fund his various priorities will expose the 80 percent of construction firms that are taxed at the individual rate to a significant tax increase,” said Regelin. “This does not represent a ‘fair share’ that will help the economy and create jobs, but rather the president’s continued use of the nation’s job creators as his personal piggy bank.

“The nation’s construction industry continues to struggle with an unemployment rate of 16 percent – nearly twice the national average,” Regelin said. “However, the president’s only solution to fix the economy is to hand out favors to special interests and punish those who work hard and take risks.”

To view this statement, click here.

So will President Obama’s new executive order cutting red tape slowing down construction projects be helpful, or, will it be another gift to special interests?

Cartoon courtesy of the Boston Globe

It is quite possible President Obama’s new executive order is just repackaging a policy the White House announced in October 2011 to speed along the approval of 14 high priority infrastructure projects. If so, this won’t likely be controversial. It could be something else equally noncontroversial

However, there is concern President Obama will make some changes this election year to federal policy concerning government-mandated PLAs on federal and federally assisted projects. See Section 7 of Executive Order 13502, issued Feb. 6, 2009:

Section 7. The Director of the OMB, in consultation with the Secretary of Labor and with other officials as appropriate, shall provide the President within 180 days of this order, recommendations about whether broader use of PLAs, with respect to both construction projects undertaken under Federal contracts and construction projects receiving Federal financial assistance, would help to promote the economical, efficient, and timely completion of such projects. [Note: Order was issued Feb. 6, 2009, 180 days sets the deadline at Aug. 5, 2009, but a recommendation has not been publicly issued.] 

An expansion of Section 7 could decrease the current $25 million threshold when federal agencies are currently required to evaluate if a PLA mandate is appropriate on a federal construction project. More PLA mandates on smaller projects would help Big Labor at the expense of everyone else. 

Section 7 could also force pro-PLA policies on federally assisted projects built by private owners and state and local governments. An expansion could increase costs for local and state projects already suffering from difficult budget realities. It could also lead to out-of-area union workers taking jobs away from qualified nonunion construction workers in the local economy.

TheTruthAboutPLAs.com explained the concerns with Section 7 expansion here.

Let's hope Section 7 of Executive Order 13502 is not.

TheTruthAboutPLAs.com will be following White House policies impacting the construction industry closely.

The latest to do so is Anne Arundel County, MD, where local leaders adopted a ban on government-mandated PLAs on January 17.

Courtesy of Wikipedia

Maryland joins California, Texas and Pennsylvania as states in which local government entities have approved bans on these Big Labor handouts.  An increasing number of local leaders are starting to understand how Big Labor promises of PLA success usually lead to only cost overruns and discrimination against the vast majority of the construction workforce that chooses not to join a labor organization.

This ban on PLA mandates was enacted just one county away from the upcoming Cheltenham Youth Facility project in Prince George’s County, where Maryland leaders are attempting to become the first state or local government entity to procure a construction project with the Obama administration’s U.S. General Services Administration (GSA) PLA preference policy adopted in April 2010.

Here at TheTruthAboutPLAs.com, we thank Anne Arundel’s leaders for standing up for taxpayers and the local construction workforce.

The PLA mandate harms Washington’s experienced and skilled nonunion construction workforce and will discourage competition from qualified contractors that have successfully built federal projects in Washington and across the country without PLA mandates.  It will also needlessly increase costs.

According to an article in the Kitsap Sun, NAVFAC Northwest mandated a PLA after Sens. Maria Cantwell and Patty Murray, and Reps. Norm Dicks and Jay Inslee (all Democrats from Washington) wrote to the Navy in support of a PLA at the request of construction trades unions (“Navy to hire local workers for second explosives handling wharf,” 1/1/12):

The trades council contacted the area’s federal delegation — Sens. Patty Murray and Maria Cantwell and Reps. Norm Dicks and Jay Inslee — who wrote to the Navy supporting a PLA, Whetham said. Four trade council officials and seven from the Navy met in November to explore the benefits and arrived at cost savings and skilled labor.

According to information obtained from opensecrets.com, construction trades unions have donated the following political contributions totaling $814,375 to the four Washington Democrats who signed the letter:

Rep. Inslee:       $340,000   from 2000 – 2012
Rep. Dicks:       $183,125   from 1998 – 2012
Sen. Murray:     $279,250   from 1998 – 2012
Sen. Cantwell:   $ 12,000    from 2002 – 2012
Total:               $814,375

Is this PLA mandate the product of a crony contracting scheme by federal officials? 

