In a decision published on January 21, 2025, the U.S. Court of Federal Claims struck down the Biden administration’s policy requiring Project Labor Agreements (PLAs) on large-scale construction projects. Signed by President Biden in February 2022, Executive Order (EO) 14063 mandates PLAs on all federal construction projects exceeding $35 million. In the consolidated bid protest of MVL USA, Inc., et al. v. United States, Case No. 24-1057, the Court held that federal agencies’ implementation of the EO violated the Competition in Contracting Act (CICA) by restricting open competition, rendering the requirement “arbitrary and capricious.”

Although this decision is a significant victory for the protestors, its direct impact is limited for the moment. The PLA mandate has not been rescinded and remains in effect for large-scale construction procurements that were not part of this consolidated protest. The decision, however, likely precedes the mandate’s imminent demise. Many industry insiders, including the Build America Local Coalition, have urged the new Trump administration to scrap the mandate. The Trump administration has signaled that it is sympathetic to these requests, and the President, of course, can rescind the mandate with the stroke of his pen. But unless or until President Trump issues a new EO, the Court’s decision signals that PLA mandates will face heightened scrutiny and will require agencies to carefully justify mandates to avoid similar legal challenges.