GCA Construction News Bulletin March 2025 by Guam Contrators Association

LEADERS OF EXCELLENCE

hawthornecat.com

MARCH

THEDIRECTORS THEEDITORIALS

INTERIM PRESIDENT

Desiree Lizama

Guam Contractors’ Association

PAST CHAIRMAN

Joe Roberto East Island Tinting

CHAIRMAN

Matthew Hunter

Dylan Mechanical Construction Services

VICE CHAIRMAN

Kathleen David Pacific Rim Constructors

SECRETARY/TREASURER

Soraya Vongjalorn Vertex Guam

CONTRACTOR DIRECTORS:

Dean Bates Black Construction Corporation

Alan Bell SmithBridge Guam

AJ Perez Hawaiian Rock Products

Brian Holm Hensel Phelps

Randolf Salas Proferre

ASSOCIATE DIRECTORS:

Mark Cruz Mid Pac Far East

Jose Garcia First Hawaiian Bank

Camilo Lorenzo Matson Navigation

Geri Leon Guerrero Adztech Advertising and PR

Guam Contractor’s Association (GCA) in conjunction with Adztech and Public Relations, Inc. publishes the Construction News Bulletin (CNB) monthly. Reproduction of materials appearing in this publication is strictly forbidden without written permission by GCA.

While we always strive for accuracy, we will from time to time overlook mistakes. In order to help us improve the quality and accuracy of this publication, we ask that you take the time to look at the information provided and notify GCA or Adztech of any corrections as needed. Opinions and editorial content of this publication may not necessarily be those of the publisher, production team, staff, GCA members, GCA Board of Directors and advertisers.

For more information about advertising in the GCA Construction News Bulletin contact the advertising department at (671) 477-1239/2239 or email at adztech@teleguam.net.

Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 506 Mariner Ave., Barrigada, Guam 96913

To find out more about how you can become a GCA member contact Guam Contractors’ Association at Tel: (671) 647-4840/41 Fax: (671) 647-4866 or Email: info@guamcontractors.org www.guamcontractors.org

Postmaster: Send address changes to Guam Contractors’ Association, located at 506 Mariner Ave., Barrigada, Guam 96913

THETEAM

PUBLISHER:

Desiree Lizama

PRODUCTION TEAM

LEAD: Geri Leon Guerrero

AD SALES: Alyssa Roces

Josephine Hagen

PRODUCTION: Jason Davis

Alyssa Roces

Christopher “Taco” Rowland

PHOTOGRAPHY: Alyssa Roces ABC

EDITOR: Adztech

CONTRIBUTING WRITERS:

Desiree Lizama

Francine Taitague

Rodney “RJ” Ricarte

Myracle S. Mugol

Patricia “Patti” L. Diego

GCA STAFF:

Francine Taitague

Trevor Cruz

Rosielyn Holgado

Peter Finona

COVER: Congratulations to all the winners of the ABC EIC Awards!

COMPLIANCE MATTERS

ATTENTION ALL DEVELOPERS, CONTRACTORS, AND INDUSTRY PROFESSIONALS:

Guam’s commitment to safeguarding its natural resources has taken a major step forward. Guam Public Law 37-105, new wastewater discharge regulations are in e ect and must be followed for all applicable projects.

KEY REQUIREMENTS UNDER THE LAW

Where water is available from a public water system as de ned by 10 GCA, Chapter 53, § 53102, but a public sewer is not available, toilet facilities shall be of Type 2 or 4 pursuant to regulations promulgated by GEPA. In no case shall the construction of new cesspools be allowed.

UPDATED ENVIRONMENTAL CLEARANCE PROCESS:

The Guam Environmental Protection Agency (EPA) will now enforce strict environmental clearance requirements for building permits issued by the Department of Public Works. Clearances will align with the provisions of Public Law 37-105.

EFFECTIVE IMMEDIATELY! These changes are now in force — compliance is non-negotiable.

WHY THIS MATTERS

Protect Guam’s Drinking Water:

The Northern Guam Water Lens is essential to the island’s water supply—proper wastewater management is vital to preserving its quality.

Avoid Costly Delays or Penalties: Ensure your projects meet the latest regulatory standards to prevent issues during permitting or construction.

Build Responsibly for the Future: Incorporate sustainable wastewater solutions to support Guam’s long-term environmental health and resilience.

