22.404-9 Award of contract without required wage determination
Source: FAR 22.404-9 on acquisition.gov
If a contract is awarded without the required wage determination, the contracting officer must promptly correct the error by incorporating the proper determination or terminating the contract.
Overview
FAR 22.404-9 addresses the procedures to follow if a contract is awarded without the required wage determination under the Construction Wage Rate Requirements statute. This section ensures that contracts comply with prevailing wage laws, even if an error or omission occurs at award. It outlines the steps contracting officers must take to correct the oversight and the remedies available, including contract modification or termination.
Key Rules
- Immediate Action Upon Discovery
- If a contract is awarded without the correct wage determination, the contracting officer must act immediately to incorporate the required determination.
- Requesting a Wage Determination
- If a valid wage determination is not available, the contracting officer must quickly request one from the Department of Labor, providing an explanation and the contract award date.
- Remedial Actions
- The contracting officer must either modify the contract to include the correct wage determination (retroactive to the award date) and adjust the price if needed, or terminate the contract.
Responsibilities
- Contracting Officers: Must promptly correct any omission of a required wage determination, request determinations from DOL when necessary, and either modify or terminate the contract as appropriate.
- Contractors: Must comply with the wage determination once incorporated, including any retroactive requirements and price adjustments.
- Agencies: Must oversee compliance and ensure corrective actions are taken swiftly to avoid violations of wage statutes.
Practical Implications
- This section exists to ensure compliance with wage laws even when administrative errors occur. It impacts contract administration by requiring prompt corrective action, potentially affecting contract pricing and performance. Common pitfalls include delays in correction, failure to request determinations, or improper retroactive application, all of which can lead to legal or financial consequences.
(a) If a contract is awarded without the required wage determination (i.e., incorporating no determination, containing a clearly inapplicable general wage determination, or containing a project determination which is inapplicable because of an inaccurate description of the project or its location), the contracting officer shall initiate action to incorporate the required determination in the contract immediately upon discovery of the error. If a required wage determination (valid determination in effect on the date of award) is not available, the contracting officer shall expeditiously request a wage determination from the Department of Labor, including a statement explaining the circumstances and giving the date of the contract award.
(b) The contracting officer shall-
(1) Modify the contract to incorporate the required wage determination (retroactive to the date of award) and equitably adjust the contract price if appropriate; or
(2) Terminate the contract.