U.S. DEPARTMENT OF LABOR
EMPLOYMENT STANDARDS ADMINISTRATION
WASHINGTON, D.C. 20210
February 11, 1974
MEMORANDUM #115
TO: All Government Contracting Agencies of the Federal
Government and the District of Columbia
SUBJECT: Survey, Raising Dollar Threshold, Davis-Bacon and
Related Acts, Service Contract Act
The Commission on Government Procurement has recommended raising to
$10,000 the minimum level at which social and economic programs are
applied to the procurement process. The Department of Labor is the
lead agency within the Executive Branch in considering this important
recommendation. Other agencies have a participating role.
If this recommendation is approved, legislation will be necessary to
raise the threshold of the Davis-Bacon and related Acts from (2,000
and the threshold of the Service Contract Act from $2,500. The diffi-
culty is that precise information is needed as to what would happen
if this recommendation became law--that is, how many contracts and
employees would lose wage determination protection. A sample survey
was made covering January 1973 but it was found that this did not
provide an adequate statistical base for a decision to be made one way
or the other. Accordingly, it has been decided to run a survey for a
full 6-month contract cycle covering all such contracts awarded in the
period starting April 1, 197 and running through September 30, 1974
(two quarters).
This survey has been officially approved. Here is how it is set up.
When a Notice of Intention to Make a Service Contract (SF-98) is
responded to by the Department of Labor, a copy of a simple survey
form (see attached Form WH-20(T)) will be sent with the response
directly to the person who requested the wage determination.
The survey is a little more complex under the Davis-Bacon and related
Acts. With -respect to requests for project wage determinations--that
is, those requested by an agency for a particular contract--the procedure
will be exactly the same as under the Service Contract Act. The form
(see attached Form WH-21(T)) will be enclosed with the Department of
Labor's response to the wage determination request. However, where con-
tracts are awarded incorporating a general (or area) wage determination


















2
published in the Federal Register, there is no practical way for the
Department of Labor to learn of the contract except through the awarding
agency. Thus it is up to the contracting officer to take the initiative
in sending in the survey form.
Each headquarters of a contracting agency is requested to advise
local contracting officers to cooperate by completing the form and
mailing it to the Wage-Hour Administrator in accordance with instruc-
tions on the form. Additional copies of the form will be furnished
on request by this office or may be duplicated by photocopy. Any
system of getting the completed form to us will do. In all cases,
the form should be filled out and mailed to the Administrator as soon
after award of the contract as possible.
This survey is very important and your full cooperation is urgently
needed. If you have any question or suggestions please get in touch.
Warren D. Landis
Acting Administrator
Wage and Hour Division
Attachments - 4 sets of survey forms WH-20(T)(SCA)
and-WH-21(T)(DBRA)





































GRAPHIC “SURVEY – RECOMMENDATION A-44 COMMISSION ON GOVERNMENT PROCUREMENT SERVICE CONTRACT”























































U.S. DEPARTMENT OF LABOR 
EMPLOYMENT STANDARDS ADMINISTRATION
WASHINGTON, D.C. 20210
Contracting Officer - Service Contracts:
The Commission on Government Procurement has recommended raising to
$10,000 the minimum level at which social and economic programs are
applied to the procurement process. The Department of Labor is the
lead agency within the Executive Branch in considering this important
recommendation. Other agencies have a participating role.
If this recommendation is approved, legislation will be necessary to
raise the threshold for the application of the Service Contract Act
from "in excess of $2,500" to "in excess of $10,000" (or some other
figure). A sample survey was conducted for the month of January 1973
by the Department of Labor to determine how many contracts and employees
would lose Wage determination coverage as a result of a higher threshold.
The survey did not provide sufficient depth to support a definite position
for or against a change in the law. Accordingly, it has been decided to
run a survey for a 6-month contract cycle - all service contracts awarded
in the period starting April 1. 1976 and running through September 30, 1974
(two quarters).
This survey of contracts awarded in these two quarters is designed to
furnish adequate statistical data to show what would happen under the
Service Contract Act if the Commission's recommendation became law.
The survey includes only service contracts over $2,500. When the Depart-
ment of Labor responds to a Notice of Intention to Make a Service Contract
(SF-98), a copy of this form will be enclosed with the number of the
SF-98 entered in Item 1. This number is essential for control purposes.
The form should be completed by the contracting officer as soon after
contract award as possible and sent to the Administrator, Wage and
Hour Division, Employment Standards Administration, U. S. Department
of labor, Washington, D. C. 20210.
This report has been cleared in accordance with FPMR 101-11.11 and
assigned Interagency Report Control No. 00l0-DOL-OG-C.
Your help and cooperation is vital.
Ray J. Dolan
Assistant Administrator





















GRAPHIC “SURVEY – RECOMMENDATION A-44 COMMISSION ON GOVERNMENT PROCUREMENT DAVIS-BACON AND RELATED ACTS”























































U.S. DEPARTMENT OF LABOR
EMPLOYMENT STANDARDS ADMINISTRATION
WASHINGTON, D.C. 20210
Contracting Officer - Construction-Type Contracts:
The Commission on Government Procurement has recommended raising to $10,000
the minimum level at which social and economic programs are applied to the
procurement process. The Department of Labor is the lead agency within the
Executive Branch in considering this important recommendation. Other agencies
have a participating role.
If this recommendation is approved, legislation will be necessary to raise
the threshold for the application of the Davis-Bacon and related Acts from
"in excess of $2,000" to "in excess of $10,000" (or some other figure). A
sample survey was conducted for the month of January 1973 by the Department
of labor to determine how many contracts and employees would lose wage deter-
mination coverage as a result of a higher threshold. The survey did not pro-
vide sufficient depth to support a definite position for or against a change
in the law. Accordingly, it has been decided to run a survey for a 6-month
contract cycle - all construction-type contracts awarded in the period
starting April 1, 1974 and running through September 30, 1974 (two quarters).
This survey of contracts awarded in these two quarters is designed to furnish
adequate statistical data to show what would happen under the Davis-Bacon and
related Acts if the Commission's recommendation became law. This survey in-
cludes construction-type contracts over $2,000 awarded directly by the Federal
government as well as such contracts awarded by States and local governments
with Federal financial assistance. Contracts in excess of $2,000 financed
25 percent or more by entitlement funds under the State and Local Fiscal
Assistance Act of 1972 are also included in the survey.
If the contract is to incorporate a project wage determination - that is,
a wage determination issued for the particular contract - the Department of
Labor will enter number of the wage determination in Item 2.a. and enclose
this form with the determination when it is sent to the requesting agency.
If the contract incorporates a general wage determination - that is, a wage
determination published in the Federal Register - the agency must enter the
correct number of the wage determination in Item 2.b. These numbers are
essential for control purposes.
The form should be completed by the contracting officer as soon after
contract award as possible and sent to the Administrator, Wage and
Hour Division, Employment Standards Administration, U. S. Department
of Labor, Washington, D. C. 20210.
This report has been cleared in accordance with FPMR 101-11.11 and
assigned Interagency Report Control No. 0011-DOL-0G-C.
Your cooperation is vital.
Ray J. Dolan
Assistant Administrator