22.1013 Review of wage determination
Source: FAR 22.1013 on acquisition.gov
Contracting officers must promptly consult their agency labor advisor if wage determinations appear inconsistent, erroneous, or not the result of fair negotiations.
Overview
FAR 22.1013 outlines the procedures contracting officers must follow when reviewing wage determinations under the Service Contract Labor Standards. The section distinguishes between wage determinations based on incumbent collective bargaining agreements and those based on prevailing local wages. It requires contracting officers to consult with the agency labor advisor if there are substantial discrepancies, non-arm’s length agreements, or significant errors or omissions in the wage determination. This ensures that wage determinations are fair, accurate, and compliant with statutory requirements.
Key Rules
- Review of Collective Bargaining Agreement-Based Determinations
- If wages or benefits in the agreement differ significantly from local prevailing rates, or if the agreement may not be the result of arm’s length negotiations, the contracting officer must consult the agency labor advisor and consider further procedures.
- Review of Non-Collective Bargaining Agreement Determinations
- If the wage determination does not match local prevailing wages or contains significant errors or omissions, the contracting officer must consult the agency labor advisor for guidance.
Responsibilities
- Contracting Officers: Must review wage determinations for accuracy and fairness, and consult the agency labor advisor when discrepancies or concerns arise.
- Contractors: Should be aware that wage determinations may be reviewed and potentially challenged if not consistent with local standards or proper negotiation practices.
- Agencies: Must provide labor advisors to support contracting officers and ensure compliance with labor standards.
Practical Implications
- This section exists to prevent unfair wage practices and ensure compliance with labor standards.
- It impacts daily contracting by requiring vigilance in reviewing wage determinations and prompt action when issues are identified.
- Common pitfalls include failing to identify discrepancies or not consulting the labor advisor when required, which can lead to compliance violations.
(a) Based on incumbent collective bargaining agreement. (1)If wages, fringe benefits, or periodic increases provided for in a collective bargaining agreement vary substantially from those prevailing for similar services in the locality, the contracting officer shall immediately contact the agency labor advisor to consider instituting the procedures in 22.1021.
(1) If the contracting officer believes that an incumbent or predecessor contractor’s agreement was not the result of arm’s length negotiations, the contracting officer shall contact the agency labor advisor to determine appropriate action.
(b) Based on other than incumbent collective bargaining agreement. Upon receiving a wage determination not predicated upon a collective bargaining agreement, the contracting officer shall ascertain-
(1) If the wage determination does not conform with wages and fringe benefits prevailing for similar services in the locality; or
(2) If the wage determination contains significant errors or omissions. If either subparagraph (b)(1) or (b)(2) of this section is evident, the contracting officer shall contact the agency labor advisor to determine appropriate action.