(a) Under section 2(a) of the Act, the Secretary or his authorized
representative is given the authority to determine the minimum monetary
wages
and fringe benefits prevailing for various classes of service employees
``in the locality''. Although the term locality has reference to a
geographic area, it has an elastic and variable meaning and contemplates
consideration of the existing wage structures which are pertinent to the
employment of particular classes of service employees on the varied
kinds of service contracts. Because wage structures are extremely
varied, there can be no precise single formula which would define the
geographic limits of a ``locality'' that would be relevant or
appropriate for the determination of prevailing wage rates and
prevailing fringe benefits in all situations under the Act. The locality
within which a wage or fringe benefit determination is applicable is,
therefore, defined in each such determination upon the basis of all the
facts and circumstances pertaining to that determination. Locality is
ordinarily limited geographically to a particular county or cluster of
counties comprising a metropolitan area. For example, a survey by the
Bureau of Labor Statistics of the Baltimore, Maryland Standard
Metropolitan Statistical Area includes the counties of Baltimore,
Harford, Howard, Anne Arundel, and the City of Baltimore. A wage
determination based on such information would define locality as the
same geographic area included within the scope of the survey. Locality
may also be defined as, for example, a city, a State, or, under rare
circumstances, a region, depending on the actual place or places of
contract performance, the geographical scope of the data on which the
determination was based, the nature of the services being contracted
for, and the procurement method used. In addition, in Southern Packaging
& Storage Co. v. United States, 618 F.2d 1088 (4th Cir. 1980), the court
held that a nationwide wage determination normally is not permissible
under the Act, but postulated that ``there may be the rare and
unforeseen service contract which might be performed at locations
throughout the country and which would generate truly nationwide
competition''.
(b) Where the services are to be performed for a Federal agency at
the site of the successful bidder, in contrast to services to be
performed at a specific Federal facility or installation, or in the
locality of such installation, the location where the work will be
performed often cannot be ascertained at the time of bid advertisement
or solicitation. In such instances, wage determinations will generally
be issued for the various localities identified by the agency as set
forth in Sec. 4.4(a)(3)(i).
(c) Where the wage rates and fringe benefits contained in a
collective bargaining agreement applicable to the predecessor contract
are set forth in a determination, locality in such a determination is
typically described as the geographic area in which the predecessor
contract was performed. The determination applies to any successor
contractor which performs the contract in the same locality. However,
see Sec. 4.163(i).
[48 FR 49762, Oct. 27, 1983. Redesignated at 61 FR 68664, Dec. 30, 1996]
