On June 12, the White House’s Office of Management and Budget issued new guidance to federal agencies regarding implementation of project labor agreement mandates, saying the administration will continue to enforce former President Joe Biden’s anti-competitive policy mandating project labor agreements on federal construction projects of $35 million or more.

Unfortunately, as ABC said in a statement, this memorandum doubles down on an anti-competitive, Biden-era policy that inflates costs and delays critical construction projects.

“This decision cannot be reconciled with the president’s philosophies of merit, fairness and nondiscrimination because it inhibits fair and open competition and prioritizes special interests over taxpayers and workers,” said Michael Bellaman, ABC president and CEO. “Today’s memorandum doubles down on an unfair, wasteful, anti-competitive, Biden-era policy that inflates costs and delays critical construction projects, including those important to the defense of our country.

“It is unfortunate that this guidance states that maintaining Biden’s PLA mandate final rule is necessary because the Trump administration ‘supports the use of PLAs when those agreements are practicable and cost-effective,’” said Bellaman. “To be clear, this policy is not needed to allow the use of PLAs on federal construction. At no point, under any administration, have federal contractors ever been prevented from voluntarily entering into a PLA when such an agreement makes sense for their workforce. Fair and open competition works because it not only preserves worker choice but also gives contractors the freedom to choose to enter or not enter into a PLA. At the end of the day, it is based on merit and nondiscrimination. Every qualified contractor should have the opportunity to build America.

“ABC will continue to fight the Biden-era illegal and anti-competitive PLA mandate in court and support our federal contractor members in opposing PLA mandates on any project where they are implemented,” said Bellaman. “The administration should rescind this PLA mandate executive order immediately.”

Bid protests through the U.S. Court of Federal Claims are currently the best strategy for overturning PLA mandates on individual projects. ABC National can help connect members with experienced attorneys if they are interested in filing bid protests. If members need financial assistance with their challenge, the Construction Legal Rights Foundation will consider applications as quickly as possible.

Further, members should reach out to ABC National if they need assistance completing PLA market research surveys, which may help agencies avoid PLA requirements. Under the guidance, limited exceptions to the PLA mandate may be possible if contracting officers can demonstrate expected price increases of more than 10%.

ABC hosted a members-only webinar on Wednesday, June 18, with more information on OMB guidance, ABC’s strategy and how federal contractors can seek to prevent and overturn PLA mandates through PLA survey responses and bid protests. The webinar recording will be available soon for ABC members on ABC’s Academy.