Prior to mandating the PLA, NAVFAC Northwest did not consult with the merit shop contracting community about the negative impact of PLA mandates on qualified federal prime contractors, subcontractors and their skilled local employees.

First Navy PLA Mandate Under Obama Administration
This is the first PLA mandate on a Navy project since President Obama issued Executive Order 13502 on Feb. 6, 2009, just a few weeks after his inauguration. The order strongly encourages federal agencies to mandate PLAs on a case-by-case basis on federal construction projects exceeding $25 million in total costs.

As a result of Obama’s encouragement of federal PLA mandates, NAVFAC has issued several PLA surveys to the contracting community to determine if a PLA mandate will advance the economy and efficiency in federal procurement of numerous large-scale construction projects across the country.  ABC National and ABC members have responded to these PLA surveys.

NAVFAC Northwest did not issue a survey to evaluate if a PLA would be appropriate for this project.

In contrast, NAVFAC directly contacted ABC National and the merit shop contracting community for feedback on possible PLA mandates on other federal projects.

For example, after soliciting comments from ABC National and the contracting community in October 2010 concerning NAVFAC’s potential use of PLAs on billions of dollars worth of construction for Guam base realignment, NAVFAC elected not to mandate a PLA.

NAVFAC’s PLA Mandate Creates Inefficiencies
NAVFAC Northwest’s solicitation instructs qualified contractors invited by NAVFAC to bid on Phase 2 of the solicitation (the short-listed contractors) to negotiate a PLA with specific trade unions and submit an executed PLA within 10 days of the contract award.

NAVFAC supplied short-listed contractors with a pre-drafted PLA containing the terms and conditions NAVFAC already developed with specified construction trade unions and councils.

NAVFAC asked contractors to submit feedback on the pre-drafted PLA by Dec. 28. 

ABC advised short-listed contractors about the numerous problems with NAVFAC’s mandatory PLA language and cumbersome and inefficient procurement approach. Some of these concerns were submitted by short-listed contractors to NAVFAC.

NAVFAC is expected to review and share these comments with unions and provide contractors with a final PLA at a later date that they must use as the starting point in PLA negotiations.

Proposals from short-listed contractors are due Feb. 13. It is unclear when NAVFAC will award the contract, although it should be in early 2012.

Under this inefficient procurement process, it is possible for contractors to not know the terms and conditions of the executed PLA – which impacts labor costs and final bid costs – before submitting a final price proposal to NAVFAC.  If PLA negotiations are stalled by unions or NAVFAC does not supply the final terms of the pre-drafted PLA in time, contractors cannot submit an accurate price proposal.

In addition, the project could be delayed pending the outcome of the post-award PLA negotiations.  The project may have to be re-bid if the final agreement cannot be executed.

In 2010, a General Services Administration (GSA) project, the GSA Headquarters at 1800 F Street in Washington, D.C., suffered delays as a result of labor unions refusing to agree to the terms of a PLA the contractor presented and signed with other labor unions. Congressional testimony from GSA deputy administrator Susan Brita described this scenario, which also required the contractor to present an executed PLA within 10 days post-award.

Even regulatory comments  filed by Frank Dean, NAVFAC’s labor advisor, on the FAR Council’s proposed rule implementing Executive Order 13502 identify concerns with this inefficient post-award PLA procurement approach.

PLA Will Harm Local Nonunion Workforce and Small Businesses
From 2001 to 2009, when President George W. Bush’s Executive Orders 13202 and 13208 prohibited PLA mandates on federal and federally assisted construction projects, Washington’s skilled nonunion tradespeople constructed large-scale projects for the Navy, Army and other federal agencies absent a PLA mandate with no reported problems.

This union-favoring PLA is sure to serve as a barrier to new jobs for 84 percent of Washington’s private construction workforce and 86.9 percent of the U.S. construction workforce that has chosen not to join a construction labor union.

The Washington State Building and Construction Trades Council, AFL-CIO announced “construction labor on this project will be provided by Olympic Peninsula Building Trades and the Northwest Regional Council of the National Construction Alliance II (NWNCA),” and it is unlikely this project’s PLA will allow nonunion contractors to use few, if any, of the existing skilled nonunion employees they have invested training and resources in while employed at the company.

