{"id":30905,"date":"2025-06-14T05:40:51","date_gmt":"2025-06-14T12:40:51","guid":{"rendered":"https:\/\/essential.construction\/news\/pla-mandate-to-stay-with-exemptions-omb\/"},"modified":"2025-06-14T05:40:51","modified_gmt":"2025-06-14T12:40:51","slug":"pla-mandate-to-stay-with-exemptions-omb","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/pla-mandate-to-stay-with-exemptions-omb\/","title":{"rendered":"PLA mandate to stay, with exemptions: OMB"},"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\">5 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=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1749826586\/news\/text_to_speech\/pla-mandate-remains-omb-federal-contracting_ihmgsr.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<p><span><span><span><span><span><span>The Trump administration has indicated it will not rescind a Biden-era rule mandating the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2025\/02\/M-25-29-Use-of-Project-Labor-Agreements-on-Federal-Construction-Projects-Amendments-to-OMB-Memorandum-M-24-06.pdf\" target=\"_blank\"><span><span><span><span><span><span><span><span>use of project labor agreements<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> on large publicly funded jobs.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>After <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/dod-resume-plas-court-nabtu-construction\/748775\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>months of court cases<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> and federal agencies announcing deviations from Federal Acquisition Regulation rules regarding PLA use, a Thursday Office of Management and Budget memo to federal agencies and department heads sought to unmuddy the waters.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cFor clarity, the Trump Administration supports the use of PLAs when those agreements are practicable and cost effective, and blanket deviations prohibiting the use of PLAs are precluded,\u201d read the memo signed by Russell Vought, OMB director.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The memo acknowledged concerns from federal agencies that award large-scale construction projects regarding the ability to create competition for fair and reasonable pricing on contracts.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>As such, the OMB memo said it has added an amended rule that allows agencies to evaluate the anticipated impact of a PLA on its ability to conduct a competitive search for a contractor. The exception indicates \u201ctwo qualified offers should generally be sufficient to provide adequate price competition for negotiated contracts (FAR 15.403-l(c)(l)) and three or more qualified bids is sufficient to provide adequate price competition for sealed bids.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In other words, two offers may be enough for the exception not to apply. If two or more offerers express interest in a contract but prices are expected to be higher than the federal government&#8217;s budget by over 10% due to the PLA mandate, the agency can also seek exemption.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cAgencies should use PLAs when practicable and cost-effective,\u201d the memo reads. \u201cAgencies should rescind any deviations related to PLAs that were issued prior to the date of this guidance. Independent agency interpretation for PLA use should no longer occur.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The memo indicates a continuation of policy from previous administrations, which opponents have decried as anti-competitive.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIt is hard to see how this is not a return to the conditions that were in place prior to President Biden\u2019s unlawful executive order,\u201d Brian Turmail, vice president of public affairs and strategic initiatives at Associated General Contractors of America, told Construction Dive.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Confusion and clarity<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>The memo provides some clarity after confusion over whether the rule would remain and if all agencies had to follow it.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In January, a <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/judge-rules-against-pla-mandate-biden\/738338\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>judge ruled against PLA use<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> on seven federal contracts, saying it would be anti-competitive and relied on \u201carbitrary and capricious\u201d policy. That decision, however, applied only to those contracts, laying the groundwork for other challenges.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Then, in March, President Donald Trump <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/trump-executive-order-plas-unions\/743292\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>issued an executive order<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> directing rulemaking that rescinded Biden-era guidance promoting the use of project labor agreements, but did not remove former <\/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>President Joe Biden\u2019s executive order<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, implemented in January 2024.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In May, after the Department of Defense had signaled it would no longer follow the PLA mandate, a federal judge issued a preliminary injunction, forcing the agency to resume the mandate.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Looking ahead<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Associated Builders and Contractors has long fought the Biden PLA rule and <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.abc.org\/News-Media\/News-Releases\/abc-trump-administration-fails-to-rescind-bidens-anti-merit-labor-mandate\" target=\"_blank\"><span><span><span><span><span><span><span><span>called on the president to rescind<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> the order in the name of fairness and competition.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201c[Thursday\u2019s] decision cannot be reconciled with the president\u2019s philosophies of merit, fairness and nondiscrimination because it inhibits fair and open competition and prioritizes special interests over taxpayers and workers,\u201d said Michael Bellaman, president and CEO of ABC.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Bellaman noted that the government can still use PLAs without the executive order and said the use of PLAs effectively excludes non-union builders and workers.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Turmail said the change isn\u2019t what AGC had hoped for \u2014 which was for Trump to remove the executive order \u2014 but it would still be better than \u201cwhat was in place with the Biden administration.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p>There is still a path to challenge PLA use and potentially receive exceptions, he said.<\/p>\n<p><span><span><span><span><span><span>\u201cIn addition, given the recent court decisions, it is hard to see how the administration will be able to impose a mandated PLA without facing a successful bid protest,\u201d Turmail said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/pla-mandate-remains-omb-federal-contracting\/750679\/\" 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 5 min This audio is auto-generated. Please let us know if you have feedback. The &#8230; <a title=\"PLA mandate to stay, with exemptions: OMB\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/pla-mandate-to-stay-with-exemptions-omb\/\" aria-label=\"Read more about PLA mandate to stay, with exemptions: OMB\">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-30905","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\/30905","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=30905"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/30905\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=30905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=30905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=30905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}