This information applies to:
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]
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 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, 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 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. 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
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?
- Sandy Disaster Relief Appropriations Act, 2013 -2 and Division B: Sandy Recovery Improvement Act of 2013.
- 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.
Related Pages
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>.
