U.S. Military Drops PLA Mandate: A Win for Fair Competition
Tuesday, Feb 11, 2025 10:46 am ET
3min read The U.S. military has announced that it is dropping project labor agreement (PLA) requirements for its military construction solicitations. This decision, coupled with a Justice Department promise to remove the same mandate on twelve projects that were the subject of a bid protest approach crafted by the Associated General Contractors of America (AGC), is a significant victory for fair competition in the construction industry.
AGC of America played a crucial role in challenging the Biden administration's unlawful mandating of PLAs on all federal construction projects valued at $35 million or more. The association's novel bid protest approach was designed to block this unlawful mandate, and the recent ruling by the U.S. Court of Federal Claims validated this approach. The military's decision to drop PLA mandates is a clear sign that AGC's efforts have been successful.
The removal of the PLA mandate will allow all contractors, regardless of their union status, to compete for military construction projects. This increased competition is expected to drive down bid prices and reduce construction costs for taxpayers. Industry estimates suggest that government-mandated PLAs can increase construction costs by 12% to 20%. By eliminating these mandates, the military can save taxpayers approximately $10 billion annually.
In addition to cost savings, the removal of the PLA mandate may also lead to better project outcomes. Increased competition among contractors can encourage innovation and cost-saving solutions, as contractors strive to win bids. Furthermore, the removal of the mandate may encourage more small and medium-sized businesses to bid on military construction projects, as they may not have the resources or willingness to enter into PLAs with labor unions.
AGC of America has welcomed the military's decision to drop PLA mandates and has called on all federal agencies involved in procuring construction services to follow suit. The association will continue its conversations with the Trump administration about the need to officially revoke former President Biden's illegal project labor agreement mandate Executive Order and FAR Rules to eliminate any remaining ambiguity within the ranks of federal procurement officials.
In conclusion, the U.S. military's decision to drop project labor agreement requirements for its military construction solicitations is a significant victory for fair competition in the construction industry. This decision, along with the Justice Department's promise to remove the same mandate on twelve projects, will lead to cost savings for taxpayers, better project outcomes, and increased participation by small and medium-sized businesses. AGC of America has welcomed this decision and will continue to advocate for the removal of PLA mandates on all federal construction projects.
AGC of America played a crucial role in challenging the Biden administration's unlawful mandating of PLAs on all federal construction projects valued at $35 million or more. The association's novel bid protest approach was designed to block this unlawful mandate, and the recent ruling by the U.S. Court of Federal Claims validated this approach. The military's decision to drop PLA mandates is a clear sign that AGC's efforts have been successful.
The removal of the PLA mandate will allow all contractors, regardless of their union status, to compete for military construction projects. This increased competition is expected to drive down bid prices and reduce construction costs for taxpayers. Industry estimates suggest that government-mandated PLAs can increase construction costs by 12% to 20%. By eliminating these mandates, the military can save taxpayers approximately $10 billion annually.
In addition to cost savings, the removal of the PLA mandate may also lead to better project outcomes. Increased competition among contractors can encourage innovation and cost-saving solutions, as contractors strive to win bids. Furthermore, the removal of the mandate may encourage more small and medium-sized businesses to bid on military construction projects, as they may not have the resources or willingness to enter into PLAs with labor unions.
AGC of America has welcomed the military's decision to drop PLA mandates and has called on all federal agencies involved in procuring construction services to follow suit. The association will continue its conversations with the Trump administration about the need to officially revoke former President Biden's illegal project labor agreement mandate Executive Order and FAR Rules to eliminate any remaining ambiguity within the ranks of federal procurement officials.
In conclusion, the U.S. military's decision to drop project labor agreement requirements for its military construction solicitations is a significant victory for fair competition in the construction industry. This decision, along with the Justice Department's promise to remove the same mandate on twelve projects, will lead to cost savings for taxpayers, better project outcomes, and increased participation by small and medium-sized businesses. AGC of America has welcomed this decision and will continue to advocate for the removal of PLA mandates on all federal construction projects.
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