Mvl USA, Inc. v. United States

United States Court of Federal Claims·Decided May 6, 2025·No. 24-1057·Published

Opinion

In the United States Court of Federal Claims Nos. 24-1057, 24-1077, 24-1144, 24-1219, 24-1398, 24-1433, 24-1461 (Filed: 6 May 2025)

*************************************** MVL USA, Inc., et al., * * Plaintiffs, * * Nos. 24-1057, v. * 24-1077, 24-1144, * 24-1219, 24-1398, THE UNITED STATES, * 24-1433, 24-1461 * Defendant. * * ***************************************

Dirk D. Haire, with whom were Joseph L. Cohen, Payum Sean Milani-nia, David Timm, Jane Jung Hyoun Han, and Michael J. Brewer, of Fox Rothschild, LLP, all of Washington, DC, for plaintiff MVL USA, Inc., and consolidated plaintiffs Environmental Chemical Corp., JCCBG2, and Harper Construction Co., Inc.

Jacob W. Scott, with whom were Allison G. Geewax and Mark S. Abrajano, of Smith Currie Oles LLP, all of Tysons, VA, for consolidated plaintiff Hensel Phelps Construction Co.

William P. Rayel, Senior Trial Counsel, Commercial Litigation Branch, Civil Division, Department of Justice, with whom were Natalee A. Allenbaugh, Trial Attorney, Yaakov M. Roth, Acting Assistant Attorney General, Patricia M. McCarthy, Director, Douglas K. Mickle, Acting Deputy Director, Tarrah M. Beavin, Assistant Division Counsel, South Atlantic Division, USACE, J. Alexandra Fitzmaurice, Associate Counsel, NAVFAC Southeast, and Angelina Calloway, Assistant Regional Counsel, GSA Region 7, Greater Southwest, all of Washington, DC, for defendant.

OPINION AND ORDER

HOLTE, Judge.

In the grand ballpark of federal procurement where the game of government contracting is played, this Court stands not as commissioner of the league, 1 nor member of the Competition Committee, but only as a home plate umpire. This Court’s role behind that plate is tightly circumscribed by statute; limited to calling each pitch as it crosses the plate—ball or strike—

1 The Court notes perhaps the greatest baseball commissioner was retired federal judge Hon. Kenesaw Mountain Landis, who left the bench to become the first commissioner of Major League Baseball and was dubbed “the man who rescued baseball” after the 1919 World Series scandal. See The Man Who Rescued Baseball, N.Y. TIMES, Nov. 12, 1920. based solely on a rulebook drafted by others. This Court cannot change the rules of the game. Rule change authority belongs squarely to others—the game’s architects—tasked with shaping the complex structure of government procurement authority and policy. In this case, the Court previously called a series of balls and strikes—being mindful of the narrow strike zone and boundaries of judicial position—but is now being asked to step out from behind the plate and amend the game’s regulations.

In calling previous pitches, the Court granted plaintiffs’ judgment on the administrative record challenging the legal authority of federal agencies to mandate prospective contractors enter project labor agreements with unions before eligibility to bid on federal construction contracts exceeding $35 million. In assigning balls and strikes, the Court’s 19 January 2025 Order held “[t]he agencies’ 2024 implementation of the mandate—ignoring the agencies’ own market research concluding project labor agreements would be anticompetitive—relying solely on executive order presidential policy is arbitrary and capricious” because “the functionality of the mandate as applied to the individual contracts in this case stifles competition and violates the statutory directive that agencies must promote ‘full and open competition’ in federal procurements.”

