The Truth About Project Labor Agreements

The Fort Worth District of the U.S. Army Corps of Engineers (USACE) is soliciting comments from the construction community addressing the potential use of government-mandated project labor agreements (PLAs) for large scale construction contracts exceeding $25 million in total cost, within the Fort Worth, Texas District.

All ABC members, employees and construction industry stakeholders are encouraged to respond to the requests for information. Tell the USACE that government-mandated PLAs injure competition, increase costs, and will not advance economy and efficiency in government contracting. It is important to express your opposition to government-mandated PLAs today before they are mandated or encouraged on future USACE and other federal projects in the Ft. Worth area and other markets in the region.

Stakeholders interested in participating in Ft. Worth District survey must submit responses via email to [email protected] by close of business on Tuesday, December 14th.

[Update: Here is ABC National’s 12/14 response to the Ft. Worth District survey.]

The USACE and other federal agencies have issued PLA surveys as a result of President Obama’s pro-PLA Executive Order 13502 and federal regulations implementing the discriminatory and illegal 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. The survey results are an important source of information used to determine whether a PLA is appropriate for federal projects.

In the past two months, the USACE issued multiple surveys requesting information about the potential use of PLAs on construction projects in numerous USACE districts across the country.  ABC National and construction stakeholders and contractors responded to these surveys.

Here are ABC National’s responses to the USACE’s recent PLA surverys:

• Letter to USACE Mobile, AL District concerning Ft. Rucker airport hangar and Mobile, AL projects (11/24/10)
• Letter to USACE Honolulu, HI District concerning four projects (11/23/10)
• Letter to USACE Louisville concerning Danbury, CT project (11/4/10)
• Letter to USACE Louisville concerning Ft. Campbell, KY area projects (11/1/10)
• Letter to USACE Savannah District (10/28/10)

For contractors, taxpayers and construction professionals unfamiliar with the problems with federal PLAs and regulations implementing President Obama’s pro-PLA Executive Order 13502, please review the letters sent by ABC National to the USACE, which may be helpful information for contractors to review before responding to the USACE PLA surveys.

Responding with accurate and timely information is important. The USACE recently 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.

Additional helpful links:

• PLA Final Rule Takes Effect Today: Let the Waste, Cronyism and Discrimination Begin (provides a helpful overview about the current state of federal PLAs and the Obama order.)
• Project Labor Agreement Basics: What is a PLA?
• Get the Truth About PLAs
• ABC National’s Main Comments to the FAR Council’s Proposed Rule
• ABC Member Survey/Comment Supplement to Main Comments
• ABC National Comments Specifically Addressing the Regulatory Flexibility Act