By: AGC San Diego
The United States Federal Claims Court has struck down a signature Biden-era policy just as the 46th President leaves office. The court ruled over the weekend that only congress can authorize government-mandated project labor agreements (PLAs), deeming them an unauthorized socio-economic set aside.
The Court also took the Biden Administration to task for ignoring its own market research that determined a PLA mandate would reduce competition and raise costs. This ruling is expected to negate the need for the incoming Trump Administration to go through the lengthy process of repealing the Biden Executive Order. Federal procurement officers will likely be directed to remove the mandate from existing procurements. The full impact of the legal precedent, outside of direct federal contracting, is to be determined.
The challenge was brought by several experienced and well-established federal construction contractors, including Sn Diego based Harper construction Company
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