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The Davis-Bacon Act establishes minimum wage requirements for various classes of laborers and mechanics on certain contracts. Anchor top top
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All grants and cooperative agreements. |
Definition
According to the U.S. Department of Labor's Employment Law Guide, the Davis-Bacon Act: "...requires that all contractors and subcontractors performing on federal contracts (and contractors or subcontractors performing on 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]
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Overview
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The Davis-Bacon Act (40 U.S.C. §§3141-3148) requires that certain Federal contracts include a provision stating the minimum wages to be paid to various classes of labors and mechanics. In addition to the Davis-Bacon Act itself, Congress added Davis-Bacon prevailing wage provisions to approximately 60 laws—"related Acts"—under which federal agencies , Congress has identified in regulation 59 other Federal statutes that assist construction projects through grants, loans, loan guarantees, and insurance . (Examples of the related Acts are the Federal-Aid Highway Acts, the Housing and Community Development Act of 1974, and the Federal Water Pollution Control Act.) Generally, the application of prevailing wage requirements to projects receiving federal assistance under any particular "related" Act depends on the provisions of that law.
Guidance
For grants and cooperative agreements, that are also subject to prevailing wage requirements ("Related Acts"). The Secretary of Labor is responsible for coordinating the administration and enforcement of the labor standards provisions of the Davis-Bacon Act only applies to "Related Acts", i.e., those that specifically incorporate the requirement in the program's authorizing statue/legislation. For example, the and Related Acts. Federal agencies responsible for the administration of these Acts must follow the requirements in the Department of Labor regulations at Title 29 C.F.R. Part 5. Federal agencies would also follow these requirements when responsible for administration of any other statute that specifically incorporates prevailing wage or other labor standards requirements. An example of such a statute is the now expired American Recovery and Reinvestment Act (ARRA) incorporated the requirements of ) (Public Law 111–5), which made recipients of support under ARRA subject to the Davis-Bacon Actprevailing wage requirements for laborers and mechanics employed in the performance of ARRA-funded projects. See the U.S. Department of Labor's Labor’s website at at http://www.dol.gov/whd/programs/dbra/whatdbra.htm for for more information.
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 43 CFR Parts 12.76 Procurement, 12.948 Contract provisions and Appendix A to Subpart F—Contract Provisions 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.
FWS does not incorporate Davis-Bacon or related labor standard provisions in FWS financial assistance awards unless required by Federal program legislation. When required, FWS will incorporate into related Notices of Award the applicable provisions from Appendix II to Part 200—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.
Frequently Asked Questions
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When should a notice of award include the Davis-Bacon Act provision?
A FWS will incorporate into 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 Actand any other applicable provisions in Appendix II to Part 200—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards when required by Federal program legislation. Such requirements will be applicable as described in the program’s legislation.
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?
- Sandy Disaster Relief Appropriations Act, 2013 -2 and Division B: Sandy Recovery Improvement Act of 2013.
- The American Recovery and Reinvestment Act (ARRA)
applies only when made applicable in Federal program legislation and as described in that legislation.
Does a contract under a
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Federal financial assistance award have to follow the Davis-Bacon Act?
The applicability of the Davis-Bacon Act is not applicable to any passthrough funds (subawards or contracts) if the initial federal award is exempt for Davis-Bacon requirementsor other labor standards requirements is determined by how those requirements are described in the program’s legislation. In some cases the requirements may apply to all laborers and mechanics employed in the performance of the projects funded under the project, and in other cases they may only apply to laborers and mechanics employed by the financial assistance recipient’s prime contractors or subcontractors. However, if a State has a prevailing wage law in place, there may be a requirement depending on that State’s legislation.
Related Pages
Resources
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2 CFR Part 200—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards
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Davis-Bacon Act
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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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U.S. Department of Labor’s website at http://www.dol.gov/
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References
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