As this letter to the editor in the Kitsap Sun points out, if the PLA even allows nonunion construction workers to build this project, they will have to join a union and/or pay union dues and pay into union pension plans that they will never benefit from unless they join a union and meet vesting requirements.  The PLA results in a huge financial windfall for Big Labors coffers.

Favoritism for unionized construction workers is especially despicable because the construction industry is plagued by high unemployment in Washington and across the country. The number of construction workers employed in Washington in July 2011 was as sparse as the number of workers employed in Washington in August of 1997. Meanwhile, the U.S. construction industry is suffering from an unemployment rate of 16 percent as of December 2011. 

Don’t nonunion construction workers deserve a fair shot at new federal construction jobs?

Provisions in a PLA that force contractors to swap their existing workforce out for unfamiliar union labor is problematic for short-listed contractors that self-perform specific trade work, as well as subcontractors performing specialty trades.

This PLA mandate will make it difficult for short-listed contractors to meet NAVFAC’s small and disadvantaged business subcontracting targets because small businesses are traditionally not unionized:

Because building trades union membership is traditionally not diverse, a PLA mandate also may make it difficult for short-listed contractors to meet minority and women hiring goals set by the FAR’s Equal Opportunity and the Affirmative Action Compliance Requirements for Construction regulations required in federal construction contracts.

The PLA mandate’s inefficient procurement approach and pro-union language will discourage competition and increase costs to remaining competitors. Studies indicate PLA projects subject to prevailing wage laws increase construction costs between 12 percent and 18 percent compared to similar projects subject to prevailing wage laws not subject to government-mandated PLAs.

ABC Committed to Fair and Open Competition
ABC is opposed to government-mandated PLAs because these agreements typically restrict competition, increase costs, create delays, discriminate against nonunion employees and place merit shop contractors at a significant competitive disadvantage. Typical government-mandated PLAs are nothing more than anti-competitive schemes that end open and fair bidding on taxpayer-funded projects.

ABC has led industry opposition against federal PLA mandates, utilizing a variety of educational, public relations, grassroots, political and legal strategies to ensure fair and open competition on taxpayer-funded construction projects.

ABC has helped ABC member contractors file bid protests against federal PLA mandates during the Obama administration, which resulted in the removal of PLA mandates on a Veterans Affairs medical center in Pittsburgh, an Army Corps of Engineers project in Camden, N.J., a General Services Administration project in Washington, D.C., and a Department of Labor Job Corps Center in Manchester, N.H.     

ABC National also has responded to and helped ABC members participate in more than 50 PLA surveys issued by federal agencies to determine the feasibility of a PLA on a federal project.

ABC supports the Government Neutrality in Contracting Act (H.R. 735/S.119), cosponsored by 31 Senators and 172 Representatives and supported by a diverse industry coalition. The measure would eliminate waste and favoritism in federal contracting by prohibiting federal agencies and recipients of federal assistance from mandating PLAs, yet it would allow contractors to voluntarily enter into PLAs. This bill is good for taxpayers and the principles of free enterprise.

In 2011, House committees held two hearings in Washington and three field hearings on the negative consequences of federal PLA mandates and the benefits of H.R. 735.

Additional hearings and votes are expected in 2012.

Stay current on government-mandated PLAs and “Like” us on Facebook at www.facebook.com/TheTruthAboutPLAs and visit TheTruthAboutPLAs.com often.

To help fight this PLA and other federal PLA mandates, please contact Ben Brubeck or TheTruthAboutPLAs.com here.

One such example occurred in California, where union efforts helped get Robert Calone appointed to the Governing Board for the Contra Costa Community College District.  Mr. Calone’s day job is Recording Secretary for the Plumbers and Steamfitters Local 159.

While it’s possible that civic duty motivated Mr. Calone to apply for this office, it is also pretty clear that the construction unions have a revenue stream to develop.  And thanks in part to Mr. Calone, Big Labor will have a virtual monopoly on community college construction for the next five years.

But in all of the excitement over securing nearly all of the community college’s construction work in the next five years for Big Labor, it appears that Mr. Calone may have forgotten to take care of a small detail – properly completing his ethics disclosures.

