Contract Labor Standards

Table of Contents

Mission
Points of Contact
Service Contracts
Frequently Asked Questions About Service Contracts
Construction Contracts
Frequently Asked Questions About Construction Contracts



Mission:

Ensures that all required labor statutes, labor standards provisions and wage determinations are included in all contracts. Determines contractor compliance with all federal labor laws and regulations as they apply to Corps contracts, including proper job classifications, wage determinations and payroll deductions for workers under the contracts; prepares all necessary reports for submission to higher headquarters.
 

Points of Contact:

Phyllis.M.Buras (504) 862-2825
 

Alternates: Alan Schulz (504) 862-2830; Bill Meiners (504) 862-2832

All Wage Rate Requests Sent By E-Mail To Office of Counsel Should Be Directed To Phyllis Buras, With A Copy Furnished To Denise Frederick.  Link to Contract Labor Websites

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Service Contracts:

All requests for wages rates for service contract employees should be submitted to Office of Counsel at least 90 days prior to the expected solicitation date. This is to allow the U.S. Department of Labor (DOL) a full 60-day processing period for requests. The additional 30 day period will afford Office of Counsel adequate time to prepare necessary documentation for DOL and to solicit any additional information needed from requesters. Memoranda or email requesting service wage rates should include the following information:
 

a. Estimated solicitation date (the date on which the invitation for bid or request for proposals will be issued);
b. Estimated date bid or proposal will be opened or negotiations will begin (note if this is an option contract);
c. Date contract performance will begin;
d. Place(s) of performance (parish or county); If place of performance is not known, list all possible or potential places based on bidders list;
e. Specific description of the type of services to be performed;
f. Name and address of incumbent contractor, if applicable, the number of the incumbent's contract, and the number(s) of the wage determination(s) in that contract;
g. Classifications of service employees to be employed*, including job titles, job code numbers, and government grade equivalents;
h. Number of employees of each classification needed;
i. Estimated cost of the contract; and
j. Point of contact in Contracting Division and/or in the requesting office.


*Refer to the DOL, SCA Directory of Occupations, to determine the appropriate job titles for the service employees expected to perform the work under the contract. The Directory of Occupations includes an INDEX of job titles, job number codes, and government grade equivalents. From the INDEX, select the relevant occupational group(s) to retrieve more specific occupational information. Determine if the short description of duties accurately reflects the duties the employees will perform. If there is no reference to the kind of position needed, include a description of duties with your request.

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Frequently Asked Questions About Service Contracts:

Q1. How does Office of Counsel obtain the applicable service wage rates?

A1. Under a Memorandum of Understanding (MOU) between the Department of Labor (DOL) and various DOD agencies, the Corps of Engineers is able to obtain current area wage determinations via an on-line DOD-wide service known as the "WDOL Program." This program may be accessed by authorized users, but may not be used if any of the following circumstances apply to the type of services needed:

a. There was an effective union collective bargaining agreement in the preceding contract period.
b. The SCA database does not contain an appropriate wage determination, or if the wage determination deemed applicable omits a principal occupation to be employed under the contract.
c. The work to be performed relates to the following non-standard SCA job classifications which we have used in the past in NOD:

Air transportation
Aerial photographers/seeding/spraying services
Deckhand
Decontamination services
Demolition (where no subsequent construction is contemplated)
Disaster Emergency clean-up and repair services
Diving services
Driller services
Elevator maintenance
Emergency incident services
Equipment installation & services
Forestry and land management
Gage reading and water sampler collection
Hazardous waste pick-up & disposal services (material/oil spills & related
clean-up services)
Inspection/appraisal services
Moving and storage
Quality assurance services
Removal of oil spills, hazardous waste materials
Sampler collector
Telecommunication equipment installation & services
Transportation & disposal of hazardous waste
Tugboats & coastal vessels

When the WDOL Program cannot be used, Office of Counsel must forward a request for the wage rates to DOL and wait for a response. DOL must be allowed 60 days to respond.

Q2. If DOL has not responded to a request for service rates after 60 days, can the previously issued wage determination be used until the new one is received?

A2. No, previously issued wage determinations may not be used until a new one is received. Contact Office of Counsel. We must solicit guidance from Wage and Hour Division on a case-by-case basis. See 29 C.F.R. § 4.5(d).

Q3. What if, after we have received the wage determination, there is a delay in an invitation for bids, request for proposals, bid opening, or commencement of negotiations for a proposed contract?

A3. If the delay in any of these procurement actions is more than 60 days from the date identified for that action on the SF-98, you must solicit guidance from Office of Counsel to determine if the wage determination has been superseded.

Q4. What should be done if a class of employee needed to perform service contract work is not listed on the issued wage determination?

