SCA WAGE DETERMINATIONS

SCA WAGE DETERMINATIONS

• SCA wage determinations apply to Federal Government and District of Columbia contracts, the principal purpose of which is to furnish services through the use of service employees. Each such contract in excess of $2,500 (and the related bid solicitation) is required to contain provisions that specify the monetary wages and fringe benefits to be paid service employees engaged in the contract’s performance.
• SCA wage determinations set forth the prevailing wages and fringe benefits that prime contractors and subcontractors must pay service employees working on covered contracts in specified geographic areas. SCA wage determinations are issued by the WHD Branch of Service Contract Wage Determinations.
  • Wages – the minimum monetary compensation required to be paid to the various classes of service employees – are usually listed in the wage determination as hourly wage rates.

  • Fringe benefits, as specified in the contract clause established by the statutory SCA fringe benefits requirement, include:

    [M]edical or hospital care, pensions on retirement or death, compensation for injuries or illness resulting from occupational activity, or insurance to provide any of the foregoing, unemployment benefits, life insurance, disability and sickness insurance, accident insurance, vacation and holiday pay, costs of apprenticeship or other similar programs and other bona fide fringe benefits not otherwise required by federal, state, or local law to be provided by the contractor or subcontractor.

    SCA § 2(a)(2), recodified at 41 USC § 6703(2).

  • The various fringe benefits listed are illustrative of those which may be included in the wage determination. Which fringe benefits are included in a wage determination depends on the type of wage determination and the source data used to develop the wage determination.
  • Most SCA wage determinations are revised periodically, as new health and welfare benefits or wage survey data become available. However, if a wage determination is properly included in the contract at the time of award, the contract should not be modified to include subsequent revisions of the wage determination prior to completion of a contract term (unless the contract is a multi-year contract). (See further discussion concerning “Multi-Year Procurement” in the section below on “Obtaining SCA Wage Determinations.”)
• The SCA requires DOL to issue a wage determination for every service contract exceeding $2,500 and employing more than five service employees. SCA § 10, recodified at 41 USC §§ 6702(a)(2) and 6707(f).
  • If the contract requires five or fewer service employees, the contracting agency must obtain a wage determination from sam.gov (if one is available there), or submit an e98 request for a wage determination.
    • There is a misconception among some contracting officers that they need not obtain or request a wage determination for a covered service contract if there will be five or fewer service employees performing on the contract. However, only the WHD has the authority to decide whether or not to issue a wage determination for a contract with five or fewer service employees.
  • If an appropriate wage determination is not readily available for a service contract involving five or fewer service employees by use of the sam.gov process for obtaining SCA wage determinations, the agency must submit an e98 request. WHD will either issue a wage determination reflecting such rates or notify the contracting agency that there is no wage determination applicable to the contract. If WHD issues a wage determination for such a contract, the agency must include it in the bid solicitation and resulting contract.
  • If WHD decides not to issue an SCA wage determination for a service contract involving five or fewer service employees, the contractor must pay no less than the federal minimum wage required by section 6(a)(1) of the FLSA. (An overview of the FLSA is available in the “Coverage under the Service Contract Act, Public Contracts Act, and Fair Labor Standards Act” chapter of this resource book.)
  • If a contract involves more than five service employees, the contract must contain a wage determination. If a wage determination is not available as discussed under the heading “Obtaining SCA Wage Determinations” below, the agency must submit an e98 request for a wage determination.

SCA Wage Determinations Format

• Under the SCA, wage determinations are developed and issued for covered service contracts in the United States, including the District of Columbia, and certain territories.
• Standard wage determinations (sometimes referred to as “area-wide wage determinations”), have been issued since 1994 for specific locations. Each lists nearly 350 standard occupations defined in the SCA Directory of Occupations.
  • The WHD updates these wage determinations as wage survey data become available for the many geographic localities that comprise the geographic scope of the SCA.
• “Non-standard” prevailing wage determinations are issued for specific contracts or types of contracts and may be based on different data sources that may be industry specific and/or often cover different geographic areas that may be either narrower or broader than the standard wage determinations.
• Section 4(c) Collective Bargaining Agreement (CBA) “Successorship” Wage Determinations reflect a predecessor contractor’s CBA wage rates and fringe benefits and are issued only when certain criteria are met.
• Depending on the scope of work required by a specific contract, multiple wage determinations may need to be incorporated into a contract – e.g., a standard wage determination, non-standard and/or 4(c) wage determinations, determinations for multiple locations if the contract will be performed in multiple locations, and under certain circumstances (as discussed elsewhere in this resource book) a Davis-Bacon wage determination, as well.

