SBA Office of Advocacy
Virtual Roundtable on
the FAR Council’s Proposed Rule Requiring Project Labor Agreements
Thursday, September 29, 2022, 1-2:00pm (Eastern Time)
Via Teams Webinar
Dear Small Business Stakeholders:
The Office of Advocacy will host a roundtable to discuss the Federal Acquisition Regulatory Council’s proposed rule that would require federal contractors and their subcontractors to enter into project labor agreements (PLAs) for Federal construction projects where the total estimated cost is $35 million or more. This virtual roundtable will take place on Thursday, September 29, 2022, from 1-2 p.m. (ET).
RSVPs should be sent to Janis.Reyes@sba.gov. The purpose of the roundtable is to gather specific small entity input on the proposed rule.
Roundtable participation details will be provided upon receipt of RSVP.
Presentations made during this roundtable will not substitute for written comments directly from interested parties to the FAR Council. Advocacy strongly encourages small entities to provide both oral presentations during the roundtable, and written comments to the rulemaking docket. Written comments on this proposed rule are due on October 18, 2022.
Roundtable meetings are open to all interested persons, except the press, in order to facilitate an open and frank discussion about issues of interest to small business. Agendas and meeting materials are available to all, including the press. Anyone who would like to receive roundtable agendas or meeting materials, or be included in the regular distribution, should contact: Janis.Reyes@sba.gov. The purpose of this meeting is to exchange opinions, facts, and information and to obtain the attendees’ individual views and opinions regarding regulatory and policy issues affecting small business. The meetings are not intended to communicate or achieve any consensus positions of the attendees.
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FAR Council Proposes Rule to Require Project Labor Agreements for Federal Construction Projects
On August 19, 2022, the Federal Acquisition Regulatory Council (FAR Council) proposed a rule to amend the Federal Acquisition Regulations (FARs) to require that federal contractors and their subcontractors enter into project labor agreements (PLAs) for large-scale Federal construction projects, where the total estimated cost to the Government is $35 million or more. A PLA is defined as a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project. The rule implements E.O. 14063, the Use of Project Labor Agreements for Federal Construction Projects, which increased the threshold from $25 million to $35 million dollars. The FAR Council estimates there will be approximately 120-215 entities that will be required to submit a PLA, and 24-43 of these entities are small entities. The FAR Council also estimates that each of these prime contractors has approximately 2 subcontractors that may be subject to these PLAs; 48-86 of these subcontractors are considered small entities. The FAR Council does not have compliance cost estimates in the Initial Regulatory Flexibility Analysis. Advocacy seeks feedback on the numbers of small entities affected by this rule, compliance cost estimates and any regulatory alternatives that may minimize these costs.
Written comments on this proposed rule are due on October 18, 2022.
- Read and submit comments on proposed rule in the Federal Register.
- Advocacy contact: Major Clark at Major.Clark@sba.gov or
Janis Reyes at Janis.Reyes@sba.gov
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