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SERVICE CONTRACT ACT (SCA) WAGE DETERMINATIONS

Posted 6/25/2013 Printable Fact Sheet

 
Service Contract Act Wage Determinations can be obtained quickly and easily at:
Wage Determinations On-Line (WDOL.gov)
 
If an applicable wage determination can be obtained through WDOL.gov, submittal of an e98 "Request for Wage Determination" is not required (FAR 22.1008.)
 
The following wage determination types can be obtained at WDOL.gov:
  • Standard WDs numbered 05-2001 through 05-3034 (currently), which list nearly 300 standard classifications corresponding to those in the SCA Directory of Occupations;
  • Non-standard WDs for such services as Elevator Maintenance, Moving and Storage of Household Goods, Off-base Food and Lodging, Baggage Inspection, Aircraft Services (Pilots), etc.;
  • CBA WDs based upon a predecessor contractor's collective bargaining agreement--CBA (but you no longer send the CBA to DOL).  See discussion of CBA WDs and how to create and edit them under the last section of this material.
An interactive User Guide is available at the website to answer most questions, or contact an Air Force Regional Labor Advisor.  Davis-Bacon Act WDs are also available at WDOL.gov.
 
Effectivity of WDs published at WDOL.gov:  WDs are not effective for existing contracts when published!  The most current published WD must be incorporated for new contracts, option years, extension periods, and the annual or biennial anniversary date of a multiple year contract
(FAR 22.1007).  For example, a WD published during an option year will not be "effective" for that contract until incorporated by the Contracting Officer for the start of the following option year (or extension or new contract).  Deadlines for "receipt" (publication) of SCA WDs are at
FAR 22.1012-1.  As indicated by 22.1012-1(a)(1)(i), effectivity is governed by the date a WD is published on the WDOL.gov website, not the date of the WD.
 
WDOL.gov is a collaborative e-Government initiative of OMB, DOL, DOD, GSA, DOE and DOC.  It is not under DOL's website (at "DOL.gov"), although one or more links to WDOL.gov can be found there.
 
Position descriptions for all standard classifications (those listed on Standard WDs) are found in the SCA Directory of Occupations, 5th Edition.  Links to the Directory and the separate "Table of Contents" (in WD order) and "Alphabetical Index" can be found at http://www.wdol.gov/library.aspx.
 
e98 Website:  If a WD cannot be obtained at WDOL.gov, the site will refer you to DOL's "E98" website to complete an electronic request.  Such a request is needed only where DOL's standard or non-standard WDs do not contain the appropriate class of service employee for the work necessary to perform the contract (or for most of them, if there are several).  Most responses to E98 requests are received within a few days.  Reviewing the Directory of Occupations index or specific sections of the Table of Contents can help you determine if the work in question is covered under a standard WD.  Non-standard WD general descriptions can be reviewed at WDOL.gov during the "Selecting SCA WDs" process.  A list of non-standard WD titles such as "Elevator Service" can also be viewed at Appendix 'A' of the on-line Users Guide.  Unlike WDOL.gov, DOL's e98 website requires completion of the electronic equivalent of SF98 and 98a "Request for Wage Determination".  The paper versions of these forms are now obsolete-DOL will not respond to SF98 requests mailed or faxed.
 
"Health and Welfare" Fringe Benefit:  All Agency Memorandum No. 214 was issued by the U.S. Department of Labor on 18 June 2013, increasing the Health and Welfare fringe benefit to $3.81 from $3.71 per hour.  The H&W rate is usually increased annually in late June.  Increases are effective with the next contract period (new contract, option, or extension) starting on or after 19 June 2013.  For example, fiscal year contracts are unaffected by the Memo 214 increase until 1 Oct 13.  (For Hawaii, see Memo 214 for special rates and rules.)
 
