United States.- This Friday, President Joe Biden will sign an Executive Order to improve punctuality, reduce costs and increase quality in federal construction projects, the White House reported.
Federal construction projects span the country, from maintaining nuclear sites to building bases, waterways, and flood projects.
By requiring the use of project labor agreements (PLAs) on federal construction projects over $35 million, the order will help alleviate management and coordination challenges that can impede progress on major construction projects. .
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This helps projects get completed on time and helps the government get the best value for taxpayer dollars.
Based on fiscal year 2021 figures, this Order could affect $262 billion in federal government construction contracts and improve the quality of work for the nearly 200,000 workers on federal construction contracts.
Additionally, the President’s Executive Order directs the Departments of Defense and Labor, along with the Office of Budget Management, to lead a training strategy for the nearly 40,000-strong contracting workforce on implementing the this order.
This Executive Order is just one of many steps the Biden-Harris Administration is taking to improve the efficiency of federal procurement.
Since taking office, the President has followed through on his commitments to strengthen Buy American’s rules and ensure a reliable supply of quality, experienced workers for federal service contracts.
Beginning January 30, federal contractors on new or extended contracts must pay a minimum wage of $15/hour, as mandated by the President in Executive Order 14026.
This new Executive Order, while only applying to federal acquisitions, advances the Administration’s commitment to rebuilding the nation’s infrastructure, on time and at a reasonable cost.
The order will only apply to provisions of the Bipartisan Infrastructure Act that are direct federal acquisitions, which excludes construction projects funded through grants to non-federal entities.
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The Executive Order will benefit taxpayers, contractors, and workers by:
- Alleviate coordination challenges on large and complex projects.
- Raise quality standards for contractors bidding on federal projects.
- Reduce uncertainty in the hiring process.
- Increase training of the federal contracting workforce.
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