The National Electrical Contractors Association (NECA) celebrates the proposed rule from the Federal Acquisition Regulation (FAR) on the Biden Administration’s Executive Order requiring Project Labor Agreements (PLAs) on federal construction projects valued at or above $35 million. PLAs have proven to be a time-tested method for ensuring that projects exceed quality construction standards, are completed on-time and under budget, and save taxpayer dollars.
NECA has long championed this issue and is pleased the Biden Administration has swiftly moved forward to craft this proposed rule. All contractors and subcontractors on construction projects will be able to compete for contracts and subcontracts without regard to whether they are otherwise parties to collective bargaining agreements; contain guarantees against strikes, lockouts, and similar job disruptions; set forth effective, prompt, and mutually binding procedures for resolving labor disputes that may arise during the project’s term; and provide other mechanisms for labor-management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health.
“President Franklin Roosevelt instituted PLAs on his New Deal infrastructure,” said Marco Giamberardino, NECA Vice President of Government and Public Affairs “Some of the resulting projects included the Shasta Dam, Hoover Dam, Kitsap Naval Base, Beaver Valley Nuclear Power Plant, LAX Airport, and countless educational institutions. Furthermore, private businesses such as Disney, the NFL, Walmart, and Toyota have all used PLAs on their signature projects. NECA is excited to translate these benchmarks to perform on a federal level for government buildings, construction, installation, maintenance, and more. The order provides a pathway for increased job opportunities that NECA contractors of all sizes are willing and able to perform at the highest level.”
NECA Government Affairs is currently analyzing the proposed rule and will issue public comments in response by the October 18 deadline.