A bill recently passed by a House committee to prohibit agencies working on construction projects from either requiring or prohibiting the use of project labor agreements (PLA) except in specific circumstances likely would have little impact on their spending, according to a CBO analysis.
CBO was examining HR-1671, passed by the Oversight and Government Reform Committee in response to an executive order that encouraged agencies to use PLAs on construction projects exceeding $25 million.
The CBO described a PLA as a “collective bargaining agreement that applies to a specific project and is effective only for the duration of that project. Under those agreements, which generally include provisions regarding wages and fringe benefits and procedures for resolving labor disputes, workers generally agree not to strike and contractors agree not to lock out workers.”
The bill would allow contractors and unions working on construction projects that involve the expenditure of federal funds to voluntarily negotiate and execute a PLA.
CBO said it expects that the bill “would not significantly change the contracting process or the use of PLAs” and thus would not have a significant budgetary effect.