PRESIDENT’S

BUILDING CONNECTIONS AT ABC'S 75TH ANNIVERSARY CONVENTION

I recently had the privilege of representing our organization at the 2025 Associated Builders and Contractors National Convention in Las Vegas. This year marked ABC's 75th anniversary celebration, making it an especially significant gathering for industry professionals across the nation.

One of the primary highlights of my trip was participating in the Pacific Region group meetings, which brought together chapter presidents and board members from throughout our region. These sessions emphasized the importance of member engagement and retention, particularly encouraging members to pursue valuable designations like the Safety Training Evaluation Process (STEP) and Accredited Quality Contractors (AQC) certifications. The discussions reinforced how crucial it is for our members to take full advantage of the programs our chapter offers to enhance their professional development and business operations.

The Excellence in Construction awards ceremony was another standout moment of the convention. I'm proud to report that Guam was well-represented among the national winners! Our 2024 local chapter overall winner, Global Pacific Design Builders, received the prestigious Eagle Award in the renovation category for projects between $20-100 million. Additionally, several Guam companies were recognized for their commitment to safety, with Core Tech International, Black Construction, and Pacific Federal Management all receiving National Safety Excellence awards. Most impressively, Pacific Rim Constructors earned the Pinnacle award—the highest honor for safety excellence in construction.

Perhaps most exciting for our future initiatives was learning about the National Craft Competition. This program allows apprentices and students to compete in various trades including electrical, plumbing, HVAC, carpentry, and more. I'm thrilled to share that GCA is planning to introduce this competition locally by the end of this year, focusing initially on electrical and HVAC trades, where we have our strongest apprenticeship participation. This will give our Guam apprentices the opportunity to showcase their skills locally and potentially advance to compete at the national level next March.

The convention also offered numerous educational seminars covering topics from accounting practices to emerging technologies, including fascinating developments in AI applications for our industry. Next year's convention will be held in Salt Lake City, Utah. I strongly encourage more of our members to attend and take advantage of these valuable networking and learning opportunities.

As we continue strengthening our affiliate relationship with ABC National, I'm excited about implementing these new initiatives and bringing more national recognition to the exceptional work being done by Guam's contractors.

Desiree Lizama Interim President Guam Contractors Association

APPRENTICESHIP

By Francine Taitague Education Director Guam Contractors Association

BUILDING A STRONGER INDUSTRY THROUGH WOMEN IN CONSTRUCTION

Construction companies with diverse teams benefit from a wider range of perspectives, innovative problem-solving approaches, and broader customer appeal. Yet women represent only about 10% of the construction workforce in the United States. This disparity presents a significant opportunity for companies looking to strengthen their teams and gain a competitive edge. By actively recruiting women, construction firms can tap into an underutilized talent pool and bring fresh ideas to the table.

Apprenticeship: The Gateway to Success

Apprenticeship programs serve as critical entry points to construction careers, offering hands-on training from experienced professionals while providing a structured career path. For women especially, these programs offer a valuable pathway into the industry, equipping them with essential skills and confidence. Through apprenticeships, women can overcome traditional barriers and establish themselves in rewarding construction careers.

The structured nature of these programs creates a supportive environment where skills development is prioritized and mentorship opportunities abound. This systematic approach to training helps ensure that all participants—regardless of gender—receive the guidance needed to succeed in technical roles. For companies, apprenticeships represent an investment in future talent that pays dividends through increased loyalty and specialized expertise.

Local Female Leaders Paving the Way

Across Guam, women are already demonstrating leadership in various construction specialties—from safety and plumbing to electrical supply and executive management of major projects. These successful professionals serve as powerful role models, showing that women can thrive in

construction roles at all levels. Their achievements inspire others and help change perceptions about who belongs in our industry.

These women leaders prove that construction offers viable, fulfilling career paths for everyone with the right skills and determination. Their visibility in the industry helps attract more women to consider construction careers, creating a positive cycle of representation and opportunity.

Taking Action for Your Company's Future

Promoting diversity through apprenticeship is about strengthening your business. Companies with apprenticeship programs develop loyal, skilled employees while addressing critical workforce shortages. The Guam Contractors Association makes implementation straightforward by tracking hours worked and educational progress for all of the apprentices in your program.

We can guide your company through the entire process of establishing an effective apprenticeship program that attracts diverse talent, including women who might not otherwise consider construction careers. Our support ensures that administrative burdens are minimized while program effectiveness is maximized.

