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Regulations, laws and compliance

Wage determination (Wage determination (WD))

Wage determination stands for Wage determination (WD). A wage determination is a list issued by the Department of Labor that sets the minimum hourly wage and fringe benefits for each job classification in a specific geographic area. It is attached to contracts covered by the Service Contract Act or the Davis-Bacon Act.

Each wage determination has a number and a revision number, and both matter. They are published on SAM.gov. If your job needs a worker type that is not listed, the contracting officer can process a 'conformance' to add the classification and set a rate.

Why it matters to a small contractor

Before pricing a service or construction bid, open the wage determination and find each job title you plan to use. Use the exact revision in the solicitation, and watch for a new revision when an option year starts, since rates can go up.

Example

A grounds maintenance company sees the solicitation references a specific SCA wage determination for its county. They find the rates for groundskeeper and equipment operator, add health and welfare, and build their labor cost from there.

Wage determination: common questions

Where do I find a wage determination?

Wage determinations are on SAM.gov. The solicitation lists the exact one, so use that version.

What if my job title is not on the wage determination?

Ask the contracting officer about a conformance, which adds the classification and a rate. Do not just pick a lower-paid title.

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