subpart
222.4--labor standards for contracts involving construction
222.402 Applicability.
222.402-70 Installation support contracts.
222.403 Statutory and regulatory requirements.
222.403-4 Department of Labor regulations.
222.404 Davis-Bacon Act wage determinations.
222.404-2 General requirements.
222.404-3 Procedures for requesting wage
determinations.
222.404-11 Wage determination appeals.
222.406 Administration and enforcement.
222.406-1 Policy.
222.406-6 Payrolls and statements.
222.406-8 Investigations.
222.406-9 Withholding from or suspension of contract
payments.
222.406-10 Disposition of disputes concerning
construction contract labor standards enforcement.
222.406-13 Semiannual enforcement reports.
222.407 Contract clauses.
222.402 Applicability.
222.402-70 Installation support contracts.
(a) Apply both the Service Contract Act (SCA)
and the Davis-Bacon Act (DBA) to installation support contracts if—
(1)
The contract is principally for services but also requires a substantial
and segregable amount of construction, alteration, renovation, painting, or
repair work; and
(2)
The aggregate dollar value of such construction work exceeds or is
expected to exceed $2,000.
(b) SCA
coverage under the contract.
Contract installation support requirements, such as plant operation and
installation services (i.e., custodial, snow removal, etc.) are subject to the
SCA. Apply SCA clauses and minimum wage
and fringe benefit requirements to all contract service calls or orders for
such maintenance and support work.
(c) DBA
coverage under the contract.
Contract construction, alteration, renovation, painting, and repair
requirements (i.e., roof shingling, building structural repair, paving repairs,
etc.) are subject to the DBA. Apply DBA
clauses and minimum wage requirements to all contract service calls or orders
for construction, alteration, renovation, painting, or repairs to buildings or
other works.
(d) Repairs
versus maintenance. Some contract
work may be characterized as either DBA painting/repairs or SCA
maintenance. For example, replacing
broken windows, spot painting, or minor patching of a wall could be covered by
either the DBA or the SCA. In those
instances where a contract service call or order requires construction trade
skills (i.e., carpenter, plumber, painter, etc.), but it is unclear whether the
work required is SCA maintenance or DBA painting/repairs, apply the following
rules—
(1) Individual service calls or orders which will require a total of
32 or more work-hours to perform shall be considered to be repair work subject
to the DBA.
(2)
Individual service calls or orders which will require less than 32
work-hours to perform shall be considered to be maintenance subject to the SCA.
(3)
Painting work of 200 square feet or more to be performed under an
individual service call or order shall be considered to be subject to the DBA
regardless of the total work-hours required.
(e) The determination of labor standards
application shall be made at the time the solicitation is prepared in those
cases where requirements can be identified.
Otherwise, the determination shall be made at the time the service call
or order is placed against the contract.
The service call or order shall identify the labor standards law and
contract wage determination which will apply to the work required.
(f) Contracting officers may not avoid
application of the DBA by splitting individual tasks between orders or
contracts.
222.403 Statutory and regulatory requirements.
222.403-4 Department of Labor regulations.
Direct all questions regarding Department of Labor regulations
to the labor advisor.
222.404 Davis-Bacon Act wage determinations.
Not later than April 1 of each year, each department and agency
shall furnish the Administrator, Wage and Hour Division, with a general outline
of its proposed construction program for the coming fiscal year. The Department of Labor uses this
information to determine where general wage determination surveys will be
conducted.
(1) Indicate by individual project of $500,000
or more—
(i)
The anticipated type of construction;
(ii)
The estimated dollar value; and
(iii)
The location in which the work is to be performed (city, town, village,
county, or other civil subdivision of the state).
(2) The report format is contained in Department
of Labor All Agency Memo 144, December 27, 1985.
(3) The report control number is 1671-DOL-AN.
222.404-2 General requirements.
(c)(5) Information concerning the proper
application of wage rate schedules to the type or types of construction
involved shall be obtained from the appropriate district commander, Corps of
Engineers, for the Army; from the cognizant Naval Facilities Engineering
Command division for the Navy; from the appropriate Regional Industrial
Relations Office for the Air Force; and from the appropriate Defense Contract
Management District, ATTN: Industrial
Labor Relations Office, for the Defense Logistics Agency.
222.404-3 Procedures for requesting wage
determinations.
(b) Requests
for project wage determinations.
Submit requests for project wage determinations directly to the
Department of Labor.
222.404-11 Wage determination appeals.
Send a copy of a petition for review filed by the contracting agency to
the labor advisor.
222.406 Administration and enforcement.
222.406-1 Policy.
