Since the Federal Acquisition Regulation final rule Use of Project Labor Agreements for Federal Construction Projects took effect, contractors seeking to compete for federal projects of $35 million or more must “negotiate or become a party to a project labor agreement with one or more labor organizations.” While this requirement significantly reduces competition for covered procurements, contractors may seek to restore competition on individual solicitations by filing a bid protest with the U.S. Court of Federal Claims.
Bid protests through the COFC become possible once a federal agency posts a solicitation that includes contract provisions mandating a PLA. (In some cases, a presolicitation notice that a PLA mandate will be applied may be sufficient.)
For standing purposes, the protester must be a prime contractor that genuinely intends to bid on the project but is excluded because of the PLA requirement. Subcontractors generally cannot file bid protests independently. However, a subcontractor may support a protest filed in the name of a general contractor that intends to bid on the project, if the general contractor agrees to proceed.
Bid protests have been exceptionally successful in overturning PLA requirements on a case-by-case basis. ABC is aware of more than 40 PLA requirements that have been removed from more than $19 billion in federal construction projects as a result of bid protests, including through COFC decisions in January 2025 and December 2025.
In recent months, removing a PLA mandate through the COFC has not always required an extensive court fight. While results cannot be guaranteed, many agencies have voluntarily removed PLA mandates after receiving notice of a protest because they recognize the legal risk of defending the mandate. This can significantly reduce the time and expense associated with challenging a PLA requirement.
That litigation path, however, highlights the flawed structure of the mandate rather than curing it. The PLA mandate reverses the proper procurement presumption. Instead of promoting full and open competition, it falsely presumes government-mandated PLAs serve the public interest and forces contractors to prove they have been harmed before competition can be restored.
Associated Builders and Contractors can connect members with experienced attorneys if they are interested in filing a bid protest. If members need financial assistance for a challenge, the Construction Legal Rights Foundation will consider applications as quickly as possible.
ABC continues to challenge the legality of the PLA mandate in federal court while advocating for the rescission of President Joe Biden’s Executive Order 14063 and its replacement with a fair and open competition executive order that allows every qualified construction company to compete for federal and federally assisted construction contracts regardless of labor affiliation.
SEE ALSO: COURT RULES BIDEN’S PROJECT LABOR AGREEMENT POLICY ILLEGAL
