Addendum 1 22339.pdf

DTMB-0414 RFP (Rev 7/16)

DEPARTMENT OF TECHNOLOGY, MANAGEMENT AND BUDGET

State Facilities Administration Design and Construction Division

REQUEST FOR PROPOSAL

ADDENDUM NO. 1

This form identifies an Addendum to a Request for Proposal for Professional Services, and incorporates interpretations or clarifications, modifications, and other information into the Request for Proposals. Addenda will be numbered by the Project Director and distributed through www.Buy4Michigan.com as an attachment.

TO:

ALL PROPOSERS

DATE ISSUED

11/10/2022

PROJECT NAME

ARPA Targeted Improvements – Algonac SP/Wetzel RA

FILE NUMBER

751/22339.MNB

PROJECT DIRECTOR

Chris Bahjet

PROPOSAL DUE DATE:

Dec 8, 2022- No change

ADDENDUM ITEMS:

Since this is a federally funded project, complying with the Davis Bacon act is required.

Guidelines are issued with this addendum.

APPROVED BY:

PROJECT DIRECTOR DATE

http://www.buy4michigan.com/

SCOPE AND CONDITIONS FOR PSCs Requested PSC Contract Phase 600 Services related to Davis-Bacon Wage Rate compliance for DTMB projects containing Davis-Bacon Wage Rates

1. PSC personnel conducting tasks shall be able to document completion of having reviewed not fewer than the following Department of Labor Prevailing Wage Seminars (in pdf) at the link https://www.dol.gov/agencies/whd/compliance-assistance/presentations :

1) Davis-Bacon Coverage

2) Davis-Bacon Wage Determination

3) DBA/DBRA Compliance Principles

4) DBA/DBRA Certified Payrolls

5) Davis-Bacon Wage Determination Surveys AND, Fact Sheet #66 (https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/whdfs66.pdf) & Fact Sheet #66A https://www.dol.gov/sites/dolgov/files/WHD/fact-sheets/whfs66a.pdf

2. Prepare a submittal log to track weekly submittal of certified payroll by the Contractor. Contractor submittal is due within 7 days of the payroll date for that workweek. Submittals shall use Form WH-347 (https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/wh347.pdf).

Receive from Contractor and acknowledge receipt of submittal for information.

3. Conduct statistically periodic and randomly spot checking to ensure that laborers and mechanics are being paid the applicable prevailing wages and fringe benefits. Additional review may be needed if evidence of non-compliance is documented. Certification of the Contractor’s DTMB440 payment request/voucher by the PSC on the AIA G702 (or equivalent) will be taken by DTMB as verification this condition is being met. Payment for detailed additional review by the PSC shall be paid at hourly rates, as appropriate and approved by

DTMB.

4. Verify posting of wage rates on site.

5. Conduct sufficient interviews onsite to confirm compliance. Utilize professional judgment to discern most opportune times per the Contractor’s schedule to maximize employee and subcontractor personnel feedback.

A request/complaint by a contractor employee or subcontractor warrants an interview. Interviews shall not be conducted any less than quarterly unless the job is suspended or in seasonal shutdown. Each project should not have any less than 2 interviews.

6. PSC shall promptly notify the Contractor of non-compliance issues. Unresolved non-compliance issues at the time of Contractor Payment Request/Voucher review may be addressed by withholding payment(s) sufficient to cover any unpaid prevailing wages owed to workers or to suspend payment until violations have been resolved. PSC shall notify DTMB Project Director and DTMB Field Representative at the time of payment review if non-compliance issues exist.

7. PSC shall seek guidance and refer any guidance needed by Contractors as to Davis-Bacon Related Act

(DBRA) coverage, wage determination applicability, and the classification of work performed in the Contract to U.S. Department of Labor Wage and Hour Division, RhonTia S. Thomas-Johnson, Chief of Construction Determinations at Thomas.RhonTia@dol.gov or CBACONFORMANCE_INCOMING@dol.gov for advisement and “Conformance” process determinations as necessary.

8. Forward certified payroll to DTMB, the client agency, and the Federal Funding Agency if/when requested.

https://www.dol.gov/agencies/whd/compliance-assistance/presentations https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/whdfs66.pdf https://www.dol.gov/sites/dolgov/files/WHD/fact-sheets/whfs66a.pdf https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/wh347.pdf mailto:Thomas.RhonTia@dol.gov mailto:CBACONFORMANCE_INCOMING@dol.gov

9. Maintain an organized electronic file of the Certified Payroll submittals and any interview reports, etc. as part of the Project File. Submit entire file to DTMB DCD with the Contractor’s Final Payment Request as a closeout document.

10. DTMB will be the point of reference for guidance related to the performance conditions of this scope without being the resource for DBRA process, interpretation, performance or compliance. The US Dept of Labor is the resource for DBRA assistance. DTMB intends to support the PSC regarding actions toward the Contractor for non-compliance and payment withholding.

