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Initial Guidelines for Applicability of Davis-Bacon (Prevailing Wage) Requirements for Federal and Federally Assisted Construction Projects Under the American Recovery and Reinvestment Act of 2009 - “ARRA”

I.  Memorandum No. 207 from U.S. Labor Department, Employment Standards Administration titled Applicability of Davis-Bacon labor standards to Federal and federally assisted construction work funded in whole or in part under provisions of “ARRA”. (refer to http://www.dol.gov/whd/recovery/index.htm).

Key Points:

  • Federal agencies directly contracting for construction work using ARRA funds must include Davis-Bacon rates in bid solicitation and contracts.

  • Federal agencies must ensure that recipients of assistance require contractors and subcontractors to pay laborers and mechanics employed by contractors on ARRA assisted construction projects.

  • Section 1606 of ARRA plainly indicates that the Davis-Bacon prevailing wage requirement broadly applies to ARRA-appropriated construction projects whether funded directly by or assisted in whole or in part.l

    • Assisted in whole or in part encompasses any assistance to projects through grants, loans, guarantees, and insurance.

    • Regulations in 29 Code of Federal Regulations 5.5(a) instructs agencies concerning the application of the Standard Davis-Bacon contract clauses.

    • Under U.S. Department of Labor memorandum a project consists of all construction necessary to complete the building or work regardless of the number of contracts involved so long as all contracts awarded are closely related in purpose, time, and place.  This precludes the intentional splitting of ARRA projects into separate and smaller contracts to avoid Davis-Bacon coverage.

  • For on-going projects that are now receiving ARRA funds, the agency contracting the work should insert the applicable wage rates effective as of the date of ARRA assistance.
     

  • Wage determinations are available at www.wdol.gov.
     

  • USDOL Prevailing Wage Resource Books are available at www.wdol.gov/docs/wrb2002.pdf

II.  Opinion letter on Weatherization Assistance Program (refer to http://www.dol.gov/whd/recovery/index.htm)

Key Points:

  • DOE allocated $5 billion to Weatherization Assistance Program.

  • DOE awards grants to state level government agencies, which then contract with local agencies, such as Community Action Agencies to deliver weatherization services to eligible residents.

  • Government employees performing such services are not covered by Davis-Bacon.
     

  • Laborers and mechanics employed by private, non-profit Community Action Agencies or if the CAG contracts out the work, Davis-Bacon applies.
     

    • Energy audits and inspection work is not usually considered construction work performed by laborers and mechanics, so technicians performing that work would not be covered.

This information is available at the Connecticut Department of Labor website: www.ct.gov/dol at Wage and Workplace Standards Unit.

Prepared and Provided by:
Connecticut Department of Labor
Wage & Workplace Standards Division

June 12, 2009


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