Two Types of SCA Wage Determinations

• Two types of SCA wage determinations are issued: prevailing in the locality wage determinations (which include standard and non-standard wage determinations) and section “4(c)” wage determinations. The two types of wage determinations differ in how they are developed and issued, as required by the SCA and its regulations. See SCA §§ 2(a)(1), 2(a)(2), and 4(c), 41 USC 6703(a)(1), 6703(a)(2), and § 6707(c), and 29 CFR Part 4.

1. Prevailing in the locality wage determinations set forth monetary wage and fringe benefits determined to be prevailing for various classes of service employees in the locality after giving “due consideration” to the rates applicable to such service employees if directly hired by the Federal Government. SCA §§ 2(a)(1), 2(a)(2), and 2(a)(5) recodified at 41 USC §§ 6703(a)(1), 6703(a)(2), and § 6703(a)(5), respectively.

   Wage rates prevailing in the locality. 29 CFR 4.51.

   • In rare instances, a wage rate prevailing in a locality is based on a single rate paid to a majority (50 percent or more) of workers employed in a specific occupation in a particular locality. The SCA regulations provide that such a majority rate “is determined to prevail.” 29 CFR 4.51(b). Majority rate determinations are typically union dominance wage determinations.

   • Usually wage rates are based on measures of central tendency as provided in data collected by the Bureau of Labor Statistics, such as the Occupational Employment Statistics Survey (OES).

     • The OES produces employment and wage estimates for over 700 occupations. These are estimates of the number of people employed in certain occupations, and estimates of the wages paid to them. Self- employed persons are not included in the estimates. These estimates are available for the nation as a whole, for individual states, and for metropolitan areas; national occupational estimates for specific industries are also available.

     Fringe benefits prevailing determinations. 29 CFR 4.52.

   • The applicable health and welfare (H&W) benefit rate is listed in each SCA wage determination.
   • The H&W benefit rate in most SCA wage determinations is based on data from the Bureau of Labor Statistics Employment Cost Index summary of Employer Cost for Employee Compensation. The H&W rate reflects the total cost for private employers to provide all bona fide fringe benefits (not legally required) other than vacations and holidays. (Vacations and holidays are determined separately under SCA.)
     • Effective June 1, 1997, DOL established a new methodology for determining the H&W benefit requirement applicable to most employees under the SCA. The new single rate methodology has replaced a two-level H&W rate structure that involved issuing different H&W requirements, depending on the nature and history of each contract (each rate with its own method of determining compliance with SCA requirements). To ease a transition from the two-tier rate structure to a new single rate methodology, there was a four-year phase-in of rate increases and the higher rate was grandfathered for continued application to contracts that succeeded those to which it had applied. Since June 1, 2004, a single H&W benefit rate has been issued. (See All Agency Memoranda Nos. and 188 and 197.)
     • The SCA prevailing H&W benefits rate is adjusted annually, in June, based on new data. 29 CFR 4.52. The annual H&W benefits rate is announced in All Agency Memoranda published on sam.gov.
     • A discussion of how to comply with these H&W benefit requirements is included in the “SCA Compliance Principles” chapter.
   • The paid holiday and vacation benefit requirements in most SCA wage determinations vary from locality to locality reflecting prevailing fringe benefit practices in the geographic scope of the wage determination, and the applicable requirements are stated in each wage determination.
2. CBA – “4(c)” wage determinations require a successor contractor to apply the wage rates and fringe benefits, including accrued and prospective increases, contained in a CBA that applied to the service employees who performed on the predecessor contract in the same locality. SCA §§ 4(c) and 2(a)(1) and (2). See also 41 USC §§ 6703(a)(1), 6703(a)(2), and § 6707(c).
   • Wage rates and fringe benefits are based on the predecessor contractor’s CBA. 29 CFR §§ 4.1(b) and 4.163.
   • For section 4(c) to apply, the predecessor contract and successor contract must involve furnishing substantially the same services in the same locality.
   • The SCA § 4(c) requirement, as reiterated at 29 CFR 4.163(a), is that:
     • No contractor or subcontractor under a contract which succeeds a contract subject to [the SCA] and under which substantially the same services are furnished, shall pay any service employee under such contract less than the wages and fringe benefits, including accrued wages and fringe benefits, and any prospective increases in wages and fringe benefits provided for in a collective-bargaining agreement as a result of arm’s-length negotiations, to which such service employees would have been entitled if they were employed under the predecessor contract . . . .
     • The 4(c) requirements may not apply if the collectively bargained rates were not a result of arm’s-length negotiations or if the CBA rates are substantially at variance with those which prevail for services of a character similar in the locality. A later chapter of this resource book discusses administrative hearings to address issues of “substantial variance” and “arm’s-length negotiations.”

