Contract Policy - Labor Information for Services & Construction Contracts

In service and construction contracts government agencies buy the labor for the services in the contract. Contract labor is a significant cost driver and may provide cost and performance risks. Labor costs can and will increase as contract performance continues (in the out years) when minimum wages and fringe benefits increase as a result of updated Department of Labor (DoL) area wage determinations (AWD) and/or renegotiated collective bargaining agreements (CBA). Service and construction contract labor costs should be considered, planned for and addressed at acquisition strategy planning and into the award and administration phases of Department of Defense contracts.

Agencies should exchange information on labor matters with other agencies to ensure a uniform government approach. The DoD Labor Advisor working group reviews the material in this web site. Our goal is to provide this uniformity through helpful sources or training material, regardless of which agency was the original developer

Labor Advisor Contacts for the Services

FAR 1.602-2(c) states that Contracting Officers shall request and consider the advice of specialists in ….other fields as appropriate… FAR 22 provides the specialists and points of contact as “Agency Labor Advisors” and describes duties as “responsible for advising contracting agency officials on Federal contract labor matters”- further description of duties and interfaces is provided below.

What Do Labor Advisors Do?

Assist Contracting:

  • Labor Advisors provide daily response to field requests for help on contract labor issues impacting contracts, including the federal wage laws (SCA, DBA, others ), contract administration issues, contractor labor relations, evaluation of claims under the FAR price adjustment clauses.
  • They are advisors to source selection teams on contractor labor risk factors.
  • Advisors develop policy, regulations, instructions, and guides regarding this area of expertise.
  • Advisors develop curriculum and provide training seminars for contracting personnel on contract labor standards and labor relations.
  • Advisors assist in responding to inquiries from unions, DOL, and other parties.
  • Labor Advisors provide strike mitigation guidance.

Labor Advisors core customers:

  • Contracting personnel
  • Headquarters Staff
  • Program offices impacted by labor costs and disputes
  • Contractors
  • Contractor employees or their union representatives
  • Installation commanders – guidance re strikes and picketing at their installations

Labor Advisors regularly communicate with:

  • Contracting Officers, operations and specialized contracting, services and construction contracting offices, all military installations, reserve bases, ANG and other contracting organizations in agency regions, and Commanders.
  • Headquarters Staff
  • Defense Agency contracting attorneys
  • Other Agency Labor Advisors, other DoD agencies, NASA, HUD, DoE
  • DOL, Wage Hour Division
  • National Labor Relations Board
  • Federal Mediation and Conciliation Service
  • Labor unions at the local, regional and national level
  • Contractor associations (Professional Services Council)
  • National Alliance for Fair Contracting (union supported)

Service Labor Advisors(names with organization, phone and email provided)

Air Force

Labor Advisor

  • Nicholas A. De Quiroga
  • SAF/AQCA, Installations & Sourcing Division
  • Deputy Assistant Secretary (Contracting)
  • nicholas.de_quiroga.1@us.af.mil
  • (719) 556-2383
  • DSN: 834-2383

U.S. Army Corps of Engineers

Labor Advisor

  • Vanessa Shaw-Jennings
  • National Contractor Industrial Relations Officer
  • U.S. Army Corps of Engineers
  • 441 G Street N.W. (3C31)
  • Washington, D.C. 20314-1000
  • vanessa.l.shaw-jennings@usace.army.mil
  • Com: (202) 761-8559

Army

Labor Advisor (Attorney)

  • Roger W. Wilkinson
  • Contract and Fiscal Actions Division
  • Office of the Judge Advocate General (OTJAG)
  • 2200 Army Pentagon, 3B548
  • Washington, DC 20310-2200
  • roger.w.wilkinson2.civ@mail.mil
  • (571) 256-8187

DPC

Labor Contact

  • Larry McLaury
  • Defense Pricing and Contracting (DPC)
  • Contract Policy
  • Office of the Undersecretary of Defense (Acquisition, Technology & Logistics)
  • Pentagon, Room 5E621, Washington, D.C. 20301
  • larry.j.mclaury2.civ@mail.mil
  • (703) 697-6710

DLA

Labor Advisor

  • Anne R. Burleigh
  • Defense Logistics Agency
  • 8725 John J. Kingman Rd, Ste 3122
  • Ft Belvoir, VA 22060-6221
  • Anne.Burleigh@dla.mil
  • (571) 767-1358
  • DSN: (392) 767-1358

Navy

Labor Advisor

  • Thomas D. O'Connor
  • Dept. of Navy Contractor Industrial Relations Advisor/Labor Advisor
  • Office of the Assistant Secretary of the Navy (OASN) for Research, Development and Acquisition (RD&A),
  • Deputy Assistant Secretary of the Navy (DASN) for Acquisition and Procurement (AP)
  • 1000 Navy Pentagon, BF-992
  • Washington, D.C. 20350-1000
  • thomas.d.oconnor@navy.mil
  • (703) 693-2939

NAVFAC

Labor Advisor

Department of Labor

Wage & Hour Division Links

Wage Determinations OnLine

This website provides a single location for federal contracting officers to use in obtaining appropriate Service Contract Act (SCA) and Davis-Bacon Act (DBA) wage determinations (WDs) for each official contract action.

