require generally that laborers and mechanics
employed on federal and federally-funded construction contracts be paid no less than the locally
prevailing wage, as determined by the Secretary of Labor. 40 U.S.C. §276a.
Under the regulations, contracting agencies incorporate prevailing wage determinations into
bid packages and construction contracts. Through this process of predetermining the prevailing
wage rates, all bidders for federal construction projects are provided with the same information
concerning the minimum wage rates that must be paid on a federal construction procurement. 29
C.F.R. §5.5; see also 48 C.F.R. §36.303.
Although the primary objective of the Davis-Bacon Act is to protect local labor
standards, the vehicle for achieving this end the Labor Department's determination of a prevailing
wage schedule, and the incorporation of that wage schedule into construction project bid
specifications and contracts also promotes fairness in the procurement system generally:
[A]ll bidders for federal construction projects are provided with the
same information concerning the minimum wage rates that must be
paid on a federal construction procurement. Just as the Davis-Bacon
prevailing wage requirements promote "the principle that all
prospective federal construction contractors be on a 'level playing
field' in the bidding process," In the Matter of AC and S,
Inc. , WAB Case No. 93-16, March 31, 1994, the process of
including the applicable wage determination in the construction
project bid package and contract insures that all bidders are
developing their bid proposals with the same expectations regarding
the prevailing wage and fringe benefit rates that will be paid on the
project.
Pizzagalli Construction Co. , ARB Case No. 98-090, May 28, 1999, slip op. at 5.
The Davis-Bacon regulations include a straightforward mechanism for
clarifying any errors, omissions or ambiguities that may exist in a wage determination. If Fire
Protection believed that the work of its proposed "Residential Sprinkler Installer"
classification was different from the sprinkler fitter classifications already found in the published
general wage determinations, the company could have submitted a written request to the
Administrator for reconsideration of the wage determination. 29 C.F.R. §1.8. However, it
is well-established that challenges to a wage determination must be made prior to the award of a
construction contract "to ensure that competing contractors know in advance of bidding what
rates must be paid so that they may bid on an equal basis." See In re Kapetan Inc. ,
WAB Case No. 87-33, Sept. 2, 1988, and cases cited therein.
[Page 5]
The regulations authorize the Wage and Hour Division to add an additional
job classification and wage rate after the award of the construction contract (29 C.F.R.
§5.5(a)(1)(v)), but the procedure is designed to be very narrow in scope. A conformed
classification will be recognized only if it meets all the elements of the following three-part
test:
(1 ) The work to be performed by the classification is not
performed by a classification in the wage determination; and
(2 ) The classification is utilized in the area by the
construction industry; and
(3 ) The proposed wage rate, including any bona fide fringe
benefits, bears a reasonable relationship to the wage rates contained
in the wage determination.
Id.
Fire Protection argues before the Board (as it did before the Administrator)
that a separate classification and wage rate for "Residential Sprinkler Fitter" is justified
because the work of its employees on the Palestine Gardens and Avalon residential construction
projects differs substantially from the work performed by fitters who install steel pipe automatic
sprinkler systems. Fire Protection contends that installing plastic CVPC pipe sprinkler systems
the work performed by its employees does not require the same level of expertise and skill required
in metal pipe sprinkler installations. See, e.g., AR Tab B.
The Administrator specifically rejected this argument in connection with his
Palestine Gardens opinion, observing that even if Fire Protection were correct in its position that
there is an industry practice establishing two separate rates for metal versus plastic sprinkler system
installers, an area practice wage survey conducted prior to bid opening and contract award
would be needed to establish the existence of such a separate classification. AR Tab A. With
respect to the Avalon project, the Administrator also noted that the classification and wage rate for
the "Sprinkler Fitters, Fire" was derived from a classification in a collective bargaining
agreement specifically intended for use on residential construction, further undermining any notion
that a new and different sprinkler fitter rate was needed for residential work. See AR Tab
U.
The situation before us in this case is analogous to our recent decision in
Pizzagalli , supra . There, we upheld a decision of the Administrator denying the
contractor's post-award request to add a conformed classification of "Reinforcing
Ironworker" when the wage determination in the bid specifications had included an
"Ironworker" classification. Like this case, the Administrator in Pizzagalli held
that the contractor's proposed additional classification did not meet the first criterion for a
conformance request, i.e. , that the work to be performed by the proposed classification is
not performed by a classification in the wage determination.
[Page 6]
In affirming the Administrator's determination, we noted that there was no
justification for Pizzagalli's failure to challenge the wage determination at the time bids were
solicited . Id. at 7. Further, we held that in a conformance case, which always
occurs after a contract has been awarded, the Administrator is not required to prove that the
work of the proposed conformed classification already is performed on a prevailing basis by a
classification in the wage determination. All that is required is a showing that one of the
classifications in the wage determination performs the work of the proposed conformed
classification, even if that practice does not prevail in the area. Id. , slip op. at 8. Nothing
more is needed: "Board precedent makes clear that in applying the first criterion [of the
regulations] it need not be established that the classification listed in the wage determination is the
prevailing practice, but only that the work in question is performed in that area by that classification
of worker." In the Matter of Iron Workers II , WAB Case No. 90-26, March 20, 1992,
citing TRL Systems , WAB Case No. 86-08 (Aug. 7, 1986), Warren Oliver Company,
WAB Case No. 84-08 Nov. 20, 1984; see also J.A. Languet Construction Co. , WAB
Dec. April 27, 1995 (request for conformance of job classification "Concrete Worker-
Form" denied because work was already performed by Carpenter classification in wage
determination).
Applying this principle to the case now before us, it is clear that Fire
Protection's post-award arguments concerning the prevailing local practice in installing plastic pipe
fire sprinkler systems are inapposite. If Fire Protection believed that the wage determinations did
not reflect prevailing local practice, the time for making its case was prior to the bid dates on the
projects.
Fire Protection was aware when it bid on the Avalon and Palestine Gardens
jobs that the bid packages contained classifications that, on their face, appear to encompass sprinkler
installation work: "Sprinkler Fitters, Fire" and "Sprinkler Fitters." We hold
that the Administrator reached a reasonable conclusion when denying the requests for the new
conformed wage rates, because the proposed classifications did not meet the first prong of the test
in the Davis-Bacon conformance regulations that the work to be performed by the classification
requested is not performed by a classification in the wage determination. 29 C.F.R.
§5.5(a)(1)(v)(A)(1). Fire Protection's petitions for review therefore are DENIED .
SO ORDERED.
PAUL GREENBERG
Chair
E. COOPER BROWN
Member
CYNTHIA L. ATTWOOD
Member
[ENDNOTES]
1 The Administrator has filed a single,
consolidated Administrative Record covering both of these cases.
2 For a list of the Davis-Bacon
Related Acts, see 29 C.F.R. Part 1, Appendix A.