FOR PRESIDENTS MANAGEMENT COUNCIL
Guidance on Project Labor Agreement Executive Order
is directed to all Executive branch agencies that administer Federal grants
and contracts that are subject to the requirements set forth in Executive
Order 13202, Preservation of Open Competition and Government Neutrality
Towards Government Contractors Labor Relations on Federal and Federally
Funded Construction Projects (Feb. 17, 2001), as amended by Executive
Order 13208 (Apr. 6, 2001). The Executive Order establishes the Federal
Governments policy with regard to the use of Project Labor Agreements
(PLA) in Federal and Federally-funded construction projects. A PLA is
a multi-employer, multi-union pre-hire agreement that governs labor relations
at a construction site.
As you may
know, these orders have been the subject of litigation in the Federal
courts. Earlier this year, based upon guidance received from White House
Counsel and from the Department of Justice, OMB advised agencies that
administer Federal grants and contracts subject to Executive Order 13202,
as amended, that they should immediately cease implementation of the Executive
Orders requirements pending judicial resolution of that litigation.
On July 12th,
the U.S. Court of Appeals for the D.C. Circuit upheld Executive Order
13202 in its decision in Building and Construction Trades Dept,
AFL-CIO v. Allbaugh. The Justice Department and the White House Counsels
office have advised us that the D.C. Circuit has now issued its mandate
in the case, and there is no legal impediment to full implementation of
the Orders requirements as contemplated by the D.C. Circuits
agencies should resume their implementation of Executive Order 13202 and
should take all necessary steps to ensure its full implementation.
Angela Styles, Administrator, Office of Federal Procurement Policy at
(202) 395-5802, with any questions about Federal contracts. Contact Joseph
Kull, Deputy Controller, Office of Federal Financial Management at (202)
395-3993, with questions about Federal grants.
Executives Council (PEC)