Here is the press release from the Golden Gate Chapter of Associated Builders and Contractors issued on January 10:

FPPC Complaint filed against Contra Costa Community College District Trustee for Failure to File Form 700 Timely and Report Income

The Fair Political Practices Commission has confirmed receipt of a complaint filed for possible violations relating to Robert Calone, who holds the office of Governing Board member for the Contra Costa Community College District.

California Government Code §87202(a) states that “Every person who is elected to an office specified in Section 87200 shall, within 30 days after assuming the office, file a statement disclosing his or her investments and his or her interests in real property held on the date of assuming office, and income received during the 12 months before assuming office.”

Robert Calone failed to file a statement within 30 days (he did it 200 days after assuming office, after the public requested his Form 700 from the college district). When he filed his statement, he failed to report income.

Finally, by filing his Form 700 late and then omitting a source of income on the late Form 700, Robert Calone concealed his financial interest in a controversial contract that was approved on December 14, 2011 by the Governing Board of the Contra Costa Community College District. Only the intervention of the public in exposing Robert Calone’s failure to submit a Form 700 and his failure to report his employment income prevented him from voting on a contract for which his loyalties and allegiance were divided and influenced by his paid employment as an instructor for an organization that was signatory to the contract.

“Mr. Calone, the Recording Secretary for the Plumbers and Steamfitters Local 159, was appointed to the Board for the sole purpose of enacting a union-only Project Labor Agreement for District construction projects, thereby creating a monopoly on District work that will result in reduced competition and increased costs for public contracts funded by taxpayer dollars” stated Matt Heavey, a local citizen who filed the complaint.

A copy of the complaint can be viewed here.

Here at TheTruthAboutPLAs.com, we believe sunshine and transparency are the best medicine for public corruption.

Regardless of whether Mr. Calone violated the letter of the law, this one doesn’t pass the smell test.

The hearing was an opportunity for the committee to discuss how certain parties, particularly labor unions, exploit public participation in the CEQA process to achieve objectives unrelated to environmental protection. Assemblywoman Grove cited four specific recent examples of different unions (the Teamsters, the California Nurses Association, the United Food and Commercial Workers, and the Service Employees International Union) filing CEQA lawsuits to delay projects as leverage to extract labor concessions from businesses. She also noted that some businesses use CEQA to try to block potential competition.

Testifying on behalf of the sponsor, ABC of California Government Affairs Director Kevin Dayton discussed how certain construction trade unions abuse CEQA as a weapon to delay projects until the owner agrees to require contractors to sign a Project Labor Agreement with unions. The Western Electrical Contractors Association (WECA) and the Chambers of Commerce Alliance of Ventura & Santa Barbara were the other public supporters of the bill.

Assemblywoman Linda Halderman (R-Fresno) cited a specific example of a union using CEQA to try to force a contractor to sign a Project Labor Agreement to install solar panels at Fresno-Yosemite International Airport. Assemblyman Steve Knight (R-Palmdale) adeptly exposed the Attorney General’s double standard of opposing the additional responsibilities assigned in AB 598 while remaining silent about adopting additional responsibilities through other legislation.

Legitimate environmental organizations such as the Sierra Club and the Planning and Conservation League opposed the bill. The Teamsters and United Food and Commercial Workers (UFCW) union opposed the bill in writing but did not speak at the hearing. Democrats on the committee opposed the bill, but some of them (along with the Attorney General’s office) acknowledged that some parties abuse CEQA. Assemblyman Bill Monning (D-Santa Cruz) said nothing about how the Carpenters union used CEQA in a recent high-profile campaign to delay and ultimately derail the proposed La Bahia Hotel in Santa Cruz.

The committee defeated the bill on a 5-3 party-line vote: Democrats opposed, Republicans in support.

You can thank the following state legislators at these email addresses:

Assemblywoman Shannon Grove: Contact

Assemblywoman Linda Halderman: Contact

Assemblyman Steve Knight: Contact

Background on Assembly Bill 598: text, committee analysis

Some Recent News Media Coverage of CEQA Abuse: Bad Environment for Development? (Los Angeles Business Journal, July 18, 2011, via Central City Association of Los Angeles); Firms Turning to Environmental Law to Combat Rivals (Los Angeles Times, November 14, 2011).

