Letter to President Obama

Letter

Continuing her efforts to eliminate unnecessary Washington mandates, U.S. Senator Kelly Ayotte (R-NH) today called on the president to follow through on a State of the Union promise he made to clear away red tape that slows down construction projects. In a letter to President Obama, she singled out his administration's Project Labor Agreement (PLA) requirement, which has delayed construction of the Manchester Job Corps Center for nearly two years, as an obvious mandate for him to scrap.

"Federal government-mandated PLAs needlessly increase construction costs and limit the ability of non-union companies to successfully compete for government construction contracts," Ayotte wrote to President Obama. "In my home state of New Hampshire, the PLA requirement has stalled the construction of a long-planned Job Corps Center in the city of Manchester. The PLA mandate has delayed this project for over 20 months, denying a prime employment opportunity for 300 to 400 construction workers."

Last August, when the Department of Labor announced its intention to move forward with the Job Corps Center, Ayotte raised concerns that the President's PLA directive favors unionized contractors from out-of-state and would discourage competition from qualified local firms. Additionally, she noted that a PLA would have the potential to drive up the overall cost of construction for the project.

AYOTTE LETTER TO PRESIDENT OBAMA:

The Honorable Barack Obama

President of the United States

The White House

1600 Pennsylvania Avenue, NW

Washington, DC 20500

Dear Mr. President:

In your January 2012 State of the Union address, you committed to signing "an Executive Order clearing away the red tape that slows down too many construction projects." I could not agree more. One of the most important steps Washington can take to get Americans back to work is to eliminate onerous government regulations that hinder job creation. Therefore, in order to cut through government red tape and help spur employment, I respectfully ask that you also rescind Executive Order 13502, which you issued in February 2009.

As you know, Executive Order 13502 requires federal agencies to consider the use of project labor agreements (PLAs) on any federal construction project that costs $25 million or more. Executive Order 13502 effectively mandates that the federal government only award contracts to contractors that agree to hire union workers. Federal government-mandated PLAs needlessly increase construction costs and limit the ability of non-union companies to successfully compete for government construction contracts. This Washington mandate also significantly slows down the procurement of construction projects, forcing workers to wait on the sidelines until the PLA winds its way through the federal bureaucracy.

In my home state of New Hampshire, the PLA requirement has stalled the construction of a long-planned Job Corps Center in the city of Manchester. The PLA mandate has delayed this project for over 20 months, denying a prime employment opportunity for 300 to 400 construction workers. Only in August 2011 did the Department of Labor (DOL) finally decide to proceed with this project. However, the DOL subsequently required the use of a PLA, creating an uneven playing field that restricts competition and favors out-of-state union companies, rather than companies headquartered in New Hampshire that employ Granite State workers. I am concerned the controversy surrounding this PLA will again delay the project.

I respectfully request that you act swiftly on your promise to the American people to remove bureaucratic red tape from federal construction projects by rescinding Executive Order 13502.

Sincerely,

Kelly A. Ayotte

U.S. Senator

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