Preservation of Open Competition and Government Neutrality Towards Government Contractors'Labor Relations on Federal and Federally Funded Construction Projects

This executive order prohibits federal agencies from requiring or prohibiting project labor agreements (PLAs) on federal and federally funded construction projects, effectively banning mandatory PLAs while allowing voluntary ones. It revokes the Clinton-era policy encouraging PLAs on federal projects and directs regulatory changes within 60 days.

Federal Register Open PDF 66 FR 11225

Impact dates

Date TBD
Agency heads revoke orders/rules implementing prior PLA policies
Apr 18, 2001
Federal Acquisition Regulatory Council amends FAR to implement EO provisions

Key directives

Prohibit federal agencies from requiring or prohibiting labor organization agreements in construction contract bid specifications (Sec. 1)
Extend prohibition to grant recipients and cooperative agreement parties (Sec. 3)
Require agency action against violators (Sec. 4)
Allow exemptions only for public health/safety or national security, not labor disputes (Sec. 5)
Revoke EO 12836 and 1997 Memorandum on project labor agreements (Sec. 8-9)
Direct agency heads to revoke implementing orders/rules expeditiously (Sec. 10)
FAR Council to amend Federal Acquisition Regulation within 60 days (Sec. 7)

Who is ordered

Timeline

Immediate

EO takes effect for contracts awarded after February 17, 2001
Revocation of Clinton Memorandum and EO 12836 regarding project agreements

Near term (90d)

Federal Acquisition Regulatory Council must amend FAR within 60 days
Agency heads must revoke implementing orders/rules for prior policies

Long term

Ongoing prohibition on mandatory PLAs in federal and federally funded construction
Potential shifts in contractor bidding behavior and labor relations in federal construction sector

Risks & tensions

Labor unions likely to oppose as weakening collective bargaining leverage on federal projects
Small/disadvantaged businesses may benefit from reduced barriers to entry
Exemption criteria (Sec. 5) narrow—explicitly excludes labor dispute situations, limiting agency flexibility
Sec. 11 disclaimer limits judicial enforcement, creating uncertainty about private remedies
Voluntary agreements still permitted (Sec. 1(c)), creating potential gray area for coercive vs. voluntary distinctions
Pre-existing contracts exempt (Sec. 2), creating two-tier system temporarily