Part 22 - Application of Labor Laws
to Government Acquisitions
 This part deals with general policies regarding
contractor labor relations;
 Prescribes contracting policy and procedures for
implementing pertinent labor laws; and
 Prescribes contract clauses with respect to each
pertinent labor law.
22.101 -- Labor Relations
 Maintain sound relations with industry and labor;
 Remain impartial but ensure the parties to the dispute use
all available methods for resolving the dispute.
 Share legal matter information to ensure a uniform
Government approach.
 The HCA may require the contractor to notify the
Government of labor disputes that may delay contract
performance.
22.101-2 Contract Pricing and Administration
 Labor policies and compensation practices are not
acceptable bases for allowing costs if the costs are
unreasonable.
 Standard contract clauses dealing with default, excusable
delays, etc., do not relieve contractors from the
responsibility for delays that are within the contractors’
control.
 Costs incurred during strikes are allowable only when
those costs necessary for performing the contract.
 During a labor dispute, if the inspectors’ safety is not
endangered, the normal functions of inspection at the plant
shall be continued without regard to the existence of a
labor dispute, strike, or picket line.
22.101-3 -- Reporting Labor Disputes.
 Report any potential/actual disputes that may interfere with
performance.
 If a contract contains 52.222-1, Notice to the Govt of Labor Disputes,
the contractor also must report any dispute that may delay
performance.
22.101-4 -- Removal of Items from Contractors Facilities Affected
by Work Stoppages.
 Remove items from contractors’ facilities affected by work stoppages.
Agency procedures should allow for the following:
 Determine whether removal of items is in the Government’s
interest.
 Attempt to arrange the shipment of urgently required items.
 Obtain appropriate approvals from within the agency.
 Determine who will remove the items from the plant(s) involved.
 Prevent incidents that might affect labor-management relations.
 When two+ agencies’ requirements become involved in the removal
of items, the contract administration office shall coordinate the effort.
22.102 -- Federal and State Labor Requirements.
 Contractors shall cooperate with agencies enforcing labor
requirements.
22.102-2 -- Administration.
 Contractors are encouraged to use the US Employment
Service in meeting labor requirements. These requirements
may be to staff new or expanding plant facilities.
 Use of Local State employment offices will further the national
program of maintaining continuous manpower requirements.
 DOL is responsible for the admin and enforcement of OSHA.
 DOL’s Wage and Hour Division is responsible for admin and
enforcement of numerous wage and hour statutes.
 Davis-Bacon and Related Acts, McNamara-O’Hara Service
Contract Act, Walsh-Healey Public
22.103 -- Overtime
 Contractors shall perform all contracts without using overtime,
except when it is necessary to meet urgent program needs.
22.103-3 -- Procedures.
 Solicitations normally shall not specify schedules that may require
overtime (OT) at Government expense.
 In negotiating contracts, COs should attempt to –
 Establish the extent that offers are based on OT and shift premiums
 Negotiate contract prices/costs without premiums or obtain the
requirement from other sources.
 When it becomes apparent during negotiations that overtime will
be required, the CO shall get an estimate from the contractor
along with information required by paragraph (b) of 52.222-2,
Payment for Overtime Premiums.
22.103-4 – Approvals
 Approval for OT may be granted if its necessary to meet essential
schedules; make up for delays beyond the control of the contractor;
or eliminate foreseeable production bottlenecks that cannot be
eliminated.
 Approval to use OT is required, include clause at 52.222-2,
Payment for Overtime Premiums.
 CO approval of payment of overtime premiums is only required for
T&M and labor-hour contracts.
 Overtime exceeding the amount authorized (paragraph (a) 52.2222) shall be submitted and approved by the CO in whole or in part.
 If approved, paragraph (a) will be modified.
 Overtime shall not be approved when the contractor is already
obligated, without the right to additional compensation, to meet the
required delivery date.
 Approvals for overtime shall be prospective, but may be retroactive
in emergency circumstances.