5 Things to Know about Davis-Bacon

1. Davis-Bacon is a federal law that requires local prevailing wages be paid on most federal and federally funded construction contracts. The Davis-Bacon Act ensures that federal government funds elevate labor standards for construction workers across the country, and that taxpayer dollars are used to ensure local wage and benefit standards, allowing responsible contractors to compete for federally funded or assisted construction contracts.

2. If it’s a Davis-Bacon project, it requires Davis-Bacon wages. Construction workers working on Davis-Bacon covered construction contracts must be paid no less than the locally prevailing wages for all hours worked in each labor classification. If a construction worker on a Davis-Bacon project works in more than one labor classification, the contractor or subcontractor must pay the highest applicable wage rate for all hours worked or different wage rates based on the actual hours worked in each labor classification. Local wage determinations that list labor classification and wage rates are issued by the Wage and Hour Division of the U.S. Department and can be found at sam.gov.

3. Understand the wages owed to construction workers. Contractors and subcontractors on Davis-Bacon projects must pay their construction workers not less than the wages and fringe benefits listed on the wage determination for the work performed. To help ensure workers are paid the proper rates, workers, contractors and subcontractors should familiarize themselves with:

0. where the work is being performed,

1. the type of construction (building, residential, highway, or heavy), and

2. the applicable labor classifications for the work being performed.

Any person who wants to determine if a project is covered by the Davis-Bacon Act or a Related Act or who has questions about their wages should contact the Wage and Hour Division or the federal agency funding the project.

1. Certified payroll reports help ensure workers are paid the correct wages for the work they perform. Certified payroll reports play a crucial role in ensuring that construction workers on Davis-Bacon projects are paid the proper wages for the work performed. Contractors and subcontractors must pay covered workers and submit a certified payroll report on a weekly basis.

Contracting agencies may withhold contract funds if certified payroll records are not submitted or are submitted unsigned, and falsification of certified payroll reports can even lead to criminal penalties.

2. Education and compliance assistance on Davis-Bacon is offered by the Wage and Hour Division. The Wage and Hour Division offers compliance and educational materials on their website and at their toll-free helpline at 866-4US-WAGE (487-9243). For more information about the Davis-Bacon and Related Acts visit Government Contracts Toolkit.

https://www.dol.gov/agencies/whd/government-contracts/construction https://sam.gov/content/home https://www.dol.gov/agencies/whd https://www.dol.gov/agencies/whd https://www.dol.gov/agencies/whd/compliance-assistance/toolkits/government-contracts https://www.dol.gov/agencies/whd/compliance-assistance/toolkits/government-contracts

U.S. Department of Labor PAYROLL (For Contractor's Optional Use; See Instructions at www.dol.gov/whd/forms/wh347instr.htm) Wage and Hour Division

Persons are not required to respond to the collection of information unless it displays a currently valid OMB control number.

NAME OF CONTRACTOR OR SUBCONTRACTOR ADDRESS OMB No.:1235-0008 Expires: 07/31/2024

PAYROLL NO. FOR WEEK ENDING PROJECT AND LOCATION PROJECT OR CONTRACT NO.

(1) (2) (3) (4) DAY AND DATE (5) (6) (7) (9)

(8)

DEDUCTIONS

O

O

O

O

O

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O

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NAME AND INDIVIDUAL IDENTIFYING NUMBER

(e.g., LAST FOUR DIGITS OF SOCIAL SECURITY

NUMBER) OF WORKER N

O

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W

IT

H H

O

LD

iN G

E

XE

M

P

TI

O N

S

WORK

CLASSIFICATION

O T.

O R

S T.

HOURS WORKED EACH DAY

TOTAL

HOURS

RATE

OF PAY

GROSS

AMOUNT

EARNED FICA

WITH-

HOLDING

TAX OTHER

TOTAL

DEDUCTIONS

NET

WAGES

PAID

FOR WEEK

S

S

S

S

S

S

S

S

Rev. Dec. 2008

Rev. Dec. 2008

While completion of Form WH-347 is optional, it is mandatory for covered contractors and subcontractors performing work on Federally financed or assisted construction contracts to respond to the information collection contained in 29 C.F.R. §§ 3.3, 5.5(a). The Copeland Act (40 U.S.C. § 3145) contractors and subcontractors performing work on Federally financed or assisted construction contracts to "furnish weekly a statement with respect to the wages paid each employee during the preceding week." U.S. Department of Labor (DOL) regulations at 29 C.F.R. § 5.5(a)(3)(ii) require contractors to submit weekly a copy of all payrolls to the Federal agency contracting for or financing the construction project, accompanied by a signed "Statement of Compliance" indicating that the payrolls are correct and complete and that each laborer or mechanic has been paid not less than the proper Davis-Bacon prevailing wage rate for the work performed. DOL and federal contracting agencies receiving this information review the information to determine that employees have received legally required wages and fringe benefits.

Public Burden Statement

We estimate that is will take an average of 55 minutes to complete this collection, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. If you have any comments regarding these estimates or any other aspect of this collection, including suggestions for reducing this burden, send them to the Administrator, Wage and Hour Division, U.S. Department of Labor, Room S3502, 200 Constitution Avenue, N.W.

