Friday, February 6th, 2009 at 12:00 am
EXECUTIVE ORDER: USE OF PROJECT LABOR AGREEMENTS FOR FEDERAL CONSTRUCTION PROJECTS
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
February 6, 2009
EXECUTIVE ORDER
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USE OF PROJECT LABOR AGREEMENTS FOR FEDERAL CONSTRUCTION PROJECTS
By the authority vested in me as President by the Constitution and the
laws of the United States of America, including the Federal Property
and Administrative Services Act, 40 U.S.C. 101 et seq.,
and in order to promote the efficient administration and completion of
Federal construction projects, it is hereby ordered that:
Section 1. Policy. (a) Large-scale construction projects
pose special challenges to efficient and timely procurement by the
Federal Government. Construction employers typically do not have a
permanent workforce, which makes it difficult for them to predict labor
costs when bidding on contracts and to ensure a steady supply of labor
on contracts being performed. Challenges also arise due to the fact
that construction projects typically involve multiple employers at a
single location. A labor dispute involving one employer can delay the
entire project. A lack of coordination among various employers, or
uncertainty about the terms and conditions of employment of various
groups of workers, can create frictions and disputes in the absence of
an agreed-upon resolution mechanism. These problems threaten the
efficient and timely completion of construction projects undertaken by
Federal contractors. On larger projects, which are generally more
complex and of longer duration, these problems tend to be more
pronounced.
(b) The use of a project labor agreement may prevent these problems
from developing by providing structure and stability to large-scale
construction projects, thereby promoting the efficient and expeditious
completion of Federal construction contracts. Accordingly, it is the
policy of the Federal Government to encourage executive agencies to
consider requiring the use of project labor agreements in connection
with large-scale construction projects in order to promote economy and
efficiency in Federal procurement.
Sec. 2. Definitions.
(a) The term "labor organization" as used in this order means a labor organization as defined in 29 U.S.C. 152(5).
(b) The term "construction" as used in this order means construction,
rehabilitation, alteration, conversion, extension, repair, or
improvement of buildings, highways, or other real property.
(c) The term "large-scale construction project" as used in this order
means a construction project where the total cost to the Federal
Government is $25 million or more.
(d) The term "executive agency" as used in this order has the same
meaning as in 5 U.S.C. 105, but excludes the Government Accountability
Office.
(e) The term "project labor agreement" as used in this order means a
pre-hire collective bargaining agreement with one or more labor
organizations that establishes the terms and conditions of employment
for a specific construction project and is an agreement described in 29
U.S.C. 158(f).
Sec. 3. (a) In awarding any contract in connection with a
large-scale construction project, or obligating funds pursuant to such
a contract, executive agencies may, on a project-by-project basis,
require the use of a project labor agreement by a contractor where use
of such an agreement will (i) advance the Federal Government's interest
in achieving economy and efficiency in Federal procurement, producing
labor-management stability, and ensuring compliance with laws and
regulations governing safety and health, equal employment opportunity,
labor and employment standards, and other matters, and (ii) be
consistent with law.
(b) If an executive agency determines under subsection (a) that the use
of a project labor agreement will satisfy the criteria in clauses (i)
and (ii) of that subsection, the agency may, if appropriate, require
that every contractor or subcontractor on the project agree, for that
project, to negotiate or become a party to a project labor agreement
with one or more appropriate labor organizations.
Sec. 4. Any project labor agreement reached pursuant to this order shall:
(a) bind all contractors and subcontractors on the construction project
through the inclusion of appropriate specifications in all relevant
solicitation provisions and contract documents;
(b) allow all contractors and subcontractors to compete for contracts
and subcontracts without regard to whether they are otherwise parties
to collective bargaining agreements;
(c) contain guarantees against strikes, lockouts, and similar job disruptions;
(d) set forth effective, prompt, and mutually binding procedures for
resolving labor disputes arising during the project labor agreement;
(e) provide other mechanisms for labor-management cooperation on
matters of mutual interest and concern, including productivity, quality
of work, safety, and health;
and
(f) fully conform to all statutes, regulations, and Executive Orders.
Sec. 5. This order does not require an executive agency to use a
project labor agreement on any construction project, nor does it
preclude the use of a project labor agreement in circumstances not
covered by this order, including leasehold arrangements and projects
receiving Federal financial assistance. This order also does not
require contractors or subcontractors to enter into a project labor
agreement with any particular labor organization.
Sec. 6. Within 120 days of the date of this order, the Federal
Acquisition Regulatory Council (FAR Council), to the extent permitted
by law, shall take whatever action is required to amend the Federal
Acquisition Regulation to implement the provisions of this order.
Sec. 7. The Director of 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 project labor agreements, 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.
Sec. 8. Revocation of Prior Orders, Rules, and Regulations.
Executive Order 13202 of February 17, 2001, and Executive Order 13208
of April 6, 2001, are revoked. The heads of executive agencies shall,
to the extent permitted by law, revoke expeditiously any orders, rules,
or regulations implementing Executive Orders 13202 and 13208.
Sec. 9. Severability. If any provision of this order, or
the application of such provision to any person or circumstance, is
held to be invalid, the remainder of this order and the application of
the provisions of such to any person or circumstance shall not be
affected thereby.
Sec. 10. General. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) authority granted by law to an executive department, agency, or the head thereof; or
(ii) functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or
benefit, substantive or procedural, enforceable at law or in equity by
any party against the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any other person.
Sec. 11. Effective Date. This order shall be
effective immediately and shall apply to all solicitations for
contracts issued on or after the effective date of the action taken by
the FAR Council under section 6 of this order.
BARACK OBAMA
THE WHITE HOUSE,
February 6, 2009.