Subpart 22.2 -- Convict Labor
 Executive Order: The development of skills of prison inmates
is essential to their rehabilitation and to their ability to make
an effective return to free society. Must avoid either the
exploitation of or any unfair competition between convict
labor and free labor. The contractor can employ –
 Persons on parole or probation;
 Persons who have been pardoned or served their terms;
 Federal prisoners; or
 Nonfederal prisoners authorized to work at paid employment if:
 The worker is paid or is in a voluntary work training program;
 Paid employment will not - (A) Result in the displacement of
employed workers; (B) Be applied in skills, or trades in which there
is a surplus of available gainful labor; or (C) Impair existing
contracts for services;
 The rates of pay and other conditions of employment must be
similar nature in the locality where the work is being performed;
Subpart 22.3
Contract Work Hours and Safety Standards Act
 Prescribes policies and procedures for applying the
requirements of this act to contracts that may require or
involve laborers or mechanics.
 The term “laborers or mechanics” includes apprentices,
trainees, helpers, watchmen, guards, firefighters,
fireguards, and workmen who perform services in
connection with dredging or rock excavation in rivers or
harbors, but does not include any employee employed as a
seaman.
22.301 -- Statutory Requirement.
 The Act requires that certain contracts contain a clause
specifying that no work cannot exceed 40 hours in any
workweek unless paid not less than 1 1/2 times the basic
rate of pay.
22.302 -- Liquidated Damages and Overtime Pay.
 OT wages are under-paid: Contractor must pay unpaid wages
and liquidated damages.
 Liquidated damages = $10 per employee/day the above
occurred.
 If the contractor fails or refuses to comply with overtime
requirements, use (prorate) the funds withheld by the
government for violations to the laborer.
 If the liquidated damages are incorrect, or if the contractor
inadvertently violated the Act despite the exercise of due care,
the agency head may:
 Reduce the amount for liquidated damages of $500 or less;
 Release the contractor from the liability of $500 or less; or
 Recommend that the Secretary of Labor reduce or waive over
$500.
22.304 -- Variations, Tolerances, and Exemptions (VTE).
 The Secretary of Labor may provide reasonable limitations and
allow VTE to and from all provisions of the Act when it is in the
public interest or to prevent injustice and undue hardship.
22.305 -- Contract Clause.
 Add clause 52.222-4, Contract Work Hours and Safety
Standards Act – OT Compensation, unless the solicitation or
contract is:
 <$150K.
 Commercial items; or the transportation/transmission of intelligence;
 To be performed outside the United States.
 Work to be done solely IAW the Walsh-Healey Public Contracts Act
 Incidental services that do not require substantial employment of
laborers or mechanics
Subpart 22.4 -- Labor Standards for
Contracts Involving Construction
 Scope: Contracts >$2,000 for construction, alteration, or repair,
including painting and decorating, of public buildings.
 “Construction, alteration, or repair” : all types of work done by
laborers and mechanics on site of the work, including:
 Altering, remodeling, installation on the site (items fabricated off-site);
Painting and decorating;
 Manufacturing/furnishing materials, supplies, or equipment;
 Transportation of materials/supplies between the site of the work and a
facility dedicated to the work;
 “Laborers or mechanics” are:
 Workers whose duties are manual or physical in nature;
 Working foremen who devote more than 20% their time during a
workweek performing duties of a laborer or mechanic; and
 Does not include workers whose duties are primarily executive,
supervisory, administrative, or clerical.
22.401 – Definitions Cont.
“Site of the work” means—
 The primary site of the work: The physical place or places
where the construction called for in the contract will remain
when work on it is completed;
 The secondary site of the work: Any other site where a
significant portion of the work is constructed (in the US) and
established specifically for the performance of the contract;
 Fabrication plants, mobile factories, batch plants, tool yards,
etc., are sites of work provided they are —
 Dedicated exclusively to performance of the contract; and
 Adjacent or virtually adjacent to the site of the work;
 Does not include locations that will remain in operation after
the Federal contract or project, even if operations are
dedicated exclusively to the performance of a contract.
