ExecutiveOrdersEO
EO 14063Executive OrderBiden · D Quiet signal

Executive Order 14063

Use of Project Labor Agreements for Federal Construction Projects

This executive order requires project labor agreements (PLAs)—pre-hire collective bargaining agreements with labor unions—for federal construction projects costing $35 million or more. It revokes a prior Obama-era EO on the same topic and mandates implementing regulations, contracting officer training, and public reporting on exceptions.

Federal Register Open PDF 87 FR 7363

Impact dates

  1. Final regulations effective date (trigger for EO 13502 revocation and full applicability)

  2. Training strategy report to National Economic Council

  3. FAR Council proposed regulations

  4. Training strategy design for contracting officers

Key directives

  • Agencies shall require PLAs for construction contracts ≥$35 million
  • FAR Council to propose regulations within 120 days
  • OMB to issue guidance on exceptions and reporting
  • Training strategy design within 90 days by Defense, Labor, OMB
  • Training strategy report 180 days after proposed regulations published
  • Quarterly reporting to OMB on PLA use and exceptions
  • Public website publication of PLA data and exceptions
  • EO 13502 revoked upon final regulations effective date

Who is ordered

Timeline

Immediate

  • EO effective immediately upon signing
  • policy declaration establishes PLA presumption for large-scale projects

Near term (90d)

  • training strategy design due within 90 days (by May 5, 2022)
  • FAR Council must propose regulations within 120 days (by June 4, 2022)

Long term

  • final regulations to be issued after public comment period
  • EO 13502 revoked upon final regulations effective date
  • training strategy report due 180 days after proposed regulations published
  • ongoing quarterly reporting to OMB on PLA use and exceptions
  • public website reporting on PLA use and exceptions

Risks & tensions

  • $35 million threshold may capture significant share of federal construction; FAR Council can adjust for inflation
  • Exception process (Sec. 5) creates administrative burden and potential inconsistency across agencies
  • Vague: 'promptly issue a final rule' in Sec. 8(a) lacks calendar deadline
  • Sec. 12 'strongly encouraged' language for pending solicitations creates compliance uncertainty pre-regulation
  • May face legal challenges on competition grounds despite exception provisions
  • Construction industry split: union vs. non-union contractor competitive effects
Executive Order 14063: Use of Project Labor Agreements for Federal Construction Projects · Executive Orders