The Davis-Bacon and Related Acts require that contractors (and subcontractors) pay their workers prevailing wages on Federally funded or assisted construction projects.
This information applies to:
All grants and cooperative agreements.
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Overview
The Davis-Bacon Act, as amended, requires that, for Federal contracts over $2,000, laborers be paid the locally prevailing wages and fringe benefits for work done at the contractually-determined site of work. Additionally, Congress has added prevailing wage provisions to approximately 60 Federal statutes ("related acts") which assist construction projects through financial assistance awards, loans and loan guarantees, and insurance. Collectively, these Federal prevailing wage laws are known as Davis-Bacon and Related Acts, or DBRA.
The Davis-Bacon Act is specific only to those contracts to which the United States is a party. Issuing a financial assistance award to a recipient who then issues a contract for construction does not make the United States a party to that contract, and as such the Davis-Bacon Act does not directly apply. For this reason, Congress has had to specifically incorporate Davis-Bacon applicability into other statutes in order to make the law applicable in circumstances where the Federal government assists construction projects through the provision of grants, loans, loan guarantees, and insurance.
For grants and cooperative agreements, the Davis-Bacon Act only applies to "Related Acts", i.e., those that specifically incorporate the requirement in the program's authorizing statute/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 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.
Davis-Bacon and Related Acts (DBRA)
Frequently Asked Questions
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
2 CFR 200, Appendix II to Part 200 - Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, here.
The Davis Bacon Act, as Amended. WH Publication 1246. (Revised April 2009). Online: http://www.dol.gov/whd/regs/statutes/dbra.htm.
For Service Personnel: See DOI Solicitor's Office Opinions related to the Davis-Bacon Act here. (Requires appropriate login permission).
References
[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>.
