Prevailing Wage and the Inflation Reduction Act EO 14063 requires PLAs on federal large-scale construction projects. the material on FederalRegister.gov is accurately displayed, consistent with Citation: E.O. Notes: Revokes: EO 13502, February 6, 2009 Document Citation: 87 FR 7363 Page: 7363-7366 (4 pages) Document Number: 2022-02869 Document Details Document Statistics Page views: 5,602 However, it does not change the discretionary use of PLAs for projects that do not meet the $35 million threshold. 3501-3521) applies because the proposed rule contains information collection requirements. The current FAR provision at 52.222-33, Notice of Requirement for Project Labor Agreement, provides a basic provision and 2 alternative provisions for the contracting officer to select from. 152(5) of which building and construction employees are members, as described in 29 U.S.C. The total estimated impact for establishing and submitting PLAs in response to a Government contract is estimated to be $58,272 to $1.04 million (240-430 subcontractors * (2 participants * 1-10 hours * $121.40)). electronic version on GPOs govinfo.gov. Government Mandated Project Labor Agreements (PLA) About the Federal Register A large-scale construction project is defined as one within the United States with a total cost to the Federal Government of $35 million or more. 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. (2) Use the provision with its Alternate I if the agency will require the submission of a project labor agreement from only the apparent successful offeror, prior to contract award. Biden EO Enforcing Labor Agreements for Construction Unions e.g., Amend section 36.104 by adding paragraph (c) to read as follows: (c)(1) Agencies shall require the use of a project labor agreement for Federal construction projects valued at or above $35 million, unless an exception applies (see subpart 22.5). This rule is not anticipated to be a major rule under 5 U.S.C. More information and documentation can be found in our Construction Coalition Opposes Biden Administration PLAs chapter 137; and 51 U.S.C. (a) Within 120 days of the date of this order, the FAR Council, to the extent permitted by law, shall propose regulations implementing the provisions of this order. The clause at FAR 52.222-34 allows the contracting officer to choose when to require the executed PLA, with the order offer, after the offer but prior to order award, or after award of the order. Learn more here. There is no data source that identifies the number of subcontractors per contract, however, based upon estimates from experts, it is estimated that for each contract there is an average of 2 subcontractors. Sec. Sec. 14063 describes large-scale construction projects as often posing special challenges to efficient and timely procurement by the Federal Government. This table of contents is a navigational tool, processed from the (1) Bind the Contractor and subcontractors engaged in construction on the construction project to comply with the project labor agreement; (2) Allow contractors and subcontractors to compete for contracts and subcontracts without regard to whether they are otherwise parties to collective bargaining agreements; (3) Contain guarantees against strikes, lockouts, and similar job disruptions; (4) Set forth effective, prompt, and mutually binding procedures for resolving labor disputes arising during the term of the project labor agreement; (5) Provide other mechanisms for labor-management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health; and. DoD, GSA, and NASA do not expect this rule to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. headings within the legal text of Federal Register documents. Applicability to Contracts at or Below the Simplified Acquisition Threshold (SAT) and for Commercial Products (Including Commercially Available Off-the-Shelf (COTS) Items), or for Commercial Services. Each document posted on the site includes a link to the Alternate I New Executive Order Requires Project Labor Agreements on Large Federal the current document as it appeared on Public Inspection on Contracts other than IDIQ contracts. Document page views are updated periodically throughout the day and are cumulative counts for this document. . Agency-head responsibilities at FAR 7.103(x) pertaining to the use of PLAs are revised to reflect the change in policy consistent with other requirements of agency planners. Sec. Within 180 days of the date of the publication of proposed regulations, the Secretary of Defense, the Secretary of Labor, and the Director of OMB shall provide a report to the Assistant to the President for Economic Policy and Director of the National Economic Council on the contents of the training strategy. (c) An agency may require the use of a project labor agreement on projects where the total cost to the Federal Government is less than that for a large-scale construction project, if appropriate. FAR clause 52.222-34, Project Labor Agreement, is prescribed at FAR 22.505(a) for use in contracts for the acquisition of large-scale construction projects. 