Subpart 22.4 - Labor Standards for Contracts Involving
Construction
The requirements of this subpart does apply to –
 If construction work is or may be performed at a particular site;
 Dismantling, demolition, or removal of improvements if part of a
construction contract, or if construction at that site is anticipated
by another contract (FAR 37.3);
 Manufacture/fabricate materials in connection with the
construction and on the site of the work;
The requirements of this subpart do not apply to –
 Contracts requiring construction work that is so closely related to
R&D and experiments that it cannot be performed separately;
 Employees subject to the Railway Labor Act;
 Employees who only work at the Contractor’s permanent facility.
Nonconstruction contracts involving construction
work
 Apply to construction work to be performed as part of
nonconstruction contracts (supply, service, R&D, etc.) if - Work is to be performed on a public building or public work;
 Substantial amount of construction work >$2000 (“substantial”
= the type and quantity, not merely the value of work); and
 Work is separate from, and is capable of being performed on a
segregated basis from, the other work required by the contract.
The requirements of this subpart do not apply if - Work is incidental to the furnishing of supplies, equipment, or
services (e.g., simple installation/alteration incidental to
furnishing item under a supply contract); or
 Construction work is so merged with non-construction work that
it can’t be segregated as a separate contractual requirement.
22.403 -- Statutory and Regulatory Requirements.
22.403-1 -- Davis-Bacon Act.
 Contracts >$2,000 for construction, alteration, or repair
(including painting and decorating) of public buildings:
include clause stating that no laborer at the site of the work
can receive less than the prevailing wage rates.
22.403-2 -- Copeland Act.
 Unlawful to induce, by force, intimidation, threat of
procuring dismissal from employment to give up any part of
the compensation to which that person is entitled.
 Requires weekly statements of compliance with respect to
the wages paid each employee during the preceding week.
22.403-3 -- Contract Work Hours and Safety Standards Act.
 No laborer or mechanic performing work shall be permitted
to work >40 hours unless paid OT wages.
22.403-4 -- Department of Labor Regulations.
 The Secretary of Labor, via 29 CRF, issued regulations
prescribing standards and procedures to be observed in
contracts involving construction:
 Davis-Bacon Act minimum wage rates;
 Copeland (Anti-Kickback) Act;
 Contract Work Hours and Safety Standards Act;
 Rules of practice for appealing the findings of enforcement
cases;
 Practices of appealing decisions.
22.404 -- Davis-Bacon Act Wage Determinations
 DOL is responsible for issuing wage determinations
reflecting prevailing wages, including fringe benefits.
 The wage determinations apply only to those laborers
and mechanics performing work at the site of the work
including drivers who transport to or from the site.
 Determinations are issued for different types of
construction, such as building, heavy, highway, and
residential (referred to as rate schedules), and apply
only to the types of construction designated in the
determination.
22.404-1 -- Types of Wage Determinations
General wage determinations.
 Wage rates for construction within a specified geographical area.
 Contain no expiration date, remain valid until modified or canceled.
 Remains effective for the life of the contract unless the contract is
extended.
 Published on the WDOL website.
Project wage determinations.
 Issued at the request of a contracting agency when no general wage
determination applies.
 Effective for 180 calendar days but may be extended if it expires before
contract award.
 Remains effective for the life of the contract, unless the contract is
extended.
22.404-2 -- General Requirements
 Must incorporate only the appropriate determination.
 Exercising an option: Use the most current determination from the same
schedule.
 Project determinations apply to contracts only for which they are issued.
 Include only the rate schedules that applies (building, heavy, highway).
 General guidelines for choosing the schedule :
 Building: construction of sheltered enclosures with walk-in access. Includes
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installation of utilities and equipment, and incidental grading, utilities & paving.
Residential: construction, alteration, or repair of single family houses or
apartment buildings, typically includes incidental such as parking, utilities,
streets and sidewalks.
Highway: construction, alteration, or repair of roads, streets, highways,
runways, taxiways, alleys, parking areas, and other similar projects that are
not incidental to “building,” “residential,” or “heavy” construction.
Heavy: construction for projects that are not classified as either any of the
above (e.g., “dredging,” “water and sewer line,” “dams,” “flood control,” etc.).
