22.1012
Applicability of revisions to wage determinations
FAR 22.1012 ensures contractors and contracting officers apply the correct, current wage determinations at the appropriate stages of service contracts, preventing wage compliance issues.
Overview
FAR 22.1012 addresses when and how revisions to wage determinations apply to government contracts subject to the Service Contract Labor Standards (formerly the Service Contract Act). This section clarifies the timing and applicability of updated wage determinations, including those based on prevailing wages and those established through collective bargaining agreements. It ensures that contractors and contracting officers understand which wage rates must be used at various stages of the contracting process, such as solicitation, award, and contract modification.
Key Rules
- Prevailing Wage Determinations
- Revisions to prevailing wage determinations apply based on the timing of contract actions, such as solicitation issuance, contract award, or contract extension.
- Collective Bargaining Agreement (CBA) Wage Determinations
- Wage determinations based on CBAs may have different applicability rules, particularly regarding successor contracts and the timing of CBA negotiations.
Responsibilities
- Contracting Officers: Must ensure the correct wage determination is incorporated at the appropriate stage and update contracts as required by regulation.
- Contractors: Must comply with the wage rates and fringe benefits specified in the applicable wage determination for the contract period.
- Agencies: Must monitor compliance and ensure wage determinations are current and properly applied.
Practical Implications
- This section exists to prevent confusion and disputes over which wage rates apply during contract performance, especially when wage determinations are revised after solicitation or award.
- It impacts daily contracting by requiring careful attention to timing and documentation of wage determinations.
- Common pitfalls include failing to update wage determinations at the right time or misunderstanding the rules for CBA-based determinations.