Photo of Steve McBradyPhoto of Skye MathiesonPhoto of Anuj VohraPhoto of William B. O'ReillyPhoto of Zariah AltmanPhoto of Issac Schabes

In MVL USA, Inc. et al. v. United States, the United States Court of Federal Claims (“COFC”) held that the provisions of FAR 22.505, 52.222-33 and 52.222-34 (collectively, the “PLA mandate”), which required the use of project labor agreements (“PLAs”) on large-scale federal construction projects valued above or at a certain threshold, violated the Competition in Contracting Act (“CICA”). As we previously reported here, former-President Biden issued Executive Order 14063 in February 2022, instructing federal agencies to require construction contractors and subcontractors on projects valued at $35 million or more to “agree, for that project, to negotiate or become a party to” a PLA. A few months later, the FAR Council promulgated a final rule implementing the executive order in FAR 22.505, 52.222-33 and 52.222-34. 

In MVL USA, twelve construction companies filed various bid protests, each challenging the authority of federal agencies to mandate that they enter into PLAs. These bid protests were consolidated into one action at the COFC. The court held that the federal PLA mandate violated CICA because it inappropriately allowed federal agencies to reduce competition for these large-scale federal construction contracts to only PLA-contractors. Further, the court held that there was no statutory exception permitting what it referred to as a blanket restriction of full and open competition. The court explained that CICA’s requirement for “full and open competition” meant that all responsible sources were to be allowed to compete for contracts. Including the PLA mandate in solicitations, according to the court, hindered responsible, capable contractors from bidding on these contracts because the requirement “has no bearing on whether plaintiffs can perform the contract at issue.” Finally, the court held that the agencies here acted arbitrarily and capriciously by disregarding certain market research and surveys that recommended the removal of the PLA requirement for certain solicitations because a PLA would increase price and reduce competition.

 While the COFC held that the federal mandate was unlawful, contractors with PLA requirements in their existing contracts should continue to follow the PLA mandate, since it has not been formally revoked. Crowell & Moring will continue to monitor developments relating to the MVL USA decision and Executive Order 14063.

In an interesting wrinkle, the court also addressed the timeliness of one protester’s suit filed after the proposal submission deadline, but prior to award. The Government had moved to dismiss that single protest pursuant to the Federal Circuit’s Blue & Gold rule. As we have covered previouslyBlue & Gold holds that “a party who has the opportunity to object to the terms of a government solicitation containing a patent error and fails to do so prior to the close of the bidding process waives its ability to raise the same objection” in a subsequent COFC protest. Closely parsing the language of Blue & Gold, the MVL court reasoned that the words “close of the bidding process” means prior to award, not the proposal submission deadline, and therefore the protest was timely. The MVL court further reasoned that finding the protest timely comported with the rationale behind the rule—to prevent an offeror from sitting on a solicitation challenge until learning whether it had won the award. This reinterpretation of the Blue & Gold rule appears ripe for appeal.

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Photo of Steve McBrady Steve McBrady

Steve McBrady is a partner and co-chair of Crowell & Moring’s Government Contracts Group. He also serves as a member of the firm’s Finance and Strategic Growth Committees, where he has played a leading role in expanding client service offerings throughout the U.S.…

Steve McBrady is a partner and co-chair of Crowell & Moring’s Government Contracts Group. He also serves as a member of the firm’s Finance and Strategic Growth Committees, where he has played a leading role in expanding client service offerings throughout the U.S., Europe, Asia, and the Middle East.

In recent years, Steve has received the National Law Journal’s “Winning Litigator” award as a lawyer who has “tackled some of the most widely watched cases of the year,” as well as the “D.C. Trailblazer” award, recognizing lawyers who have “made significant marks on the practice.” In 2018, he was named “Government Contracts MVP” by Law360.

Photo of Skye Mathieson Skye Mathieson

Skye Mathieson is a partner in the Government Contracts Group in Crowell & Moring’s Washington, D.C. office. He works with and advises clients from diverse industries on a wide array of matters, including contract performance disputes (CDA claims and equitable adjustments), cost allowability…

Skye Mathieson is a partner in the Government Contracts Group in Crowell & Moring’s Washington, D.C. office. He works with and advises clients from diverse industries on a wide array of matters, including contract performance disputes (CDA claims and equitable adjustments), cost allowability issues, defective pricing, fiscal law questions, prime-sub disputes, bid protests, internal investigations, and responding to DCAA audits. Prior to joining Crowell & Moring, Skye spent several years as a trial attorney at the procurement litigation division of the Air Force Headquarters for Legal Operations, where he pioneered the seminal “Laguna Defense” that is now widely raised and litigated at the Boards of Contract Appeals.

Skye has extensive experience litigating cases before the Armed Services Board of Contract Appeals (ASBCA), the Civilian Board of Contract Appeals (CBCA), the Government Accountability Office (GAO), and the Small Business Administration (SBA). Through this litigation, Skye has gained valuable experience in a wide variety of industries, such as aerospace (fighter jets, satellites, refueling tankers, simulators, and counter-measures), information technology and software development, construction, healthcare services, intelligence gathering, battlefield services and logistics, scrap disposal, base maintenance and repair contracts, and many others.

