The Defense Department has published a class deviation directing the agency’s contracting officers to cease using project labor agreements (PLAs) on large construction projects, a signal that the Trump Administration may be considering reversing this Biden-era priority. PLAs are essentially pre-hire agreements that mandate the use of union labor.
The use of PLAs has long been contentious, with Democratic administrations favoring their use and Republican administrations disfavoring them. In 2022, former President Biden signed Executive Order 14063, which created a presumption that PLAs would be used on large construction contracts. The PLA requirement was codified in acquisition regulations that are still on the books.
Last month, a federal court ruled that the PLA mandate violates federal procurement law by effectively excluding non-PLA contractors from winning an award. However, the lawsuit was a bid protest case, so while the court’s opinion will affect the specific construction contracts at issue, it does not invalidate the E.O. or its implementing regulations.