This is an important step toward ensuring that taxpayers get the best construction at the best price for their hard earned tax dollars.  This will also help guarantee that merit, not union affiliation, will determine how construction contracts are awarded in Westmoreland County.

Courtesy of Wikipedia

The Western Pennsylvania Chapter of Associated Builder and Contractors issued the following press release, in which they thank commissioners for standing up for taxpayers and the 73.5 percent of Pennsylvania’s private construction workforce that chooses not to join a labor union.

Tax Payers in Westmoreland County Win as Project Labor Agreements Are Banned

Pittsburgh, PA – The Associated Builders and Contractors of Western Pennsylvania (ABC) praises Westmoreland County Board of Commissioners Chuck Anderson (R) and Tyler Courtney (R), who today passed a resolution banning project labor agreements (PLAs) in Westmoreland County.

This resolution follows a PLA that former County Commissioners Tom Balya (D) and Tom Ceraso (D) passed in 2009. The resolution benefits the tax payers of Westmoreland County, relieving them of the higher costs, unmet deadlines and reduced competition that PLAs are notorious for.

Keith Impink, Chairman of ABC and President of Westmoreland Electric commented, “With the economy struggling, it is illogical to support PLAs that drive up costs 25-30%.” Impink continued, “The mission of the Westmoreland County Board of Commissioners is to represent the residents with prudence and fairness; they accomplished that mission today.”

The County Commissioners asserted that all work should be awarded and performed on the basis of merit, regardless of labor affiliation, echoing ABC’s pro-competition beliefs. Eileen Watt, President of ABC stated, “PLAs not only cut out competition, but discriminate against women and minority workers as well. That is unacceptable for the tax payers of Westmoreland County.”

Watt continued “We cannot praise the efforts of County Commissioners Chuck Anderson and Tyler Courtney enough; they have the interests of Westmoreland County residents in mind.”

###

This is a huge win for taxpayers, particularly considering that the Westmoreland County Board of Commissioners approved PLA mandates as recently as 2009.  This policy is likely to result in real cost savings for local taxpayers, and that is a good thing.

As the release goes onto say, one of the mandates hindering job growth in the construction industry in New York is government-mandated project labor agreements (PLA).  PLA mandates on both state and local projects have been a regular problem for the construction industry in New York – particularly for the 72.5 percent of the workforce that chooses not to join a labor union.

These mandates have also been a problem for New York taxpayers.  A blatant example of how these Big Labor handouts hurt taxpayers occurred in the spring of 2011, where the NYS Department of Transportation tried and was ultimately successful in implementing a PLA mandate on an infrastructure project that disqualified a qualified contractor’s bid and cost taxpayers an addition $5 million in unnecessary construction costs.

As America climbs out of recession, it is vital that government entities use taxpayer funds as wisely as possible.  As far as we are concerned, rewarding union bosses for their political support by giving union contractors a leg up against their nonunion counterparts doesn’t seem like the best use of public money.

Like the ABC Empire State Chapter, we urge Gov. Cuomo to support the Public Construction Savings Act and put an end to government-mandated PLAs in New York.

The ABC Empire State Chapter press release from January 5 is below.

STATEMENT FROM ABC PRESIDENT STEPHEN LEFEBVRE ON GOV. CUOMO’S STATE OF THE STATE ADDRESS

I want to applaud the governor on his first year in office and wish him the best on the start of the 2012 Legislative Session. The plan he laid out today in his annual State of the State provided some bold initiatives to enhance government and improve the economy through investment in many areas that the construction industry is sure to help build. With any discussion of development I encourage the governor to seek out the best value possible for the money paid by New York’s hard-working taxpayers.

I urge Gov. Cuomo to unshackle the full economic potential of any government funded construction work from the unnecessary use of restrictive measures such as mandatory Project Labor Agreements (PLAs) that time and again have driven up the cost of public work projects in the Empire State. The governor should seek construction mandate relief in the form of the Public Construction Savings Act (S.4121/A.7855) which would allow government entities to bid public construction in a way that promotes unfettered competition among contractors seeking public work to the benefit of taxpayers.

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The Empire State Chapter of Associated Builders and Contractors (“ABC”) represents over 550 merit-shop construction contractors and subcontractors employing thousands of workers throughout the State of New York.

The United States Army Corps of Engineers (USACE) also issued a PLA survey for a project at Cannon Air Force Base in New Mexico.