Washington, D.C. 20210

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Date

I, (Name of Signatory Party) (Title) do hereby state:

(1) That I pay or supervise the payment of the persons employed by on the (Contractor or Subcontractor)

; that during the payroll period commencing on the (Building or Work) day of , , and ending the day of , , all persons employed on said project have been paid the full weekly wages earned, that no rebates have been or will be made either directly or indirectly to or on behalf of said from the full (Contractor or Subcontractor) weekly wages earned by any person and that no deductions have been made either directly or indirectly from the full wages earned by any person, other than permissible deductions as defined in Regulations, Part 3 (29 C.F.R. Subtitle A), issued by the Secretary of Labor under the Copeland Act, as amended (48 Stat. 948, 63 Stat. 108, 72 Stat. 967; 76 Stat. 357; 40 U.S.C. § 3145), and described below:

(2) That any payrolls otherwise under this contract required to be submitted for the above period are correct and complete; that the wage rates for laborers or mechanics contained therein are not less than the applicable wage rates contained in any wage determination incorporated into the contract; that the classifications set forth therein for each laborer or mechanic conform with the work he performed.

(3) That any apprentices employed in the above period are duly registered in a bona fide apprenticeship program registered with a State apprenticeship agency recognized by the Bureau of Apprenticeship and Training, United States Department of Labor, or if no such recognized agency exists in a State, are registered with the Bureau of Apprenticeship and Training, United States Department of Labor.

(4) That:

(a) WHERE FRINGE BENEFITS ARE PAID TO APPROVED PLANS, FUNDS, OR PROGRAMS

− in addition to the basic hourly wage rates paid to each laborer or mechanic listed in the above referenced payroll, payments of fringe benefits as listed in the contract have been or will be made to appropriate programs for the benefit of such employees, except as noted in section 4(c) below.

(b) WHERE FRINGE BENEFITS ARE PAID IN CASH

− Each laborer or mechanic listed in the above referenced payroll has been paid, as indicated on the payroll, an amount not less than the sum of the applicable basic hourly wage rate plus the amount of the required fringe benefits as listed in the contract, except as noted in section 4(c) below.

(c) EXCEPTIONS

REMARKS:

EXCEPTION (CRAFT) EXPLANATION

NAME AND TITLE SIGNATURE

THE WILLFUL FALSIFICATION OF ANY OF THE ABOVE STATEMENTS MAY SUBJECT THE CONTRACTOR OR SUBCONTRACTOR TO CIVIL OR CRIMINAL PROSECUTION. SEE SECTION 1001 OF TITLE 18 AND SECTION 3729 OF

TITLE 31 OF THE UNITED STATES CODE.

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Instructions For Completing Payroll Form, WH-347

WH-347 (PDF)

OMB Control No. 1235-0008, Expires 07/31/2024.

General: Form WH-347has been made available for the convenience of contractors and subcontractors required by their Federal or Federally-aided construction-type contracts and subcontracts to submit weekly payrolls. Properly filled out, this form will satisfy the requirements of Regulations, Parts 3 and 5 (29 C.F.R., Subtitle A), as to payrolls submitted in connection with contracts subject to the Davis-Bacon and related Acts.

While completion of Form WH-347 is optional, it is mandatory for covered contractors and subcontractors performing work on Federally financed or assisted construction contracts to respond to the information collection contained in 29 C.F.R. §§ 3.3, 5.5(a). The Copeland Act (40 U.S.C. § 3145) requires contractors and subcontractors performing work on Federally financed or assisted construction contracts to "furnish weekly a statement with respect to the wages paid each employee during the preceding week." U.S. Department of Labor (DOL) Regulations at 29 C.F.R. § 5.5(a)(3)(ii) require contractors to submit weekly a copy of all payrolls to the Federal agency contracting for or financing the construction project, accompanied by a signed "Statement of Compliance" indicating that the payrolls are correct and complete and that each laborer or mechanic has been paid not less than the proper Davis-Bacon prevailing wage rate for the work performed. DOL and federal contracting agencies receiving this information review the information to determine that employees have received legally required wages and fringe benefits.

Under the Davis-Bacon and related Acts, the contractor is required to pay not less than prevailing wage, including fringe benefits, as predetermined by the Department of Labor. The contractor's obligation to pay fringe benefits may be met either by payment of the fringe benefits to bona fide benefit plans, funds or programs or by making payments to the covered workers (laborers and mechanics) as cash in lieu of fringe benefits.

This payroll provides for the contractor to show on the face of the payroll all monies to each worker, whether as basic rates or as cash in lieu of fringe benefits, and provides for the contractor's representation in the statement of compliance on the payroll (as shown on page 2) that he/she is paying for fringe benefits required by the contract and not paid as cash in lieu of fringe benefits. Detailed instructions concerning the preparation of the payroll follow:

Contractor or Subcontractor: Fill in your firm's name and check appropriate box.