Join the growing number of forward-thinking companies creating apprenticeship programs to enhance their workforce capabilities. By investing today, you're building a stronger foundation for your company's future success in an increasingly competitive market.

I can help you! Interested in learning more? Please contact me at (671) 647-4841 or francine.taitague@guamcontractors.org.

Letitia Lujan Asst. General Manager

YOUR HEALTH CARE CAN EARN YOU CASH

By Rodney “RJ” Ricarte

You and your family’s TakeCare GCA Employee Health Plan is packed full of incentives to encourage healthy habits and screenings.

Your health is your wealth. At TakeCare, we're making that more than just a saying. The incentive program offers members up to $350 for individuals and $700 for families, transforming your healthcare into a rewarding experience across three key areas: wellness, fitness, and outcome-based Incentives.

Wellness Incentives

Your wellness starts with prevention. Picture walking out of your annual physical exam knowing you've just earned up to $50 if you are a FHP patient, $25 if completed within the provider network. But it doesn't stop there. Your dental check-up, vision exam, and biometric screening each contribute another $5 to your wellness wallet ($10 if you are a FHP patient). For those in specific age groups, additional screenings become even more valuable. Women between 21 and 65 can earn incentives through cervical cancer screenings, while individuals between 45 and 75 can add colorectal cancer screenings to their health routine.

The Personify Health Check goes beyond a simple check-up, providing insights into your overall health while padding your incentive earnings. Expectant mothers have an additional opportunity, with incentives available for pre-natal visits in the first trimester.

Fitness Incentives

Fitness takes center stage in this holistic approach. The program encourages members to participate in sponsored wellness and fitness events, tracking physical activities that contribute to your overall health journey. Each step, each workout, each wellness challenge becomes an opportunity to improve your health and potentially increase your incentives at $10 per month, every month that an eligible member has 10 visits or more, or self-reported fitness activities.

Outcome-based Incentives

Outcome-based incentives add another layer of motivation. This approach focuses on your personal health progress, rewarding members for managing chronic conditions, achieving specific health metrics, and completing disease management programs.

Think of this as your personal health investment account. The potential to earn up to $700 for your family with the outcome-based incentives is more than just a financial incentive—it's a powerful motivator to prioritize your health.

Don't let these opportunities pass you by. Schedule that physical, book that dental check-up, participate in wellness events and regularly exercise. Your health is your most valuable asset, and with TakeCare, it's never been more rewarding to invest in yourself.

2025 is your year to take control. Your body will thank you, your wallet will appreciate you, and you'll discover that the greatest wealth is indeed good health.

Rodney “RJ” Ricarte is the TakeCare account executive for GCA. He can be contacted at (671) 487-7121 or rodney.ricarte@takecareasia.com.

NOW! REGISTER Limited Slots Available

"A FACE-TO-FACE MEETING WITH MACC CONTRACTORS WHO ARE SEEKING SMALL BUSINESS ENTITIES TO DO BUSINESS WITH ON THEIR MILITARY PROJECTS."

Friday, March 21, 2025 • 9:00AM - 5:15PM GCA Trades Academy Training Facility, Tiyan, Barrigada

Capabilities statement is required. FREE Capabilities Statement Webinar available on Friday, March 14, 2025 provided by Guam APEX Accelerator. https://guamapex.com/events

There are limited slots available on a first come first serve basis. You MUST Register to attend this event at https://lp.constantcontactpages.com/ev/reg/jpzrcsw

MIDDLE AND HIGH SCHOOL GIRLS!

SATURDAY, MARCH 29, 2025

9AM - 3PM | CHECK IN 8AM

GCA Trades Academy Training Facility 506 Mariner Ave. Tiyan Barrigada

Skills Activities Include:

• Hand Tools / Power Tools

• Heavy Equipment

• Plumbing

• Surveying

• Welding

• Safety

• Electrical

• Carpentry

By Myracle S. Mugol

On February 26 in Las Vegas, several notable Guam construction companies were honored at ABC’s 35th annual Excellence in Construction Awards, hosted by the Associated Builders and Contractors (ABC). The ceremony recognized firms that excel in design, project execution, and safety while also contributing to community development. In an industry marked by ongoing innovation, strict safety standards, and a deep commitment to local growth, Guam’s construction sector continues to impress with its talent and vision. This year’s awards acknowledged the achievements of Global Pacific Design Builders, LLC; Pacific Rim; Core Tech International Corp; Black Construction Corporation; and Pacific Federal Management, each playing a key role in raising industry standards.