When the nature of a project is not clear, look at locally established practices.
If there is doubt, get guidance from the Administrator, Wage and Hour Division.
22.404-3 - Procedures for Requesting Wage
Determinations
 Do not need to notify DOL of use if wage determination is on the
website.
 When you need a wage rate not listed, submit a request and
include:
 Location where the proposed project is located.
 Name of the project and a detailed description of the work
 Estimated cost of each project.
 All the classifications of laborers and mechanics likely to be employed.
 Time for submission of requests.
 Processing = at least 30 days. Submit requests at least 45-60 days
before issuing the solicitation or exercising an option.
 Review of wage determinations: Immediately upon receipt, the
contracting agency shall examine the wage determination and
inform the DOL of any changes and to correct errors.
22.404-4 - Solicitations Issued w/o Wage
Determinations for the Primary Site of the Work
 If a solicitation is issued before the wage determination is
obtained, include a notice in the solicitation that the
schedule of minimum wage rates to be paid under the
contract will be issued as an amendment to the
solicitation.
 In sealed bidding, bids may not be opened until a
reasonable time after the wage determination for the
primary site of the work has been furnished to all bidders.
 In negotiated acquisitions, the contracting officer may
open proposals and conduct negotiations before
obtaining the wage determination.
 The CO shall incorporate the wage determination into the
solicitation before submission of best and final offers.
22.404-5 - Expiration of Project Wage Determinations
 Make every effort possible to ensure the award is made before
expiration of the project wage determination.
The following procedure applies when contracting by sealed
bidding:
 Postpone the bid opening date to allow time to obtain the
determination, amend the solicitation, and permit bidders to
amend their bids.
 Request an extension if the determination will expire after bid
opening but before award. Include a statement as to why the
extension is necessary and proper in the public interest or to
prevent undue hardship.
 If the new determination changes any wage rates to be used in the
contract, the CO may cancel the solicitation, or award the contract
with the new determination. Equitably adjust the contract price for
any cost changes from the new wage determination.
 If the new determination does not change any wage rates, the CO
shall award the contract, modify it to include the new determination.
22.404-5 - Expiration of Project Wage Determinations
The following procedure applies when contracting by negotiation:
 Request a new determination if it will expire before contract
award. The award can be delayed until the new determination is
obtained.
 Do not need to delay opening and reviewing proposals or
discussing them with the offerors while a new determination is
being obtained. The CO shall request offerors to extend the
period for acceptance of any proposal if that period expires before
the new determination is incorporated.
 Amend the solicitation if the new determination changes any wage
rates, and send the new information to all prospective offerors that
have not been eliminated from the competition (if the closing date
has passed). Give offerors a reasonable opportunity to amend
their proposals.
22.404-6 - Modifications of Wage Determinations
Sealed Bidding:
 A written action to modify the wage determination shall be
effective if it is published 10+ days before the date of bid opening
or <10 days before bid opening if the CO has reasonable time to
notify the prospective bidders.
 Modifying the wage determination after bid opening shall not be
included in the solicitation.
 If the modification is received after award: modify the contract to
incorporate the wage modification retroactive to the date of award.
Equitably adjust the contract price for any changes in cost.
 If an award is not made within 90 days after bid opening,
modification to a wage determination shall be effective for any
resultant contract.
 A 90-day extension can obtained from DOL if the extension is in the
public interest to prevent injustice, undue hardship, or to avoid serious
impairment.
22.404-6 - Modifications of Wage Determinations
The following applies when contracting by negotiation:
 Must modify the solicitation if the wage determination is
modified before award.
 If modified before award: follow the procedures in 22.4045(c)(3) or (4).
 If modified after award: follow the procedures in 22.4046(b)(5).
 Receive modified determination before exercising the option:
must modify the contract to incorporate the modified wage
determination, and adjust for any changes in cost.
22.404-7 Correcting Wage Determinations Containing Clerical Errors
 Corrections will be effective immediately, and will apply to any
solicitation or active contract.