Skye also has experience counseling and litigating on a broad range of legal issues, including defective pricing, cost disallowances, contract terminations, unique commercial item issues, constructive changes, differing site conditions, statute of limitations problems, CDA jurisdictional hurdles, contract fraud, Government superior knowledge, unabsorbed overhead and Eichleay damages, CICA stays and overrides, and small business issues.

Having advocated and litigated on behalf of both the government and contractors, Skye has unique insights into both parties’ perspectives that he leverages when exploring and negotiating settlements or other avenues for alternative dispute resolution (ADR). Where settlements are not possible, Skye embraces opportunities for courtroom advocacy. He has significant trial experience examining both expert and fact witnesses on both direct and cross examination, as well as taking and defending depositions, drafting hearing briefs and dispositive motions, and managing millions of pages of document production.

Skye is an active member of the government contracts community. He is the editor-in-chief of the BCA Bar Journal, a quarterly publication of the Boards of Contract Appeals Bar Association, which allows him to work alongside judges, government attorneys, and in-house counsel in the production of each issue. He is also a member of the ABA Section of Public Contract Law.

Photo of Anuj Vohra Anuj Vohra

Anuj Vohra litigates high-stakes disputes on behalf of government contractors in federal and state court, and maintains an active bid protest practice before the U.S. Government Accountability Office and the U.S. Court of Federal Claims. He also assists clients with an array of…

Anuj Vohra litigates high-stakes disputes on behalf of government contractors in federal and state court, and maintains an active bid protest practice before the U.S. Government Accountability Office and the U.S. Court of Federal Claims. He also assists clients with an array of issues related to contract formation (including subcontracts and teaming agreements), regulatory compliance, internal and government-facing investigations, suspension and debarment, organizational conflicts of interest (“OCIs”), intellectual property and data rights, and the Freedom of Information Act (“FOIA”).

Prior to entering private practice, Anuj spent six years as a Trial Attorney in the U.S. Department of Justice’s Commercial Litigation Branch. At DOJ, he was a member of the Bid Protest Team—which handles the department’s largest and most complex protests—and served as lead counsel in dozens of matters representing the United States in commercial disputes before the U.S. Court of Appeals for the Federal Circuit, the Court of Federal Claims, and the U.S. Court of International Trade.

Photo of William B. O'Reilly William B. O'Reilly

William B. O’Reilly is a counsel in Crowell & Moring’s Washington, D.C. office, where he is a member of the firm’s Government Contracts Group.

Liam assists clients with all phases of government contracting, including contract formation and award controversies, performance counseling, and claims…

William B. O’Reilly is a counsel in Crowell & Moring’s Washington, D.C. office, where he is a member of the firm’s Government Contracts Group.

Liam assists clients with all phases of government contracting, including contract formation and award controversies, performance counseling, and claims and disputes litigation. His practice includes representing clients in bid protests before the Government Accountability Office and U.S. Court of Federal Claims. Liam also regularly advises clients on supply chain risk management, addressing issues such as cybersecurity, country of origin and domestic preferences, and counterfeit part detection and avoidance, as well as conducting internal investigations and mandatory disclosures for performance breaches and potential violations of the False Claims Act (FCA).

Photo of Zariah Altman Zariah Altman

Zariah helps clients with antitrust investigations, government contracts matters, including bid protests, and other complex and fast-paced disputes.

In her antitrust practice, Zariah provides counsel on a range of issues and agency actions, including investigations into company hiring practices, such as no-poach/non-solicitation. In…

Zariah helps clients with antitrust investigations, government contracts matters, including bid protests, and other complex and fast-paced disputes.

In her antitrust practice, Zariah provides counsel on a range of issues and agency actions, including investigations into company hiring practices, such as no-poach/non-solicitation. In addition, in the area of government contracts, she advises clients on agency submissions, state and federal regulatory compliance, including FOIA requests, and bid protests.

She received her J.D., cum laude, from Howard University School of Law and served as a senior articles editor for the Howard Law Journal. Zariah worked as a Henry Ramsey Dean’s Fellow for a legal writing professor and as a student attorney in Howard’s Reentry Clinic, where she represented clients with criminal records that were seeking to have their records sealed or to terminate their parole early.

Photo of Issac Schabes Issac Schabes

Issac D. Schabes is an associate in the firm’s Washington, D.C. office, where he is a member of the Government Contracts Group.

Prior to joining the firm, Issac clerked for the Honorable Matthew H. Solomson on the U.S. Court of Federal Claims and…

Issac D. Schabes is an associate in the firm’s Washington, D.C. office, where he is a member of the Government Contracts Group.

Prior to joining the firm, Issac clerked for the Honorable Matthew H. Solomson on the U.S. Court of Federal Claims and the Honorable Robert N. McDonald on the Maryland Court of Appeals. Issac received his J.D., magna cum laude, from the University of Maryland Carey School of Law, where he graduated Order of the Coif and served as an executive editor for the Maryland Law Review. He received numerous awards, including the Judge Simon E. Sobeloff Prize for Excellence in Constitutional Law. During law school, Issac was a member of a low-income taxpayer clinic team that successfully appealed an IRS assessment resulting in a substantial tax liability reduction, and also interned for the Honorable Beryl A. Howell, Chief Judge, on the U.S. District Court for the District of Columbia and the Honorable Marvin J. Garbis on the U.S. District Court for the District of Maryland.