The United States Court of Federal Claims has ruled in favor of the Associated General Contractors of America (AGC) in a consolidated bid protest case, MVL USA, Inc., et al. v. United States, Case No. 24-1057. The court’s decision challenges the Biden administration’s mandate for project labor agreements (PLAs) on federal construction projects valued at $35 million or more.
Jeffrey Shoaf, CEO of AGC, expressed satisfaction with the ruling, stating that it supports their strategy against what they view as an unauthorized set-aside program initiated by President Biden. Shoaf explained, “Last night’s ruling vindicates the novel approach AGC put in place to challenge the Biden administration’s unlawful project labor agreement mandate.”
The association facilitated seven bid protests from member firms which were consolidated into this single case. According to Shoaf, “This bid protest approach provided a quicker and more effective way to challenge the outgoing president’s anti-competitive and illegal Executive Order.”
The court’s decision nullifies the requirement for PLAs on large federal projects, allowing contractors to compete without government-mandated agreements. Shoaf emphasized that while contractors can voluntarily enter into PLAs if deemed appropriate, mandatory agreements could have disadvantaged both union and open shop firms.
Looking ahead, AGC plans to engage with the incoming Trump administration regarding revoking President Biden’s executive order on PLAs. Shoaf expressed hope that President Trump will recognize “the very obvious benefits of letting all workers compete for the opportunity to build federal projects.”