Following the government’s notice of corrective action, consolidated plaintiffs, in hopes of changing the rules of the procurement game, filed a motion for permanent injunction. The government responded with a motion to dismiss, arguing the calls of the game were clear—the corrective action renders each protest moot and the Court lacks jurisdiction to grant plaintiffs’ requested relief. At oral argument, plaintiffs asserted greater bid protest jurisdiction, likening the judiciary’s role to “calling balls and strikes on the other two branches [of government] and forcing . . . a proper resolution.” See infra Section VI. The Court’s statutorily prescribed role, however, is much narrower than plaintiffs assert. As a home plate umpire, the Court is tasked with adjudicating individual bid protests, not setting procurement policy—specifically, “the Court’s job is to call the pitch . . . one pitch after another,” not adjust game regulations or widen the strike zone. See infra Section VI. Although plaintiffs urge the Court to prospectively call pitches that may never be thrown, or call balls and strikes in a completely different game, plaintiffs recognize the Court’s 19 January 2025 call “still stands” and future parties affected by the agencies’ “oscillating stance” on project labor agreement policy may seek future relief through more pitches—that is, filing separate bid protests. See infra Sections VI. The Court may disagree with the broadness of the Executive’s implementation of its project labor agreement policy, but “the Court is limited to the jurisdiction granted to it by Congress,” and redefining the procurement policy rulebook is decidedly a task reserved for other branches of government. See infra Section VII. In its limited role, the Court can only call balls and strikes for the pitches thrown and ensure the rules of the game—as written—are followed. 2 For the following reasons, the Court denies plaintiffs’ Motions for Permanent Injunction and grants the government’s Motion to Dismiss.

2 As stated by Chief Justice John G. Robert, Jr., at his Supreme Court confirmation hearing: “Judges are like umpires. Umpires don’t make the rules, they apply them. The role of an umpire and judge is critical. They make sure everybody plays by the rules, but it is a limited role.” Confirmation Hearing on the Nomination of John G. Roberts, Jr. to be Chief Justice of the United States, Hearings before the Committee on the Judiciary, United States Senate, 109th Congress, U.S. Government Printing Office, 2005, 55–56.

-2- I. Factual Background

The Court begins with a brief overview of the Biden Administration’s Executive Order (“EO”) 14063 and subsequent federal procurement regulations implementing the EO, requiring project labor agreements (“PLAs”) on all federal construction contracts exceeding $35 million— including the seven contracts at issue in this case. The Court then provides a chronology of the corrective action taken by each agency following the Court’s 19 January 2025 decision.

A. The Court’s 19 January 2025 Decision Regarding Motions for Judgment on the Administrative Record

In 2022, President Biden issued EO 14063, Use of PLAs for Federal Construction Projects. See Exec. Order No. 14063, 87 Fed. Reg. 7363 (Feb. 9, 2022). The EO mandated agencies to include PLAs with “one or more appropriate labor organizations” in “large-scale” government construction projects exceeding $35 million. See id. at 7363–64. The EO, despite mandating PLAs for all government construction projects over $35 million, provided narrow exceptions to the PLA requirement under certain circumstances. See id. at 7364. As explained in more detail in the Court’s 19 January 2025 decision, President Biden’s EO constituted a departure from the neutral or pro-PLA approaches taken by prior presidential administrations. See MVL USA, 174 Fed. Cl. at 443–46 (detailing history of presidential administrations’ treatments of PLAs for the past thirty years).

Section 8 of the EO required the Federal Acquisition Regulation (“FAR”) Council to propose regulations implementing the EO within 120 days, evaluate comments, and promptly issue a final rule. See Exec. Order No. 14063, 87 Fed. Reg. 7363 (Feb. 9, 2022).

Free access — add to your briefcase to read the full text and ask questions with AI

Mvl USA, Inc. v. United States, (uscfc 2025).

Mvl USA, Inc. v. United States (Mvl USA, Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Resource Conservation Group, LLC v. United States
597 F.3d 1238 (Federal Circuit, 2010)
County of Los Angeles v. Davis
440 U.S. 625 (Supreme Court, 1979)
Amoco Production Co. v. Village of Gambell
480 U.S. 531 (Supreme Court, 1987)
Turner Const. Co., Inc. v. United States
645 F.3d 1377 (Federal Circuit, 2011)
Annie Lou Crocker v. United States
125 F.3d 1475 (Federal Circuit, 1997)
Ramcor Services Group, Inc. v. United States
185 F.3d 1286 (Federal Circuit, 1999)
Charles William Ledford v. United States
297 F.3d 1378 (Federal Circuit, 2002)
Gabriel J. Martinez v. United States
333 F.3d 1295 (Federal Circuit, 2003)
DGR Associates, Inc. v. United States
690 F.3d 1335 (Federal Circuit, 2012)
Gill v. Whitford
585 U.S. 48 (Supreme Court, 2018)
Pds Consultants, Inc. v. United States
907 F.3d 1345 (Federal Circuit, 2018)
National Government Services v. United States
923 F.3d 977 (Federal Circuit, 2019)