Use of Project Labor Agreements for Federal Construction Projects
The order requires federal agencies to use project labor agreements — pre-hire collective bargaining deals that set employment terms and ban strikes — on all construction contracts of $35 million or more, making them the default for large-scale federal construction work.
Establishes a binding presumption in favor of these agreements across the executive branch, with a narrow exception process and public reporting requirements, directly reversing a prior executive order on the same subject.
What this order does
What it orders
The order directs federal agencies to require every contractor and subcontractor on a large-scale construction project — defined as a federal contract of $35 million or more — to negotiate or become party to a project labor agreement (PLA) before work begins. Each such agreement must bind all contractors and subcontractors, prohibit strikes and lockouts, include binding dispute-resolution procedures, and fully comply with existing law. The FAR Council must propose implementing regulations within 120 days, and OMB must issue guidance on exceptions and reporting. Agencies must publish PLA usage data on a public website and report quarterly to OMB.
Senior agency officials may grant written exceptions before a solicitation date if a project is short, involves only one trade, requires specialized contractors in limited supply, faces unusual urgency, or if requiring a PLA would substantially reduce bidders or conflict with law. The order applies to solicitations issued on or after the effective date of the FAR Council's final rule; agencies are strongly encouraged to comply voluntarily before that date.
Who it affects
Federal executive agencies awarding construction contracts of $35 million or more; contractors and subcontractors bidding on or performing those contracts, whether or not they are already party to collective bargaining agreements; labor organizations representing construction workers on federal projects; and small businesses in the federal construction market.
Why it matters
Contractors and subcontractors bidding on large federal construction jobs must factor PLA obligations into every bid, affecting labor costs and union negotiations. Nonunion firms can still compete but must agree to PLA terms for the duration of each project. Workers on covered projects gain guaranteed dispute-resolution rights and strike/lockout protections.
What must happen and when
How the order is supposed to work
The FAR Council proposes regulations within 120 days; after a public comment period, a final rule takes effect and triggers the order's mandatory application. Until the final rule, agencies are urged to comply voluntarily. Exception authority rests with a senior agency official who must produce a written justification before the solicitation date — no retroactive waivers. Agencies report PLA usage and exceptions to OMB quarterly and post data publicly. A training strategy for contracting officers must be designed within 90 days and a report delivered within 180 days of proposed-rule publication. The prior PLA order (EO 13502) is revoked upon the final rule's effective date.
Actions and deadlines
- FAR Council proposes regulations implementing project labor agreement requirements
- Secretary of Defense, Secretary of Labor, and OMB Director coordinate to design a contracting officer training strategy
- OMB Director issues guidance implementing exception and reporting requirements under sections 5 and 6
- FAR Council issues final rule on project labor agreement requirements after public comment period
- Secretary of Defense, Secretary of Labor, and OMB Director report on training strategy contents to the Assistant to the President for Economic Policy
- Agencies publish project labor agreement usage data and exception descriptions on a centralized public website
- Agencies report quarterly to OMB on PLA use and exceptions granted
Agencies directed to act
Authority and reach
What this order changes
Revokes Executive Order 13502