The Associated Builders and Contractors, Inc. (ABC) is a national trade association representing more than 23,000 members across the United States. Founded on a merit shop philosophy, ABC works through its 68 chapters to help its members develop talent, win work, and deliver projects safely, ethically, and profitably for the betterment of their communities. The ABC Excellence in Construction Awards, renowned for their rigorous evaluation criteria—including work hours, safety performance, design innovation, and quality of project execution—reflect ABC’s commitment to fostering industry best practices. At this year’s 35th annual ceremony in Las Vegas, they gathered to honor companies that demonstrate a strong commitment to these values and drive the construction industry forward.

commitment to both aesthetics and functionality. By employing modern design–build techniques and integrating state-of-the-art technology, GPDB consistently delivers projects that meet standards of quality, reflecting a commitment to both aesthetics and functionality. GPDB recently received the Guam Contractors Association's 2024 Excellence in Construction First Place Overall Project Award for its Housing Operations and Maintenance Service & Change of Occupancy Maintenance Services project, a notable example of GPDB's capability in handling complex and essential infrastructure projects.

Global Pacific Design Builders, LLC – Eagle Award Winner

Global Pacific Design Builders, LLC (GPDB) has been honored with the Eagle Award, the highest accolade in the Associated Builders and Contractors' (ABC) Excellence in Construction Awards. This prestigious award, represented by an impressive American Eagle statue, recognizes projects that exemplify superior craftsmanship, meticulous attention to detail, effective planning, and the successful overcoming of challenges, setting new benchmarks in the construction industry.

GPDB is known for its innovative approach to design and construction, blending creative vision with sustainable, practical engineering solutions. Each project is developed with a focus on environmental stewardship and energy efficiency—principles that are vital in today's green building landscape. Their philosophy of "design with purpose" is evident across a diverse portfolio that includes residential, commercial, and public works projects, each reflecting a

honored with the Pinnacle Award, recognizing its exceptional project management and execution capabilities. Known for precision, efficiency, and a forward-thinking approach, Pacific Rim sets a high standard in Guam's construction industry.

The Pinnacle Award is one of the most distinguished honors in the construction sector, awarded to companies that demonstrate exceptional leadership, technological innovation, and superior craftsmanship. It highlights firms that consistently achieve operational excellence, maintain exemplary safety records, and implement sustainable building practices. Winning this award recognizes Pacific Rim, and showcases their ability to execute complex projects while adhering to the highest professional and ethical standards.

The company's success is built on meticulous planning and the strategic integration of advanced technology. By utilizing cutting-edge construction management software and innovative planning tools, Pacific Rim streamlines operations, minimizes risks, and consistently delivers projects on time and within budget. This commitment to excellence is driven by the belief that innovation and precision are essential to overcoming the challenges of modern construction. The Pinnacle Award is a testament to the hard work, teamwork, and technological investment that define Pacific Rim's projects.

Pacific Rim's diverse portfolio includes high-rise commercial developments and complex industrial facilities. Each project is executed with an unwavering commitment to quality and safety, setting new industry benchmarks and inspiring other companies to follow suit. The Pinnacle Award acknowledges not only Pacific Rim's technical and managerial expertise but also its role as a catalyst for innovation in Guam's construction sector. In addition to the

Pacific Rim – Pinnacle Award Winner Pacific Rim has been

Core Tech International Corp – Safety Award Winner

The Safety Award recognizes companies that demonstrate an exceptional commitment to workplace safety through proactive policies, rigorous training programs, and the integration of advanced safety technologies. It highlights firms that go beyond regulatory requirements to create an environment where worker well-being is a top priority.

Core Tech International Corp received this distinction for its outstanding safety culture, which is embedded in every aspect of its operations. The company prioritizes risk management by investing in continuous training, state-of-the-art protective equipment, and real-time hazard monitoring systems. These efforts contribute to a secure work environment where employees are empowered to follow best safety practices and prevent accidents before they occur.

A key factor in Core Tech’s recognition is its impressive safety record, which includes extended periods without major incidents. By fostering a workplace culture where safety is not just a protocol but a guiding principle, Core Tech sets a high standard in the construction industry. The Safety Award reflects the company’s leadership in implementing best-in-class safety measures, ensuring that every worker has the necessary resources to perform their job safely and efficiently.

