ABC Is Still Winning the Fight Against Government-Mandated Project Labor Agreements in Federal Contracting
In 2009, President Obama signed Executive Order 13502,
which encourages federal agencies to mandate project labor agreements (PLAs) on
large-scale federal construction projects exceeding $25 million in total cost
on a case-by-case basis. Many merit shop advocates of fair and open competition
predicted it would lead to billions of dollars’ worth of federal construction
contracts being awarded to unionized contractors and their all-union
workforces—without true competition from qualified merit shop contractors.
Industry experts feared the
executive order would result in taxpayers needlessly paying nearly 20 percent more per federal contract procured with
a PLA requirement. Faced with finite building budgets, it would
generate less building and create fewer jobs for the experienced men and women
employed by merit shop contractors who deliver
projects safely, on time and on budget every day to the federal government.
Stakeholders turned to Associated Builders and Contractors (ABC)
to defend fair and open competition in federal contracting. ABC and the merit
shop contracting community mobilized an aggressive campaign of effective public
relations, political, legal and legislative strategies to restrict the
devastating impact of anti-competitive and costly government-mandated PLAs on
federal, state and local public works projects.
The campaign is producing impressive results.
Efforts helped prevent PLA mandates and preferences on nearly 99 percent
of federal contracts exceeding $25 million from FY2009-FY2013, freeing up a
total of $64.78 billion worth of work from PLA requirements so all qualified
firms can fairly compete to win these contracts.
From FY2009-FY2013, ABC
member prime contractors won 61 percent of large-scale federal contracts
subject to President Obama’s pro-PLA Executive Order 13502. That’s 577
contracts valued at a total of $40.31 billion won by ABC members.
From NRCA
Trenton H. Cotney
Florida Bar Certified Construction Lawyer
Trent Cotney, P.A.
407 N. Howard Avenue
Suite 100
Tampa, FL 33606
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