Two bid protests filed by member firms are part of AGC 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.
AGC of America, working with Fox Rothschild LLP, created the legal theory that challenges the validity of the new PLA mandate. Both AGC member firms include this theory in their bid protests. The new legal approach is part of AGC’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.
AGC supports a contractor’s right to voluntarily negotiate a PLA and AGC opposes government mandates that require PLAs.
For more information, contact Leah Pilconis, General Counsel, at 703-837-5332 or leah.pilconis@agc.org or Brian Perlberg, Senior Counsel at 703-837-5318 or brian.perlberg@agc.org.