22.1007
Requirement to obtain wage determinations
Contracting officers must obtain and update wage determinations for all service contracts exceeding $2,500 at key points to ensure compliance with labor standards.
Overview
FAR 22.1007 establishes the requirement for contracting officers to obtain wage determinations for service contracts exceeding $2,500. Wage determinations set the minimum wages and fringe benefits that must be paid to service employees under the Service Contract Labor Standards (SCLS). This section outlines specific scenarios when wage determinations must be obtained, including new solicitations, contract modifications that increase the contract value above $2,500 and affect labor requirements, and at certain intervals for multi-year contracts. The regulation ensures that service employees are paid in accordance with Department of Labor standards throughout the life of the contract.
Key Rules
- New Solicitations and Contracts Over $2,500
- Contracting officers must obtain wage determinations for every new service contract or solicitation exceeding $2,500.
- Contract Modifications Exceeding $2,500
- Wage determinations are required for modifications that raise the contract value above $2,500 and either extend the contract or significantly change labor requirements.
- Multiple Year Contracts
- For multi-year contracts over $2,500, wage determinations must be obtained annually (if subject to annual appropriations) or biennially (if not subject to annual appropriations and the term exceeds two years), unless otherwise directed by the Wage and Hour Division.
Responsibilities
- Contracting Officers: Must ensure wage determinations are obtained and incorporated at the required times.
- Contractors: Must comply with the wage rates and benefits specified in the wage determinations.
- Agencies: Oversee compliance and ensure contracting officers follow these procedures.
Practical Implications
- This section ensures fair labor standards are maintained for service employees on federal contracts.
- Failure to obtain or update wage determinations can result in non-compliance and potential penalties.
- Contractors should monitor contract modifications and anniversaries to ensure continued compliance with wage determination requirements.