Address: Fill in your firm's address.

Payroll No.: Beginning with the number "1", list the payroll number for the submission.

For Week Ending: List the workweek ending date.

Project and Location: Self-explanatory.

Project or Contract No.: Self-explanatory.

Column 1 - Name and Individual Identifying Number of Worker: Enter each worker's full name and an individual identifying number (e.g., last four digits of worker's social security number) on each weekly payroll submitted.

Column 2 - No. of Withholding Exemptions: This column is merely inserted for the employer's convenience and is not a requirement of Regulations, Part 3 and 5.

Column 3 - Work Classifications: List classification descriptive of work actually performed by each laborer or mechanic. Consult classification and minimum wage schedule set forth in contract specifications. If additional classifications are deemed necessary, see Contracting O�icer or Agency representative. An individual may be shown as having worked in more than one classification provided an accurate breakdown or hours worked in each classification is maintained and shown on the submitted payroll by use of separate entries.

Column 4 - Hours worked: List the day and date and straight time and overtime hours worked in the applicable boxes. On all contracts subject to the Contract Work Hours Standard Act, enter hours worked in excess of 40 hours a week as "overtime".

Column 5 - Total: Self-explanatory

U.S. DEPARTMENT OF LABOR

Wage and Hour Division https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/wh347.pdf https://www.dol.gov/ https://www.dol.gov/agencies/whd

Column 6 - Rate of Pay (Including Fringe Benefits): In the "straight time" box for each worker, list the actual hourly rate paid for straight time worked, plus cash paid in lieu of fringe benefits paid. When recording the straight time hourly rate, any cash paid in lieu of fringe benefits may be shown separately from the basic rate. For example, "$12.25/.40" would reflect a $12.25 base hourly rate plus $0.40 for fringe benefits. This is of assistance in correctly computing overtime. See "Fringe Benefits" below. When overtime is worked, show the overtime hourly rate paid plus any cash in lieu of fringe benefits paid in the "overtime" box for each worker; otherwise, you may skip this box. See "Fringe Benefits" below. Payment of not less than time and one-half the basic or regular rate paid is required for overtime under the Contract Work Hours Standard Act of 1962 if the prime contract exceeds $100,000. In addition to paying no less than the predetermined rate for the classification which an individual works, the contractor must pay amounts predetermined as fringe benefits in the wage decision made part of the contract to approved fringe benefit plans, funds or programs or shall pay as cash in lieu of fringe benefits. See "FRINGE BENEFITS" below.

Column 7 - Gross Amount Earned: Enter gross amount earned on this project. If part of a worker's weekly wage was earned on projects other than the project described on this payroll, enter in column 7 first the amount earned on the Federal or Federally assisted project and then the gross amount earned during the week on all projects, thus "$163.00/$420.00" would reflect the earnings of a worker who earned $163.00 on a Federally assisted construction project during a week in which $420.00 was earned on all work.

Column 8 - Deductions: Five columns are provided for showing deductions made. If more than five deduction are involved, use the first four columns and show the balance deductions under "Other" column; show actual total under "Total Deductions" column; and in the attachment to the payroll describe the deduction(s) contained in the "Other" column. All deductions must be in accordance with the provisions of the Copeland Act Regulations, 29 C.F.R., Part 3. If an individual worked on other jobs in addition to this project, show actual deductions from his/her weekly gross wage, and indicate that deductions are based on his gross wages.

Column 9 - Net Wages Paid for Week: Self-explanatory.

Totals - Space has been le� at the bottom of the columns so that totals may be shown if the contractor so desires.

Statement Required by Regulations, Parts 3 and 5: While the "statement of compliance" need not be notarized, the statement (on page 2 of the payroll form) is subject to the penalties provided by 18 U.S.C. § 1001, namely, a fine, possible imprisonment of not more than 5 years, or both. Accordingly, the party signing this statement should have knowledge of the facts represented as true.

Items 1and 2: Space has been provided between items (1) and (2) of the statement for describing any deductions made. If all deductions made are adequately described in the "Deductions" column above, state "See Deductions column in this payroll." See "FRINGE BENEFITS" below for instructions concerning filling out paragraph 4 of the statement.

Item 4 FRINGE BENEFITS - Contractors who pay all required fringe benefits: If paying all fringe benefits to approved plans, funds, or programs in amounts not less than were determined in the applicable wage decision of the Secretary of Labor, show the basic cash hourly rate and overtime rate paid to each worker on the face of the payroll and check paragraph 4(a) of the statement on page 2 of the WH-347 payroll form to indicate the payment. Note any exceptions in section 4(c).