Application of “4(c)” Wage Determinations

• The successor contractor is obligated to pay its employees the wages and fringe benefits in the predecessor’s CBA that they would have been entitled to if they were employed by the predecessor contractor. On a contract subject to annual fiscal appropriations of Congress, this obligation applies independently to the base year of a multi-year contract and each subsequent option. On other contracts, the obligation is for up to two years. (In the section below, concerning “Obtaining SCA Wage Determinations,” see the discussion of " Multi-Year Procurement.”)
• This obligation exists whether or not the employees of the predecessor contractor are hired by the successor contractor. Thus, even if a successor contractor does not hire any of the predecessor contractor’s employees, the successor contractor is nevertheless required to pay service employees employed on the contract the CBA rates established in the predecessor contractor’s CBA.
• The obligation of the successor contractor is limited to the wage and benefits requirements of the predecessor contractor’s CBA and does not extend to other items such as seniority, grievance procedures, work rules, overtime, etc.
  • Any interpretation of the wage and fringe benefit provisions of the CBA where its provisions are unclear must be based on the intent of the parties signatory to the CBA, provided that such interpretation does not violate any law.

• Generally, the provisions of section 4(c) are self-executing and failure to include the CBA rates in the wage determination issued for the successor contract does not relieve the successor contractor of the statutory requirements to comply with the CBA rates.

  • The self-executing application of section 4(c) may be limited if notice of the terms and conditions of a new or changed collective bargaining agreement is not received within the timeframes and under the circumstances specified in 29 CFR 4.1b(b)(1) and (2).

    • These limitations apply only if the contracting officer has given both the incumbent (predecessor) contractor and the employees’ collective bargaining representative written notification at least 30 days in advance of all applicable Estimated procurement dates, including bid solicitation, bid opening, date of award, commencement of negotiations, receipt of proposals, or the commencement date of a contract resulting from a negotiation, option or extension, as the case may be.

    The limitation on the self-executing application of the 4(c) provision will not apply, i.e. the 4(c) requirements will apply, if the contracting agency has given such notification, and the agency receives notice of the terms of a new or changed CBA which was consummated during the period of performance of the predecessor contract and which was applicable to the performance of work under the predecessor contract —

  • For advertised procurement – 10 days before the date set for bid opening (or less if the contracting agency finds that there is still reasonable time to notify bidders);
  • For negotiated procurement – before the award date if start of performance is within 30 days, or 10 days before commencement of the contract if start of performance is beyond 30 days.

  The CBA must be received by the contracting officer (Not DOL) within specified timeframes.

  If the CBA is not received by the contracting officer within these timeframes, then the CBA may not apply.

• Two types of appeals can be made concerning CBA rates where section 4(c) applies: appeals based on substantial variance issues, and appeals based on issues concerning “arm’s-length” negotiations. Both types of appeals may be resolved by administrative hearings conducted by an Administrative Law Judge pursuant to 29 CFR Part 6, or on appeal, by the ARB pursuant to 29 CFR Part 8. See 29 CFR §§ 4.10 and 4.11. The “4(c) Hearings” chapter of this resource book provides more detailed information on this subject.

