Associated Builders and Contractors Florida First Coast Chapter v. General Services Administration

Court of Appeals for the Eleventh Circuit·Decided April 21, 2026·No. 25-11375·Published

Opinion

USCA11 Case: 25-11375 Document: 47-1 Date Filed: 04/21/2026 Page: 1 of 33

FOR PUBLICATION

In the

United States Court of Appeals For the Eleventh Circuit

No. 25-11375

ASSOCIATED BUILDERS AND CONTRACTORS FLORIDA FIRST COAST CHAPTER, ASSOCIATED BUILDERS AND CONTRACTORS, Plaintiffs-Appellants,

versus

GENERAL SERVICES ADMINISTRATION, William F. Clark, Director, Office of Government-Wide Acquisition Policy, OFFICE OF MANAGEMENT AND BUDGET, Christine J. Harada, Far Council Chair, Senior Advisor to the Deputy Director for Management, UNITED STATES DEPARTMENT OF DEFENSE, John M. Tenaglia, Principal Director, Defense Pricing and Contracting, NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, Karla S. Jackson, Assistant Administrator for Procurement,

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GENERAL SERVICES ADMINISTRATION, Jeffrey A. Koses, Senior Procurement Executive, et al., Defendants-Appellees.

Appeal from the United States District Court for the Middle District of Florida D.C. Docket No. 3:24-cv-00318-WWB-MCR

Before WILLIAM PRYOR, Chief Judge, and BRANCH and ABUDU, Circuit Judges. WILLIAM PRYOR, Chief Judge:

This appeal requires us to decide whether two builders’ associations are likely to succeed on statutory and constitutional challenges to a procurement mandate. In February 2022, President Joseph Biden signed an executive order presumptively requiring that federal construction contractors enter into project labor agreements with unions to improve the efficiency of their work. The Associated Builders and Contractors and its Florida First Coast Chapter brought a facial challenge to the order, accompanying regulations , and enforcement guidance published by the Office of Management and Budget. After the district court denied their motion for a preliminary injunction, the associations filed this interlocutory appeal. While the appeal was pending, Russell Vought, the new Director of the Office of Management and Budget, issued a memorandum stating that the executive order remains in effect during the Trump administration. Because the associations are not likely to succeed on the merits of their claims, we affirm.

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I. BACKGROUND

We describe the background of this appeal in two parts. We first recount President Biden’s mandate of project labor agreements for federal construction projects. We then describe the associations ’ challenges to that mandate in the district court.

A. President Biden Instructs Agencies to Require Project Labor Agreements for Large-Scale Federal Construction Projects. Project labor agreements are “multi-employer, multi-union pre-hire agreement[s] designed to systemize labor relations at a construction site.” Bldg. & Constr. Trades Dep’t, AFL-CIO v. Allbaugh, 295 F.3d 28, 30 (D.C. Cir. 2002). They ordinarily require that “all contractors and subcontractors who will work on a project subscribe to the agreement,” that “all contractors and subcontractors agree in advance to abide by a master collective bargaining agreement for all work on the project,” and that “wages, hours, and other terms of employment be coordinated or standardized pursuant to the [agreement] across the many different unions and companies working on the project.” Id.

Presidential support for project labor agreements has varied.

President George H.W. Bush prohibited agencies from requiring them. Exec. Order No. 12,818, 57 Fed. Reg. 48713, 48713 (Oct. 23, 1992). President William Clinton revoked that order and allowed them. Exec. Order 12,836, 58 Fed. Reg. 7045, 7045 (Feb. 1, 1993). President George W. Bush barred agencies from either requiring or prohibiting them. Exec. Order 13,202, 66 Fed. Reg. 11225, 11225 (Feb. 17, 2001). And President Barack Obama “encourage[d]

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executive agencies to consider requiring” them. Exec. Order No. 13,502, 74 Fed. Reg. 6985, 6985 (Feb. 6, 2009). His order remained in effect during the first administration of President Donald Trump.

President Biden addressed the subject in an executive order in February 2022. He found that “[l]arge-scale construction projects pose special challenges to efficient and timely procurement by the Federal Government.” Exec. Order No. 14,063, 87 Fed. Reg. 7363, 7363 (Feb. 4, 2022). He also determined that project labor agreements “are often effective in preventing these problems from developing .” Id. So, “[b]y the authority vested in [him under] . . . the Constitution and the laws of the United States of America, including the Federal Property and Administrative Services Act,” President Biden established a presumptive requirement that “every contractor or subcontractor engaged in construction” on federal construction projects valued at “$35 million or more” must “negotiate or become a party to a project labor agreement with one or more appropriate labor organizations.” Id. at 7363–64.

Senior officials within procurement agencies “may grant an exception . . . for a particular contract by . . . providing a specific written explanation of why at least one of [three] circumstances exists with respect to that contract.” Id. at 7364. First, an official may explain that a project labor agreement would “not advance the Federal Government’s interests in achieving economy and efficiency in Federal procurement.” Id. Second, an official may conclude “[b]ased on an inclusive market analysis” that requiring an

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agreement would “substantially reduce the number of potential bidders so as to frustrate full and open competition.” Id. Third, an official may specify that mandating an agreement would “be inconsistent with statutes, regulations, Executive Orders, or Presidential Memoranda.” Id.

President Biden instructed the Federal Acquisition Regulatory Council to “propose regulations implementing the provisions of [his] order.” Id. at 7365. The Council “assist[s] in the direction and coordination of Government-wide procurement policy” and comprises officials from the Office of Federal Procurement Policy, the Department of Defense, the National Aeronautics and Space Administration, and the General Services Administration. 41 U.S.C. §§ 1102, 1302(a), (b)(1). As directed, after a notice and comment period, the Council issued its implementing regulations in December 2023. See Use of Project Labor Agreements for Federal Construction Projects, 88 Fed. Reg. 88708 (Dec. 22, 2023). The regulations “require use of project labor agreements for contractors and subcontractors engaged in construction” on “large-scale construction project[s].” FAR 22.503(b). And they include the same three exceptions allowed by the executive order. Id. at 22.504(d)(1)(i)–(iii).

President Biden instructed the Office of Management and Budget to “issue guidance” for the three exceptions. 87 Fed. Reg. at 7365. The Office published a guidance memorandum shortly before the regulations took effect. The guidance memorandum reiterated that exceptions are available where requiring a project labor

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agreement “would . . . be inconsistent with federal statutes.” And it outlined “[a]dditional management considerations” to assist agencies as they determined whether exceptions should be granted because project labor agreements “would not promote economy and efficiency” or “would inhibit competition.”

B. The Associations Sue to Enjoin the Procurement Mandate.

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