All ABC members and construction professionals are encouraged to respond to the requests for information and tell the NAVFAC and USACE that government-mandated PLAs harm competition, increase costs, and impede economy and efficiency in government contracting.

Details on the three surveys along with submission dates are below but please review response instructions by clicking the links:

• Responses for the NAVFAC survey for Potable Water Conveyance Systems and Waste Water and Recycled Water Conveyance Systems at Camp Pendleton, Calif., must include a cover letter and be completed on the PLA Inquiry Form and submitted by 2:00 p.m. (PST) on Friday, Dec. 16, either by mail to NAVFAC or by email to Gregory.sies@navy.mil.
• Responses for the NAVFAC survey for the Rotary Aircraft Deport Maintenance Facility near San Diego must include a cover letter and be completed on the PLA Inquiry Form and submitted by 2:00 p.m. (PST) on Monday, Dec. 19, either by mail to NAVFAC or by email to georgina.perry@navy.mil.
• Responses for the NAVFAC survey for HVAC and Ductwork Repairs, Building 1H, Naval Medical Center San Diego must include a cover letter and be completed on the PLA Inquiry Form and submitted by 2:00 p.m. (PST) Jan. 3, 2012, either by mail to NAVFAC or by email to larry.romig@navy.mil.
• Responses to the USACE Market Survey in the Clovis Micropolitan Statistical Area near Cannon Air Force Base in New Mexico must be submitted by Friday, Dec. 23 to diana.m.martinez@usace.army.mil. There is no form to fill out for this survey.

NAVFAC, which manages construction of U.S. Navy shore facilities, recently issued surveys for four federal construction projects, exceeding $25 million in total costs, in Maryland and Virginia.

During the past several months, NAVFAC and other federal agencies like the USACE and Veterans Affairs have issued PLA surveys as a result of President Obama’s pro-PLA Executive Order 13502 and federal regulations implementing the discriminatory and costly order. The order and regulations encourage federal agencies to mandate anti-competitive and costly PLAs on a case-by-case basis on federal construction projects exceeding $25 million in total cost. ABC has taken the opportunity to respond to all PLA surveys as they are issued and encourages its members to do the same.

If you need help responding, please contact us and we can provide you with some helpful tools and information.

Responding with accurate and timely information is critical and effective at removing federal agency PLA mandates. For example, in 2010, the USACE removed government-mandated PLAs from the Army Reserve Center in Los Alamitos, Calif. and the Patrick Air Force Base in Brevard County, Fla. after a strong grassroots response and survey participation from the contracting community. The USACE removed a PLA mandate on the Armed Forces Reserve Center in Camden, N.J. following a legal challenge and robust grassroots response from the construction stakeholders.

Thanks for taking the time to respond to these surveys. Your responses will help maintain an open and competitive environment that will allow all qualified contractors to fairly compete for contracts to build the best possible construction projects at the best possible price.

Update 1/1/12: Sen. Mark Obenshain introduced companion legislation in the Virginia Senate, SB 242 (pdf). It is cosponsored by all 20 Senate GOP members. The Virginia Senate has 20 GOP and 20 Democrat Senators. Lieutenant Governor Bill Bolling (R) casts deciding votes. 

Click here to write your legislators and encourage them to support HB 33/SB 242.

HB 33/SB 242 ensures Virginia taxpayers get the best construction project at the best price and 96 percent of Virginia’s construction workforce (those who choose not to belong to a labor union) have a real shot at working on taxpayer funded projects.  It will also help stretch scarce tax dollars to meet Virginia’s transportation and infrastructure needs.

In 2011, Michigan, Maine, Tennessee, Arizona,  Louisiana, Iowa and Idaho enacted similar legislation and executive orders ensuring taxpayers get the best possible product at the best possible price. 

In July, 2011, the Wall Street Journal and the Boston Herald editorial boards applauded states for enacting fair and open competition measures that end “sweetheart deals with labor unions,” and “limit bids on construction projects to contractors that agree to union representation.”

State budget deficits and a 2009 President Obama executive order encouraging PLAs on federal projects and allowing their use on federally-assisted projects pushed states to take steps at preventing waste and discrimination in public contracting.

A total of 11 states have enacted legislation or executive orders prohibiting government-mandated PLAs on state and state-assisted projects to some degree.

