Notice of Requirement for Project Labor Agreement
Contractors bidding on large-scale federal construction projects must negotiate or join a project labor agreement and ensure all subcontractors do the same, submitting proof as required by the solicitation.
Overview
FAR 52.222-33, Notice of Requirement for Project Labor Agreement, notifies offerors of the obligation to negotiate or become a party to a project labor agreement (PLA) for large-scale federal construction projects. This provision requires both prime contractors and their subcontractors to adhere to the PLA for the duration of the contract. The PLA must include provisions for labor stability, dispute resolution, and compliance with all applicable laws and regulations. Offerors are generally required to submit a copy of the executed PLA with their offer, though alternates allow for submission at different stages (e.g., prior to award or after award) depending on the solicitation. The provision ensures labor-management cooperation and prevents disruptions such as strikes or lockouts during the project. Alternate versions of the clause adjust the timing and conditions for PLA submission and requirements based on agency needs.
Key Rules
- PLA Requirement
- Offerors and their subcontractors must negotiate or become parties to a project labor agreement for the contract term.
- PLA Content
- The PLA must bind all parties, guarantee labor stability, provide dispute resolution, and comply with all laws and agency requirements.
- Submission of PLA
- The standard provision requires submission of the PLA with the offer; alternates may require submission at other stages.
- No Price Adjustment
- The PLA does not alter contract terms or allow for price adjustments by the government.
Responsibilities
- Contracting Officers: Ensure inclusion of the provision, review and verify PLA submission, and enforce compliance.
- Contractors: Negotiate or join a PLA, require subcontractor participation, and submit the PLA as specified.
- Agencies: May set timing for PLA submission and monitor compliance with labor requirements.
Practical Implications
- This provision aims to ensure labor stability and cooperation on large federal construction projects, reducing the risk of work stoppages.
- Contractors must plan for PLA negotiation and execution early in the proposal process to meet submission deadlines.
- Failure to comply can result in ineligibility for award or contract termination.