(a) General. The program shall also include—
(i)
Training appropriate contract administration, labor relations,
inspection, and other labor standards enforcement personnel in their
responsibilities; and
(ii)
Periodic review of field enforcement activities to ensure compliance
with applicable regulations and instructions.
(b) Preconstruction
letters and conferences.
(1)
Promptly after award of the contract, the contracting officer shall
provide a preconstruction letter to the prime contractor. This letter should accomplish the following,
as appropriate—
(A) Indicate that the labor standards
requirements contained in the contract are based on the following statutes and
regulations—
(1) Davis-Bacon Act;
(2) Contract Work Hours and Safety Standards Act;
(3)
Copeland (Anti-Kickback) Act;
(4)
Parts 3 and 5 of the Secretary of Labor's Regulations (Parts 3 and
5, Subtitle A, Title 29, CFR); and
(5)
Executive Order 11246 (Equal Employment Opportunity);
(B) Call attention to the labor standards
requirements in the contract which relate to—
(1)
Employment of foremen, laborers, mechanics, and others;
(2) Wages and fringe benefits payments, payrolls, and statements;
(3)
Differentiation between subcontractors and suppliers;
(4) Additional classifications;
(5)
Benefits to be realized by contractors and subcontractors in keeping
complete work records;
(6) Penalties and sanctions for violations of the labor standards
provisions; and
(7)
The applicable provisions of FAR 22.403; and
(C) Ensure that the contractor sends a copy of
the preconstruction letter to each subcontractor.
(2)
Before construction begins, the contracting officer shall confer with
the prime contractor and any subcontractor designated by the prime to emphasize
their labor standards obligations under the contract when—
(A) The prime contractor has not performed
previous Government contracts;
(B) The prime contractor experienced difficulty
in complying with labor standards requirements on previous contracts; or
(C) It is necessary to determine whether the
contractor and its subcontractors intend to pay any required fringe benefits in
the manner specified in the wage determination or to elect a different method
of payment. If the latter, inform the
contractor of the requirements of FAR 22.406-2.
222.406-6 Payrolls and statements.
(a) Submission. Contractors who do not use Department of
Labor Form WH 347 or its equivalent must submit a DD Form 879, Statement of
Compliance, with each payroll report.
222.406-8 Investigations.
(a) The following guidance and procedures apply
to investigations conducted by the contracting activity.
(i)
Beginning of the investigation. The investigator shall—
(A) Inform the contractor of the investigation
in advance;
(B) Verify the exact legal name of the
contractor, its address, and the names and titles of its principal officers;
(C) Outline the general scope of the
investigation and that it includes examining pertinent records and interviewing
employees; and
(D) Inform the contractor that the names of the
employees to be interviewed will not be divulged to the contractor;
(E) When requested, provide a letter from the
contracting officer verifying the investigator's authority.
(ii)
Conduct of the investigation.
(A) Review of the contract.
(1) Verify
that all required labor standards and clauses and the wage determination are
included in the contract.
(2)
Review the following items in the contract file, if applicable—
(i) List of subcontractors;
(ii) Payroll statements for the contractor
and subcontractors;
(iii) Approvals of additional classifications;
(iv) Data regarding apprentices and trainees
as required by FAR 22.406-4;
(v) Daily inspector's report or other inspection
reports;
(vi) Employee interview statements; and
(vii) SF 1413, Statement and Acknowledgement.
(B) Interview of the complainant. Interview the complainant except when this
is impractical. The interview shall
cover all aspects of the complaint to ensure that all pertinent information is
obtained. Whenever an investigation
does not include an interview of the complainant, explain such omission in the
investigator's report.
(C) Interview of employees and former
employees.
(1) Interview
a sufficient number of employees or former employees, who represent all
classifications, to develop information regarding the method and amount of
payments, deductions, hours worked, and the type of work performed.
(2) Interview employees at the job site if the interviews can be
conducted privately and in such a manner so as to cause the least inconvenience
to the employer and employees.
(3)
Former employees may be interviewed elsewhere.
(4)
Do not disclose to any employee any information, finding,
recommendation, or conclusion relating to the investigation except to the
extent necessary to obtain required information.
(5) Do not disclose any employee's statement to anyone, except a
Government representative working on the case, without the employee's written
permission.
(6)
Obtain information by mail when personal interviews are impractical.
(7)
Use SF 1445, Labor Standards Interview, for employee interviews.
(8)
Request employees to sign their statements and to initial any
changes.
(9)
Provide an evaluation of each employee's credibility.
(D)
Interview of foremen.
