EO 13502Executive OrderObama · D

Executive Order 13502

Use of Project Labor Agreements for Federal Construction Projects

In simple terms

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.

Record & deadlines

  1. Signed

    Signed by the President

  2. FR published

    Published in the Federal Register · 74 FR 6985

  3. OMB Director provides President recommendations on broader PLA use

  4. 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

Prior policyRollback

  • revokeExecutive Order 13202
  • revokeExecutive Order 13208
  • revokeorders, rules, or regulations implementing Executive Orders 13202 and 13208

Related orders

What to expect

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