Compliance Assistance — Government Contracts

Provides links to labor related Acts

https://www.dol.gov/agencies/whd/compliance-assistance

Prevailing Wage Conferences

These are free training sessions for government employees that cover the latest wage information; several different locations offered. Training charts are available on the website.

https://www.dol.gov/agencies/whd/government-contracts/construction/seminars/events

Wage and Hour Division (WHD) Contact Information

Provides email and phone contact information for inquiries if you are having trouble finding information on the website.

https://www.dol.gov/agencies/whd/contact

DoD Agency Resources

Links to services & DOL web sites

Labor Related Policy Guidance

DoD & DOL

Defense Procurement Policy

  • Title 41 Positive Law Codification
    • DoD, DFARS Final Rule, published June 15, 2012. This updated the historical names of Acts, such as the Service Contract Act of 1965. While there were no substantive changes to the meaning of the statues, there were several name/terminology changes.
  • Non-displacement of Qualified Workers Under Service Contracts
    • Effective Date: January 18, 2013. Applicability Date: This final rule is applicable to solicitations issued on or after the effective date.
  • Actions to support the White House Task Force on Worker Organizing and Empowerment, dated June 22, 2022
    • This memorandum lists actions intended to promote the awareness of workers’ organizing rights, contractors’ responsibilities, and Government authorities when Government contractors’ workers are trying to organize the contracting workforce. These actions are provided by the White House Task Force on Worker Organizing and Empowerment, formed in response to Executive Order 14025, “Worker Organizing and Empowerment,” dated April 26, 2021.

Department of Labor Policy

  • 2014 Service Contract Act Health and Welfare Fringe Benefit Changes
    • The prevailing health and welfare fringe benefits issued under the McNamara-O'Hara Service Contract Act (SCA) was increased on July 22, 2014. Effective July 22, 2014, the new SCA health and welfare fringe benefit is $4.02 per hour.

Frequently Asked Questions

FAQs

If you have questions you would like to see answered in the FAQ section please send them to the DPC Labor Contact (larry.j.mclaury2.civ@mail.mil or regina.m.bova.civ@mail.mil) or forward them to your agency Labor Advisor.

Q.How do we notify all potential offerors of the wage rates in the CBA of the incumbent contractor?

  • Once the CBA became part of the previous contract it then became the Wage Determination for the contract and therefore should be attached to the solicitation in the same way as the Area Wage Determination (AWD) per FAR 52.222-41(c). If it is not possible to attach the entire CBA, it should be posted with the technical documents accessible to all offerors.

Q.The job classification proposed by the contractor is not contained in the Wage Determination what do I do?

  • The SF 1444 request for additional classification is used when work to be performed is not included in a classification already listed on the applicable wage determination. Per FAR 52.222-6(c), the KO will approve the classification and rate to apply. In effect, this process allows you to apply a wage rate at award pending WHD approval.
  • The General process is: The awarded Contractor initiates the request by preparing an SF 1444. (FAR 22.406-3 and 52.222-6(c), and 29 CFR 5, Section 5.5(a)). The criteria that must be met for the unlisted classification are discussed in more detail in the Checklist for Completing the SF 1444 but in short are: 1) The proposed classification must be a classification recognized in the construction industry. 2) The work to be performed by the proposed classification cannot be performed by a classification already listed on the applicable wage decision. 3) The proposed rate must bear a reasonable relationship to the rates of the other classifications listed on the wage decision.

Q.Collective Bargaining Agreements as Wage Determinations: - The Wage Determinations On-Line (WDOL) website only provides a coversheet as wage determination for Collective Bargaining Agreement (CBA). Do I have to provide the entire CBA to offerors? How can I provide that information?

  • The WDOL website produces a coversheet as wage determination when CBA information is input under Services/Selecting SCA WDs and e98. The cover sheet provides only contractor and union information. The offerors need the information contained in the actual CBA to understand their minimum liability to their employees for wages and fringe benefits under Service Contract Act (SCA) and to cost their proposals. A copy of the incumbent’s entire CBA should be provided in a place where all offerors can view it, typically with other relevant technical information. Offerors will be bound to wages and fringe benefits only for the basic period of the contract.

Q.Collective Bargaining Agreements as Wage Determinations: - I have reviewed the most current revision (SCA), or modification (DBA) of the wage determination and have noticed the wage rates for the classifications needed on my acquisition have changed significantly. What steps can I take?

  • If, after reviewing a wage determination, and prior to incorporating into a solicitation/contract you note the wages have changed significantly contact your Agency Labor Advisor (WDOL-Related Information-Agency Labor Advisors) for a discussion of the change.