22.503
Policy
Federal agencies must require project labor agreements for large-scale construction projects and may do so for smaller projects when it serves federal interests, with specific rules for IDIQ contracts.
Overview
FAR 22.503 establishes the policy for the use of Project Labor Agreements (PLAs) in federal construction projects, implementing Executive Order 14063. The regulation mandates that agencies require PLAs for large-scale federal construction projects to promote efficiency, labor-management stability, and compliance with labor laws. Agencies may also require PLAs for smaller projects if certain conditions are met, and must consider specific factors when making this determination. For IDIQ contracts, PLAs may be required on a per-order basis, especially for orders at or above $35 million, unless an exception applies.
Key Rules
- Mandatory PLAs for Large-Scale Projects
- Agencies must require PLAs for contractors and subcontractors on large-scale federal construction projects unless an exception applies.
- Discretionary PLAs for Smaller Projects
- Agencies may require PLAs for projects below the large-scale threshold if it advances federal interests and is consistent with the law.
- Factors for PLA Appropriateness
- Agencies should consider project complexity, labor shortages, project duration, precedent, workforce training needs, and other relevant factors when deciding on PLAs for smaller projects.
- IDIQ Contracts
- For IDIQ contracts, PLAs may be required per order, and are mandatory for orders at or above $35 million unless an exception applies.
Responsibilities
- Contracting Officers: Ensure PLAs are included in solicitations and contracts as required, assess exceptions, and document decisions.
- Contractors: Comply with PLA requirements and coordinate with labor organizations as specified in the contract.
- Agencies: Evaluate projects for PLA applicability, consider relevant factors, and oversee compliance.
Practical Implications
- This policy aims to streamline construction project management, reduce labor disputes, and ensure legal compliance. Contractors must be prepared to negotiate or adhere to PLAs on qualifying projects, and agencies must carefully document their decisions regarding PLA use. Failure to comply can result in delays or contract issues.