WASHINGTON, D.C. – Congressman Clay Higgins (R-LA) introduced the Fair and Open Competition Act (FOCA), which would prevent the federal government from discriminating against contractors based on labor union affiliation and require neutrality on Project Labor Agreements (PLAs) in the federal procurement process. Senator Young (R-IN) has introduced companion legislation in the Senate.
The previous administration published a final rule, requiring federal agencies to require PLAs, which are collective bargaining arrangements between contractors and labor unions, for any federal construction contract that exceeds $35 million. The regulation contradicts Louisiana’s Right-to-Work protections as well as 23 other states and destroys competition among bidders, delays project completion, and increases federal construction costs for taxpayers.
This Fair and Open Competition Act:
- Preserves open competition for nonunion and union contractors to win contracts and subcontracts for federal and federally funded construction projects;
- Maintains federal neutrality on PLAs by allowing contractors and subcontractors to decide whether they want to execute a PLA voluntarily for a specific project;
- Requires the Federal Acquisition Regulation (FAR) to be revised within 60 days to implement FOCA.
“The regulatory mandate on federal construction contracts undermines free and fair competition. It is a violation of Louisiana and many other state’s Right-to-Work laws,” said Congressman Higgins. “While President Trump has already taken executive action to provide relief from the PLA mandate, our legislation codifies those protections into law. Our bill ensures fairness in the federal contracting process and prioritizes pro-growth economic policies.”
“The Fair and Open Competition Act is pro-worker legislation that will restore competition in the construction industry, protect Hoosier workers from discriminatory contracts, and lower costs for taxpayers,” said Senator Young. “Growing up with a dad who ran a small business and around family members and close friends who were union members, I appreciate what everyone brings to the table. This bill strikes the right balance to ensure various contractors can bid on these projects on their own merits.”
“ABC strongly supports the Fair and Open Competition Act, reintroduced by Sen. Todd Young, R-Ind., and Rep. Clay Higgins, R-La. This bill combats inflationary government-mandated project labor agreements and ensures federal and federally assisted contracts are awarded through a fair and competitive bidding process. Restoring merit-based competition allows all qualified contractors to compete on a level playing field based on merit, experience, quality and safety in order to deliver the best projects at the best cost.” – Kristen Swearingen, ABC Vice President of Legislative & Political Affairs.
Read the legislation here.
