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Transmittal email on 'the FY 2016 Appropriations Act' and Local Labor Hiring Preference Provisions

Sent Friday, January 8, 2016

EFFECTIVELY IMMEDIATELY; INFO & ACTION (as appropriate): S. 192 of Title I, Division L, Consolidated Appropriations Act, 2016 ("the FY 2016 Appropriations Act") and Local Labor Hiring Preference Provisions


For your information and appropriate action.

President Obama signed the FY 2016 Appropriations Act on December 18, 2015. Section 192 of the FY 2016 Appropriations Act (see language below) contains Congressional direction to the Department of Transportation requiring that a grant recipient must certify that three conditions have been satisfied on each federally assisted project before it can allow the use of contract provisions that specify a "geographic, economic, or any other hiring preference."

Any local labor hiring preferences pilot project which did not receive FHWA's construction authorization before December 18, 2015, is subject to the certification requirements in Section 192.

All recipients requesting an SEP-14 work plan approval must provide a project-specific certification that conforms with section 192 certification requirements in conjunction with their work plan (or as a separate addendum for those recipients that may have already received a SEP-14 approval), but did not receive construction authorization before December 18, 2015.

FHWA will be posting these certifications and a revised sample work plan on our Special Experimental Project No. 14 - Local Labor Hiring Pilot Program web site. The sample work plan will be updated to include a reference to the certification requirements.

"SEC. 192. The Department of Transportation may use funds provided by this Act, or any other Act, to assist a contract under title 49 U.S.C. or title 23 U.S.C. utilizing geographic, economic, or any other hiring preference not otherwise authorized by law, except for such preferences authorized in this Act, or to amend a rule, regulation, policy or other measure that forbids a recipient of a Federal Highway Administration or Federal Transit Administration grant from imposing such hiring preference on a contract or construction project with which the Department of Transportation is assisting, only if the grant recipient certifies the following:
(1) that except with respect to apprentices or trainees, a pool of readily available but unemployed individuals possessing the knowledge, skill, and ability to perform the work that the contract requires resides in the jurisdiction;
(2) that the grant recipient will include appropriate provisions in its bid document ensuring that the contractor does not displace any of its existing employees in order to satisfy such hiring preference; and
(3) that any increase in the cost of labor, training, or delays resulting from the use of such hiring preference does not delay or displace any transportation project in the applicable Statewide Transportation Improvement Program or Transportation Improvement Program."

Please contact Jerry Yakowenko (202-366-1562), John Huyer (651-291-6111), or Norm Stoner (217-502-9215) with any questions.

Thank you.


Updated: 06/27/2017
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