FAR Class Deviation 25-02 Waiver of PLA Requirements.pdf
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- Solicitation number
- 20312361
About this file
This document is a Department of Homeland Security memorandum issuing a class deviation to waive project labor agreement (PLA) requirements for large-scale construction projects. The deviation stems from a U.S. Court of Federal Claims ruling on January 19, 2025, which found that the FAR provisions requiring PLAs on federal construction projects valued at $35 million or more violated the Competition in Contracting Act. As a result, contracting officers are instructed to immediately stop using project labor agreements and amend open solicitations to remove any PLA-related requirements, provisions, and contract clauses. The class deviation will remain in effect until rescinded, and questions can be directed to Ben.Shih@hq.dhs.gov.
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U.S. Department of Homeland Security Washington, DC 20528
MEMORANDUM FOR: Heads of the Contracting Activities
FROM: Paul Courtney Chief Procurement Officer
SUBJECT: Waiver of Project Labor Agreement Requirements
Purpose: This class deviation is intended to waive the requirement to use project labor agreements for large-scale construction projects, implemented at FAR subpart 22.5 and 36.104(c) and is issued in accordance with Federal Acquisition Regulation (FAR) 1.404(a)(1).
Effective Date: Immediately.
Background: On February 4, 2022, Executive Order (E.O.) 14063, Use of Project Labor Agreements for Federal Construction Projects, requiring Project Labor Agreements (PLAs) on large-scale construction contracts unless an exception applies. A large-scale construction project is a Federal construction project within the United States for which the total estimated cost of construction contract to the Federal Government is $35 million or more. FAC 2024-02 was published in the Federal Register on Friday, December 22, 2023, and included the final rule for FAR case 2022-003, Use of Project Labor Agreement for Federal Construction Projects, which became effective as FAR Subpart 22.5 on January 22, 2024. On January 19, 2025, the U.S. Court of Federal Claims (COFC) ruled in MVL USA, Inc. et al v. United States (1:24-cv-01057) that the provision and clause of FAR 22.505 (52.222-33 and 52.222-34), which required the use of project labor agreements on large-scale federal construction projects valued above or at a certain threshold, violated the Competition in Contracting Act.
Requirement: Contracting officers shall not use project labor agreements for large-scale construction projects, implemented at FAR subpart 22.5 and 36.104(c). Contracting officers shall amend open solicitations to remove project labor agreement requirements, including any solicitation provisions and contract clauses prescribed at FAR 22.505.
Applicability: This class deviation is applicable to all solicitations (see the definition of solicitation at FAR 2.101).
Expiration: This class deviation will remain in effect until rescinded.
Additional Information: The COFC opinion can be read at https://ecf.cofc.uscourts.gov/cgi-bin/show_public_doc?2024cv1057-97-0
Questions or comments about this class deviation may be directed to Ben.Shih@hq.dhs.gov.
https://ecf.cofc.uscourts.gov/cgi-bin/show_public_doc?2024cv1057-97-0 https://ecf.cofc.uscourts.gov/cgi-bin/show_public_doc?2024cv1057-97-0 mailto:Ben.Shih@hq.dhs.gov
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