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Code of Federal Regulations Pertaining to U.S. Department of Labor

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Title 29  



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Chapter I  

Office of the Secretary of Labor



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Part 4  

Labor Standards for Federal Service Contracts




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Subpart A  

Service Contract Labor Standards Provisions and Procedures

29 CFR 4.5 - Contract specification of determined minimum wages and fringe benefits.

  • Section Number: 4.5
  • Section Name: Contract specification of determined minimum wages and fringe benefits.

    (a) Any contract in excess of $2,500 shall contain, as an 
attachment, the applicable, currently effective wage determination 
specifying the minimum wages and fringe benefits for service employees 
to be employed thereunder, including any information referred to in 
paragraphs (a)(1) or (2) of this section;
    (1) Any wage determination from the Wage and Hour Division, 
Employment Standards Administration, Department of Labor, responsive to 
the contracting agency's submission of an e98 or obtained through WDOL 
under Sec.  4.4; or

[[Page 50898]]

    (2) Any revision of a wage determination issued prior to the award 
of the contract or contracts which specifies minimum wage rates or 
fringe benefits for classes of service employees whose wages or fringe 
benefits were not previously covered by wage determinations, or which 
changes previously determined minimum wage rates and fringe benefits 
for service employees employed on covered contracts in the locality.
    (i) However, revisions received by the Federal agency later than 10 
days before the opening of bids, in the case of contracts entered into 
pursuant to competitive bidding procedures, shall not be effective if 
the Federal agency finds that there is not a reasonable time still 
available to notify bidders of the revision.
    (ii) In the case of procurements entered into pursuant to 
negotiations (or in the case of the execution of an option or an 
extension of the initial contract term), revisions received by the 
agency after award (or execution of an option or extension of term, as 
the case may be) of the contract shall not be effective provided that 
the contract start of performance is within 30 days of such award (or 
execution of an option or extension of term). Any notice of a revision 
received by the agency not less than 10 days before commencement of the 
contract shall be effective, if:
    (A) The contract does not specify a start of performance date which 
is within 30 days from the award; and/or
    (B) Performance of such procurement does not commence within this 
30-day period.
    (iii) In situations arising under section 4(c) of the Act, the 
provisions in Sec.  4.1b(b) apply.
    (3) For purposes of using WDOL databases containing prevailing wage 
determinations, the date of receipt by the contracting agency will be 
the date of publication on the WDOL Web site or on the date the agency 
receives actual notice of an initial or revised wage determination from 
the Department of Labor through the e98 process, whichever occurs 
* * * * *
    (c) Where the Department of Labor discovers and determines, whether 
before or subsequent to a contract award, that a contracting agency 
made an erroneous determination that the Service Contract Act did not 
apply to a particular procurement and/or failed to include an 
appropriate wage determination in a covered contract, the contracting 
agency, within 30 days of notification by the Department of Labor, 
shall include in the contract the stipulations contained in Sec.  4.6 
and any applicable wage determination issued by the Administrator or 
his authorized representative through the exercise of any and all 
authority that may be needed (including, where necessary, its authority 
to negotiate or amend, its authority to pay any necessary additional 
costs, and its authority under any contract provision authorizing 
changes, cancellation, and termination). With respect to any contract 
subject to section 10 of the Act, the Administrator may require 
retroactive application of such wage determination. (See 53 Comp. Gen. 
412, (1973); Curtiss-Wright Corp. v. McLucas, 381 F. Supp. 657 (D NJ 
1974); Marine Engineers Beneficial Assn., District 2 v. Military 
Sealift Command, 86 CCH Labor Cases ]33,782 (D DC 1979); Brinks, Inc. 
v. Board of Governors of the Federal Reserve System, 466 F. Supp. 112 
(D DC 1979), 466 F. Supp. 116 (D DC 1979).) (See also 32 CFR 1-403.)
    (d) In cases where the contracting agency has filed an e98 and has 
not received a response from the Department of Labor, the contracting 
agency shall, with respect to any contract for which section 10 to the 
Act and Sec.  4.3 for this part mandate the inclusion of an applicable 
wage determination, contact the Wage and Hour Division by e-mail or 
telephone for guidance.
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