California Construction News staff writer
The U.S. Court of Federal Claims has ruled in favor of a bid protest filed by the Associated General Contractors of America (AGC), striking down a key provision of President Biden’s executive order mandating Project Labor Agreements (PLAs) for most federal construction projects. The decision invalidates the mandate requiring PLAs for projects valued at $35 million or more, which AGC argued was an unauthorized set-aside.
In response to the ruling, AGC CEO Jeffrey Shoaf issued the following statement:
“Last night’s ruling affirms AGC’s novel strategy to challenge the Biden administration’s unlawful PLA mandate,” Shoaf said in a Jan. 19 statement, just before the Trump administration took office. We believe that by requiring PLAs on federal construction projects exceeding $35 million, the administration effectively created a new set-aside program without Congressional approval. This is why AGC supported seven bid protests from member firms, which were consolidated into the case ruled on favorably last night.”
“This approach provided a faster and more effective way to challenge the outgoing president’s anti-competitive executive order. As a result of this ruling, the PLA mandate for large federal construction projects is no longer valid.”
Shoaf emphasized the broader implications of the decision: “This is a major victory for fairness in federal contracting. It ensures that all construction workers and employers—whether union or non-union—can compete on equal footing for federal contracts” he said. “While contractors can still voluntarily enter into PLAs if they choose, the previous mandate created undue pressure for union and non-union firms alike, violating the Competition in Contracting Act (CICA) by making it harder for some contractors to fairly compete.”
AGC plans to continue discussions with the incoming Trump administration, urging the repeal of Biden’s PLA executive order and related FAR rules, especially in light of the court’s ruling.
Read the Court’s decision here.