Overview
FAR 22.1016 outlines the requirement for contracting officers to provide a statement of the wages and fringe benefits the federal government would pay if it were to hire service employees directly for a contract.
Key Rules
- Mandatory Disclosure: Per clause 52.222-42, the government must disclose equivalent federal pay scales (General Schedule for white collar and Wage Board for blue collar) for all service employee classes utilized in the contract.
- Blue Collar Computation: Rates are based on the Wage Board pay schedule; specifically, Step 2 for nonsupervisory employees and Step 3 for supervisory employees.
- White Collar Computation: Rates are derived by dividing the General Schedule (GS) Step 1 biweekly rate by 80 to establish an hourly rate.
- Data Sourcing: Contracting officers are encouraged to coordinate with local civilian personnel offices to obtain accurate grade and salary data for these classifications.
Practical Implications
- This statement serves as an informational benchmark for contractors, allowing them to see how the government values specific labor categories internally.
- While these rates provide transparency regarding federal labor costs, they are for disclosure purposes and do not override the minimum wage requirements established by Department of Labor (DOL) wage determinations.