Contractors who pay no fringe benefits: If not paying all fringe benefits to approved plans, funds, or programs in amounts of at least those that were determined in the applicable wage decision of the Secretary of Labor, pay any remaining fringe benefit amount to each laborer and mechanic and insert in the "straight time" of the "Rate of Pay" column of the payroll an amount not less than the predetermined rate for each classification plus the amount of fringe benefits determined for each classification in the application wage decision. Inasmuch as it is not necessary to pay time and a half on cash paid in lieu of fringe benefits, the overtime rate shall be not less than the sum of the basic predetermined rate, plus the half time premium on basic or regular rate, plus the required cash in lieu of fringe benefits at the straight time rate. In addition, check paragraph 4(b) of the statement on page 2 the payroll form to indicate the payment of fringe benefits in cash directly to the workers. Note any exceptions in section 4(c).

Use of Section 4(c), Exceptions

Any contractor who is making payment to approved plans, funds, or programs in amounts less than the wage determination requires is obliged to pay the deficiency directly to the covered worker as cash in lieu of fringe benefits. Enter any exceptions to section 4(a) or 4(b) in section 4(c). Enter in the Exception column the cra�, and enter in the Explanation column the hourly amount paid each worker as cash in lieu of fringe benefits and the hourly amount paid to plans, funds, or programs as fringe benefits. The contractor must pay an amount not less than the predetermined rate plus cash in lieu of fringe benefits as shown in section 4(c) to each such individual for all hours worked (unless otherwise provided by applicable wage determination) on the Federal or Federally assisted project. Enter the rate paid and amount of cash paid in lieu of fringe benefits per hour in column 6 on the payroll. See paragraph on "Contractors who pay no fringe benefits" for computation of overtime rate.

Public Burden Statement: We estimate that it will take an average of 55 minutes to complete this collection of information, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. If you have any comments regarding these estimates or any other aspect of this collection of information, including suggestions for reducing this burden, send them to the Administrator, Wage and Hour Division, U.S. Department of Labor, Room S3502, 200 Constitution Avenue, N.W.,Washington, D.C. 20210.

Note: In order to view, fill out, and print PDF forms, you need Adobe® Acrobat® Reader® version 5 or later, which you may download for free at www.adobe.com/products/acrobat/readstep2.html.

http://www.adobe.com/products/acrobat/readstep2.html

Davis-Bacon

Sam.gov has Wage Determinations https://sam.gov/content/home

The Davis-Bacon and Related Acts, apply to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Davis-Bacon Act and Related Act contractors and subcontractors must pay their laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area.

https://www.dol.gov/agencies/whd/government-contracts/construction

Davis-Bacon Act and Service Contract Act Online Training For Government Contracting Officials https://www.dol.gov/agencies/whd/government-contracts/construction

Each covered contractor and subcontractor must, on a weekly basis, provide the contracting agency a copy of all payrolls providing the information listed above under “Recordkeeping” for the preceding weekly payroll period, except that that full social security numbers and home addresses shall not be included on weekly transmittals, and instead the payrolls only need to include an individually identifying number for each worker (e.g., the last four digits of the worker’s social security number). Each payroll submitted must be accompanied by a “Statement of Compliance” using page 2 of Form WH-347 Payroll (For Contractors Optional Use), or any form with identical wording, certifying compliance with applicable requirements. The statement is to be signed by the contractor or subcontractor, or by an authorized officer or employee of the contractor or subcontractor who supervises the payment of wages, and delivered to a representative of the federal or state agency in charge. This must be submitted within seven days after the regular pay date for the pay period https://webapps.dol.gov/elaws/elg/dbra.htm?_ga=2.140805362.1562713046.1638301794- 133080167.1638301794

Payroll Form (WH-347) https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/wh347.pdf

Fact Sheet https://sam.gov/content/home https://www.dol.gov/agencies/whd/government-contracts/construction https://www.dol.gov/agencies/whd/government-contracts/construction https://webapps.dol.gov/elaws/elg/dbra.htm?_ga=2.140805362.1562713046.1638301794-133080167.1638301794 https://webapps.dol.gov/elaws/elg/dbra.htm?_ga=2.140805362.1562713046.1638301794-133080167.1638301794 https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/wh347.pdf

Davis Bacon Frequently Asked Questions

FAQs

General Questions Page 1

Certified Payroll Page 13

Contract Work Hours And Safety Standards Act Page 36

Wage Determinations Page 36

Contract Work Hours and Safety Standards Act Page 47

Training Page 49

Tribal Governments Page 52

Financial Assistance Page 55

Davis Bacon Frequently Asked Questions (FAQs)

General Questions

Q: Where can I access DOE's Desk Guide to the Davis-Bacon Act?

A: DOE’s Desk Guide to the Davis-Bacon Act is located on the GC-63 website at http://www.energy.gov/gc/downloads/desk-guide-davis-bacon-act-0. The 46-page Guide provides simple, non-technical guidance to help contractors and subcontractors better understand their obligations under DBA.

Q: What is the reporting period for the Semi-Annual Davis Bacon Enforcement Report? What is the Form Number?

A: The Department of Energy's (DOE) Semi-Annual Davis-Bacon Enforcement Report is due to the Department of Labor (DOL) by April 30 and October 31 of each year. The April 30 report is for the reporting period from October 1 through March 31 of each year, and the October 31 report is for the reporting period from April 1 through September 30 of each year. The Department asks for the information by the 20th of the month in which it is due (i.e., April 20 and October 20), so that all reports can be combined and a final report compiled for submission to DOL. The Department’s form number is OMB 1910-5165.

