22.407 Solicitation provision and contract clauses
Source: FAR 22.407 on acquisition.gov
FAR 22.407 mandates the inclusion of specific labor standards clauses in federal construction contracts over $2,000 to ensure compliance with wage and labor requirements.
Overview
FAR 22.407 prescribes the specific solicitation provisions and contract clauses that must be included in federal construction contracts exceeding $2,000 within the United States. It ensures that contracts comply with the Construction Wage Rate Requirements statute (formerly Davis-Bacon Act) and related labor standards. The section details which clauses to insert based on contract type (fixed-price, cost-reimbursement), the presence of options, and whether the contract is primarily for construction or includes incidental construction work. It also addresses price adjustment methods for contracts with option periods and the inclusion of clauses for secondary sites of work.
Key Rules
- Mandatory Clauses for Construction Contracts > $2,000
- Ten specific labor standards clauses (52.222-6 through 52.222-15) must be included in all construction solicitations and contracts over $2,000 within the U.S.
- Cost-Reimbursement Construction Contracts
- Clause 52.222-16 is required for cost-reimbursement construction contracts over $2,000, except those with state or local governments.
- Incidental Construction in Non-Construction Contracts
- If a non-construction contract includes construction work subject to labor standards, the relevant clauses must be included and the applicable work identified.
- Price Adjustment Clauses for Contracts with Options
- Depending on the contract type and price adjustment method, clauses 52.222-30, 52.222-31, or 52.222-32 must be included for contracts with option periods.
- Secondary Site of the Work
- Provision 52.222-5 must be included in solicitations for construction over $2,000.
Responsibilities
- Contracting Officers: Must ensure all required clauses are included in solicitations and contracts based on contract type, value, and scope. Must identify applicable construction work in mixed contracts.
- Contractors: Must comply with all labor standards clauses incorporated into their contracts, including wage rates, payroll records, and eligibility certifications.
- Agencies: Oversee compliance with labor standards and ensure proper clause inclusion and enforcement.
Practical Implications
- This section exists to ensure federal construction contracts comply with statutory labor standards, protecting worker wages and rights.
- Missing required clauses can result in noncompliance, payment withholding, or contract disputes.
- Contractors should carefully review solicitations and contracts to confirm all relevant clauses are present and understood.
(a) Insert the following clauses in solicitations and contracts in excess of $2,000 for construction within the United States:
(1) 52.222-6, Construction Wage Rate Requirements.
(2) 52.222-7, Withholding of Funds.
(3) 52.222-8, Payrolls and Basic Records.
(4) 52.222-9, Apprentices and Trainees.
(5) 52.222-10, Compliance with Copeland Act Requirements.
(6) 52.222-11, Subcontracts (Labor Standards).
(7) 52.222-12, Contract Termination-Debarment.
(8) 52.222-13, Compliance with Construction Wage Rate Requirements and Related Regulations.
(9) 52.222-14, Disputes Concerning Labor Standards.
(10) 52.222-15, Certification of Eligibility.
(b) Insert the clause at 52.222-16, Approval of Wage Rates, in solicitations and contracts in excess of $2,000 for cost-reimbursement construction to be performed within the United States, except for contracts with a State or political subdivision thereof.
(c) A contract that is not primarily for construction may contain a requirement for some construction work to be performed in the United States. If under 22.402(b) the requirements of this subpart apply to the construction work, insert in such solicitations and contracts the applicable construction labor standards clauses required in this section and identify the item or items of construction work to which the clauses apply.
(d) [Reserved]
(e) Insert the clause at 52.222-30, Construction Wage Rate Requirements-Price Adjustment (None or Separately Specified Pricing Method), in solicitations and contracts if the contract is expected to be-
(1) A fixed-price contract subject to the Construction Wage Rate Requirements statute that will contain option provisions by which the contracting officer may extend the term of the contract, and the contracting officer determines the most appropriate contract price adjustment method is the method at 22.404-12(c)(1) or (2); or
(2) A cost-reimbursable type contract subject to the Construction Wage Rate Requirements statute that will contain option provisions by which the contracting officer may extend the term of the contract.
(f) Insert the clause at 52.222-31, Construction Wage Rate Requirements-Price Adjustment (Percentage Method), in solicitations and contracts if the contract is expected to be a fixed-price contract subject to the Construction Wage Rate Requirements statute that will contain option provisions by which the contracting officer may extend the term of the contract, and the contracting officer determines the most appropriate contract price adjustment method is the method at 22.404-12(c)(3).
(g) Insert the clause at 52.222-32, Construction Wage Rate Requirements-Price Adjustment (Actual Method), in solicitations and contracts if the contract is expected to be a fixed-price contract subject to the Construction Wage Rate Requirements statute that will contain option provisions by which the contracting officer may extend the term of the contract, and the contracting officer determines the most appropriate method to establish contract price is the method at 22.404-12(c)(4).
(h) Insert the provision at 52.222-5, Construction Wage Rate Requirements-Secondary Site of the Work, in solicitations in excess of $2,000 for construction within the United States.