Overview
FAR 22.1021 establishes the procedures, documentation requirements, and mandatory timelines for contracting agencies or interested parties to request a Department of Labor hearing regarding wage determination variances or "arm’s length" negotiation disputes.
Key Rules
- Submission Process: Contracting Officers (COs) must submit written hearing requests through appropriate agency channels (typically a labor advisor) to the Administrator of the Wage and Hour Division at the Department of Labor.
- Substantial Variance Requirements: Requests for a hearing to challenge wage rates must include specific data, including the wage determination number, procurement status, and a detailed statement explaining why the rates vary substantially from prevailing local wages.
- Arm’s Length Requirements: Requests for a hearing regarding Collective Bargaining Agreements (CBAs) must include a detailed justification as to why the wages and benefits were not reached through fair, arm's length negotiations.
- Strict Filing Deadlines:
- Sealed Bids: Requests must be received more than 10 days before contract award.
- Negotiated Contracts/Options: Requests must be received before the commencement date of the contract or the start of the follow-up option period.
- Extraordinary Circumstances: The Administrator will generally not consider late requests unless the applicant can prove that extraordinary circumstances prevented a timely filing.
Practical Implications
- Proactive Planning: Contracting Officers must conduct market research and review CBAs early in the acquisition cycle to identify potential wage issues, as missing the strict filing windows effectively forfeits the right to a hearing.
- Administrative Burden: The detailed data requirements mean that agencies must maintain meticulous records and be prepared to provide specific evidentiary support (such as local wage surveys) to justify a hearing request.