There is a saying that sometimes to go forward, you have to go back first. In August, the Department of Labor (“DOL”) published a final rule that will update the Davis-Bacon Act, with some methodologies previously abandoned. Unsurprisingly, this final rule focused on enforcement of labor standards, and was quite lengthy (numbering in the hundreds of pages). Despite it’s voluminous size, there was one major change that federal contractors will find of interest, a change to the method of determining prevailing wage. That is the focus of this post.
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5 Things You Should Know: Adding Wage Rates to Davis-Bacon Act Wage Determinations
For federal construction projects in the United States exceeding $2,000, the Davis-Bacon Act requires contractors to pay their “laborers and mechanics” the “prevailing wage.” Typically, a federal construction contract will incorporate a wage determination which outlines the prevailing wages for the workers expected for the project. But what if you discover that you need another type of worker not listed on the wage determination?
Here are five things you should know about adding wage rates to an existing DBA wage determination.
ASBCA: Government Properly Terminated Contractor for Preliminary Finding of SCA Violation
The government can terminate a contract when the Department of Labor has made a preliminary finding of non-compliance with the Service Contract Act, even if the contractor has not exhausted its remedies fighting or appealing the finding.
The 3-0 (unanimous) decision by the Armed Services Board of Contract Appeals in Puget Sound Environmental Corp., ASBCA No. 58828 (July 12, 2016) is troubling because it could result in other contractors losing their contracts based on preliminary DOL findings–perhaps even if those preliminary findings are later overturned.
SmallGovCon Week In Review: January 25-28, 2016
It is hard to believe that Tuesday is Groundhog Day already. As we all wait in anticipation for him to emerge from his burrow, and hopefully not see his shadow, we offer you some reading material to help make your wait more enjoyable.
This final January 2016 edition of SmallGovCon Week In Review brings you a look at the Lockheed Martin/Leidos merger, a cautionary tale about the dangers of violating federal prevailing wage laws, new principles behind the VA’s procurement strategies, and much more.
Davis-Bacon Act Fraud: Subcontractor’s Owner Sentenced
Davis-Bacon Act fraud has resulted in a criminal sentence for the owner of a now-defunct construction subcontractor.
According to a Department of Justice press release, the subcontractor’s owner has been sentenced to four years of probation (including 18 months of home confinement) and ordered to pay $164,627 in restitution, after pleading guilty to charges of conspiracy to pay employees less than prevailing wages on a federal construction project in Boston.