The Wage Determination (WD) is created by the Department of Labor. The listing has hourly rates and fringe benefit rates for each labor category in a given area. Sometimes when bidding on government contracts, they include a Wage Determination in the bid package.
There are two types of Wage Determination: the Davis-Bacon Act and the McNamara-O’Hara Service Contract Act or SCA.
The Davis-Bacon Act involves construction, altering, and/or restoring public buildings or public works. The construction includes painting or interior design. The recommended minimum wage and fringe benefit are defined in federal contracts. The Davis-Bacon Act requires all federal construction contracts over $2,000 to include the necessary WD.
The SCA extends to agreements that provide services from the federal government and District of Columbia. This sets standards for wage rates and protects the safety and health for employees working on contracts.
You will find in SAM.gov the Davis-Bacon Act and SCA salaries required for each contract action. Check by the amount of Wage Determination, or use the filters by location to narrow down the tests.
Every WD represents the Labor Department’s current data, with wage rates for each county of each state. In the future, you will be able to sign up to find salary determinations.
There are Two Search Parameters for Acceptable Wage Determination Rates
- Project location.
- The type of construction, i.e. whether it is building, residential, highway, or heavy construction project.
You can also check wage rates with the Wage Determination number. The wage rates included in the solicitation will be the most up-to-date numbers available at the time of bidding. You can use the “Mod Number” to tell whether you’re looking at the latest revision.
There are a few notable rules governing Wage Determination:
- When an update occurs less than 10 days before the opening of the deal.
- If the government determines there is not enough time to inform bidders of the change, therefore they will disregard it.
- The contract will be subject to adjustment to a general WD, if not awarded within 90 days. Unless the agency seeks special authorization from the Department of Labor.
- Sometimes there is no general WD listed for a given county for a specific project, therefore you apply for one. The federal agency funding the project can apply for WD under the Davis-Bacon Act. To apply, submit a SF308 to the Department of Labor, Branch of Construction.
