FAR 22.5—Subpart 22.5

Scope of subpart.

FAR 22.501 is the scope statement for Subpart 22.5, and it tells readers what this subpart is about: implementing Executive Order 14063, Use of Project Labor Agreements for Federal Construction Projects, for covered federal construction acquisitions. In practical terms, it establishes that the subpart contains the policies and procedures agencies and contracting officers must follow when deciding whether and how to use project labor agreements on federal construction projects. The section does not itself set out the detailed PLA requirements; instead, it identifies the legal and policy basis for the subpart and signals that the rules apply to federal construction work covered by the Executive Order. For contractors, this means the subpart is the gateway to understanding when a solicitation or contract may require a PLA, what labor-related terms may be imposed, and how those requirements fit into federal construction procurement. For contracting officers and agencies, it serves as the authority statement that the subpart is intended to operationalize the Executive Order in day-to-day acquisition planning and contract administration.

Definitions.

FAR 22.502 is the definitions section for Subpart 22.5, which governs project labor agreements on federal construction projects. It defines four core terms that control when the subpart applies and how it operates: "construction," "labor organization," "large-scale construction project," and "project labor agreement." These definitions matter because they determine whether a project falls within the subpart’s scope, whether a labor organization qualifies for purposes of the rule, whether the project meets the dollar threshold for special treatment, and what kind of agreement counts as a project labor agreement. In practice, contracting officers use these definitions to decide whether to consider, require, or evaluate a PLA strategy on a federal construction acquisition, while contractors use them to assess labor strategy, pricing, and compliance obligations. Because the definitions are tied to both federal procurement policy and labor-law concepts, they also help avoid misclassification of projects and agreements that could lead to solicitation errors, bid protests, or performance disputes.

Policy.

FAR 22.503 states the Government’s policy on when agencies must or may require project labor agreements (PLAs) for Federal construction work. It implements Executive Order 14063 and explains the core rule for large-scale construction projects: agencies must require PLAs for contractors and subcontractors performing construction unless a regulatory exception applies. The section also gives agencies discretion to require PLAs on smaller construction projects when doing so would advance economy and efficiency, labor-management stability, and compliance with labor, safety, health, equal employment opportunity, and related laws. It identifies the factors agencies may consider when deciding whether a PLA is appropriate on a non-large-scale project, including project complexity, labor shortages, duration, prior use of PLAs, and long-term program needs. Finally, it addresses IDIQ contracts by allowing PLA requirements to be imposed at the order level rather than for the entire contract, and it establishes a mandatory PLA rule for orders at or above $35 million unless an exception applies. In practice, this section determines when PLA planning must occur, how solicitation and contract requirements are structured, and when contractors and subcontractors must be prepared to negotiate or join a PLA before performing construction work.

General requirements for project labor agreements.

FAR 22.504 explains the core content and limits of project labor agreements (PLAs) used on covered federal construction projects. It addresses the basic legal requirement that PLAs must conform to applicable statutes, regulations, and Executive orders; the mandatory terms a PLA must include; the rule that agencies cannot force contractors to sign with a particular labor organization; and the circumstances under which the senior procurement executive may grant an exception from the PLA requirement in FAR 22.503(b). It also covers the factors used to decide whether a PLA would not advance economy and efficiency, when market research shows competition would be harmed, and when a PLA would conflict with other legal authorities. In practice, this section is important because it determines whether a PLA must be included in a solicitation or order, what terms the agreement must contain, and how agencies document and time any exception. For contractors, it affects bidding strategy, labor planning, and subcontracting arrangements; for contracting officers, it drives acquisition planning, market research, and the timing of solicitation actions.

Solicitation provision and contract clause.

FAR 22.505 tells contracting officers exactly when and how to use the solicitation provision and contract clause for project labor agreements (PLAs) on construction projects. It covers the base provision at FAR 52.222-33, Notice of Requirement for Project Labor Agreement, and the base clause at FAR 52.222-34, Project Labor Agreement, along with the required alternates for different acquisition approaches. The section addresses when the agency requires a PLA from only the apparent successful offeror before award, when a PLA may be submitted after award, and when a PLA is handled on an order-by-order basis in IDIQ contracts. It also ties the correct provision/clause version to the agency’s chosen PLA strategy, including situations where Alternate III of the provision is used and where Alternate II of the clause applies. In practice, this section exists to ensure the solicitation and contract language match the agency’s PLA requirements so offerors know the rules up front and the government can enforce the PLA requirement consistently. For contractors, it signals when a PLA must be prepared, when it may be negotiated later, and whether the requirement applies at the base contract level or at the order level.