{"id":28785,"date":"2025-01-27T23:49:46","date_gmt":"2025-01-28T07:49:46","guid":{"rendered":"https:\/\/essential.construction\/news\/judge-rules-against-federal-pla-mandate\/"},"modified":"2025-01-27T23:49:46","modified_gmt":"2025-01-28T07:49:46","slug":"judge-rules-against-federal-pla-mandate","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/judge-rules-against-federal-pla-mandate\/","title":{"rendered":"Judge rules against federal PLA mandate"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">4 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"http:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1738000590\/news\/text_to_speech\/judge-rules-against-pla-mandate-biden_vo8pho.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<h3 class=\"standard-heading\"><span><span><span><span><span><span>Dive Brief:<\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n<ul>\n<li><span><span><span><span><span><span>A U.S. Federal Claims judge has ruled in favor of a group of <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/ecf.cofc.uscourts.gov\/cgi-bin\/show_public_doc?2024cv1057-97-0\" target=\"_blank\"><span><span><span><span><span><span><span><span>construction companies that filed protests<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> against the implementation of former President Joe Biden\u2019s December 2023 executive order that <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/pla-mandate-biden-federal-contracts\/702914\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>mandated project labor agreements<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> on federal contracts over $35 million.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>In a briefing earlier this month, Judge Ryan Holte of the U.S. Court of Federal Claims said the implementation of the mandate on seven contract procedures last year ignored federal agencies\u2019 own research indicating PLAs would be anti-competitive and relied on \u201carbitrary and capricious\u201d presidential policy.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The Jan. 21 ruling only impacts those specific bid protests filed in 2024, but construction employer groups touted it as a win <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>for the entire industry. It opens the door for more challenges and puts the future of the rule in question, said Dirk Haire, Washington, D.C.-based partner at Philadelphia-headquartered law firm Fox Rothschild, which represented some of the plaintiffs.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><span><span><span><span><span><span>Dive Insight:<\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>The three agencies in question \u2014 the U.S. Army Corps of Engineers, General Services Administration and Naval Facilities Engineering Systems Command \u2014 had issued PLAs for solicitations in construction services following a Federal Acquisition Regulatory Council rule, effective January 2024, to implement Biden\u2019s executive order.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Holte\u2019s ruling indicated that the agencies had inserted the \u201cproject labor agreement requirement simply because President Biden and the FAR Council made \u2018the policy judgment [that] project labor agreements are generally good.\u2019\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The protests, which related to projects in six states, were filed by defense contractor MVL USA and consolidated plaintiffs Environmental Chemical Corp., JCCBG2 and Harper Construction Co. \u2014 which were represented by Fox Rothschild \u2014 and Hensel Phelps, represented by Atlanta-based Smith Currie Oles.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Holte ruled that the agencies responsible for each of the protested contracts must amend them by Feb. 3.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The Biden administration issued the executive order as many funds were pouring out from the Infrastructure Investment and Jobs Act, which went into effect in November 2021. It represented a double-edged sword for builders who opposed the rule, but would benefit from the federal funding.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Biden\u2019s executive order claimed PLAs would improve projects by supporting workers, eliminating project delays related to labor and helping create a better pipeline of well-paid workers on federal contracts.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Labor groups have traditionally championed PLAs, saying they better protect workers. But many builders and employer groups claim they disadvantage contractors that don\u2019t often work with unions.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span>The Associated General Contractors of America facilitated the <\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.agc.org\/news\/2025\/01\/20\/associations-novel-bid-protest-strategy-topples-president-bidens-unlawful-project-labor-mandate\" target=\"_blank\"><span><span><span><span><span><span><span>challenge to Biden&#8217;s approach<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span>\u00a0of a PLA mandate, which it claimed was illegal. The organization argued that by mandating PLAs on federal construction jobs, the then-president was creating a new federal set-aside program without the required congressional approval.\u00a0<\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span>Thus, AGC supported the bid protests, Jeffrey Shoaf, AGC CEO, said in the release because it was \u201ca quicker and more effective way to challenge\u201d the executive order.<\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span>As a result of the decision, Ben Brubeck, vice president of regulatory, labor and state affairs for Associated Builders and Contractors, encouraged organization members to <\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.abc.org\/News-Media\/News-Releases\/abc-victory-for-taxpayers-and-construction-industry-as-court-rules-bidens-project-labor-agreement-policy-is-illegal\" target=\"_blank\"><span><span><span><span><span><span><span>file bid protests against PLA mandates<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span> and expect a similar outcome.<\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span>\u201cThis is the best solution to defeat the Biden rule on federal contracts until a court issues an injunction against the rule or the Trump administration rescinds it via executive action,\u201d Brubeck said in a release.<\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Although President <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/trump-construction-energy-immigration-tariffs\/737809\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>Donald Trump penned a flurry of executive orders<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> as he took office, he has yet to undo Biden\u2019s PLA mandate. But Holte\u2019s ruling \u2014 which noted that presidential guidance \u201cping-ponged\u201d from banning to merely encouraging PLAs until Biden outright mandated them \u2014 for now opens up the door to challenges against any federal agency that issues such a PLA, Haire said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<div class=\"editor-note\">\n<p>Editor\u2019s note: This story has been updated to clarify the AGC\u2019s role in the legal proceedings.<\/p>\n<\/div><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/judge-rules-against-pla-mandate-biden\/738338\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 4 min This audio is auto-generated. Please let us know if you have feedback. Dive &#8230; <a title=\"Judge rules against federal PLA mandate\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/judge-rules-against-federal-pla-mandate\/\" aria-label=\"Read more about Judge rules against federal PLA mandate\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-28785","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/28785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=28785"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/28785\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=28785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=28785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=28785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}