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Sen. Ayotte slams bidding for Manchester Job Corps Center
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MANCHESTER — Sen. Kelly Ayotte is calling on the Obama administration to scrap all union-friendly project labor agreements, saying they are the reason the planned Job Corps Center in Manchester has yet to be built.
In a letter to Obama released Monday, Ayotte asked the President to reverse his executive order requiring federal projects over $25 million to consider using project labor agreements, or PLAs. In his State of the Union address, Obama said he wanted to cut government red tape. These agreements would be a good place to start, the Republican senator said.
“Federal government-mandated PLAs needlessly increase construction costs and limit the ability of non-union companies to successfully compete for government construction contracts,” wrote Ayotte. “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.”
Ayotte is referencing a 2009 complaint opposing the PLA process filed by North Branch Construction of Concord, which brought the Job Corps Center bidding process to a halt.
The U.S. Department of Labor removed the request for bids, but then in August 2011, announced it would go ahead with the $35 million project off Dunbarton Road.
The project is still moving forward and the bidding process has been opened, said Dick Anagnost, chairman of the state's Job Corps Task Force.
He pointed to the fbo.gov website where the project bid, time line and connected documentation are listed.
The site also included the project PLA, which outlines labor rules such as how much workers should be paid, the range of hours they should work, safety regulations and restrictions on work stoppages and striking.
The Job Corps PLA does not require companies bidding on the project to employ union workers, but it does require state trade unions to oversee who is hired and recommend union workers be used.
Mark Holden, president of the New Hampshire and Vermont Chapter of Associated Builders and Contractors, said the required wages and benefits listed in the PLA are standard to all federal contracts, which New Hampshire companies have won in the past and are familiar with.
Although there are also no restrictions on bids from non-unionized companies, the PLA does require union involvement, said Holden.
“The trend is most companies (that are non-unionized) refuse to get involved in the process because it's unfamiliar and they can't project the costs that are going to occur,” said Holden. “The vast majority of contractors and construction workers in New Hampshire are nonunion. The concern is this will encourage out-of-state contractors to be the overwhelming bidders on this project.”
Mark MacKenzie, president of New Hampshire AFL-CIO, argued that PLAs ensure that all companies submitting bids are following the same rules and prevent companies from undercutting competitors by slicing into employee wages.
“The federal government said these are the wages we will pay for this project,” said MacKenzie. “Everybody is competing on the same level playing field. The problem is small companies will say we don't want to pay people what is the prevailing wage because we're afraid after the project is done, the employees will say we're worth more than you're paying us.”
By asking Obama to remove the PLA during the bidding process, Ayotte could be putting the project at further risk, MacKenzie said. Because the bid request includes a PLA, removing it could require putting out new bid specifications, he said.
An Ayotte spokesman said Monday the PLA process should be nixed.
“If there hadn't been a PLA to begin with, this project would in all likelihood be well under way — if not completed,” said Jeff Grappone. “President Obama said in his State of the Union address that he wants to remove red tape that holds back construction, but the PLA his administration insists on stands to effectively deny a significant number of New Hampshire contractors from being able to successfully compete for the work. Unfortunately, many of the same concerns that led to the original bid protest in 2009 continue to linger. To ensure this project isn't needlessly delayed any further, the President should heed his own call and remove the PLA requirement.”
Rep. Frank Guinta spoke against the PLA process earlier this year. Sen. Jeanne Shaheen's office said on Monday the Democrat wants to see the project completed.
“The senator has been a big supporter of the Manchester Job Corps Center. Contractors are preparing their bids on the project now, after it was delayed last year due to threatened cuts in funding by the Republican House of Representatives,” said Deputy Press Secretary Al Killeffer. “The senator will continue advocating for completion of this project, which is critical for job creation.”
In a letter to Obama released Monday, Ayotte asked the President to reverse his executive order requiring federal projects over $25 million to consider using project labor agreements, or PLAs. In his State of the Union address, Obama said he wanted to cut government red tape. These agreements would be a good place to start, the Republican senator said.
“Federal government-mandated PLAs needlessly increase construction costs and limit the ability of non-union companies to successfully compete for government construction contracts,” wrote Ayotte. “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.”
Ayotte is referencing a 2009 complaint opposing the PLA process filed by North Branch Construction of Concord, which brought the Job Corps Center bidding process to a halt.
The U.S. Department of Labor removed the request for bids, but then in August 2011, announced it would go ahead with the $35 million project off Dunbarton Road.
The project is still moving forward and the bidding process has been opened, said Dick Anagnost, chairman of the state's Job Corps Task Force.
He pointed to the fbo.gov website where the project bid, time line and connected documentation are listed.
The site also included the project PLA, which outlines labor rules such as how much workers should be paid, the range of hours they should work, safety regulations and restrictions on work stoppages and striking.
Out-of-state bids
The Job Corps PLA does not require companies bidding on the project to employ union workers, but it does require state trade unions to oversee who is hired and recommend union workers be used.
Mark Holden, president of the New Hampshire and Vermont Chapter of Associated Builders and Contractors, said the required wages and benefits listed in the PLA are standard to all federal contracts, which New Hampshire companies have won in the past and are familiar with.
Although there are also no restrictions on bids from non-unionized companies, the PLA does require union involvement, said Holden.
“The trend is most companies (that are non-unionized) refuse to get involved in the process because it's unfamiliar and they can't project the costs that are going to occur,” said Holden. “The vast majority of contractors and construction workers in New Hampshire are nonunion. The concern is this will encourage out-of-state contractors to be the overwhelming bidders on this project.”
Level playing field
Mark MacKenzie, president of New Hampshire AFL-CIO, argued that PLAs ensure that all companies submitting bids are following the same rules and prevent companies from undercutting competitors by slicing into employee wages.
“The federal government said these are the wages we will pay for this project,” said MacKenzie. “Everybody is competing on the same level playing field. The problem is small companies will say we don't want to pay people what is the prevailing wage because we're afraid after the project is done, the employees will say we're worth more than you're paying us.”
By asking Obama to remove the PLA during the bidding process, Ayotte could be putting the project at further risk, MacKenzie said. Because the bid request includes a PLA, removing it could require putting out new bid specifications, he said.
Ayotte, others weigh in
An Ayotte spokesman said Monday the PLA process should be nixed.
“If there hadn't been a PLA to begin with, this project would in all likelihood be well under way — if not completed,” said Jeff Grappone. “President Obama said in his State of the Union address that he wants to remove red tape that holds back construction, but the PLA his administration insists on stands to effectively deny a significant number of New Hampshire contractors from being able to successfully compete for the work. Unfortunately, many of the same concerns that led to the original bid protest in 2009 continue to linger. To ensure this project isn't needlessly delayed any further, the President should heed his own call and remove the PLA requirement.”
Rep. Frank Guinta spoke against the PLA process earlier this year. Sen. Jeanne Shaheen's office said on Monday the Democrat wants to see the project completed.
“The senator has been a big supporter of the Manchester Job Corps Center. Contractors are preparing their bids on the project now, after it was delayed last year due to threatened cuts in funding by the Republican House of Representatives,” said Deputy Press Secretary Al Killeffer. “The senator will continue advocating for completion of this project, which is critical for job creation.”