ExecutiveOrdersEO
EO 13502Executive OrderObama · D

Executive Order 13502

Use of Project Labor Agreements for Federal Construction Projects

This executive order encourages federal agencies to consider requiring Project Labor Agreements (PLAs)—pre-hire collective bargaining agreements with labor unions—for large-scale federal construction projects costing $25 million or more. It revokes two Bush-era executive orders that had restricted PLA requirements, and mandates regulatory implementation within 120 days and a broader policy review within 180 days.

Federal Register Open PDF 74 FR 6985

Impact dates

  1. OMB Director provides President recommendations on broader PLA use

  2. FAR Council amends Federal Acquisition Regulation to implement EO provisions

Key directives

  • Encourage agencies to require PLAs for large-scale construction projects ($25M+) on project-by-project basis
  • PLAs must bind all contractors/subcontractors, allow competition regardless of existing collective bargaining status, guarantee against strikes/lockouts, provide dispute resolution, and conform to all laws
  • FAR Council must amend Federal Acquisition Regulation within 120 days
  • OMB Director must provide recommendations on broader PLA use within 180 days
  • Revoke EO 13202 and EO 13208 and their implementing rules expeditiously

Who is ordered

Timeline

Immediate

  • EO effective immediately
  • EO 13202 and EO 13208 revoked
  • Agency heads must expeditiously revoke implementing rules for prior EOs

Near term (90d)

  • FAR Council must amend Federal Acquisition Regulation within 120 days
  • OMB Director must provide recommendations to President within 180 days

Long term

  • PLA requirements apply to all solicitations issued on or after FAR Council implementation date
  • Potential broader PLA policy changes based on OMB recommendations

Risks & tensions

  • Non-mandatory language ('may require,' 'encourage') creates uncertainty about actual adoption rates across agencies
  • PLA preference may disadvantage non-union contractors; Section 4(b) attempts to mitigate by preserving competitive access
  • Revocation of Bush-era EOs signals partisan labor policy reversal, though text frames rationale as procurement efficiency
  • Vague 'economy and efficiency' standard for PLA determination leaves substantial agency discretion
  • Section 5 explicitly excludes federal financial assistance projects from PLA encouragement, limiting scope
Executive Order 13502: Use of Project Labor Agreements for Federal Construction Projects · Executive Orders