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wmcastleberry

Service Contract Act Wage Determination - What State Applies?

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I have run into an interesting topic that the Department of Labor doesn't even seem to be very clear on.  Just wondering if any of you have ever come across anything similar.  We have contracted with a federal facility that is based out of state.  All of our work will be performed in our state.  We only have to have employees travel to the facility to pick up materials.  So the question is, which state do we use to calculate SCA Wage Determinations.  Is there only one rate or two?  I'm assuming it is the place where performance is taking place (our state), but I know the penalties for not following SCA rules can be very stiff.  I really would appreciate any information anyone may could give.  Thanks for any help!

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Did you see FAR 22.1009 concerning place of performance?   Did you discuss with your KO or with the Wage and Hour Division of DOL?  Suggest starting with the KO.  We don't know any specifics concerning the terms in the solicitation or what the services are for.  There are possible retroactive actions that might be applicable to obtain and apply  the correct rates. 

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A contractor's obligation is to comply with the WD incorporated in the contract.  See, FAR 52.222-41. Therefore, this is something you need to make sure there is agreement with the contracting officer as to what is the appropriate WD.

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Thank you for the responses.  Wage and Hour Dept. at DOL aren't entirely sure, but the more I read, it seems like the contract and KO control.  It makes sense to me that if the wage determinations are incorporated into the contract and it is signed, then it has more than likely become a part of the agreement.  Thanks again for the help.

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9 hours ago, wmcastleberry said:

AaaThank you for the responses.  Wage and Hour Dept. at DOL aren't entirely sure, but the more I read, it seems like the contract and KO control.  It makes sense to me that if the wage determinations are incorporated into the contract and it is signed, then it has more than likely become a part of the agreement.  Thanks again for the help.

William, I'm not an expert on the Service Contract Act but I don't necessarily agree with the assumption that the contract is correct or that the contractors obligation is to merely comply with the contract. There might be a requirement to modify the wage decision after award, pursuant to 22.1009-4,  if the KO discovers that a firm did not identify where the place of performance will be.  

 

 

 

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From the DOL’s Field Operations Handbook, Chapter 14, Section 14g03 at paragraph (g).   Admittedly it applies in the context of the Handbook to “mail haul” contracts but wonder if reasoning extends to other type of haul contracts.   Found on this website…..https://www.dol.gov/whd/govcontracts/sca.htm

 

“Applicable wage rate  - Applicable wage rate The wage rate applicable to mail haul truck drivers is based upon the point of origin of the route required by the contract. This point of origin is commonly referred to as the head out point. The head out rate is applicable to all drivers who work on the contract regardless of where they may start their portion of the route.’

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