DB-51
U.S. DEPARTMENT OF LABOR
OFFICE OF THE SOLICITOR
WASHINGTON 20210
July 29, 1966
MEMORANDUM # 69
TO: AGENCIES ADMINISTERING STATUTES REFERRED TO IN 29 CFR, SUB-
TITLE A, PART 5
FROM: E. Irvin Manger
Associate Administrator
RE: Physical Inclusion of Contract Labor Standards Stipulations
in Subcontracts
This supersedes our May 13, 1958 memorandum to agencies administering
statutes referred to in 29 CFR, Subtitle A, Part 5.
In the processing of labor standards enforcement cases, it has come
to our attention that in many instances, the contract provisions
specified in Section 5.5(a)(6) of Regulations, Part 5 (29 CFR, Sub-
title A), are not being physically included in all subcontracts as
required by the Regulations. The failure to include the labor stan-
dards provisions in subcontracts has resulted in serious and costly
violations on the part of many subcontractors. Further, the Comptroller
General has recently ruled that it is not proper to impose sanctions
against a subcontractor in those cases where the subcontractor is not
fully informed of his obligations to his employees by having the labor
standards provisions incorporated in his subcontract.
Accordingly, we wish to remind all Contracting Agencies that Section
5.5(s)(6) requires the contract stipulations cited therein to be
physically included in all subcontracts. All agencies are requested
to take appropriate measures to assure strict compliance with this
requirement oh the part of their contract administration personnel.
In this connection, it is earnestly suggested that the contractual
requirement be explained in detail during preconstruction conferences
and in preconstruction letters issued to prospective contractors.
Incorporation by reference does not constitute compliance with the
Regulations. However, contractors who subcontract by means of pur-
chase orders or other informal type contract forms will be considered
in compliance with Section 5.5(a)(6) provided they attach copies of
the appropriate labor standards clauses to the subcontract form and



















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provided also that the subcontractor acknowledges receipt of the labor
standards clauses in writing to the contractor awarding the subcontract.
In our opinion, the failure of the prime contractor or a subcontractor
to incorporate the labor standards provisions in its subcontracts may,
under certain circumstances, be a serious violation of the contract.
requirements which would warrant the imposition of sanctions under
either the Davis-Bacon Act or our Regulations.
Therefore, in those cases where a subcontractor is in violation of the
labor standards, the investigation report should include a copy of the
subcontract agreement. In those instances where the 18bor standards
provisions are not incorporated in the subcontract, the investigation
should develop the reasons for such emission. Careful consideration
should be given to the reasons for failing to include the labor stan-
dards provisions in the subcontract and your report should include a
recommendation as to whether such omission warrants the imposition of
sanctions against the contractor.