22.404-5
Expiration of project wage determinations
Contracting officers must ensure contracts are awarded with current wage determinations, amending solicitations and allowing bid or proposal revisions if wage rates change before award.
Overview
FAR 22.404-5 outlines the procedures contracting officers must follow when a project wage determination included in a solicitation is set to expire before contract award. The regulation distinguishes between sealed bidding and negotiated procurement, providing specific steps to ensure compliance with wage determination requirements under the Davis-Bacon Act. The primary goal is to ensure that contracts are awarded with current, valid wage determinations, and to address situations where wage determinations expire before award, including how to request extensions, amend solicitations, and handle changes in wage rates.
Key Rules
- Award Before Expiration
- Contracting officers must strive to award contracts before the included wage determination expires.
- Sealed Bidding Procedures
- If the wage determination may expire before bid opening, request a new one and, if needed, postpone bid opening and amend the solicitation. If it expires after bid opening but before award, request an extension or a new determination, and adjust the contract or solicitation as required.
- Negotiated Procurement Procedures
- If the wage determination will expire before award, request a new one and delay award if necessary. Offerors may need to extend proposal acceptance periods. Amend the solicitation and allow proposal revisions if wage rates change.
Responsibilities
- Contracting Officers: Must monitor wage determination expiration, request extensions or new determinations, amend solicitations, and ensure proper contract modifications.
- Contractors: Must be aware of potential changes to wage rates and be prepared to amend bids or proposals if required.
- Agencies: Oversee compliance and ensure timely processing of wage determinations and contract awards.
Practical Implications
- This section ensures that contracts reflect current wage rates, protecting both workers and the government from outdated wage data. Delays or failures to update wage determinations can result in solicitation amendments, bid/proposal revisions, and potential contract price adjustments. Contractors should monitor wage determination status closely to avoid compliance issues or unexpected cost changes.