22.404-8 Notification of Improper Wage Determination Before Award
 Following written notification from DOL, the correct wage
determination shall be effective immediately and incorporated into
the sol/contract:
 In sealed bidding, the CO shall proceed IAW the following:
 If the notification is received before bid opening, the CO shall postpone
the bid opening date to allow a reasonable time to - Obtain the appropriate determination,
 Amend the solicitation to incorporate the determination, and
 Permit bidders to amend their bids.
 Received after bid opening but before award: delay awarding the
contract, obtain the appropriate wage determination.
 In negotiated acquisitions, delay award and process the notification
of an improper wage determination IAW 22.404-5(c)(3).
22.404-9 -- Award of Contract Without Required Wage Determination
 If a contract is awarded without a determination or the wrong
determination: correct the error upon discovery.
 If a required wage determination is not available: expeditiously request a
determination from the DOL.
 Modify the contract to incorporate the wage determination (retroactive to
the date of award) and equitably adjust the price or terminate the
contract.
22.404-10 -- Posting Wage Determinations and Notice.
 Post the determination at the site of the work and inform the contractor
where to submit complaints or raise questions concerning labor
standards.
22.404-11 -- Wage Determination Appeals.
 An Administrative Review Board decides appeals of final decisions made
by the DOL concerning DBA wage determinations. A petition for review
may be filed (29 CFR Part 7) if reconsideration by the Administrator has
been sought and denied.
22.404-12 – Labor Standards for Contracts Containing
Construction Requirements and Option Provisions That Extend
the Term of the Contract
 IDIQ: incorporate the determination in the contract into task
orders issued during that option period., remain effective for
the POP of the task orders.
Fixed-price contracts can be modified using one of the methods
below. Adjustments outside of the choice selected is not
permitted.
 Can bid/propose separate prices for each option period.
Usually used in construction-only contracts <3 years.
 Can adjust the contract price based on published economic
indicators (if specified as such in the contract).
 Can adjust the contract price to reflect the contractor’s
change in cost resulting in the new/revised wage
determination. Usually used if requirements are services
subject to the SCA and the construction requirements are
substantial and segregable.
22.406 -- Administration and Enforcement
 Contracting agencies are responsible for ensuring the full and
impartial enforcement of labor standards and shall maintain a
program that:
 Ensure sub/contractors are informed before commencement of work
of their obligations under the labor standards clauses of the contract;
 Ensure adequate payroll reviews, on-site inspections, and employee
interviews to determine compliance and prompt corrective action;
 Prompt investigation and disposition of complaints; and
 Prompt submission of all reports required by this subpart.
 Preconstruction letters and conferences
 Before construction begins, inform the contractor of the labor
standards clauses and wage determination requirements of the
contract and of their responsibilities.
 Unless it is clear that the contractor is fully aware of the requirements,
the CO shall issue an explanatory letter and/or arrange a conference
with the contractor promptly after award of the contract.
22.406-2 -- Wages, Fringe Benefits, and Overtime
 In computing wages paid, the contractor may include only the following items:
 Amounts paid in cash and contributions taken for medical, pensions, workers
comp, unemployment benefits, and life, disability and accident insurance.
 Provide wages equal or greater to the DBA determinate rates.
 If wages are not stated as exact cash amounts, the cost shall be divided by the
employer’s contributions/costs by the employee’s hours worked to ensure
compliance.
 Computing OT payments: Use the basic hourly rate of pay (includes employee
contributions to fringe benefits, but excludes the contractor’s contributions, costs,
or payment of cash equivalents for fringe benefits). Overtime shall not be
computed on a rate lower than the basic hourly rate in the wage determination.
22.406-3 -- Additional Classifications
 The contractor can submit to the CO a request for an additional classification if it is
not listed in the wage determination, which is sent to the DOL for approval
 If the CO disagrees, the CO will include a letter to the DOL identifying all views for
the DOL to then determine..
22.406-4 -- Apprentices and Trainees.
 The contracting officer shall review the contractor’s
employment and payment records of apprentices and
trainees to ensure that the contractor has complied with
the contract.