Interview foremen to obtain information concerning the contractor's
compliance with the labor standards provisions with respect to employees under
the foreman's supervision and the correctness of the foreman's classification
as a supervisory employee. All
procedures established for the conduct of employee interviews, and the
recording and use of information obtained, apply to foremen interviews.
(E) Interview of the contractor.
(1)
Interview the contractor whenever the investigation indicates the
possibility of a violation.
(2)
Inform the contractor that—
(i) The interview does not mean that a
violation has been found or that a requirement for corrective action exists;
and
(ii) The purpose of the interview is to
obtain only such data as the contractor may desire to present in connection
with the investigation.
(3) Do
not disclose the identity of any individual who filed a complaint or was
interviewed.
(F) Review of contractor and subcontractor
records.
(1) Review
contractor and subcontractor records such as basic time cards, books, cancelled
payroll checks, fringe benefits, and payment records. Compare them with submitted payrolls. When discrepancies are found, include pertinent excerpts or
copies of the records in the investigation report with a statement of the
discrepancy and any explanation the investigator obtains. When wages include contributions or
anticipated costs for fringe payments requiring approval of the Secretary of
Labor, examine the contractor records to ensure such approval has been obtained
and that any requirements specified in the approval have been met. (See FAR 22.406-2(a)(3)).
(2) Review contractor's and subcontractor's weekly payrolls and
payroll statements for completeness and accuracy regarding the following—
(i) Identification of employees, payroll
amount, the contract, contractor, subcontractor, and payroll period;
(ii) Inclusion of only job classifications
and wage rates specified in the contract specifications, or otherwise
established for the contract or subcontract;
(iii) Computation of daily and weekly hours;
(iv) Computation of time-and-one half for work in excess of
40 hours per week in accordance with FAR 22.406-2(c);
(v) Gross weekly wages;
(vi) Deductions;
(vii) Computation of net weekly wages paid to
each employee;
(viii) Ratio of helpers, apprentices, and
trainees to laborers and mechanics;
(ix) Apprenticeship and trainee registration
and ratios; and
(x) Computation of fringe benefits payments.
(3) Transcribe
the contractor's records whenever they contain information at variance with
payrolls or other submitted documents.
(i) Make the transcriptions in sufficient detail
to permit them to be used to check computations of restitution and to determine
amounts to be withheld from the contractor.
(ii) Follow the form used by the contractor.
(iii) Place comments or explanations concerning
the transcriptions on separate memoranda or in the narrative report.
(iv) Determine whether the wage
determination, any modifications of the determination, and any additional classifications
are posted as required.
(iii)
Submission of the report of
investigation. The investigator
shall submit a report of the investigation in accordance with agency
procedures. Each report shall include
at least the—
(A) Basis for the investigation, including the
name of the complainant;
(B) Names and addresses of prime contractors and
subcontractors involved, and names and titles of their principal officers;
(C) Contract number, date, dollar value of prime
contract, and date and number of wage determination included in the contract;
(D) Description of the contract and subcontract
work involved;
(E) Summary of the findings with respect to each
of the items listed in 222.406-8(a)(ii);
(F) Concluding statement concerning—
(1) The
types of violations, including the amount of kickbacks under the Copeland Act,
underpayments of basic hourly rates and fringe benefits under the Davis-Bacon Act, or underpayments and
liquidated damages under the Contract Work Hours and Safety Standards Act;
(2)
Whether violations are considered to be willful or due to the
negligence of the contractor or its agent;
(3)
The amount of funds withheld from the contractor; and
(4)
Other violations found.
(G) Exhibits indexed and appropriately tabbed,
including copies of the following, when applicable—
(1) Complaint letter;
(2) Contract wage determination;
(3) Preconstruction letter and memorandum of preconstruction
conference;
(4) Payrolls and statements indicating violations;
(5) Transcripts of pertinent records of the
contractor, and approvals of fringe benefit payments;
(6)
Employee interview statements;
(7) Foreman interview statements;
(8) Statements of others interviewed, including Government personnel;
(9)
Detailed computations showing kickbacks, underpayments, and
liquidated damages;
(10) Summary of all payments due to each employee or to a fund plan or
program, and liquidated damages; and
(11) Receipts and cancelled checks.
(c) Notification
to the contractor.
(4)(A)
Notify the contractor by certified mail of any finding that it is liable
for liquidated damages under the Contract Work Hours and Safety Standards Act
(CWHSSA). The notification shall inform
the contractor that—
(1)
It has 60 days after receipt of the notice to appeal the assessment of
liquidated damages; and
(2)
The appeal must demonstrate either that the alleged violations did not
occur at all, occurred inadvertently notwithstanding the exercise of due care,
or the assessment was computed improperly.