Q: If a school receives a federal grant for several projects involving energy efficiency conservation and uses volunteers to install some of the energy efficiency retrofits and contractors to install other retrofits, would the school have to pay the volunteers prevailing wages?

A: Yes, the school must pay the volunteers the prevailing wage rate if the volunteers are performing construction activities. The Department of Labor states in its Field Operations Handbook (§15e23): “There are no exceptions to Davis- Bacon coverage for volunteer labor unless an exception is specifically provided for in the particular Davis-Bacon Related Act under which the project funds are derived.” If the Davis-Bacon Related Act is silent on the subject of an exception for volunteer labor, projects funded under that Act are subject to Davis-Bacon coverage, the school must pay all workers the prevailing wage.

Q: Is it acceptable for DOE to contract with a DBA expert firm to perform the monitoring and enforcement responsibilities under DBA?

A: Contracting agencies may contract some monitoring responsibilities, such as review of certified payroll records, but cannot contract out their responsibility for the enforcement of the DBA/DBRA requirements.

Q: Is it acceptable for DOE contractors/grantees/Borrowers to use the HUD Davis-Bacon forms?

A: Please use the standard Department of Labor (DOL) forms, not HUD forms.

Forms are available on www.dol.gov webpage. For example, the Certified Payroll form is found at: http://www.dol.gov/esa/whd/forms/wh347.pdf; the Request for Additional Classification is found at:

Revised 10/1/2014 Page 2 http://www.energy.gov/gc/downloads/desk-guide-davis-bacon-act-0 http://www.dol.gov/ http://www.dol.gov/esa/whd/forms/wh347.pdf http://www.dol.gov/whd/govcontracts/SF1444.pdf; Standard Form for requesting a Project Wage Determination is found at:

http://www.dol.gov/whd/programs/dbra/docs/sf308x.pdf; and the Standard Form for Interview of Employees is SF-1445 is found at:

http://www.gsa.gov/portal/forms/download/115910.

Q: What are the roles of a Prime Contractor in the agency’s DBA compliance?

Do they include reporting and recordkeeping requirements?

A: As set forth in the Davis-Bacon Act Requirements clause and as required under the contract, Prime contractors have a large role in ensuring compliance with DBA requirements by subcontractors and lower tier subcontractors. These responsibilities include reporting and recordkeeping requirements; obtaining, maintaining, monitoring and reviewing the payroll records submitted by contractors and subcontractors; and assisting DOE in its DBA enforcement responsibilities. DOE is ultimately responsible for ensuring DBA compliance on federally funded or federally assisted projects. Costs associated with the Prime’s responsibilities for DBA compliance will usually be allowable costs in accordance with the terms of the contract, unless the Prime acts negligently with regard to its responsibilities.

Q: Where do I go for questions about DBA requirements?

A: For questions regarding compliance with Davis-Bacon Act (DBA) requirements regarding a contract or grant award, please refer to your award documents. The award document contains required DBA clauses and other clauses that must be flowed down to contractors/subcontractors. All required Davis-Bacon language is in the grant or contract document and the applicable wage rates should have been included in the contract/grant. If you have questions after you have reviewed the award document, you should contact the Contracting Officer or Contract Specialist for assistance. You may also find answers in the DOE Desk Guidebook located on this website or at:

http://energy.gov/gc/downloads/desk-guide-davis-bacon-act-0

Q: We have a grant and our project involves automotive mechanics completing alternative fuel conversions on vehicles and school buses. Will DBA apply to the automotive mechanics?

A: No, DBA is not applicable to automotive mechanics.

Q: Reading the DOE Desk Guidebook on page 32 (paragraphs d. and e.); it says that the DBA certified payroll is submitted to DOE. Is that right?

d. The due date for each certified payroll to be submitted to DOE, as the contracting agency, or to the financial assistance recipient in accordance with the contract, is no later than one week after each weekly pay date.

e. The prime contractor is responsible for the timely submission to DOE of certified payrolls for all subcontractors. The prime contractor is obligated to

Revised 10/1/2014 Page 3 http://www.dol.gov/whd/govcontracts/SF1444.pdf http://www.dol.gov/whd/programs/dbra/docs/sf308x.pdf http://www.gsa.gov/portal/forms/download/115910 http://energy.gov/gc/downloads/desk-guide-davis-bacon-act-0 notify all subcontractors of the labor provisions of the contract and to ensure that each subcontractor submits timely, accurate and complete certified payrolls.

A: DOE created the "Desk Guide to the Davis-Bacon Act" to assist contractors and subcontractors performing construction work covered by the Davis-Bacon Act (DBA), as well as grantees, subgrantees and federal personnel, with understandable explanations of DBA requirements to assist all of these entities with DBA compliance issues. Whether the certified payroll record is submitted directly to the Department, to a Prime contractor, or to a financial assistance recipient (e.g., in the case of the Recovery Act grants, payroll records were submitted to the grantee State/State Entity), depends upon the language in the specific contract or financial assistance agreement.

