Executive Order 14063: Use of Project Labor Agreements for Federal Construction Projects

President: Joseph R. Biden Jr.

Required agencies, with stated exceptions, to use project labor agreements on direct federal construction projects estimated at $35 million or more.

Status: In effect. Is Executive Order 14063 still in effect? Yes. Executive Order 14063 remains in effect. GSA’s June 18, 2026 acquisition letter expressly confirms that it continues to apply, with project-specific cost and competition procedures rather than blanket exclusions.

Construction workers and a supervisor examine plans beside cranes and an unfinished building.
Federal construction labor agreements, illustrated symbolically; not a particular project, union agreement or determination that every contract is covered. EO Explained · site-generated editorial illustration · not documentary evidence.

What does Executive Order 14063 do?

Biden required project labor agreements for large-scale federal construction projects, subject to specified exceptions. The original threshold was a federal construction contract estimated at $35 million or more within the United States. A project labor agreement is a pre-hire collective-bargaining agreement for the particular project, setting employment terms across participating contractors and subcontractors. The order’s stated rationale was preventing work stoppages and coordinating multiple employers on complex construction sites. Signed text.

Agreements had to allow contractors to compete whether or not they were otherwise unionized, include guarantees against strikes and lockouts, provide prompt binding dispute resolution and include labor-management cooperation. The president did not direct use of one particular labor organization or require every contractor to become unionized across its unrelated business. The mandate attached to the covered project through solicitation and contract provisions. Signed text.

Senior agency officials could authorize a documented exception by the solicitation date. Grounds included economy-and-efficiency factors, a market analysis showing substantially reduced competition, and inconsistency with controlling law. Short duration, a single trade, specialized contractors or unusual urgency could inform the analysis; they were not an automatic exemption for every project described that way. The FAR Council had to implement the framework through regulations, and applicability to solicitations was tied to the final rule’s effective date. Signed text.

Administration position: The order’s findings and policy rationale were the Biden administration’s positions. This guide distinguishes them from implementation records and judicial rulings.
SignedFebruary 4, 2022
Lead officialsFAR Council and federal construction agencies
Express timingFAR rulemaking; final rule effective January 22, 2024

Before and after

Before the order

Obama’s EO 13502 encouraged project labor agreements but did not establish this general mandatory presumption for covered projects. EO 14063 replaced that policy once its implementing regulations became effective. It raised the original large-project threshold from the earlier $25 million framework to $35 million and required documented agency exceptions rather than an unrestricted choice to ignore the presumption. Signed text.

After the order

The FAR final rule was published December 22, 2023, and became effective January 22, 2024. Implementation subsequently faced disputes about competition and project-specific justification. The current official GSA letter, issued June 18, 2026, states that EO 14063 remains effective and describes paired PLA/non-PLA proposals, a defined price preference and best-value comparison. That agency flexibility does not constitute revocation of the executive order or a universal statutory exemption. Official follow-up record 1. Official follow-up record 2.

Who had to do what

Agency / officeActionTiming / position
Federal construction agencies / senior agency officialsRequire covered contractors and subcontractors to agree to negotiate or join a project agreement; document any exception and publish use/exception data.Exceptions by solicitation date; quarterly reports to OMB under the original order.
Federal Acquisition Regulatory CouncilPropose implementing regulations, consider comments and issue a final rule; may adjust the threshold for inflation with CEA consultation.Proposed regulations within 120 days; final rule promptly after consideration of comments.
OMB DirectorIssue exception and reporting guidance; coordinate contracting-officer training with Defense and Labor.Training strategy within 90 days; report within 180 days after proposed-rule publication.
Defense SecretaryCoordinate training to enable contracting officers to apply the PLA requirements and exceptions.Strategy within 90 days; subsequent report on the specified schedule.
Labor SecretaryCoordinate contracting-officer training and the report on its content.Strategy within 90 days; report within 180 days after the proposed regulations.
National Economic Council DirectorReceive the training-strategy report from Defense, Labor and OMB.Within 180 days after proposed-rule publication.
Council of Economic AdvisersConsult with the FAR Council on any inflation adjustment to the large-project threshold.When an adjustment is considered.

What happened next

Biden signed EO 14063. Official source

The FAR Council published the implementing final rule. Official source

The final rule became effective, activating mandatory coverage for new solicitations. Official source

GSA issued updated project-specific procedures and expressly confirmed the order remains effective. Official source