The McDonnell administration has warned the Metropolitan Washington Airports Authority (MWAA) board that a recent decision to favor Project Labor Agreements (PLAs) in Phase 2 of the Rail-to-Dulles construction project could jeopardize $150 million in state funding for the project.
Governor Bob McDonnell intends to sign legislation that prohibits state financing for construction projects that discriminate on the basis of labor-union affiliation, wrote Transportation Secretary Sean Connaughton in a letter co-signed by Sharon S. Bulova, chairman of the Fairfax County Board of Supervisors, and Scott K. York, chairman of the Loudoun County board. Fairfax, Loudoun and the state, along with MWAA comprise the four funding partners behind the estimated $2.8 billion construction project.
“The MWAA Board’s decision to use a 10 percent incentive to encourage the use of a PLA for Phase II of the Dulles Corridor Metrorail Project is being viewed as a potential violation of the pending law,” the letter states. “It would be a tragic loss and a detriment to the project if the Commonwealth withheld its $150 million contribution, as well as its ability to cooperate with MWAA, in construction of Phase II.”
A tragic loss — that’s putting it lightly. The $150 million contribution was critical to a fragile Memorandum of Agreement (MOA) worked out late last year under the auspices of U.S. Transportation Secretary Ray LaHood to bring Phase II costs under control and reduce the burden on Dulles Toll Road users, who would pay for any cost overruns through higher tolls. The prospect of sky-high tolls created a brush fire of opposition in Fairfax and Loudoun counties, home to many toll road users. If the state yanked its $150 million, the MOA would fall apart, and so could the entire financing for Phase 2.
The letter signatories stressed that they have no objection to voluntary PLAs. “In fact, such agreements are being used in Phase I of the Silver Line as well as other transportation projects in Northern Virginia such as the I 495 Express Lanes.”
The legislation that McDonnell plans to sign would create a level playing field between union and non-union companies bidding for the Phase II contract. MWAA policy would tilt the playing field heavily in favor of companies committed to PLA agreements with labor unions, discouraging open-shop companies from participating in the bidding. MWAA critics contend that shrinking the pool of competitive bids could result push the cost of the project hundreds of millions of dollars higher.
— JAB