Black Construction Corporation (BCC) has established itself as a key player in Guam’s construction industry. With a portfolio that includes commercial developments, infrastructure projects, and specialized construction, the company has a track record of delivering high-quality results. BCC’s ability to manage large-scale projects while maintaining ethical business practices and a strong commitment to workforce development has earned it recognition as an industry leader. The company’s focus on precision, innovation, and sustainability has been a driving

for excellence in project management and operational execution. Specializing in federal and commercial projects, PFM is known for its disciplined approach to planning, financial stewardship, and commitment to delivering superior results. The company’s ability to implement cutting-edge project management systems, combined with a highly skilled team, allows it to consistently meet and exceed industry benchmarks. Its dedication to quality, efficiency, and sustainable growth is reflected in the Merit Award recognition.

Both BCC and PFM have demonstrated leadership in their respective fields, setting new industry standards and reinforcing Guam’s reputation for excellence in construction. The Merit Award acknowledges their ability to deliver projects that enhance infrastructure, support economic growth, and uphold the highest professional standards.

Merit Award – Black Construction Corporation and Pacific Federal Management

The Merit Award is given to companies that demonstrate outstanding performance in construction quality, project execution, and overall contribution to the industry. Recipients of this award exemplify the highest standards in craftsmanship, operational efficiency, and strategic planning.

The ABC Excellence in Construction Awards ceremony goes beyond recognizing individual achievements, highlighting the core principles that drive the industry: innovation, safety, and ethical leadership. This broader focus mirrors the growing trend toward sustainable, community-oriented practices across Guam’s construction sector. As the island invests in new infrastructure and technology, companies like Global Pacific Design Builders, Pacific Rim, Core Tech International Corp, Black Construction Corporation, and Pacific Federal Management stand out for blending vision, commitment, and strong safety measures with a dedication to quality. Their efforts not only strengthen their own organizations but also bring tangible benefits to the communities they serve, showing how forward-thinking and careful planning can yield transformative outcomes. By pushing the boundaries of what’s possible, these industry leaders lay the groundwork for a safer, more sustainable future for Guam and the wider Pacific region.

GCA & S.A.ME. Joint Luncheon

February 19th, 2025

Hyatt Regency Guam

THE MONTHLY

FEBRUARY 2025 GCA MEMBER MONTHLY LUNCHEON RECAP GCA & SAME GUAM POST ANNUAL JOINT MEETING

By Patricia “Patti” L. Diego

The Guam Contractors Association (GCA) and the Society of American Military Engineers (SAME) Guam Post convened their Annual Joint Membership Meeting on Wednesday, February 19, 2025, at the Hyatt Regency Guam Grand Ballroom. The event, attended by 174 industry professionals, featured Military Construction Program updates from NAVFAC Marianas, OICC Marine Corps Marianas, and the U.S. Air Force. The meeting coincided with the observance of Engineers, Architects, and Land Surveyors (EALS) Week.

SAME Guam Post President Jenny Bowers opened the meeting by welcoming attendees and emphasizing the significance of EALS Week. The luncheon provided a platform for industry leaders to discuss critical military construction projects shaping Guam’s infrastructure.

The meeting commenced with a heartfelt tribute by Joe Roberto, Past Board Chairman of GCA, to the late James A. Martinez, who served as GCA President for 23 years. Martinez, who passed away on February 9, 2025, was honored with a moment of silence in recognition of his tireless advocacy for policies supporting Guam’s local workforce and construction industry. His legacy of commitment to Guam’s economic development and progress was remembered with deep appreciation.

EALS Week, observed from February 16–22, 2025, highlighted the contributions of engineers, architects, and land surveyors in shaping Guam’s

built environment. In her remarks, Ms. Bowers underscored the pivotal role these professionals play in transforming visions into reality, enhancing landscapes, and ensuring the resilience and safety of the island’s infrastructure. Her statement was met with enthusiastic applause.

In recognition of EALS professionals, Vice Speaker V. Anthony Ada, Senator Shawn Gumataotao, and Senator Shelly Calvo presented Legislative Resolution No. 14-38 (COR), adopted by the 38th Guam Legislature’s Committee on Rules. The resolution formally designated February 16–22, 2025, as Engineers, Architects, and Land Surveyors Week, with the theme “Design Your Future!” It commended these professionals for their historical and ongoing contributions to infrastructure, sustainable development, and innovation, all of which enhance Guam’s quality of life.