 If a contractor has not complied with the requirements of
the contract the CO shall require the contractor to pay the
affected employees at the rates applicable to the
classification of the work actually performed.
22.406-5 -- Subcontracts.
 The contractor and subcontractors at any tier are required
to submit a fully executed SF 1413, Statement and
Acknowledgment, upon award of each subcontract.
22.406-6 -- Payrolls and Statements
 Submission. The contractor must submit weekly payrolls within
7 calendar days after the regular payment date of the payroll
week covered.
 Withholding for nonsubmission. If the contractor doesn’t submit
copies of its payrolls the CO shall withhold payment approval to
protect the interest of the Government and the employees of
the contractor.
 Examination: The CO shall examine the reports to ensure
compliance.
 Preservation. The CO shall retain records for 3 years after
completion of the contract. Submitted payrolls shall not be
returned to a contractor, but copies may be furnished to the
contractor who submitted them, or to a higher tier contractor.
 Disclosure of payroll records. Payroll records must be carefully
protected from any public disclosure.
22.406-7 -- Compliance Checking
 Regularly check contracts to ensure compliance with the labor standards, by:
 Employee interviews, On-site inspections, Payroll reviews, Inspection of
logs of construction
 Conduct Special compliance checks when there are inconsistencies, errors, or
omissions detected during regular compliance checks; or receipt of a
complaint .
22.406-8 – Investigations - Contracting agency responsibilities.
 Conduct an investigation when a compliance check indicates that violations
may have occurred.
 Must include all aspects of the contractor’s compliance and not limited to
specific areas raised in a complaint or uncovered during compliance checks.
 Do not disclose contractor employees’ statements taken during an
investigation or their identity without that employee’s prior signed consent.
 Obtain permission from the DOL before disclosing material obtained from DOL
files, other than computations of back wages and liquidated damages.
22.406-8 -- Investigations
 Investigation report. The CO shall receive the report and make preliminary
findings. The CO must not base adverse findings solely on employee
statements unless the investigation establishes a pattern of possible
violations based on employees’ statements.
 Contractor Notification. After completing the review, the contracting officer
must—
 Provide the contractor any written preliminary findings and proposed
corrective actions, and notice that the contractor has the right to request
that the basis for the findings and to submit written rebuttal information.
 Upon request, provide the contractor with rationale for the findings but can
not permit the contractor to examine the investigation report, nor disclose
the identity of any employee who filed a complaint/interviewed, without the
prior consent of the employee.
 The contractor may rebut the findings in writing within 60 days and
becomes part of the official investigation record. If the rebuttal is not
received timely, the CO must consider the preliminary findings final.
 If appropriate, request the contractor to make restitution for underpaid
wages and assess liquidated damages.
 If the request includes liquidated damages, the request must state that the
contractor has 60 days to request relief.
22.406-9 -- Withholding From or Suspension of Contract Payments.
 If the CO believes a violation exists: withhold from payments due the
contractor in an amount equal to the estimated underpayment and
liquidated damages due.
 If an investigation confirms violations: adjust the withholding as
appropriate, but do not reduce/release the withholding without written
approval of the DOL.
 Use withheld funds to pay liquidated damages.
 If a contractor fails/refuses to comply: suspend any further payment until
the violations ceases or until funds are sufficient to compensate the
employees.
 If contractor has not made restitution: send a list of the employee’s names
and info, to include the amount due, and rationale for restitution to the
Comp. General.
 Returning of withheld funds to contractor when they exceed the amount
required to satisfy underpayments and liquidated damages.
22.406-10 -- Disposition of Disputes Concerning Construction
Contract Labor Standards Enforcement.
 Differences of opinion between CO and contractors in labor
standards enforcement include: Misclassification of workers;
Hours of work; Wage rates, OT and payment; and applicability.
 These differences are usually settled by the contracting agency
but DOL can assist when necessary.
 Inform the contractor of the following when the CO requests the
contractor to take corrective action in labor violation cases:
 Disputes are handled under the contract clause at 52.222-14,
Disputes Concerning Labor Standards, and not 52.233-1, Disputes.