SCA DIRECTORY OF OCCUPATIONS

Overview of the SCA Directory of Occupations

• Since April 1985, the Wage and Hour Division has published standard occupational titles and definitions in the SCA Directory of Occupations. This is a key resource to be utilized in obtaining and applying SCA wage determinations. The WHD home page (http://www.dol.gov/agencies/whd) and the sam.gov website “Library” have links to the Directory.
• For any SCA-covered contract exceeding $2,500 the contracting agency must either obtain a wage determination by using the “e98” process or use the sam.gov “Selecting SCA WDs” process for obtaining SCA wage determinations. The e98 process requires the contracting agency to specify the occupational titles of workers to be employed on the contract. Use of the Directory allows the contractor, federal procurement agency, and WHD staff to associate standard job descriptions with these titles.
• Each year, wage determinations are applied to approximately 60,000 government service contracts covered under the SCA. Total annual federal government service contracting has been estimated in the billions of dollars. These SCA-covered contracts involve the performance of a wide range of services, including such diverse activities as aerial spraying, barber and beauty shop services, computer services, electronic equipment maintenance, furniture repair, surveying and mapping, trash removal, and warehousing. Employees in a wide spectrum of occupations are needed to perform these services.
• A variety of data sources are utilized in the development of SCA prevailing wage determinations, including Bureau of Labor Statistics survey data. The Directory is now in its fifth edition, which was published in 2006.
• Since payroll titles and work assignments vary among establishments and geographic areas, such descriptions are useful as standards in classifying workers by occupation so that wage rates representing specific job content can be established. The Directory makes available uniform occupational information providing composites of similar jobs performed in many geographic areas all over the country. The Directory contains occupational titles and descriptions and a classification structure under which the occupations are arranged according to their interrelationships.

Federal Grade Equivalency (FGE) Information in the Directory

• The Fifth Edition of the Directory provides information on the federal civil service grade levels most likely to correspond to the occupations included.
  • This information reveals the grade levels that would be assigned to such occupations, if the work was being performed by a federal employee.
  • For WHD staff, such information is especially useful in connection with developing prevailing wage determinations for occupations for which no survey data are available or for which survey data are not available for various levels within a job family.
  • Contractors and federal procurement agency staff may utilize federal grade equivalency (FGE) data for guidance in developing wage rate proposals for occupations to be conformed. (See the “SCA Conformance Process” chapter of this resource book for further information on FGE use for conformances.)
• FGE rates are divided into the following four classifications for purposes of SCA administration:
  • “GS” (General Schedule) refers to grade rates utilized for non-supervisory appropriated fund “white-collar” positions;
  • “WG” (Wage Grade) refers to grade rates utilized for non-supervisory appropriated fund “blue-collar” positions;
  • “AS” refers to non-supervisory non-appropriated fund Administrative Services rates; and
  • “NA” refers to some non-appropriated fund classifications.

Using the SCA Directory of Occupations

• The SCA Directory of Occupations provides the occupational titles and describes the scope of duties for each occupation listed. It is available on the sam.gov website at http://www.dol.gov/agencies/whd/government-contracts/service-contracts. In addition to the Directory, links are provided for the:
  • “Table of Contents,” which provides a numerical listing of occupational categories and titles, “Federal Grade Equivalencies,” and location of each in the Directory by page; and the
  • “Occupational Index,” which provides an alphabetical listing of occupational titles.
• The classification system developed is structured on a three-tier arrangement: category, occupation, and level of difficulty. Each tier represents groupings in successively finer detail. This should enable users who so desire to tabulate or analyze data at different levels of aggregation.

• Note: Below are the 20 broad occupational categories arranged alphabetically and coded numerically.

  01000	Administrative Support and Clerical Occupations
  05000	Automotive Services Occupations
  06000	Automotive Service (Retail) Occupations
  07000	Food Preparation and Service Occupations
  08000	Forestry and Logging Occupations
  09000	Furniture Maintenance and Repair Occupations
  11000	General Services and Support Occupations
  12000	Health Occupations
  13000	Information and Arts Occupations
  14000	Information Technology Occupations
  15000	Instructional Occupations
  16000	Laundry, Dry Cleaning, Pressing and Related Occupations
  19000	Machine Tool Operation and Repair Occupations
  21000	Materials Handling and Packing Occupations
  23000	Mechanics and Maintenance and Repair Occupations
  24000	Personal Needs Occupations
  25000	Plant and System Operation Occupations
  27000	Protective Service Occupations
  28000	Recreational Occupations
  29000	Stevedoring/Longshoremen Occupational Services
  30000	Technical Occupations
  31000	Transportation/Mobile Equipment Operation Occupations
  47000	Water Transportation Occupations
  91000	Wildlife Management and Animal Care Occupations
  99000	Miscellaneous Occupations

