The U.S. Department of Labor (DOL) cancelled its solicitation for bids to construct a new Job Corps Center in Manchester under a government-mandated project labor agreement (PLA). The cancellation came in response to a protest filed with the Government Accountability Office (GAO), with ABC’s support and representation, as reported in the November Action Newsletter. In an amendment to the bid solicitation filed Nov. 10, DOL stated “The solicitation was cancelled because DOL believes that it is in the public interest for the Department to further evaluate the issues involved in the PLA requirement. The Department of Labor is currently considering next steps for building a new Job Corps Center in Manchester, New Hampshire.”

The DOL’s Job Corps Center PLA was believed to be the first government-mandated PLA on a federal construction project since Obama issued an executive order encouraging their use on federal projects. The bid protest challenged the legality of the federal government’s recent shift in federal procurement policy concerning the use of discriminatory and costly PLAs. ABC believes all qualified New Hampshire businesses deserve a fair opportunity to provide the public with the best construction product at the best price and we hope the Labor Department will build this project without a PLA in early 2010. On Feb. 6, President Obama signed Executive Order 13502, which repealed a 2001-2008 prohibition on federal PLAs and encourages agencies to require PLAs on federal construction projects whose total costs exceed $25 million. The Federal Acquisition Regulatory (FAR) Council is in the process of reviewing public comments on its proposed rule that would implement Executive Order 13502 into federal procurement code. ABC filed detailed comments challenging the implementation of Executive Order 13502. There is no justification for playing favorites in the government procurement process and ABC hopes a new solicitation is issued without the PLA requirement. We hope that other federal agencies will heed this example and recognize that PLAs only result in delayed construction and harm to taxpayers. ABC will continue to protest any attempt to impose PLAs on federal construction projects in violation of competitive bidding laws.