11 6 3 DCPD-202200070 - Executive Order 14063-Use of Project Labor Agreements for Federal Construction Projects. and in order to promote economy and efficiency in the administration and completion of Federal construction projects, it is hereby ordered that: Section 1 This implies one third of affected solicitations will require all offerors to provide a PLA, and two thirds of affected solicitations will only require one entity (apparent successful offeror or awardee) to provide a PLA. GSARegSec@gsa.gov. Using the BLS wage estimates for Office and Administrative Support Occupations, the mean hourly rate for submitting the PLA is estimated to be $33.21 (20.88 * 142 percent * 112 percent). Severability. [Government]. Executive Order 14065Blocking Property of Certain Persons and The Government estimates that an average of 4 offers will be submitted for each of the estimated awards, resulting in an estimated 120 to 215 respondents. On Feb. 4, President Biden signed Executive Order 14063, Use of Project Labor Agreements for Federal Construction Projects, which mandates the use of PLAs on federal construction projects of $35 million or more in value. On Friday, February 4, 2022, President Joe Biden signed Executive Order 14063 (EO 14063). Start Printed Page 51047 . However, the subcontractor must read, understand, and implement the terms and conditions included in the PLA. Effective March 31, 2019, the clause and provision previously included in 9000-0175 were consolidated under OMB Control Number 9000-0066, which covers a number of labor-related requirements. Interested parties should submit comments to the Regulatory Secretariat Division at the address shown below on or before October 18, 2022 to be considered in the formulation of a final rule. c. Removing from paragraph (c) introductory text Consistent with applicable law, the project and adding The project in its place; d. Removing from paragraph (c)(1) offeror and all and adding Offeror and in its place; e. Removing from paragraph (c)(2) offeror and adding Offeror in its place; f. Removing from paragraph (d) this contract and adding the resulting contract in its place; g. Removing from paragraph (e) offeror and adding Offeror in its place; ii. Start Printed Page 51048 Executive Order E.O. The authority citation for 48 CFR parts 1, 7, 22, 36, and 52 continues to read as follows: Authority: Taking midpoints of each range implies a primary estimate of $3,914. There is no historical data on the selection of alternatives. Submit comments, including suggestions for reducing this burden, not later than October 18, 2022 through OMB approval under the Paperwork Reduction Act. (b) Construction means construction, reconstruction, rehabilitation, modernization, alteration, conversion, extension, repair, or improvement of buildings, structures, highways, or other real property. 801-808), before an interim or final rule takes effect, DoD, GSA, and NASA will send the rule and the Submission of Federal Rules Under the Congressional Review Act form to each House of the Congress and to the Comptroller General of the United States. As used in this provision, the following terms are defined in clause 52.222-34 of this solicitation entitled Project Labor Agreement: construction, labor organization, large-scale construction project, and project labor agreement.. 1503 & 1507. O . Register (ACFR) issues a regulation granting it official legal status. (Date). It is estimated that an equivalent percentage of small entities are subcontractors as prime contractors. Once issued, the final rule will direct the FAR to be (iii) Requiring a project labor agreement on the project would otherwise be inconsistent with statutes, regulations, Executive orders, or Presidential memoranda. PDF Federal Employees - Executive Order 14043 - U.S. Office of Personnel Instructions: 14063 mandates that Federal Government agencies require the use of project labor agreements (PLAs) for large-scale Federal construction projects, where the total estimated cost to the Government is $35 million or more, unless an exception applies. Increasing the Minimum Wage for Federal Contractors This threshold will be subject to the periodic adjustment for inflation of statutory acquisition-related dollar thresholds in accordance with FAR 1.109, 41 U.S.C. (Date). Use the PDF linked in the document sidebar for the official electronic format. Submit comments in response to FAR Case 2022-003 to The act of preparing and routing an exception request is typically performed by a contract specialist customarily at the GS-12 step 5 level and is estimated to take an average of 2 hours. All comments received will be posted without change to However, an Initial Regulatory Flexibility Analysis (IRFA) has been performed and is summarized as follows: DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to implement Executive Order (E.O.) PDF FAQs on Executive Order 14063 - ABC (3) Use the clause with its Alternate II in IDIQ contracts when the agency will have project labor agreements negotiated on an order-by-order basis and one or more orders will not use a project labor agreement. The burden hour estimates for the provision at FAR 52.222-33 and the clause at FAR 52.222-34 previously included under OMB Control Number 9000-0175 are consolidated with and approved under OMB Control Number 9000-0066, Labor-related Requirements. The total estimated impact for establishing and submitting PLAs in response to a Government contract is $2.92-$10.45 million (120-215 entities *((5 If there are difficulties submitting comments, contact the GSA Regulatory Secretariat Division at 202-501-4755 or These markup elements allow the user to see how the document follows the A major rule cannot take effect until 60 days after it is published in the and follow the instructions on the site. E.O. Executive Order 14063 - Wikipedia It is not an official legal edition of the Federal of content. WHEREAS, excessive staff absenteeism among correction officers and supervising officers has contributed to a rise in unrest and disorder, and creates a . Document page views are updated periodically throughout the day and are cumulative counts for this document. On Feb. 4, President Biden signed Executive Order 14063, Use of Project Labor Agreements for Federal Construction Projects. (b)(1) If awarded the contract, the Offeror shall negotiate or become a party to a project labor agreement with one or more labor organizations for the term of the resulting construction contract.
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