This year, Democrats controlling Illinois and California state government enacted legislation encouraging the use of government-mandated PLAs. New Jersey and New York have existing laws enacted by Democrat legislatures and administrations encouraging anti-competitive and costly PLA mandates, while Washington has a pro-PLA executive order.  

If enacted, HB 33/SB 242 will prevent special interst handouts like the mandated PLA on Phase 2 of the $2.8 billion Dulles Metrorail Silver Line project Virginia is partially financing. TheTruthAboutPLAs.com covered this controversial project in great detail yesterday. It will increase competition, reduce costs and create job for Virginia’s construction industry.

The measure prevents the state and those procuring projects with state dollars from MANDATING PLAs.  Contractors would be free to voluntarily enter into PLAs, as is permitted by the National Labor Relations Act.

Update 12/15 and 12/19:
The Virginia Chamber of Commerce issued this press release Dec. 14 in support of HB 33.

Del. Comstock and Del. Hugo issued a Dec. 19 press release on HB 33.

Virginia Construction Industry Supports Legislation Ensuring Fair and Open Competition On Public Construction Contracts

Contact:      Angie Gutenson, Vice President, ABC-VA (703) 968-6205                     For Immediate Release
                     Ben Brubeck, PLA Expert, ABC National (703) 812-2042                        December 13, 2011

DULLES, VA – On behalf of its 660 Virginia merit shop employers, Associated Builders and Contractors (ABC-VA) supports the Fair and Open Competition in Government Contracting Act (HB 33) introduced on Monday by Virginia Delegate Barbara Comstock (R-34^th) and GOP Caucus Chairman Virginia Delegate Tim Hugo (R-40^th). HB 33 prohibits Virginia and recipients of state funding or assistance from requiring or prohibiting contractors to enter into union agreements, such as a project labor agreement (PLA), as a condition of winning state and state-assisted construction contracts. 

“This commonsense legislation will reduce costs, increase competition and create jobs for qualified Virginia businesses and their skilled local employees on state and state-funded construction projects,” said ABC-VA President Patrick Dean. “It will ensure Virginia’s infrastructure dollars are spent wisely and support projects subject to fair and open competition, which ultimately will benefit taxpayers by funding more construction projects and creating more jobs for Virginians.

“Unfortunately, unaccountable political appointees controlled by special interests have been steering taxpayer-funded construction contracts to their political supporters by mandating union-favoring PLAs on projects funded by the state,” said Dean. “This special interest favoritism has no place in Virginia.

“If enacted, this measure would prohibit state-assisted construction projects, such as Phase 2 of the multi-billion dollar Dulles Metrorail Silver line project, from mandating unwanted anti-competitive and costly PLAs on contractors,” said Dean. “Why should Virginia’s financial stakeholders pay for the majority of this project when the PLA mandated on the prime contractor by MWAA ensures discrimination against 96 percent of Virginia’s construction workforce – those who have freely decided not to join a union? Local workers will lose jobs to out-of-state union members given hiring priority via the PLA.”   

“HB 33 simply ensures the government remains neutral with respect to a qualified contractor’s relationship with labor unions and gets the government out of the business of picking winners and losers through cronyism,” said Ben Brubeck, ABC National’s Director of Labor and Federal Procurement. “To date, 11 states have enacted similar measures, resulting in reduced costs, increased job creation and a level playing field encouraging robust competition from qualified nonunion and union contractors.

“HB 33 allows contractors to voluntarily enter into union agreements like PLAs,” said Brubeck. “Unlike a government-mandated PLA, it gives contractors a real choice, which can only increase competition and help taxpayers get the best possible product at the best possible price.”

Learn more about anti-competitive and costly PLAs and the Silver Line Metrorail controversy at www.TheTruthAboutPLAs.com.

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About ABC — Associated Builders and Contractors is a national association with 75 chapters representing more than 23,000 merit shop construction and construction-related firms with nearly two million employees. Founded in 1972, the ABC Virginia Chapter is the only association in Virginia dedicated to representing the interests of merit shop contractors. ABC VA represents all firms in the commercial construction industry equally. Membership represents the full range of contractors, from small family-owned subcontractors to global general contracting firms, as well as, materials suppliers and industry professionals. The ABC Virginia Chapter has offices in Chantilly, Richmond and Hampton Roads.