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The Davis-Bacon Actand Related Acts require contractors (and subcontractors) pay their workers prevailing wages on Federally-funded or -assisted construction projects. Anchor top top
requires contractors and subcontractors to pay local prevailing wages on Federal contracts over $2,000, as well as certain Federal financial assistance awards.
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All grants and cooperative agreements. |
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Overview
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According to the U.S. Department of Labor's Employment Law Guide, the Davis-Bacon Act: "...requires that and Related Acts (DBRA) require all contractors and subcontractors performing on federal Federal contracts (and contractors or subcontractors performing on federally Federally-assisted contracts under the related Acts) in excess of $2,000 pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits listed in the contract’s Davis-Bacon wage determination for corresponding classes of laborers and mechanics employed on similar projects in the area. " [1] Specifically, the Davis-Bacon Act applies to certain construction projects on public buildings or public works, while the "related acts" include In addition to the Davis-Bacon Act itself, Congress added Davis-Bacon prevailing wage provisions to approximately 60 laws—"related Acts"—under —under which federal Federal agencies assist construction projects through grants, loans, loan guarantees, and insurance. (Examples of the related Acts are the Federal-Aid Highway Acts and the Housing and Community Development Act of 1974.) Generally, the application of prevailing wage requirements to projects receiving federal assistance under any particular "related" Act depends on the provisions of that law.
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If the program's authorizing legislation does incorporate the Davis-Bacon Act requirements, the provision is applicable to construction contracts of more than $2,000 awarded by recipients and subrecipients. see 2 CFR 200 Appendix II—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards for more information. However, if the Davis-Bacon Act requirements are not specifically included in the program’s authorizing legislation, then the requirements do not apply.
Frequently Asked Questions
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When should a notice of award include the Davis-Bacon Act provision?
A notice of award should only include the Davis-Bacon Act provision when the funding program's authorizing legislation specifically incorporates the requirements of the Davis-Bacon Act.
Does the Davis-Bacon Act apply to Fish and Wildlife Service financial assistance programs?
The majority of Fish and Wildlife Service grants programs are not Related Acts to the Davis-Bacon Act, therefore the Act does not apply to them.
What Fish and Wildlife Service financial assistance awards are Related Acts to the Davis-Bacon Act?
The American Recovery and Reinvestment Act (ARRA).
Does a contract under a federal grant have to follow the Davis-Bacon Act?
The Davis-Bacon Act is not applicable to any passthrough funds (subawards or contracts) if the initial federal award is exempt for Davis-Bacon requirements. However, if a State has a prevailing wage law in place, there may be a requirement depending on that State’s legislation.
Resources
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2 CFR 200, Appendix II to Part 200 - Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, here.
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For Service Personnel: See DOI Solicitor's Office Opinions related to the Davis-Bacon Act here. (Requires appropriate login permission).
References
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[1] U.S. Department of Labor "Federal Contracts-Working Conditions: Prevailing Wages in Construction Contracts".Employment Law Guide. 2009. Online. 17 July 2014. <http://www.dol.gov/compliance/guide/dbra.htm>.