(B) If an appeal is received, the contracting
officer shall process the appeal in accordance with department or agency
regulations.
(d) Contracting officer's
report.
(1)
In accordance with agency procedures, the contracting officer shall
forward a detailed enforcement report or summary report in duplicate. These reports shall include at least the
following—
(A) SF 1446, Labor Standards Investigation Summary
Sheet;
(B) Contracting officer's findings;
(C) Statement as to the disposition of any
contractor rebuttal to the findings;
(D) Statement as to whether the contractor has
accepted the findings and has paid any restitution or liquidated damages;
(E) Statement as to the disposition of funds
available;
(F) Recommendations as to disposition or further
handling of the case (when appropriate, include recommendations as to the
reduction, waiver, or assessment of liquidated damages, whether the contractor
should be debarred, and whether the file should be referred for possible
criminal prosecution); and
(G) When applicable the following exhibits—
(1) Investigator's report;
(2)
Copy of the contractor's written rebuttal or a summary of the
contractor's oral rebuttal of the contracting officer's findings;
(3)
Copies of correspondence between the contractor and contracting
officer, including a statement of specific violations found, corrective action
requested, and the contractor's letter of acceptance or rejection;
(4)
Evidence of the contractor's payment of restitution or liquidated
damages. (Copies of receipts, cancelled
checks, or supplemental payrolls); and
(5) Letter from the contractor requesting relief from the liquidated
damage provisions of the CWHSSA.
222.406-9 Withholding from or suspension of contract
payments.
(a) Withholding
from contract payments. The
contracting officer shall contact the labor advisor for assistance when
payments due a contractor are not available to satisfy that contractor's
liability for Davis-Bacon or CWHSSA wage underpayments or liquidated damages.
(c) Disposition
of contract payments withheld or suspended.
(3)
Limitation on forwarding or
returning funds. When disposition
of withheld funds remains the final action necessary to close out a contract,
the Department of Labor has given blanket approval to forward withheld funds to
the Comptroller General pending completion of an investigation or other
administrative proceedings.
(4) Liquidated
damages.
(A)
The agency head may adjust liquidated damages of $500 or less when the
amount assessed is incorrect or waive the assessment when the violations—
(1) Were
nonwillful or inadvertent; and
(2) Occurred notwithstanding the exercise of due care by the
contractor, its subcontractor, or their agents.
(B)
The agency head may recommend to the Administrator, Wage and Hour
Division, that the liquidated damages over $500 be adjusted because the amount
assessed is incorrect. The agency head
may also recommend the assessment be waived when the violations—
(1) Were
nonwillful or inadvertent; and
(2)
Occurred notwithstanding the exercise of due care by the contractor,
the subcontractor, or their agents.
222.406-10 Disposition of disputes concerning
construction contract labor standards enforcement.
(d) Forward the contracting officer's findings
and the contractor's statement through the labor advisor.
222.406-13 Semiannual enforcement reports.
Forward these reports through the head of the contracting
activity to the labor advisor within 15 days following the end of the reporting
period. These reports shall not include
information from investigations conducted by the Department of Labor. These reports shall contain the following
information, as applicable, for construction work subject to the Davis-Bacon
Act and the CWHSSA—
(1) Period covered;
(2) Number of prime contracts awarded;
(3) Total dollar amount of prime contracts
awarded;
(4) Number of contractors/subcontractors against
whom complaints were received;
(5) Number of investigations conducted;
(6) Number of contractors/subcontractors found
in violation;
(7) Amount of wage restitution found due under—
(i)
Davis-Bacon Act
(ii) CWHSSA;
(8) Number of employees due wage restitution
under—
(i)
Davis Bacon Act
(ii)
CWHSSA;
(9) Amount of liquidated damages assessed under
the CWHSSA—
(i)
Total amount
(ii)
Number of contracts involved;
(10) Number of employees and amount paid/withheld
under—
(i)
Davis-Bacon Act
(ii)
CWHSSA
(iii)
Copeland Act; and
(11) Preconstruction activities—
(i)
Number of compliance checks performed
(ii)
Preconstruction letters sent.
222.407 Contract clauses.
In contracts with a State or political subdivision, use the
contract clauses prescribed in FAR 22.407, but preface these clauses with the
following—
The Contractor agrees to comply with the requirements of the Contract Work Hours and Safety Standards Act and to insert the following clauses in all subcontracts under this contract with private persons or firms. |