Overview
This section outlines the mandatory procedures for Contracting Officers (COs) to obtain Service Contract Labor Standards (SCLS) wage determinations through SAM.gov or the Department of Labor’s e98 process. It specifically details the "successorship" requirements, which mandate that successor contractors honor the wages and fringe benefits established in a predecessor's collective bargaining agreement (CBA).
Key Rules
- Method of Acquisition: COs should use the SAM.gov website for most prevailing wage determinations but must use the e98 electronic process to request a determination directly from the Department of Labor (DOL) if the database is insufficient.
- Agency Responsibility: While SAM.gov provides selection assistance, the contracting agency remains responsible for the wage determination selected; however, the agency may legally rely on a DOL response provided via the e98 process.
- Successorship (41 U.S.C. 6707(c)): A successor contractor must pay wages and fringe benefits at least equal to those in the predecessor’s CBA if the services and locality remain substantially the same.
- CBA Limitations: Successorship rules may not apply if the CBA was not reached via "arm’s length negotiations," if the rates are at a "substantial variance" with local prevailing rates, or if notice of a new CBA is received too close to the bid opening or contract award.
- Required Documentation: COs must obtain copies of incumbent CBAs (provided by the incumbent via FAR 52.222-41) and must clearly distinguish in the solicitation which employee classes are covered by a CBA versus prevailing wage determinations.
Practical Implications
- Lead Time Planning: COs must account for the time required to gather data and potentially wait for DOL responses to e98 requests to avoid delays in the acquisition cycle.
- Due Diligence: Contractors must be aware that their existing CBAs will likely set the "floor" for labor costs for any successor, making the "arm's length negotiation" and "substantial variance" clauses critical for government cost control.