Military Construction Program guest speakers provided critical updates on several projects, discussing strategic initiatives, project statuses, and upcoming contracts that will impact Guam’s construction and engineering sectors. Presenters included representatives from NAVFAC Marianas, OICC Marine Corps Marianas, the Air Force Installation and Mission Support Center (AFIMSC), and the Pacific Air Forces (PACAF) Engineering Division. Presentations and discussions highlighted substantial financial investments in Guam’s economy through ongoing military construction projects. Key challenges addressed included local labor

constraints, H-2B visa processing complexities, project timeline adherence, supply chain logistics, permitting and design limitations, System for Award Management (SAM) registration, and facility commissioning and final turnover.

Despite these challenges, speakers emphasized emerging opportunities, including investments in legacy infrastructure, long-term employment prospects, enhanced project site safety measures, compliance with environmental regulations, and preservation of cultural resources. Attendees were directed to relevant program websites for further details on area military construction projects.

The GCA Nominating Committee continues to accept nominations for two open seats on the GCA Board of Directors, with elections scheduled for April 2025. Members are also encouraged to participate in various GCA committees. Those interested in submitting a nomination or joining a committee should contact GCA Interim President Desiree Lizama at (671) 647-4840.

Mark your calendars for the GCA “Meet The Generals” event on Friday, March 21, 2025, from 9:00 AM to 5:15 PM at the GCA Trades Academy Training Facility in Tiyan, Barrigada. Limited slots are available on a first-come, first-served basis for this face-to-face meeting with MACC contractors seeking to engage with small businesses on military contracts. A capabilities statement is required, and attendees must register

THE MONTHLY

for the event at https://lp.constantcontactpages.com/ev/reg/jpzrcsw.

The 12th Annual Pizza, Pop, and Power Tools event for middle and high school girls, featuring hands-on activities in various skilled trades, is scheduled for Saturday, March 29, 2025, from 9:00 AM to 3:00 PM at the GCA Trades Academy Training Facility in Tiyan, Barrigada. For more information, call GCA at (671) 647-4836/41.

Both SAME Guam Post and GCA host monthly meetings, providing industry professionals with opportunities to engage, collaborate, and stay informed. SAME Guam Post also regularly organizes events that foster industry connections, inspire innovation, and strengthen professional networks. Members and industry professionals are encouraged to participate in networking and recognition activities that celebrate shared

accomplishments and support the future of engineering, architecture, and land surveying in Guam.

GCA’s Monthly Luncheons continue to serve as a vital forum for construction industry professionals to connect, exchange insights, and stay updated on key developments affecting Guam’s construction sector.

See you next month!

NE WS LINE

Veterans Affairs Halts and Restarts PLA Mandates on Construction Projects

The U.S. Department of Veterans Affairs can’t make its mind up about application of the Biden administration’s controversial policy requiring project labor agreements on solicitations for federal construction contracts of $35 million or more.

Less than two weeks after restoring merit-based competition for taxpayer-funded contracts to build VA hospitals, outpatient facilities, office buildings, national cemeteries and other construction projects, the VA has reversed course again.

The VA’s Feb. 13 FAR Class Deviation Memo—released to the public on Feb. 20—cites the change in policy on account of a January decision by the U.S. Court of Federal Claims that ruled in favor of experienced ABC members and other federal contractors who filed 12 bid protests against three federal agencies that mandated PLAs in solicitations for construction services.

According to the VA’s rescinded memo:

“The Court found that the agencies’ 2024 implementation of E.O. 14063, specifically, the functionality of the mandate as applied to the individual contracts in this case stifles competition and violates the statutory directive that agencies must promote ‘full and open competition’ in federal procurements unless a statutory

injunction relief was included in the order.

“Due to the Court of Federal Claims decision, effective immediately, contracting officers shall not use project labor agreements for large-scale construction projects, implemented at Federal Acquisition Regulation (FAR) subpart 22.5 and 36.104(c). The FAR clauses at FAR 52.222-33, Notice of Requirement for Project Labor Agreement, and FAR 52.222-34, Project Labor Agreement, shall not be enforced in any solicitation.”

However, the VA rescinded this memo within two weeks of its issuance and restored PLA mandates. A VA bid solicitation for design-build services to replace the seismically deficient Animal Research Buildings 47 and 104 at Sepulveda Ambulatory Care Center in North Hills, California, reinstated a previously revoked PLA on March 3.

