ABC’s Legal Stand: Challenging Biden’s PLA Mandate for Federal Construction

Today, the Associated Builders and Contractors (ABC) voiced serious apprehension regarding the Biden administration’s recent final rule, which puts President Joe Biden’s Executive Order 14063 into effect. This rule, titled “Federal Acquisition Regulation: Use of Project Labor Agreements for Federal Construction Projects,” enforces project labor agreements (PLAs) on federal construction contracts surpassing $35 million. ABC staunchly opposes this decision, pointing to potential drawbacks such as adverse impacts on taxpayers, fair competition, and the construction industry. The organization views the order as anti-competitive for small businesses and burdensome for taxpayers.

Ben Brubeck, ABC’s vice president of regulatory, labor, and state affairs, criticized the Biden administration’s PLA mandate as burdensome, inflationary, and anti-competitive. According to Brubeck, the imposition of PLAs on construction projects could increase costs by 12% to 20%, limit opportunities for qualified contractors, and worsen the existing shortage of skilled craft professionals in the construction industry, estimated at over half a million people in 2023.

The organization plans to legally challenge the Biden administration’s PLA mandate legally, emphasizing its representation of taxpayers and the majority of the construction industry. Brubeck pledged to utilize all available tools in legal efforts and oppose what they see as a policy favoring special interests.

ABC’s opposition to the PLA mandate is echoed by over 50 U.S. Senate and U.S. House of Representatives members, 19 Republican governors, and a diverse coalition of construction industry, small business, and taxpayer advocates. Many stakeholders, including 2,500 ABC member contractors, submitted comments during the 60-day comment period, with 98% expressing opposition to the proposed rule.

The Biden administration’s PLA policy replaces President Obama’s 2009 Executive Order 13502, which encouraged federal agencies but did not mandate using PLAs on large-scale federal construction projects exceeding $25 million. Government data indicates that, out of 2,499 large-scale federal construction contracts valued at $165.6 billion procured from FY 2009 to FY 2023 under Obama’s policy, only 12 contracts required PLAs. The absence of widespread issues suggests that PLA mandates may not be essential for ensuring efficiency in government contracting.

While the Biden administration proceeds with its PLA mandate, the ABC maintains its steadfast opposition. The organization and a diverse coalition from the construction industry support the Fair and Open Competition Act, which prohibits government-mandated PLAs on federal and federally assisted projects. The ongoing battle between the administration and PLA opponents is marked by legal challenges, expected to influence the future of federal construction projects and the principles of fair and open competition.