Massive Federal PLA Project Scrapped Over High Costs

PLA Failure!

A $1.4 billion marquee federal project received only 1 bid.

A massive federal construction project just hit a dead end, and the reason is all too familiar: high costs and a flawed bidding process – both of which are recurring failures of government-mandated Project Labor Agreements (PLAs). The proposed $1.4 billion U.S. Bureau of Engraving and Printing plant in Beltsville, Maryland has been scrapped because the price was too high, thanks to a government-mandated PLA that choked off bid competition.

In fact, this marquee federal construction project received only one bid, when four out of the five pre-qualified firms declined to bid on the PLA project.  With no competitive pressure to keep costs in check, the project became financially unfeasible and was ultimately abandoned.

This isn’t an isolated incident – research confirms this pattern. According to the non-partisan, independent RAND Corporation, the lack of competition inherent to government-mandated PLA projects drives up costs for taxpayers by as much as 21%.

Virginia taxpayers beware!  Some Virginia politicians want to import these inflationary PLA mandates to the Commonwealth.  We’re working hard to keep contracting in Virginia open, competitive, and fair.