Associated Builders and Contractors (ABC) has applauded the U.S. House of Representatives Committee on Oversight and Accountability's passage of the Fair and Open Competition Act, H.R. 1209. FOCA would protect federal and federally assisted construction contracts from anti-competitive and inflationary government-mandated project labor agreements and allow merit shop contractors and their skilled employees to have a fair chance at competing to win government contracts to build taxpayer-funded construction projects.
"FOCA would ensure that all of America's workers and qualified contractors are provided the opportunity to compete to build long-lasting, quality projects at the best price for hardworking taxpayers," said Kristen Swearingen, ABC vice president of legislative & political affairs. "PLA mandates discourage experienced contractors and the 88.3% of the U.S. private construction workforce that chooses not to join a union from competing to win taxpayer-funded contracts to rebuild America's infrastructure."
Federal government policies promoting and mandating PLAs on federal and federally assisted contracts will needlessly increase construction costs by 12% to 20% , resulting in fewer infrastructure projects and jobs created by federal investment in America's roads, bridges, schools and water and energy infrastructure. President Joe Biden's February 2022 Executive Order 14063 requires federal general contractors and subcontractors to enter into a PLA as a condition of winning a contract to perform services on a federal construction project worth $35 million or more.
ABC submitted more than 40 pages of comments to the Federal Acquisition Regulatory Council calling on the Biden administration to withdraw a controversial proposed rule codifying EO 14063, which is expected to be issued later this year. In addition, ABC has identified a significant number of Biden administration federal agency grants––totalling more than $250 billion for infrastructure projects procured by state and local governments––subject to language and policies promoting PLA mandates and preferences that will increase costs and reduce competition on federally assisted construction projects.
Ahead of the committee vote on Wednesday, 12 July 2023, ABC sent a letter to the committee and led a coalition letter signed by a coalition of 26 construction and business organisations in support of FOCA.
FOCA (H.R. 1209/S. 537) was introduced by Oversight and Accountability Chairman James Comer, R-Ky., and Sen. Todd Young, R-Ind.
