U.S. Bureau of Engraving and Printing Facility
Maryland
A $1.4 billion federal PLA project collapsed after receiving only one bid.
A massive federal construction project proposed by the U.S. Bureau of Engraving and Printing was scrapped after a government-mandated Project Labor Agreement (PLA) choked off competition and drove costs out of reach. The proposed $1.4 billion printing plant in Beltsville, Maryland was intended to be a marquee federal investment. Instead, it became a textbook example of how PLAs inflate costs and undermine competitive bidding.
Despite five firms being pre-qualified to bid on the project, only one contractor submitted a bid. The remaining firms declined to participate, citing the restrictive and costly PLA requirement. With no competitive pressure to control pricing, the sole bid came in too high for the project to move forward.
How it failed
The federal government imposed a mandatory PLA on a $1.4 billion construction project.
Of five pre-qualified firms, only one contractor submitted a bid.
Four qualified firms declined to bid, demonstrating how the PLA suppressed competition.
With only one bid, there was no competitive pressure to keep costs in check.
The sole bid came in too high, rendering the project financially unfeasible.
The federal government ultimately scrapped the project entirely due to excessive costs.