A4. Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award and only as provided in the labor standards contract clauses (29 C.F.R. § 5.5(a)(1)(v)). See EP 1180-1-1, dated 01 Aug 01, Chapter 8:

8-2. Conformance Actions.
a. A conformance action or request for authorization of additional classification and rate is the process which establishes wage rates for classes of employees which are not included in the applicable wage determination already issued. The DOL's regulations outlining conformance procedures are set forth at 29 C.F.R. § 4.6(b)(2). Additional guidance may be found at FAR 22.1019 and FAR Clause 52.222-41(c)(2). These conformance provisions allow for extending the wage determination to cover classes of service employees needed for the contract's performance (either prime or subcontract) that were either unanticipated at the time of the wage determination request and therefore not listed in the SF 98a, or for which data were unavailable upon which to base a prevailing wage.
b. The conformance action is initiated by the prime contractor following contract award
through the submission of SF-1444 (Appendix G) to the CO no later than 30 days after the unlisted class of employees performs any contract work (FAR 22.1019; FAR 52.222-41(c)(2)(ii)). Where a subcontractor is to use the requested classifications, the name and address of the subcontractor will be shown in item 10 and signed by the subcontractor in item 14. Where no subcontractor is involved, show in item 10 "Not Applicable."

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Construction Contracts:

All requests for wages rates for classifications of employees performing under construction contracts covered by the Davis-Bacon Act, should be submitted to Office of Counsel as soon as possible, but no later than two weeks prior to the expected solicitation date. Memoranda or email requesting Davis-Bacon Act rates should include the following information:

a. The subject of the work and the place(s) of performance (parish);
b. Solicitation date;
c. Estimated cost of the contract;
d. Specific description of the work involved;
e. Whether the work is located in a metropolitan or a non-metropolitan area;
f. Whether the work is located on the Mississippi River or a tributary of the
Mississippi River and/or funded under the MR&T project;
g. If the scope of work involves dredging, note whether dike work is also involved and if so, the estimated cost of the dike work; and
h. Point of contact for technical information.

General wage determinations are available on-line through the Corps of Engineers Automated Legal Services program to any USACE office with internet access. General wage determinations remain in effect until modified, superseded, or withdrawn. Louisiana rates are available at this site.


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Frequently Asked Questions About Construction Contracts:

Q5. When must modifications to general wage determinations be included in our contracts?

A5. Modifications to wage determinations received LESS THAN 10 DAYS BEFORE BID OPENING must be included in our solicitations. This is known as the "10-Day Rule."  If a contract with a general wage determination is not awarded WITHIN 90 DAYS AFTER BID OPENING, any modification to the applicable wage determination published prior to contract award, shall be effective for that contract. This is known as the "90-Day Rule."

Q6. What should be done if a class of employee needed to perform construction contract work is not on the issued wage determination?

A6. Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award and only as provided in the labor standards contract clauses (29 C.F.R. § 5.5(a)(1)(v)).  Requests for Additional Classifications and Rates must be submitted on SF-1444

See ER 1180-1-1, Chapter 4.22 and 4.23

4-23. Instructions to Contractors.
a. The contractor should be furnished copies of the form and instructed regarding
the processing of same as soon as it is determined that additional classifications will be required. In the interest of good administration this matter should be discussed during the preconstruction conference to determine which, if any, additional classifications will be required by the contractor or any of his subcontractors.
b. All requests must be made by the prime contractor, and where a subcontractor
is to use the requested classifications, the name and address of the subcontractor will be shown in Item 10 and signed by the subcontractor in Item 14. Where no subcontractor is involved, show in Item 10 "Not applicable." Union representatives or other representatives of the class of labor are not required to sign the request. All copies of the request, in quadruplicate, are to be manually signed by the respective representatives in Items 15 and 16.
c. It is important to emphasize that the contractor's proposal be supplemented by
information relating to how the proposed wage rate was developed. For example, it may be that the contractor is signatory to a collective bargaining agreement wherein the rate for the subject trade classification is established. The contractor may also identify similar construction projects in the vicinity of the Corps contract where such a classification and rate was used. In any event, the DOL requires that the contractor, the affected employees (if known) or their representatives, and the CO agree on the proposed classification and rate (including the amount designated for fringe benefits where appropriate). The DOL requires that the contractor state whether the proposed rate was developed in consultation with the employees.
d. Pending a final determination by the DOL, the contractor may tentatively
classify and pay affected employees in accordance with the proposal. The contractor should be advised, however, that he may eventually be required to re-classify the affected employees and/or furnish wage restitution should the proposed additional classification and rate be denied by the DOL.

 Q7. What information needs to be shown on the payrolls for construction contracts?

A7. Pursuant to ER 1180-1-8, Chapter 4-19, the following information should be shown on each payroll for all laborers and mechanics working at the site of the work:

a. Name and address of each employee;
b. Social security number;
c. Correct classification;
d. Hourly rate of pay;
e. Daily and weekly number of hours worked;
f. Gross earnings;
g. Fringe benefits
h. Deductions;
i. Actual wages paid.

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The POC for this page:

Frederick Wallace, CEMVN-OC
(504) 862-2264
New Orleans, Louisiana
Frederick.W.Wallace@mvn02.usace.army.mi

Page last updated: 24 April 2006