BUREAU OF PUBLIC ROADS

LABOR COMPLIANCE MANUAL

PART 4 THE FEDERAL AID SYSTEMS

CHAPTER 400

3,

400-1 Introduction: The Davis-Bacon Act (Act of March 1931, as amended, 40 U.S.C. 276a to 276a-5) provides, in general, that contracts in excess of $2,000, to which the United States is a party, for the construction, alteration, and/or repair, including painting and decorating, of public buildings or public works, which involve the employment of laborers and/or mechanics, shall contain provisions with respect to minimum wages, fringe benefits, payments without deductions, withholding funds from contractors to insure compliance with the wage provisions, and termination of the contract for failure to pay the required wages. In addition, the act contains provisions for debarment of contractors who are found to have disregarded their obligations to employees and subcontractors, and provides further for the direct payment of restitution wages for straight time for hours worked to the employees by the Comptroller General of the United States.

The Federal-Aid Highway Act (23 U.S.C.) provides, in section 113, for the payment of prevailing wages to laborers and mechanics employed on initial construction work performed on highway projects on the Federal-aid systems to be determined by the Secretary of Labor, in accordance with the Davis-Bacon Act. It should be emphasized that only those provisions of the Davis-Bacon Act which relate to the determination of prevailing wages are made applicable to the Federal-aid systems. All other provisions, such as those relating to debarment and direct payment of wages to employees by the Comptroller General, are not applicable to Federalaid work.

Chapter 400-1 Continued

In order to insure that the Congressional intent relative to the prevailing wage requirements is fulfilled and to preclude unscrupulous contractors from gaining a competitive advantage over their legitimate competitors, Federal Highway Administration and Bureau of Public Roads personnel must insist on affirmative enforcement of these labor standards requirements.

400-2 General: The Federal-aid highway system projects are, of course, cooperative ventures by the States and the Federal Government. In entering into such projects it is not the intention of the States, nor was it the desire of the Congress, that any share of the sovereign authority and prerogatives of a State be surrendered to the Federal Government. Each State highway department is primarily responsible for inspecting and enforcing compliance with these labor standards. Public Roads regional and division officials should carefully respect the States' sovereign rights with respect to the administration and supervision of the project sites, while, at the same time, discreetly insuring the protection of the Federal interest in the project. In keeping with this philosophy, when inspecting projects under State supervision, or otherwise participating in such projects, the Public Roads engineer ordinarily should be accompanied, if feasible, by an appropriate engineer of the State highway department. Public Roads engineers inspecting projects constructed under State supervision ordinarily will not deal directly with the contractor or his employees, but will submit their comments and recommendations to the State engineers accompanying them on the inspections, or through the State district offices or other appropriate channels. Copies of construction inspection reports on labor compliance matters for projects constructed under State supervision will normally be furnished to the State highway department in accordance with the provisions of PPM 20-6.1 unless circumstances reveal the necessity for a comprehensive investigation of labor compliance matters, in which event distribution will be determined by the division engineer.

CHAPTER 401
SCOPE

Part 4 covers the contents, administration and enforcement of the special contract provisions pertaining to the Federalaid systems which are required pursuant to section 113 of Title 23, United States Code. The provisions of this part apply chiefly to contracts and subcontracts for the initial construction of the Federal-aid systems.

402-1

CHAPTER 402

MINIMUM WAGES FOR LABORERS AND MECHANICS

Coverage: 23 U.S.C. section 113 provides that the Secretary of Transportation shall take such action as he deems necessary to insure that all laborers and mechanics employed by contractors or subcontractors on the initial construction work performed on highway projects on the Federal-aid systems shall be paid wages at rates (including fringe benefits) not less than those prevailing on the same type of work on similar construction in the immediate locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act (40 U.S.C. 276a). Pursuant to the Davis-Bacon Act, the Secretary of Labor determines the wage rates for the corresponding classes of laborers and mechanics prevailing in the project area. These rates must be incorporated in the contract specifications, and are the minimum wages which may be paid to persons performing that class of labor on the project. The Secretary of Labor's regulations, promulgated under the authority of these acts (29 CFR, parts 1,3, and 5), require weekly wage payments and the conspicuous posting of wage scales on the project site. 402-1.1 Contracts Covered: 23 U.S.C. 113 applies to

any Federal-aid construction contract which
meets all four of the following criteria:

(1)

Involves Federal funds, regardless
of the source of the appropriation;

(2)

Is let by or through a State highway
department;

(3) Is for initial construction work per-
formed on highway projects on a
Federal-aid system; and

402-1.2

402-2

Is authorized, in whole or in part, under any section of Title 23,

United States Code.

Appalachian Projects: The Appalachian Regional
Development Act of 1965, as amended, provides
(40 U.S.C. App. 402) for inclusion of Federal
labor standards in construction contracts for
projects on the Appalachian Development High-
way System and projects for local access roads.

Enforcement:

402-2.1

Responsibility of Contracting Agency: Inasmuch
as the State highway department, or county or
municipality by arrangements with the State
highway department, is the contracting agency
for Federal-aid system projects, the primary
responsibility for carrying out procedures to
insure compliance with Federal minimum wage
requirements rests with the State highway
department, or county or municipality, as the
case may be. However, where a county or
municipality is the contracting agency, the
State highway department is nonetheless
rsponsible for insuring strict compliance
with Federal minimum wage rate requirements
in the same manner as for all other features
of the approved plans, specifications and
estimates. The resident engineer and the
contracting agency and/or the State highway
department are responsible for insuring that:
(a) Requests for wage determinations are
submitted as required;

(b)

Applicable wage rates are incorporated
in all contract specifications and
in all contracts and subcontracts;

(c) Wage rate determinations are posted
conspicuously, on the jobsite;

402-2.1

402-2.2

Continued

(a)

(e)

Laborers and mechanics are paid, at least once a week, at rates not less than those prescribed for the classifications of work which they actually perform;

Work is properly classified in conformity
with Department of Labor standards and
procedures;

(f) Appropropriate action in conformity with
contract provisions is taken to preclude,
correct, or adjudicate any failure of the
contractor or subcontractor, due either
to underpayment, misclassification or
other reason, to pay the proper wage
rates; and

(g)

All contracts and subcontracts contain
the requisite labor standards Clauses.
(See Chapter 300).

Federal Highway Administration and Bureau of
Public Roads Responsibility:

(a)

Regional Federal Highway Administrator:
In each regional office, the Regional Federal
Highway Administrator shall appoint a
labor compliance officer responsible for
general administrative functions consisting,
among other things, of the responsibility
of insuring that all applicable laws,
regulations, and policy and procedural
matters are fully understood and complied
with by division engineers and that duplicate
copies of reports of action taken in
disposing of complaints relative to labor
standards compliance matters are forwarded
promptly to the Office of Chief Counsel.