Davis-Bacon Act

This information applies to:

All grants and cooperative agreements.

Definition

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]

Guidance

For grants and cooperative agreements, 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 American Recovery and Reinvestment Act (ARRA) incorporated the requirements of the Davis-Bacon Act. See the U.S. Department of Labor's website at http://www.dol.gov/whd/programs/dbra/whatdbra.htm 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.

Do not include the Davis-Bacon Act provision in notices of of award if the funding program's authorizing does not specifically incorporate the requirements of the Davis-Bacon Act.