The first page of the Desk Guide includes the following statement in bold letters:

"The guidance provided in this document does not constitute legal advice or substitute for full and careful review of the contract or agreement requiring application of DBA provisions, and compliance with applicable statutes and regulations." The purpose of this statement was to emphasize to readers that the contract or financial assistance agreement clauses control.

In addition, Section 1-3(a)(2) of the Desk Guide states: "DBA- and DBRA-covered contracts resulting from grants, cooperative agreements, technology investment agreements, loans, or loan guarantees, will specifically identify the responsibilities of recipient, subrecipients, local agencies, guaranteed parties, and contractors to administer and enforce the provision of DBA, including reporting and recordkeeping requirements; obtaining, maintaining, monitoring, and reviewing payrolls; and assisting DOE in its DBA enforcement responsibilities." Statements in the Desk Guide that reference requirements for contractors to submit payrolls to DOE reflect standard DBA legal requirements.

Q: Are non-profit corporations subject to DBA?

A: For purposes of DBA, non-profit corporations are treated the same as for-profit corporations. Therefore, when performing work on government-funded projects, the non-profit must pay its employees the DBA prevailing wages.

Q: A subcontractor has regular, full-time employees, and performed work on a government-funded project; however, we recently discovered that the subcontractor continued its normal practice of paying employees every two weeks. When I asked the subcontractor about this, the subcontractor said his employees agreed to continue the every two week. Are there any exceptions permitted to the “weekly” pay requirement?

A: Payment of wages every two weeks is a violation of the Davis-Bacon Act.

Employees cannot waive the weekly pay requirement. The Davis-Bacon Act requires payment to employees “no less frequently than weekly.” Only Congress can change this requirement by amending the Davis-Bacon Act.

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Q: I recently took a new position requiring me to review certified payroll records.

Is there any Davis-Bacon training provided by the DOL or DOE or other Federal agency?

A: DOE has three DBA webinar trainings posted on its website at:

http://www2.eere.energy.gov/wip/davis-bacon_act.html. There is a certified payroll webinar, a basic introduction to DBA webinar, and a DBA compliance webinar presented by DOL. These webinars are free and can be viewed at your desk on your computer. The presentations are also available for you to download and use for future reference. DOL usually provides several training sessions at different locations around the United States and you may find copies of the presentations or upcoming training sessions at:

http://www.dol.gov/whd/govcontracts/dbra.htm under “E-Tools.”

Q: A City grantee is retrofitting street lighting in their city downtown. City workers will remove the old fixtures and send the fixtures off site to be retrofitted. Offsite workers will retrofit the fixtures with new components and then ship the lights back to the City. City workers will then install the retrofitted fixtures. Question is whether DBA extends to the work performed by the offsite workers.

A: The DBA limits coverage to laborers or mechanics on the "site of work." The DOL Field Operations Handbook (FOH), Section 15b04(b)(1), provides that the 'Site of work' is limited to the physical place or places where the construction called for in the contract will remain when work on it has been completed and . . .

other adjacent or nearby property used by the contractor or subcontractor in such construction which can reasonably be said to be included in the 'site' because of proximity."

The retrofitting facility would not be included in the "site of work" because its location and continuance in operation are determined wholly without regard to this particular federally-assisted contract project. The DOL FOH, Section 15b04(b)(3), indicates that "even though mechanics and laborers working at such an establishment may repair or maintain machinery used in contract performance, . . . while continuing normal commercial work, . . . the activities performed as such establishments" are not subject to the DBA wage determination "because they do not constitute the "site of work."

Once the "site of work" has been determined, here the city lights downtown, the wage determination is applicable only to those mechanics and laborers employed by a contractor or subcontractor within such limits. In this case, because the city employees will remove the old fixtures and then install the retrofitted fixtures, the DBA will not be applicable to this project because State and local units of government are not considered contractors under the DBA when the construction is performed by their own employees.

Q: The DBA Poster Notice regarding "Employee Rights under the Davis-Bacon Act" indicates the following:

Revised 10/1/2014 Page 5 http://www2.eere.energy.gov/wip/davis-bacon_act.html http://www.dol.gov/whd/govcontracts/dbra.htm

If you do not receive proper pay, or require further information on the applicable wages, contact the Contracting Officer listed below:

or contact the U.S. Department of Labor's Wage and Hour Division.

Can you tell me who the “Contracting Officer” is as far as this notice is concerned?

A: The Contracting Officer means the DOE Contracting Officer found on the Awards page of the contract or grant from DOE. The contractor should insert either the name of the Contracting Officer or the name of the Contracting Specialist on the Poster along with the address and telephone number.

Q: If we will be using some funds to perform energy audits, are the energy auditors subject to the DBA if the resident chooses the auditor?