• The detailed numerical listing presents the categories, occupations, levels of difficulty, federal grade equivalencies, and the page numbers on which the occupational descriptions can be found. The coding system utilized by the Directory has the following characteristics:
  • Each occupational title is identified by a five digit code.
  • The first two digits of each occupational code identify the broad category of occupations to which each specific occupation belongs. For example, since the code for the broad category of Administrative Support is 01000, each specific occupation within this category begins with the first two digits 01, such as, Court Reporter, 01040.
  • Within each broad category, occupations are listed in alphabetical order. Therefore, the third and fourth digit of each occupational code follow that alphabetical progression. For example, the code for Rental Clerk is 01290, while the code for Scheduler, Maintenance is 01300.
  • Occupations that reflect distinct levels in “job families” are prefaced by “base” statements that describe occupational content common to each level.
  • The levels of difficulty are denoted by Roman numerals placed after the title, with the numeral “I” being the least difficult, and each numeral thereafter indicating a more difficult level. In general, the higher the grade level, the greater the level of complexity and compensation. The codes for each level, such as General Clerk I, General Clerk II, and General Clerk III, utilize the fifth digit to differentiate one from the other. For example, General Clerk I, 01111; General Clerk II, 01112; and General Clerk III, 01113.
  • Each broad category is defined so that homogeneous groupings can be delineated. The titles represent those most commonly used in the wage determination process. The descriptions represent composites of jobs found in a number of establishments and may differ from those in use in individual establishments or those prepared for other purposes.
  • Some of these definitions have been adjusted to meet SCA operations requirements. Immediately following the title, there may be one or more titles in parentheses. These are alternative titles for the titles with which they are shown. They are synonymous titles and appear in the alphabetical index in lower case.

Job Description and Federal Grade Equivalent Must Be Provided if the Directory Does Not Include a Class for the Given Job Duties

• Contracting agency officials who are unable to locate a given title or description, or who cannot match specific job duties with a corresponding occupational description in the Directory, should submit an appropriate occupational title and description with an “e98” request.
  • This procedure will assist the WHD Branch of Service Contract Wage Determinations in issuing wage determinations for occupations in response to “e98” requests.
  • Such information also provides the basis for future updates and revisions of the Directory.
  • Note that wage determinations will not be issued for occupational titles requested if the applicable job duties are performed by an occupational classification contained in the SCA Directory and listed in the wage determination.
• Job definitions included in the Directory may not be applicable when the service contract is governed by section 4(c) of the SCA.

OBTAINING SCA WAGE DETERMINATIONS

(29 CFR 4.4)

Responsibility of Contracting Agency to Obtain SCA Wage Determinations

• Contracting agencies have the initial responsibility for determining whether a proposed contract may be subject to the SCA and, if the proposed contract is covered by the SCA and exceeds $2,500, to obtain and incorporate the appropriate wage determination(s) in covered contracts.

