22.1012-2
Wage determinations based on collective bargaining agreements
Wage determinations based on new or changed collective bargaining agreements are only effective if agencies receive timely notice, ensuring fair incorporation into contracts without disrupting procurement schedules.
Overview
FAR 22.1012-2 outlines the rules for when wage determinations based on new or changed collective bargaining agreements (CBAs) become effective in federal contracts, particularly under the Service Contract Labor Standards statute (41 U.S.C. 6707(c)). It distinguishes between sealed bidding and other contractual actions, setting specific timing requirements for when CBA terms must be received by the contracting agency to be effective for successor contracts. The section also details procedures for contracting officers if wage determinations from the Department of Labor are delayed, and clarifies that these rules only apply if timely notification requirements have been met.
Key Rules
- Sealed Bidding Timing
- New or changed CBA terms are not effective if received less than 10 days before bid opening and there is insufficient time to incorporate them into the solicitation.
- Other Contractual Actions Timing
- For non-sealed bidding, CBA terms are not effective if received after contract award or specified modification, provided performance starts within 30 days. If performance starts later, CBA terms received at least 10 days before work begins are effective.
- Notification Requirement
- These timing limitations only apply if the notification required by FAR 22.1010 has been given.
- Delayed Wage Determinations
- If the Department of Labor does not respond to an e98 wage determination request within 10 days, the contracting officer must follow up by phone and, if necessary, incorporate the CBA directly into the contract and reference a wage determination created via SAM.gov.
Responsibilities
- Contracting Officers: Ensure timely receipt and incorporation of CBA terms, follow up with the Department of Labor as needed, and comply with notification and documentation requirements.
- Contractors: Provide timely notice of new or changed CBAs and ensure compliance with wage determination requirements.
- Agencies: Oversee adherence to timing and notification requirements, and maintain acquisition schedules.
Practical Implications
- This section ensures that wage determinations based on CBAs are only applied when agencies have sufficient time to incorporate them, preventing last-minute changes that could disrupt procurement. Contractors must be proactive in notifying agencies of CBA changes, and contracting officers must manage communications with the Department of Labor to avoid delays. Failure to comply can result in wage determinations not being effective for the contract, impacting labor costs and compliance.