ACC NCR: Update on Prevailing Wage Requirements in Federal Contracts

Federal government service contracts and construction contracts have long been subject to special prevailing wage and fringe benefit requirements under the Service Contract Labor Standards statute and the Davis-Bacon and Related Acts (SCA and DBRA).  The compliance issues for both regulations are varied and complex and go beyond simply paying prevailing wages and fringe benefits.

The past year also has brought a number of notable developments that contractors will need to navigate. As examples, the DBRA implementing regulations were substantially revised for the first time in forty years and the Biden Administration is reinstituting Service Contract Act “Non-Displacement of Qualified Worker” requirements. Also, a recent final rule amends the Federal Acquisition Regulation to require Project Labor Agreements (PLAs) on major federal construction projects when the estimated total cost to the government is $35 million or more–though the PLA mandate is being challenged in federal court.

In addition to the costs, PLAs also come with operational challenges while negotiating or implementing other terms of these collective bargaining agreements.  Federal contractor minimum wage requirements under the Executive Order 14026 are being challenged in multiple legal actions as well.

Our panel will provide a recap of the fundamental requirements and an update on recent developments. In addition, our panel will discuss tips and lessons learned in managing SCA and DBA obligations in government contracts. 

Presented by Dan Ramish, Counsel in Haynes Boone’s Government Contracts Group, Adam Sencenbaugh, Partner in Haynes Boone’s Labor and Employment Group, Hillary Ghent, Assistant General Counsel at DAVIS Construction and Nickole Winnett, VP, Assistant General Counsel at Amentum Services, Inc.

1.5 Hours of VA MCLE pending.