22.404-6
Modifications of wage determinations
Contracting officers must vigilantly monitor and timely incorporate wage determination modifications into solicitations and contracts to ensure compliance with federal labor standards.
Overview
FAR 22.404-6 details the procedures for incorporating modifications of wage determinations into solicitations and contracts subject to the Construction Wage Rate Requirements statute. It outlines how and when wage determination modifications issued by the Department of Labor (DOL) must be included in solicitations and contracts, depending on the method of procurement (sealed bidding or negotiation), timing of receipt, and contract actions such as exercising options. The regulation ensures that contractors and contracting officers use the most current wage rates, protecting workers and maintaining compliance with federal labor standards.
Key Rules
- Receipt and Effectiveness of Modifications
- Modifications to wage determinations are effective based on when they are received by the contracting agency or published on SAM.gov, not when received by the contracting officer.
- Sealed Bidding Procedures
- Modifications received or published 10 or more days before bid opening are effective; those received less than 10 days before may be excluded if there is insufficient time to notify bidders, with documentation required.
- Modifications after bid opening are generally not effective unless specific exceptions apply.
- If a modification is received before award, the solicitation or contract must be amended accordingly, including retroactive adjustments if after award.
- If award is delayed beyond 90 days after bid opening, new modifications may apply unless an extension is granted.
- Negotiated Procurements
- All modifications received or published before award are effective and must be incorporated.
- Modifications after award follow the same retroactive adjustment procedures as sealed bidding.
- Exercising Options
- Modifications are effective if received or published before option exercise, or within 45 days after a wage determination request.
- Contracts must be modified to incorporate new wage rates as of the option effective date.
Responsibilities
- Contracting Officers: Must monitor SAM.gov for wage determination updates, annotate receipt dates/times, amend solicitations/contracts as required, and document decisions regarding notification timing.
- Contractors: Must comply with updated wage determinations incorporated into contracts and adjust payrolls accordingly.
- Agencies: Must ensure proper timing and documentation of wage determination modifications and request extensions if needed.
Practical Implications
- This section ensures that workers are paid current prevailing wages and that contractors are aware of their obligations. Failure to monitor and incorporate wage determination modifications can result in noncompliance, disputes, or contract price adjustments. Timely communication and documentation are critical to avoid delays or legal challenges.