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Contract Opportunity

Title: W91278-23-R-0011, Design-Bid-Build, NASA Michoud Assembly Facility Building, New Orleans, LA.

The US Army Corps of Engineers Mobile District is soliciting Comments on the potential use of Project Labor Agreements (PLA) from the construction community for a planned large-scale construction project (exceeding $25 million). This will be a solicitation for a planned construction contract award for Fiscal Year 2023.

THIS IS A PLA SURVEY PURPOSE ONLY. THIS IS NOT A REQUEST FOR PROPOSAL, REQUEST FOR QUOTE, OR INVITATION FOR BID. THERE WILL NOT BE A SOLICITATION, SPECIFICATIONS, OR DRAWINGS AVAILABLE AT THIS TIME.

Summary:

The Michoud Assembly Facility Building will support NASA by the Design of the HVAC replacement for Building B103 at the NASA Michoud Assemble Facility. Replace existing chilled water/hot water air handling units located in the fan houses on the roof with chilled water/ hot water air rotation air handling units to be located on the floor of Building 103. Remove and replace all chilled water and hot water distribution piping and insulation. Provide new DDC controls and tie into the existing EMCS system. Seal up and abandon existing fan houses. The total estimated cost of this project is between $25,000,000.00 and $100,000,000.00.

Project Labor Agreement:

A Project Labor Agreement (PLA) is defined as a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project and is an agreement described in 29 U. S.C. 158(f). Federal Acquisition Regulation (FAR) 22.503 Policy provides that:

(a) PLAs are a tool that agencies may use to promote economy and efficiency in Federal procurement. Pursuant to Executive Order 13502, agencies are encouraged to consider requiring the use of project labor agreements in connection with large-scale construction projects.

(b) An agency may, if appropriate, require that every contractor and subcontractor engaged in construction on the project agree, for that project, to negotiate or become a party to a project labor agreement with one or more labor organizations if the agency decides that the use of project labor agreements will:

(1) Advance the Federal Governments interest in achieving economy and efficiency in Federal procurement, producing labor-management stability, and ensuring compliance with laws and regulations governing safety and health, equal employment opportunity, labor and employment standards, and other matters; and

(2) Be consistent with law. Reference: Provision: 52.222-33 Notice of Requirement for Project Labor Agreement Clause 52.222-34 Project Labor Agreement. Some of the factors that may be considered regarding their use are:

a.) The involvement of multiple contractors and/or subcontractors working in multiple crafts or trades.

b.) The complexity of the project.

c.) Shortage of skilled labor in the region.

d.) Completion of the project will require an extended period of time.

e.) The use of PLA's on other comparable projects.

f.) The promotion of the Governments long term programs interests such as training of skilled workforce for future projects.

g.) The possibility of labor disputes that threaten timely completion.

h.) Additional costs from use of PLAs may be cost prohibitive.

In consideration of the above factors, and any others which may be deemed appropriate, the construction community is invited to comment on the potential use of PLAs for the aforementioned project. Of particular interest to the Government are responses to the following questions:

a. Should PLAs be executed on selected large dollar contracts within the above referenced location by the Mobile District? What other factors should the Corps consider before deciding to include PLA provisions in any resultant solicitation and contract? What type of project should or should not be considered for use of a PLA?

b. Is the use of PLAs effective in achieving economy and efficiency in Federal procurement? What is the estimated relative cost impact, or any other economies or efficiencies derived by the Federal Government, if using PLAs? Will a PLA impact the cost of submitting an offer?

c. Is the use of PLAs effective in producing labor-management stability? Have labor disputes or other labor issues contributed to project delays in the local area?

d. Is the use of PLAs conducive to ensuring compliance with laws and regulations governing safety and health, equal employment opportunity, labor and employment standards, and other relevant matters? Are there instances where these standards have not been met on Federal contracts in the local area? Were PLAs used for those specific contracts?

e. Projects will require multiple construction contractors and/or subcontractors employing workers in multiple crafts or trades. Do you foresee any work on projects that may result in both the prime contractor and at least one subcontractor, or two or more subcontractors, employing the same trade?

f. Are there concerns by prime contractors on the availability of skilled construction labor? Information may reference current apprenticeship statistics and workforce age demographics.

g. Completion of anticipated projects will require extensive performance periods greater than one year. Will a PLA impact the completion time? What is the anticipated volatility in the labor market for the trades required for the execution of the project? Would a PLA benefit a project which contains a unique and compelling mission critical schedule?

h. Where have PLAs been used on comparable projects undertaken by Federal, State, municipal, or private entities in the geographic area of this project?

i. Will the use of PLAs impact the ability of potential Offerors and subcontractors to meet small-business utilization goals?

Please provide Reply in attention to:

W91278-23-R-0011, NASA Michoud Assembly Facility Building New Orleans, LA

Eric Hurtado at Eric.J.Hurtado@usace.army.mil

Jennifer Suit at Jennifer.H.Sui@usace.army.mil

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