In the midst of the Presidential inauguration, news has come that the Associated Builders and Contractors (ABC) are celebrating a decision from the U.S. Court of Federal Claims that rules in favor of ABC members that filed bid protests challenging former President Joe Biden’s controversial policy requiring project labor agreements (PLAs) on federal construction projects of $35 million or more. The ruling responds to 12-bid protests filed by contractors against three federal agencies that mandated PLAs in solicitations for construction services as a result of a Federal Acquisition Regulatory Council rule effective Jan. 22, 2024, implementing Biden’s Executive Order 14063.
The Biden Administration policy directives on this matter have been widely criticized by the construction industry (including CIRT), taxpayer watchdogs, and lawmakers for needlessly inflating construction costs and effectively steering contracts to unionized firms and union labor at the expense of taxpayers and federal laws requiring fair and open competition. The judge in the case, has instructed the three agencies involved to cure their PLA mandate by Feb. 3rd or he will issue a nationwide injunction against the entire rule.
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