U.S. DEPARTMENT OF LABOR
WORKPLACE STANDARDS ADMINISTRATION
WASHINGTON, D.C. 20210 5
March 11, 1971
MEMORANDUM # 92
TO: ALL Government Contracting Agencies of the Federal Government and
the District of Columbia
SUBJECT: SUSPENSION OF PROVISIONS FOR PAYMENT OF WAGES ON CONSTRUCTION
PROJECTS PURSUANT TO WAGE DETERMINATIONS OF THE SECRETARY OF
LABOR UNDER THE DAVIS-BACON ACT
Memorandum.#91 provided initial information on the President's proclamation
of February 23, 1971, which applied to all contracts entered into on and
after that date. This memorandum provides additional information and inter-
pretations of general interest.
A. Effect of Suspension of Davis-Bacon Act and Related Statutes on the
Application of State "Davis-Bacon" Laws to Federally Assisted Construction
Projects Subject to the Suspension.
It is the view of the Department of Labor that the action of the President
invoking the suspension provisions does preclude a State from imposing its
own "Davis-Bacon" type requirements on construction otherwise subject to
the Davis-Bacon Act or to a Davis-Bacon extension statute. Any other con-
clusion would subvert the purpose of the suspension provision. If the
States had the power locally to undo what the President has found necessary
in the national interest, then the suspension provision would be rendered
impotent. Such a result, in our opinion, would be illogical and irrecon-
cilable with the Federal law. The Attorney General's Office concurs in
this view.
Where, pursuant to the President's proclamation, Federal Davis-Bacon wage
requirements have been made inapplicable to contracts for work on a
Federally-assisted .project and subcontracts thereunder (see B(2), below),
it is the responsibility .of-the agency providing Federal assistance for
the project .to .take appropriate steps to ensure .that no non-Federal
"Davis-Bacon" type requirements are substituted for the suspended Federal
requirements or otherwise included in construction contracts as a result
of actioh taken under color of State or local law. While the nature of
the action required of the Federal agency in such a case may vary with
the circumstances and the applicable statutes and regulations, it should
be understood that the President's proclamation does not contemplate Federal
assistance to any contract work for which Davis-Bacon wage requirements

















2
have been suspended, unless the contractors for such work are completely
relieved of the obligation to observe such requirements and are not
obligated to comply with any other requirements of like import or effect.
If any resistance to this position is encountered, please feel free to
contact this office or the Solicitor of Labor for assistance.
Memoranda conveying this opinion have been sent to the General Counsels
of all Agencies and to the Attorneys General of all of the States.
B. Contracts affected by the suspension.
The suspension applies to those contracts "entered into" with a contractor
on or after February 23, 1971 for the performance of work on a project
subject to the provisions of the Davis-Bacon Act or to provisions of
another Federal statute pursuant to which the contractor and his subcon-
tractors would be required, in the absence of the suspension, to pay
workmen on the project wage rates not less than those determined by the
Secretary of Labor in accordance with the Davis-Bacon Act. Accordingly,
(1) Where an agency of the Federal Government or the District of
Columbia enters directly into a contract for work on the pro-
ject, the suspension applies to all work by the contractor
or by any subcontractors on the project if the prime contract
is entered into by the agency on or after February 23, 1971.
If the prime contract was entered into prior to that date,
the suspension is applicable neither to the original prime
contract nor to subcontracts thereunder awarded after such
date; however, amendments to such existing contracts
involving new work outside the scope of the existing con-
tract are, if made on or after February 23, 1971, subject
to the suspension and should contain provisions making the
Davis-Bacon Act requirements inapplicable to the new work.
(2) Where the contract for work on the project is not entered
into directly by a Federal agency or the District of
Columbia, but is entered into by some other agency or
sponsor pursuant to a Federal statute providing for financial
assistance to the project and also providing, except as
affected by the suspension, for payment of wage rates to
workmen on the project which are not less than those deter-
mined by the Secretary of Labor in accordance with the
Davis-Bacon Act, the suspension applies to the sponsoring
agency's contract with the project contractor and to sub-
contracts thereunder if such contract with the project
contractor is entered into on or after February 23, 1971,
but not to such a project contract or subcontracts thereunder
if the project contract was entered into prior to such date.














With respect to project contracts entered into by the
sponsoring agency on or after February 23, 1971, any
prior arrangements made by a Federal agency, subject to
Davis-Bacon Act provisions, for financial assistance to
s the proposed project are subject to the suspension pro-
visions of such Act and are subject to appropriate
revisions in conformity with the President's proclamation
at the instance of the Federal agency.
(3) Whether procurement procedures prior to February 23, 1971
have progressed to a point where a contract for work on a
project has been "entered into" prior to that date is a
question that can be answered only upon consideration of
all the pertinent facts in each case and will, in general,
be for determination by the responsible agency in accordance
with applicable procedures.
C. Revision of Regulations
The Federal Register for Wednesday, March 3, 1971, contained revisions
to Title 29, Code of Federal Regulations, which implement the President's
proclamation by making it plain that for contracts entered into on and
after February 23, 1971:
(1) The provisions of Part 1 of Title 29 CFR are suspended
until further notice;
(2) The application to such contracts of specified portions
of Part 5 with respect to contract stipulations, enforce-
ment, and reports to the Secretary of Labor regarding
compliance with the Davis-Bacon Act are suspended until
further notice. The suspensions do not apply to the
stipulations concerning the Copeland Act or the Contract
Work Hours and Safety Standards Act nor do they apply to
any contracts entered into prior to February 23, 1971.
Robert D. Moran
Administrator