Service Contract Act

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Title 29, Code of Federal Regulations, Part 4
Labor Standards for Federal Service Contracts

29 CFR 4.55 - Issuance and revision of wage determinations.

(a) Section 4.4 of subpart A requires that the awarding agency file
a notice of intention to make a service contract which is subject to the
Act with the Wage and Hour Division, Employment Standards
Administration, prior to any invitation for bids or the commencement of
negotiations for any contract exceeding $2,500. Upon receipt of the
notice, the Wage and Hour Division may issue a new determination of
minimum monetary wages and fringe benefits for the classes of service
employees who will perform work on the contract or may revise a
determination which is currently in effect.

(b) Determinations will be reviewed periodically and where
prevailing wage rates or fringe benefits have changed, such changes will
be reflected in revised determinations. For example, in a locality where
it is determined that the wage rate which prevails for a particular
class of service employees is the rate specified in a collective
bargaining agreement(s) applicable in that locality, and such
agreement(s) specifies increases in such rates to be effective on
specific dates, the determinations would be revised to reflect such
changes as they become effective. Revised determinations shall be
applicable to contracts in accordance with the provisions of
Sec. 4.5(a)(2) of subpart A.

(c) Determinations issued by the Wage and Hour Division with respect
to particular contracts are required to be incorporated in the
invitations for bids or requests for proposals or quotations issued by
the contracting agencies, and are to be incorporated in the contract
specifications in accordance with Sec. 4.5 of subpart A. In this manner,
prospective contractors and subcontractors are advised of the minimum
monetary wages and fringe benefits required under the most recently
applicable determination to be paid the service employees who perform
the contract work. These requirements are, of course, the same for all
bidders so none will be placed at a competitive disadvantage.
[48 FR 49762, Oct. 27, 1983. Redesignated at 61 FR 68664, Dec. 30, 1996]