22.407
Solicitation provision and contract clauses
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.