Obtaining SCA Wage Determinations – Two Methods

• SCA wage determinations can now be obtained by the contracting agency in two different ways. The contracting agency has total discretion as to which method to follow. See Final Rule “Service Contract Act Wage Determination Online Request Process” published in the Federal Register on August 26, 2005, 70 Fed. Reg. 50888-50899).
• First Method – “e98” process pursuant to 29 CFR 4.4(b).
  • For each proposed contract exceeding $2,500, the contracting agency may request SCA wage determinations from the WHD by electronically submitting an “e98” that describes the proposed contract and occupations expected to be employed on the contract. An “e98” must be submitted for each anticipated contract. The wage determination(s) issued in response to each request must be incorporated into the bid specifications and the resultant contract.
  • The “e98” requires the requesting agency official to specify the:
    • Relevant procurement dates.
    • County and state where the work will be performed.
    • Type of services to be performed under the contract.
    • Occupational classes and the number of service employees who will perform work on the contract. Occupational titles and corresponding code numbers found in the SCA Directory of Occupations should be used where applicable. For occupations not contained in the Directory, an appropriate job title and job description must be provided.
    • Hourly rates or federal grade levels that would be paid if such workers were federal direct hires.
    • Information on the incumbent contract, i.e., incumbent contractor, previous wage determination, and any CBA that may apply.
    • A correct e-mail address, as most responses will be provided via e-mail.
  • If the incumbent contractor has furnished substantially the same services in the same locality through the use of service employees whose wages and fringe benefits are the subject of one or more CBAs, the contracting agency should reference the union and CBA on the “e98” and await a response from the WHD for instructions on how to submit the CBA. Upon receipt of the CBA, WHD will provide an e-mail response to the contracting agency attaching a copy of a section 4(c) wage determination based on the CBA.
  • The “e98” system automatically provides an amended response if the applicable wage determination is revised, and such amended response will be provided via e-mail and will be deemed to be received by the contracting agency.
  • A revised “e98” should be submitted by the contracting agency if the bid opening date, or if contract commencement, is delayed by more than 60 days.
• Second Method – sam.gov process pursuant to 29 CFR 4.4(c).
  • Contracting agencies may use the sam.gov website to select the proper wage determination for a proposed contract. The sam.gov website provides assistance to the contracting agency in the selection of the correct wage determination. An overview of this process can be found on the sam.gov website.
  • The contracting agency is fully responsible for selecting the correct wage determination. If DOL determines that the correct SCA wage determination was not included in a covered contract, the contracting agency shall amend the contract within 30 days of DOL notice to incorporate the correct wage determination as determined by the WHD. 29 CFR 4.5(c)(2).
  • If an applicable prevailing wage determination is not available on the sam.gov website, the contracting agency must submit an “e98.”
  • The contracting agency shall monitor the sam.gov website to determine whether the applicable wage determination has been revised. Revisions published on the sam.gov website or otherwise communicated to the contracting officer are applicable and to be included in the contract under the following time frames:
    • For advertised procurement – 10 days before the date set for bid opening, unless the contracting agency determines there is not reasonable time to notify bidders of the revision within 10 days;
    • For negotiated procurement – before the award date if start of performance is within 30 days, or 10 days before commencement of the contract if start of performance is beyond 30 days.
  • If the incumbent contractor furnished substantially the same services in the same locality through the use of service employees whose wages and fringe benefits are the subject of one or more CBAs, the contracting agency may prepare a wage determination referencing and incorporate a complete copy of the CBA(s) into the successor contract action. A copy of the CBA(s) need not be submitted to the WHD unless requested.
• The general public may also access the sam.gov website at no cost to obtain available wage determinations for INFORMATION PURPOSES ONLY. The contracting agency is required to incorporate the applicable wage determination(s) into the contract. Thus, only those wage determinations inserted into the contract at award, or by modification, are applicable.

Multi-Year Procurement

• In the case of multi-year contracts subject to annual fiscal appropriations of Congress, the contracting agency must obtain a new wage determination each year for use on the anniversary date of the contract. 29 CFR §§ 4.4(a)(1) and 4.145(a).
• If the multi-year contract is not subject to annual fiscal appropriations, the contracting agency must obtain a new wage determination and apply it to the contract at least every two years, on the biennial anniversary date of the contract. SCA§ 4(d), recodified at 41 USC § 6707(d), and 29 CFR 4.145(b).

Two-Step Procurements

• When the place of performance of a contract is unknown at the time of solicitation, the contracting agency should follow the two-step procedure, as required by 29 CFR 4.4(a)(3):
• In the first step, the contracting agency will issue an initial solicitation with no wage determination, from which it identifies all interested bidders and their possible places of performance.
• In the second step, the contracting agency will obtain separate wage determination(s) for the various localit(ies) identified in the first step, to be incorporated in the solicitation prior to the submission of final bids. The appropriate wage determination(s) applicable to the geographic locations identified by the successful bidder must be incorporated in the resultant contract and must be observed, regardless of whether the contractor subsequently changes the place(s) of contract performances.

CONTENTS OF AN SCA WAGE DETERMINATION

• Each wage determination developed and issued by the WHD contains the “Register of Wage Determinations” which is the official documentation of issuance by DOL.
• Standard prevailing wage determinations are most frequently issued and applied to SCA-covered contracts. These wage determinations contain the following types of information:
  • Wage Determination Number – is generally eight digits, that start with the year a new edition of the SCA Directory of Occupations is issued. For example, 2005-2xxx or 2005-3xxx (previously issued using 1994-2xxx or 1994-3xxx). Note: Two identical wage determinations, except with respect to fringe benefits, are issued for each locality.
    • Odd-number wage determinations, when incorporated in a covered contract, require compliance with the health and welfare fringe benefits on a “fixed cost” per employee basis. These apply most frequently.
    • Even-number wage determinations, when incorporated in a covered contract, require compliance with the health and welfare fringe benefits on an “average cost” basis. Since June 1997, the WHD has issued such wage determinations only for successor contracts. Thus, agencies should use even-numbered wage determinations only when a bid solicitation (or RFP) succeeds a contract that previously contained the “average cost” fringe benefit compliance requirement.
    • See the “SCA Compliance Principles” chapter of this resource book for information on how to comply with each of these fringe benefit requirements.
  • Revision No. – is assigned when the wage determination is modified.
  • Date of Revision – the date the wage determination was issued by the WHD. This date does not necessarily reflect the effective date of the wage determination in any particular contract.
  • Locality – each wage determination will specify its geographic scope, usually by state and county.
  • Occupations – standard wage determinations list approximately 350 occupations in 21 broad occupational categories (e.g., “Administrative Support and Clerical Occupations”) that are contained in the SCA Directory of Occupations.
  • Wage Rates – are specified for each occupation listed in the wage determination and are the minimum rates that must be paid to service employees working on the contract.
    • The wage rates and fringe benefits listed in “prevailing in the locality” wage determinations are based on the wages and fringe benefits determined to prevail in the locality covered by the wage determination. The best available information is used to determine what is prevailing, while giving due consideration to federal wage rates that would apply if the workers were federal employees.
  • Health and Welfare Fringe Benefits – required by the wage determination for all occupations are specified in a footnote that follows the schedule of wage rates for the various occupations listed in the wage determination.

