GAO Denies Protest in Army Corps of Engineers Project Labor Agreement Dispute

The Government Accountability Office (GAO) has denied a protest filed by 4K Global-ACC JV, LLC (4K Global) concerning the Army Corps of Engineers' rejection of its proposal under a solicitation for building repairs at Fort Moore, Georgia. The primary issue revolved around the adequacy of the Project Labor Agreement (PLA) submitted by 4K Global, which the agency deemed non-compliant with the requirements outlined in the Federal Acquisition Regulation (FAR). The GAO found the agency’s decision to reject the proposal to be reasonable and consistent with the solicitation's requirements.

The Army Corps issued the solicitation as a small business set-aside, requiring the submission of a PLA in accordance with FAR provisions. These provisions mandated that offerors negotiate or become a party to a pre-hire collective bargaining agreement with one or more labor organizations, binding both the offeror and its subcontractors to comply. The agency determined that 4K Global's PLA failed to meet these requirements, as it lacked signatures from labor organizations or subcontractors and did not evidence negotiation or binding agreements with the necessary parties. The agreement, signed only by 4K Global, was deemed insufficient under the FAR criteria, leading to the proposal's rejection.

4K Global contended that its PLA met all statutory requirements and argued that the solicitation did not necessitate a fully executed agreement at the proposal stage. The protester asserted that a draft PLA acknowledging future compliance should suffice. However, the GAO rejected this argument, emphasizing that the solicitation explicitly required a compliant and binding PLA as part of the proposal. Additionally, the protester challenged the reasonableness of the solicitation’s requirements but failed to raise these concerns before the deadline for proposal submissions, rendering the arguments untimely under GAO bid protest regulations.

The GAO concluded that the Army Corps acted reasonably in determining that 4K Global's proposal did not meet the solicitation's PLA requirements. The agency's evaluation, which found the proposal lacking in several key aspects, was consistent with the stated criteria and applicable regulations. Moreover, the GAO dismissed 4K Global's claim that the solicitation requirements were improper, as such challenges must be raised before the proposal submission deadline.

While the GAO's decision adheres to the principles of procurement law and upholds the agency's discretion to enforce clear solicitation requirements, it also raises questions about whether the agency could have allowed a cure for what might be viewed as technical deficiencies. Requiring a fully compliant and binding PLA at the proposal stage places a heavy burden on offerors, particularly small businesses, who may struggle to negotiate and finalize such agreements before knowing if they will be awarded the contract. From this perspective, the decision, though legally sound, might be viewed as overly rigid, potentially discouraging competition and limiting opportunities for small businesses in government contracting.

This decision underscores the importance of strict compliance with solicitation requirements, particularly when specific documentation, such as a PLA, is required at the proposal stage. Federal contractors must carefully review solicitation terms to ensure their submissions address all stated criteria, as failure to do so may result in disqualification.

Disclaimer: This blog post is intended for informational purposes only and does not guarantee accuracy or provide legal advice. For specific guidance, consult a qualified professional.