North America's Building Trades Unions v. Department of Defense

CourtDistrict Court, District of Columbia
DecidedMay 16, 2025
DocketCivil Action No. 2025-1070
StatusPublished

This text of North America's Building Trades Unions v. Department of Defense (North America's Building Trades Unions v. Department of Defense) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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North America's Building Trades Unions v. Department of Defense, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

NORTH AMERICA’S BUILDING TRADES : UNIONS, et al., : : Plaintiffs, : Civil Action No.: 25-1070 (RC) : v. : Re Document No.: 5 : DEPARTMENT OF DEFENSE, et al., : : Defendants. :

MEMORANDUM OPINION

GRANTING PLAINTIFFS’ MOTION FOR PRELIMINARY INJUNCTION

I. INTRODUCTION

North America’s Building Trades Unions (“NABTU”) and Baltimore-D.C. Metro

Building and Construction Trades Council (“Baltimore-DC Building Trades”) (collectively,

“Plaintiffs”) seek a preliminary injunction against the Department of Defense (“DoD”); Peter B.

Hegseth, in his official capacity as Secretary of Defense; the General Services Administration

(“GSA”); and Stephen Ehikian, in his official capacity as Acting Administrator of GSA

(collectively, “Defendants”). Plaintiffs challenge recent memoranda issued by the DoD and

GSA that exempt certain large-scale construction projects from the Project Labor Agreement

(“PLA”)1 requirements set forth by Executive Order 14,063 (the “EO”). Plaintiffs argue that

1 PLAs are pre-hire agreements between project owners (such as government entities or private contractors) and labor unions that set the terms and conditions of employment for a specific construction project. See generally Exec. Order No. 14,063, 87 Fed. Reg. 7363, 7363 (Feb. 4, 2022) (the “EO”). In the context of the EO, which was issued by President Joseph R. Biden in 2022, these agreements are used to establish rules on wages, working hours, dispute resolution, benefits, and other workplace policies before construction begins, with the aim of ensuring labor harmony, promoting efficiency, and minimizing project delays. See id. The EO encourages the use of PLAs for large-scale, federal infrastructure projects that meet certain cost these actions unlawfully revoke the PLA mandate and harm their ability to negotiate and

administer PLAs, particularly affecting major projects like the Marine Barracks in Washington,

D.C. and the United States Department of Agriculture (“USDA”) Dairy Forage Research Center

in Wisconsin. The DoD and GSA contend that, although PLAs will not be mandated for large-

scale construction projects, projects that contain PLAs will still be considered, but Plaintiffs

assert that the memoranda undermine their role in the process and deprive them of the

“bargaining chip” the EO PLA mandate provides them. As a result, Plaintiffs seek a preliminary

injunction to prevent further harm and ensure compliance with the EO. For the foregoing

reasons, the Court grants Plaintiffs’ motion for preliminary injunction.

II. REGULATORY BACKGROUND

On February 4, 2022, President Biden issued Executive Order 14,063, which articulates

that “in awarding any contract in connection with a large-scale construction project, or obligating

funds pursuant to such a contract, agencies shall require every contractor or subcontractor

engaged in construction on the project to agree, for that project, to negotiate or become a party to

a project labor agreement with one or more appropriate labor organizations.” Exec. Order

No. 14,063, 87 Fed. Reg. 7363, 7364 (Feb. 4, 2022) (the “EO”); see also Compl. ¶¶ 21–25, ECF

No. 1.2 The requirement pertains to federal construction projects with an anticipated cost to the

thresholds (typically $35 million or more). Id. The EO aims to reduce the risk of strikes, lockouts, and disputes, and increase project efficiency. Id. 2 President Biden is not the first Chief Executive to address the use of PLAs in federal procurement through executive action. Although a comprehensive review of the more than thirty-year history of executive orders on this subject is unnecessary for purposes of this Opinion, it is sufficient to observe that, beginning with President George H.W. Bush in 1992, nearly every succeeding President has issued an executive order either prohibiting, encouraging, or adopting a neutral stance toward the use of PLAs in federal contracting. See MVL USA, Inc. v. United States, 174 Fed. Cl. 437, 443–45 (Fed. Cl. 2025). During his first term, President Trump did not revoke the executive order issued by President Obama, which encouraged federal agencies to consider the use of PLAs, though it stopped short of mandating their adoption. Id. at

2 federal government of $35 million or greater. Exec. Order No. 14,063, 87 Fed. Reg. at 7363.

However, “[a] senior official within an agency may grant an exception from the requirements . . .

for a particular contract” under circumstances specified in section 5 of the EO. Id. at 7364. On

December 18, 2023, the Office of Management and Budget (“OMB”) issued a memorandum—

without prior public notice or opportunity for comment—offering guidance to federal agencies

on the exceptions to the PLA Rule and related reporting requirements. Compl. ¶ 29. On

December 22, 2023, after considering public comments, the Federal Acquisition Regulatory

(“FAR”) Council issued a final rule implementing the requirements of the Executive Order

(referred to as the “PLA Rule”), effective on January 22, 2024. Id. ¶ 27. The EO and the PLA

Rule mandate that agencies publicly disclose any granted exemptions by posting them on a

designated public website. Exec. Order No. 14,063, 87 Fed. Reg. at 7364–65.

III. FACTUAL AND PROCEDURAL BACKGROUND

NABTU represents over three million workers through 14 national and international

unions and over 330 trade councils. Decl. of Sean McGarvey (“McGarvey Decl.”) ¶ 3, ECF No.

5-2. NABTU, including its affiliate, the Baltimore-D.C. Building Trades, plays a key role in

negotiating and administering PLAs for federal construction projects, including those subject to

the EO. See Mem. in Supp. of Pls.’ Mot. for Prelim. Inj. (“Pls.’ Mot.”) at 1, ECF No. 5-1.

445. That executive order, however, was more limited in scope than the one presently under review. At the time of this Opinion, President Trump has not rescinded the EO at issue. On March 14, 2025, he issued Executive Order 14,236, which formally repealed Executive Order 14,126—a directive that had promoted the use of PLAs in federal construction projects. See Exec. Order No. 14,236, 90 Fed. Reg. 13037 (Mar. 14, 2025). While this development calls into question the continued enforceability of EO No. 14,063, this Court has not been advised that the Executive Branch has expressly abandoned the EO or the associated regulations and guidance, nor have the parties represented that this action has been rendered moot. Accordingly, in the absence of definitive action by the Executive Branch or a concession from the parties, the Court will proceed to adjudicate the merits of Plaintiffs’ motion for a preliminary injunction.

3 NABTU and its affiliates enter into hundreds of PLAs each year, including agreements for

various large-scale projects funded by federal agencies like the DoD and GSA. See McGarvey

Decl. ¶¶ 9–11. Examples include PLAs for projects such as the $137 million Indian River

Lagoon-South project in Florida, see id. ¶ 11, and a $238 million training complex at Lackland

Air Force Base in Texas, see id. ¶ 12.

On February 7, 2025, DoD issued a memorandum stating that contracting officers should

no longer require agreements to negotiate PLAs for large-scale projects, instructing them to

amend solicitations accordingly. Mem. re: Class Deviation—Waiver of Project Labor

Agreement Requirements, Dep’t of Defense (“DoD Mem.”), ECF No. 5-6. Similarly, on

February 12, 2025, GSA issued its own memorandum, exempting Land Port of Entry (“LPOE”)

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