A federal subcontract package may say that Davis-Bacon, Construction Wage Rate Requirements, Service Contract Labor Standards, or a Department of Labor wage determination applies while omitting the actual determination. That is not a minor attachment problem when labor is a meaningful part of the price.
The wage determination identifies the classifications, wage rates, fringe benefits, locality, and revision that the subcontractor may have to use. Without it, a labor estimate can be built on the wrong assumptions.
For service work, the agency selects the applicable determination
FAR 22.1008-1 directs contracting officers to obtain applicable service wage determinations using Wage Determinations at SAM.gov or the Department of Labor e98 process. Selection depends in part on the classes of service employees and the locality where services will be performed.
A subcontractor should therefore ask for the determination incorporated into the prime contract or subcontract rather than independently selecting a rate and assuming it is the same one the Government used.
Official source: FAR 22.1008-1 — Obtaining Wage Determinations.
For construction, the determination is part of the wage obligation
FAR 52.222-6 ties covered construction wages and fringe benefits to the Secretary of Labor wage determination attached to and made part of the contract. Department of Labor guidance likewise describes wage determinations as the listing of prevailing wage and fringe rates for classifications in a defined area and construction type.
Official source: U.S. Department of Labor — Davis-Bacon Wage Determinations.
What to request from the prime
- The complete wage determination number and current revision incorporated into the contract.
- All determinations if multiple locations or construction types are involved.
- Any collective bargaining agreement incorporated for successor service work.
- Any conformed classifications already approved for the contract.
- Any modification or option-year wage determination that changes current performance.
- The subcontract clause that explains responsibility for future rate increases or adjustments.
Do not solve a missing attachment with a broad certification
A subcontract may require the subcontractor to certify compliance with all applicable wage laws while giving the prime discretion to update incorporated requirements later. That allocation is especially risky if the determination used to price the work is not identified.
Before execution, tie the price to the actual incorporated wage determination and document how later changes will be handled.