 The contractor may appeal the CO’s findings, so long as they
provide rational.
 The CO shall send their findings to DOL, which will respond
directly to the contractor. The contractor can appeal the DOL’s
decision.
 DOL may initiate debarment proceedings if there is reason to
believe there is willful violations.
 22.406-11 -- Contract Terminations: Submit a report
to DOL if a contract is terminated for violation of the
labor standards
 22.406-12 -- Cooperation With the Department of
Labor …in the inspection of records, interviews with
workers, and all other aspects of investigations. During
a DOL investigation, the CO shall request to be
notified immediately of any violations.
 22.406-13 -- Semiannual Enforcement Reports:
Compliance with and enforcement of the construction
labor standards shall only contain info regarding
enforcement actions and submitted to the DOL within
30 days. Reporting periods: Oct 1 - Mar 31, April 1 Sept 30.
Subpart 22.5 – Use of Project Labor Agreements (PLA) for Federal
Construction Projects
 “Large-scale construction project” = >$25M
 PLA: collective bargaining agreement establishing the T&Cs of employment.
Used to promote economy and efficiency in Federal procurement.
 May require a PLA if it will: produce labor-management stability, and ensure
compliance with safety and health laws and regulations, EEO, labor and
employment standards and be consistent with law.
 The following are factors to also consider the appropriateness of PLA:
 Requires multiple construction contractors, employing workers in multiple
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crafts or trades.
Shortage of skilled labor in the region of the site of work.
Completion of the project will require an extended period of time.
PLA were used on comparable projects.
Will promote long term program interests, such as facilitating the training
of a skilled workforce to meet the agency’s future construction needs.
 PLAs shall:
 Allow all contractors to compete for contracts without regard to whether
they are otherwise parties to collective bargaining agreements;
 Contain guarantees against strikes, lockouts, and similar job disruptions;
 Set forth procedures for resolving labor disputes;
Subpart 22.6 -- Walsh-Healey Public
Contracts Act
22.603 – Applicability: Contracts for the manufacturing or furnishing of materials, supplies,
articles, and equipment exceeding $15,000. The act stipulates minimum wages, maximum hours,
child labor, convict labor, and safe and sanitary working conditions.
22.604-1 -- Statutory Exemptions.
 Items authorized to be purchased “in the open market” (commercial items); or where a specific
purchase is made under Unusual and Compelling Urgency.
 Perishables, including dairy, livestock, and nursery products.
 Agricultural or farm products processed for first sale by the original producers.
 Agricultural commodities or the products thereof purchased under contract by the Secretary of
Agriculture.
22.604-2 -- Regulatory Exemptions.
 Public utility services.
 Supplies manufactured outside the United States, Puerto Rico, and the U.S. Virgin Islands.
 Purchases against the account of a defaulting contractor where the stipulations of the Act were
not included in the defaulted contract.
 Newspapers, magazines, or periodicals, contracted for with sales agents or publisher
representatives, which are to be delivered by the publishers.
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The Secretary of Labor may exempt specific contracts from the inclusion or application the
Act’s stipulations. Request must include the reasons why the conduct of Government business
will be seriously impaired unless the exemption is granted.
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22.605 -- Rulings and Interpretations of the Act.
When a contract is modified to exceed $15,000, the Act applies for
work performed after the date of the modification.
When a contract is modified to $15,000 or less, the contract is not
subject to the Act for work performed after the date of the modification.
Required flowdown to subcontracts in excess of $15,000.
The Act applies to contractors operating Government-owned facilities.
IDIQ (including BOA and BPA): Subject to the Act unless it can be
determined in advance that the aggregate amount of all orders (within
1 year) will not exceed $15,000. A determination shall be made
annually if the contract or agreement is extended.
22.608 -- Procedures.
 (a) Award. Provide the contractor DOL publication WH-1313, Notice to
Employees Working on Government Contracts.
 (b) Breach of stipulation. Notify the appropriate regional office of the
DOL, Wage and Hour and furnish any information available.