Soliciting Comments on Potential Use of Project Labor Agreements

PLA SYNOPSIS:

The Fort Worth District Corps of Engineers is soliciting comments from the construction community addressing the potential use of Project Labor Agreements, (PLAs), for a large scale construction contract, ($25 million or greater) for the following project:

Project Description: General Repairs to Historical Building 2263

Project Location: Joint Base San Antonio (JBSA) - Fort Sam Houston, San Antonio, Texas

Summary: To renovate and make general repairs to a four story historical building at Fort Sam Houston, San Antonio, Texas.

Description of Proposed Construction: The project title is the "General Repairs to Building 2263, JBSA - Fort Sam Houston, San Antonio, Texas." The renovation will include life safety improvements; repair of stairs, handrails and egress alteration; install new fire suppression and fire alarm system; replace exterior doors and windows; abate asbestos and lead based paint; upgrade telecommunications, HVAC and electrical systems; remodel restrooms; select roof repairs; repair exterior cement plaster system and paint exterior; repair all interior finishes; and improve drainage around building to allow storm water to flow away from the building. A temporary swing space will need to be provided during this project so that missions will continue while renovation occurs. The current condition of the facility has leaks associated with original historic windows and the roof. Leaks have cause damage to interior finishes. The current HVAC system has also damaged interior finishes when pipes have leaked. The building does not currently have any fire suppression system. The impact if not provided will mean that service members and DoD employees will continue to work in a deteriorated environment. Maintenance and repair costs will continue to rise, while keeping utilities' equipment in service beyond recommended replacement dates.

DFAR 236.204 Disclosure of the magnitude of construction projects. Range of Magnitude: Between $25,000,000 and $100,000,000. Period of Performance: 390 days after date of award, estimated.

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 and is an agreement described in 29 U.S.C. 158(f).

Federal Acquisition Regulation, (FAR), Policy Subpart 22.503:

a.) Project Labor Agreement, (PLA), is a tool that agencies may use to promote economy and efficiency in Federal Procurement. Pursuant to Executive Order 13502, Agencies are encouraged to consider requiring the use of project labor agreements in connection with large-scale construction projects.

b.) An Agency may, if appropriate, require that every contractor and subcontractor engaged in construction on the project agree for that project to negotiate or become party to a project labor agreement with one or more labor organizations if the Agency decides that the use of project labor agreements will:

1.) Advance the Federal Government's interest in achieving economy and efficiency in Federal procurement, produce-labor management stability and ensure compliance with laws and regulations governing safety and health. Equal opportunity, labor and employment standards and other matters and...

2.) Be consistent with law.

Some of the factors that may be considered regarding their use are:
a.) The involvement of multiple contractors and/or subcontractors working in multiple crafts or trades.
b.) The complexity of the project.
c.) Shortage of skilled labor in the region.
d.) Completion of the project will require an extended period of time.
e.) The use of PLA's on other comparable projects.
f.) The promotion of the Governments long term programs interests such as training of skilled workforce for future projects.
g.) The possibility of labor disputes that threaten timely completion.
h.) Additional costs from use of PLAs may be cost prohibitive.

Please reference FAR Provision: 52.222-33 "Notice of Requirement for Project Labor Agreement" and FAR Clause: 52.222-34 Alternate I (May 2010) "Project Labor Agreements."

In consideration of the above factors and any others which may be deemed appropriate, the construction community is invited to comment on the use of PLA's. Of particular interest to the Government are responses to the following questions:

a.) Should PLA's be executed on this selected large dollar contract at JBSA - Lackland AFB, San Antonio, Texas? What other factors should the Corps of Engineers consider before deciding to include PLA provisions in a Fort Worth District contract? What type of project should or should not be considered for the utilization of a PLA?

b.) Is the use of PLA's effective in achieving economy and efficiency in Federal procurement? What is the estimated relative cost impact or any other economies or efficiencies derived by the Federal Government if using PLA's? Will a PLA impact the cost of submitting an offer?

c.) Is the use of PLA's effective in producing labor-management stability? Have labor disputes or other labor issues contributed to project delays in the local area?

d.) Is the use of PLA's conducive to ensuring compliance with laws and regulations governing safety and health, equal employment opportunity, labor and employment standards and other relevant matters? Are there instances where these standards have not been met on Federal contracts in the local area? Were PLA's used for those specific contracts?

e.) Projects will require multiple construction contractors and/or subcontractors employing working in multiple crafts or trades. Do you foresee any work on projects that may result in both prime contractor and at least one subcontractor or two or more subcontractors employing the same trade?

f.) Are there concerns by prime contractors on the availability of skilled construction labor? Information may reference current apprenticeship statistics and workforce age demographics.

g.) Completion of anticipated projects will require an extensive performance period. Will a PLA impact completion time? What is the anticipated volatility in the labor market for the trades required for the execution of the project? Would a PLA benefit a project which contains a unique and compelling mission-critical schedule?

h.) Where have PLA's been used on comparable projects undertaken by Federal, State, Municipal or private entities in the Lackland, San Antonio, Texas area?

i.) Will the use of PLA's impact the ability of potential Offerors and/or subcontractors to meet their Small Business utilization goals?

Note: For yes or no answers, please provide a supporting narrative.

Please provide your comments via email ONLY to: vernon.valigura@usace.army.mil.

Agency/Contracting Office:
U.S. Army Corps of Engineers, Fort Worth District ATTN: CESWF-CT (Room 2A19)
819 Taylor Street
Fort Worth, Texas 76102-0300