Not affected by annual H&W increases:
  • Wage determinations (WDs) based on the predecessor contractor's collective bargaining agreement (CBA), whether or not the current H&W rate in the CBA is equal to the previously-required standard;
  • WDs where union rates have been adopted as prevailing (all elevator maintenance WDs, for example);
  • Any other WD currently requiring a H&W rate other than the previous standard H&W rate.  Exception:  multiple year contracts not subject to annual funding, since an earlier H&W amount dating from two years previous may have properly applied for two years (see ** below);
  • ** Anniversary dates:  Under multiple-year contracts, incorporate any revised WD at the annual anniversary date, if subject to annual funding; or, at every two-year anniversary date, if not subject to annual funding. (FAR 22.1007(c))
"Odd" and "Even" WDs:  H&W payment requirements are different between standard WDs ending with an odd versus an even number (Example: 05-2531 vs. 05-2532), as follows:
  • Odd WDs require H&W payment "per employee" for all hours compensated (maximum 40 hours per week).
    Sample WD benefit note:  "HEALTH & WELFARE:  $3.81 an hour or $152.40 per week or $660.40 per month";
  • Even WDs require payment by "average cost" for all hours worked by service employees (no maximum, but excluding paid time off).
    Sample WD benefit note:  "HEALTH & WELFARE:  Life, accident, and health insurance plans, sick leave, pension plans, civic and personal leave, severance pay, and savings and thrift plans.  Minimum employer contributions costing an average of $3.81 per hour computed on the basis of all hours worked by service employees employed on the contract." (emphasis added)
  • Caution:  Switching WDs from an even number to an odd one (or odd to even) would change the contractor's requirement and may result in an otherwise avoidable increase in contract price or cost -- even though both WDs sets require the same minimum hourly amount.
Rules for applying the Odd vs. Even WDs:
  • ODD:  Use the odd-numbered standard WDs (2005-2063, etc.) for all contracts except those noted under the rule for applying "Even" WDs below.
  • EVEN:  Use the even-numbered standard WDs (2005-2064, etc.) for all contracts already subject to an even WD. Continue using the even-numbered WDs for all options, extensions, follow-on contracts, and multiple year contract anniversary dates (see note regarding "Anniversary Dates" above).
  • DOL will decide, eventually, whether to eliminate one of the payment methods.
Review of Standard and Non-Standard WDs:  Before incorporating a WD in a solicitation or contract, it's a good idea to take a few seconds to look it over to make sure that the . . .
  • basic WD number (such as 05-2079) matches that in the previous contract or contract period (if any);
  • locality is covered (county and state, normally);
  • classification(s) are covered for most of the work to be performed
  • WD does not contain obvious errors (such as radical changes to the wage rates). See FAR 22.1013.
Collective Bargaining Agreements (CBAs): CBAs become the basis for contract WDs under covered SCA contracts if the CBA . . .
  • was entered into by the incumbent/predecessor contractor with a union;
  • was received timely by the contracting agency (FAR 22.1012-3) (signed by both union and contractor);
  • does not contain "prohibited contingencies" (DOL Memo 159);
  • wage and/or benefit terms were effective at some point in the prior contract period (initial CBA, only) (See 4.163(f) of 29 C.F.R. Part 4).
If the above criteria are not satisfied -- or if you have any questions or concerns regarding a CBA -- contact an Air Force Regional Labor Advisor.
  • CBA WDs:
Creating "CBA WDs" through WDOL.gov:  The first time you create a particular CBA WD under WDOL.gov, some information must be input.  In subsequent years, information from the prior year can be edited to reflect changes in CBA dates, contractor, etc.  Note that the system will renumber every previous CBA-based WD the first time (from the WD numbers previously issued directly by DOL).  This new WD number will consist of:  "CBA", the year first created, and a unique number.  (Example: "CBA-2004-123").  If a CBA WD number does not begin with "CBA", it was not issued by the WDOL.gov system.
 
The use of WDOL.gov will result in issuance of a new or revised CBA WD and goes like this:
  1. select state and county.  If it's left on "Alabama State-Autauga County", the locality of your CBA WD will be created for (or changed to) that locality.  [Go to #2]
  2. Were these services previously performed at this locality under an SCA-covered contract?"  YES [Go to #3]
  3. Are any of the employees performing work subject to a CBA?  YES [Go to #4]
  4. Is the WD in the current contract based on a CBA?
    a.  Answer "NO" if this is an initial CBA where employees were previously covered by a standard or non-standard WD (WD was not based on a predecessor CBA).  [Skip to #8]
    b.  Answer "NO" if the previous WD references a CBA, but the WD# does not begin with "CBA" (WD was not issued by the WDOL.gov system)  [Skip to #8]
    c.  Answer "YES" only if a WD referencing a CBA was previously issued for the contract either by DOL or by the WDOL.gov system.  [Go to #5]
  5. If a CBA WD applicable to this contract was previously created using this system (WD# must start with "CBA"), click "Get CBA WD".  [Go to #6]
  6. Enter the number of the CBA WD  [Go to #7]
  7. Edit the WD information, review the revised WD, (then edit further, or) have the system issue a revision of the WD.  The WD revision number will be updated automatically by the system upon issuance.  [Mission Complete!]
  8. Click "Continue" to create a new CBA WD.  [Go to #9]
  9. Enter the information as indicated.  Review the draft before issuing the WD.  The WD number and revision number will be assigned by the system when you select "Issue CBA WD".  [Mission Complete!]
Review the Draft WD!  WDOL.gov allows you to review a draft CBA WD or revision prior to having the system "issue" it to you.  This is the best time to review the information you input, and to make sure the system put the right words in the right places.  If not, just go back and edit it until it looks good in draft form.  Then hit the "Issue CBA WD" button.
 
If you discover an error after having a CBA WD "issued" by WDOL.gov, proceed as you would to edit an existing CBA WD, make edits to correct the error, and have another revision issued.  Revisions incorporated into a contract do not have to be in sequence.
 
Incorporation of CBA WDs:
 
Solicitations:  An applicable CBA WD should be incorporated as a "cover page" to the CBA, since non-incumbents will need the CBA to prepare their offer.
 
Options and extensions:  CBA WDs should be incorporated without the CBA, since the current contractor negotiated the CBA and they would have a copy of it.   








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