“The VA’s latest posture towards PLA mandates makes little sense in the face of recent legal decisions and efforts by other federal agencies to eliminate inflationary and anti-competitive PLA mandate policies,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “ABC will continue to push to make fair and open competition a reality governmentwide and will get to the bottom of the VA’s flip-flop.”

On Feb. 19, ABC celebrated a new policy by the U.S. General Services Administration that will restore merit-based competition for contracts to build land port of entry projects procured by the GSA.

“The GSA’s new policy eliminates former President Joe Biden’s controversial rule requiring anti-competitive, inflationary, union-favoring project labor agreements on federal construction projects of $35 million or more––but only for GSA solicitations to build critical land port of entry projects,” said Brubeck in an Engineering News-Record article.

“Requiring a PLA on LPOE projects would not advance the Federal Government’s interests in achieving economy and efficiency in Federal procurement because the need for LPOE modernizations is of an unusual and compelling urgency and requiring a PLA would be impracticable,” wrote GSA Senior Procurement Executive Chair Jeff Koses in the PLA exception memo. “A current administration priority is to remedy the emergency on the United States borders.”

Koses is a member of the Federal Acquisition Regulatory Council that issued a rule effective Jan. 22, 2024, implementing Biden’s Executive Order 14063 mandating PLAs on large-scale federal construction projects of $35 million or more.

By Patricia “Patti” L. Diego

GSA and the VA follow a Pentagon class deviation memo––celebrated by ABC––announcing that the U.S. Department of Defense has halted PLA mandates on all military construction projects.

Of note, the DOD and the VA issued class deviation memos. In contrast, the GSA issued a PLA exception waiver from its senior procurement executive consistent with the Biden FAR rule, which appears to be the first PLA exception waiver ever granted by a federal agency under the Biden administration’s PLA mandate policy.

All other federal civilian agencies, including the remainder of the GSA’s portfolio, are still subject to Biden’s harmful pro-PLA rule.

Almost 80% of federal construction contracts of $35 million or more were awarded by the DOD, VA and GSA’s LPOE program in FY 2024, according to an ABC analysis of usaspending.gov federal agency contract awards.

“ABC will continue to use successful litigation and advocacy strategies to restore merit-based fair and open competition in federal contracting so all American workers and all qualified construction firms can compete on a level playing field to build and rebuild America,” said Brubeck. “While we are pleased with the recent policy changes at the DOD and GSA, ABC will continue to urge adoption of pro-taxpayer policies governmentwide permanently.”

construction and business groups in the Build America Local coalition sent a letter to President Donald Trump requesting an executive order that would eliminate the Biden PLA mandate and restore fair and open competition on federal and federally assisted construction projects, which would save taxpayers an estimated $10 billion annually.

Through ABC’s grassroots campaign, ABC members can urge Congress and President Trump to stop harmful government-mandated PLAs on federal and federally assisted construction projects via the Fair and Open Competition Act, which will soon be introduced in the 119th Congress.

Non-ABC stakeholders can help by watching this video and contacting their lawmakers via the BuildAmericaLocal.com coalition website.

The Biden government-mandated PLA policy has been widely criticized by the construction industry, taxpayer watchdogs and lawmakers for needlessly inflating construction costs, delaying projects and effectively steering contracts to unionized firms and union labor at the expense of taxpayers and federal laws requiring fair and open competition.

“ABC has testified before Congress that, when mandated by government, PLAs increase construction costs by an estimated 12% to 20%, reduce competition from qualified contractors and their employees, steal money from the paychecks of

token nonunion workers permitted on PLA projects and exacerbate the construction industry’s worker shortage,” said Brubeck. “Typical PLA mandates discourage competition from some of the best bidders and 9 out of 10 U.S. construction workers by forcing contractors to sign special union collective bargaining agreements, hire workers from union halls and apprenticeship programs and accept compulsory union representation on behalf of any members of their existing workforces. This exposes those workers to union wage theft of up to 34% of their compensation unless they join a union and vest in union benefits plans.”

On March 28, 2024, ABC and its Florida First Coast chapter filed suit in federal court to block Biden’s PLA final rule. The case is fully briefed and plaintiffs are awaiting a decision on the overall case and a ruling on the motion for preliminary injunction filed in April.

$24,221.28 $6,030.70 $2,311.50 $10,551.75 $3,362.70 $6,697.77 $28,667.93 $0 $1,060.13 $1,236.83 $0 $857 $0 $0 $0 $0 $284.75