    • The footnote for the “Fixed cost” per employee health and welfare fringe benefit requirement is a single line specifying hourly, weekly, and monthly contribution amounts. For example:

      HEALTH & WELFARE: $4.02 per hour or $160.80 per week or $696.79 per month.

    • The footnote for the “Average cost” health and welfare fringe benefit requirement is a brief paragraph listing types of benefits and an hourly contribution amount. For example:

      HEALTH & WELFARE: Life, accident, and health insurance plans, sick leave, pension plans, civic and personal leave, severance pay, and savings and thrift plans. Minimum employer contributions must cost an average of $4.02 per hour computed on the basis of all hours worked by service employees employed on the contract.

  • Paid Vacation Benefits – are specified in a footnote following the health and welfare fringe benefits footnote. Vacation benefits vary from locality to locality and by total length of service of the service employee with the current contractor and any predecessor contractor(s).
  • Paid Holiday Benefits – are specified in a footnote following the vacation benefits footnote.
  • Remaining footnotes include:
    • Specific occupational footnotes;
    • Hazardous Pay Differential;
    • Uniform Allowance;
    • SCA Directory, which edition applies and how to obtain a copy; and,
    • Request for Authorization of Additional Classification and Wage Rate (SF 1444)
• “Non-standard” prevailing wage determinations – have most of the same information as the standard wage determinations.
  • Non-standard wage determinations are issued for specific contracts or types of contracts. They may be based on different data sources that may be industry specific and they often cover different geographic areas that may be either narrower or broader that the standard wage determinations for the area.
    • For example, a non-standard wage determination may apply only to a specific contract or federal facility rather than the broader geographic area listed on the standard wage determination. Conversely, the non- standard wage determination may apply statewide or regionwide to particular classification(s).
  • Non-standard wage determinations have numbers that reflect the year the wage determination was first issued. For example, a non-standard wage determination for “Forestry Services” covers the State of Alabama and carries a wage determination number of 2002-0147 Revision No. 20
• Section 4(c) “Successorship” Wage Determinations – reflect the predecessor contractor’s CBA wage rates and fringe benefits and are issued only when certain criteria are met.
  • These wage determinations are “short form,” i.e., they identify the specific contract, locality, the parties signatory to the CBA, and a brief statement regarding the application of section 4(c) to the contract.
  • If the wage determination is issued by DOL, it will include an eight digit wage determination number starting with the year of first issuance (e.g., 2007-0248 (Revision No. 1)). If the “successorship” wage determination is issued by the contracting agency via the sam.gov website, it will include the letters “CBA” in the wage determination number, and the WHD will not have a copy of it on file.
  • The wage and fringe benefits required under “4(c)” CBA “successorship” wage determinations are based on the wage rates and fringe benefits, including any accrued and prospective increases, contained in a predecessor or incumbent contractor’s CBA.
  • See SCA § 4(c), 41 USC § 6707(c), and 29 CFR §§ 4.1(b) and 4.163.
• Note: Compliance with the SCA is determined by the wage determination contained in the federal service contract.

WAGE DETERMINATION SAMPLE MATERIALS

Excerpts from WD Nos. 2005-2521 & 2005-2522

(1ST page and last 3 pages of each, showing footnotes; H&W different )

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WD No. 95-0819 (Rev.-32)

(An example of a WD for non-standard classifications)

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“4(c)” WD Format