Successful Outcome Could Block Federal Officials from Including Project Labor Agreement (PLA) Mandate in Projects Valued over $35 million
Two bid protests filed by member firms are part of Íæż½ã½ã of America’s ongoing efforts to prevent the Biden administration from mandating project labor agreements, or PLAs, on virtually all federal construction projects. The bid protests, which were filed this week with the Court of Federal Claims, argue that the PLA mandate in the federal solicitations unlawfully amounts to a socio-economic set aside that Congress never authorized. In other words, the president does not have the authority to create a set-aside program that disqualifies contractors that have not negotiated or have been unable to negotiate a project labor agreement. The PLA mandate has caused significant disruption to thousands of federal contractors, including many small businesses.
Íæż½ã½ã of America, working with Fox Rothschild LLP, created the legal theory that challenges the validity of the new PLA mandate. Both Íæż½ã½ã member firms include this theory in their bid protests. The new legal approach is part of Íæż½ã½ã’s ongoing efforts to challenge a Biden administration executive order that requires government-mandated project labor agreements for all federal construction projects valued at or above $35 million. A successful decision in either bid protest could undermine the executive order and block federal officials from including similar mandates in other project solicitations.
Íæż½ã½ã supports a contractor’s right to voluntarily negotiate a PLA and Íæż½ã½ã opposes government mandates that require PLAs.
For more information, contact Leah Pilconis, General Counsel, at 703-837-5332 or Brian Perlberg, Senior Counsel, at 703-837-5318.