A: The DBA applies to laborers and mechanics employed at the work site. DBA is not applicable to energy auditors, inspectors, and other personnel not performing physical or manual work at the site of the construction work.

“The term laborer or mechanic includes at least those workers whose duties are manual or physical in nature (including those workers who use tools or who are performing the work of a trade), as distinguished from mental or managerial. The term laborer or mechanic includes apprentices, trainees, helpers. . . . The term does not apply to workers whose duties are primarily administrative, executive, or clerical, rather than manual. Persons employed in a bona fide executive, administrative, or professional capacity as defined in part 541 of this title are not deemed to be laborers or mechanics. Working foremen who devote more than 20 percent of their time during a workweek to mechanic or laborer duties, and who do not meet the criteria of part 541, are laborers and mechanics for the time so spent.”

Q: I do not understand what the "labor standard clauses" that are to be in subcontracts are - please explain in more detail.

A: The governing regulations at 29 CFR Part 5 require, among other things, that certain clauses pertaining to labor standards be inserted in contracts for federally financed and/or assisted construction. The regulations at 29 CFR 5.5(a) state, in relevant part, that the “Agency head shall cause or require the contracting officer to insert . . . the following clauses (or any modifications thereof to meet the particular needs of the agency, Provided, That such modifications are first approved by the Department of Labor).” Accordingly, the contract instrument between DOE and the Prime requires DBA requirements to be flowed down to subgrantees/contractors/subcontractors.

Q: Are non-federal matching funds paying for labor subject to DBRA?

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A: It depends upon the financial assistance enabling statute. The Recovery Act DBRA provides that “all laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part” with Recovery Act funding are subject to the DBA. Under a match requirement, all funding associated with the match becomes part of the project budget and the entire project (funded by the match + the grant) is subject to the DBA.

Q: As an employer paying a prevailing wage to an employee, should the employer be receiving more for the work to compensate for the difference?

A: Employers who bid for work on a project where Davis-Bacon applies must factor the Davis-Bacon wage rates into their bid amount. The bid solicitations for Davis-Bacon covered projects must include the appropriate DBA wage determination(s). The DBA wage determination in a bid solicitation (or request for proposals for a negotiated contract) establishes the minimum wage rates plus fringe for laborers and mechanics on the project. The rates listed are the wages DOL has found prevailing on similar construction in the locality where the work is to be performed. Laborers and mechanics must be paid at least the appropriate prevailing wage (including fringe benefits, if any) listed on the wage determination for the classification(s) of work actually performed (without regard to skill, except as provided in the contract clause regarding apprentices and trainees).

The employer may pay more than the DBA prevailing rates, but not less than the amount set forth on the applicable wage determination for the classification of work performed. Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked, provided that the employer’s payroll records accurately set forth the time spent in each classification in which work is performed.

Q: I am confused about using residential for the construction type on DOL's site to find the required wage and benefits. Our projects are not residential. I have noticed that the rates are lower for construction type residential than for construction type building.

A: Do not use the residential construction classification unless the building meets the definition of a residential building. For all work on buildings other than residential, use the “building construction” classification.

There are four construction classification types: building, highway, residential and heavy. The following provides a brief overview of each type:

Building Construction includes construction of sheltered enclosures with walk-in access for the purpose of housing persons, machinery, equipment or supplies;

all construction of such structures; the installation of utilities and of equipment, both above and below grade levels; as well as incidental grading, utilities and paving. Such structures need not be “habitable” to be building construction. Also, Revised 10/1/2014 Page 7 the installation of heavy machinery and/or equipment does not generally change the project’s character as a building.

Highway Construction includes construction, alteration or repair of roads, streets, highways, runways, taxiways, alleys, trails, paths, parking areas, and other similar projects not incidental to building or heavy construction.

Residential Construction includes the construction, alteration or repair of single-family houses, and multi-family apartment or condominium buildings of no more than four stories in height. This includes all incidental items such as site work, parking areas, utilities, streets, and sidewalks. For residential multi-family buildings over 4 stories in height, use the Building Construction classification.

Heavy Construction includes those projects that are not properly classified as either “building”, “highway”, or “residential.” Unlike these classifications, heavy construction is not a homogenous classification. Because of this catch-all nature, projects within the heavy classification may sometimes be distinguished on the basis of their particular project characteristics, and separate schedules may be issued for dredging projects, water and sewer line projects, dams, bridges, and other projects.

For additional and more detailed guidance, please refer to DOL All Agency Memorandums (AAM) 130 and 131. All Agency Memorandums may be found at:

http://www.wdol.gov/aam.aspx.

Q: Where has requirement for semi-annual reporting been referenced?

A: All contractors, grantees, loan/loan guarantee borrowers performing DBA covered work have DBA clauses in the contract/grant/loan documents requiring compliance with DBA and Related Act requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are incorporated within the clauses. DOL regulations, 29 CFR 5.7(b) provides:

(b) Semi-annual enforcement reports. To assist the Secretary in fulfilling the responsibilities under Reorganization Plan No. 15 of 1950, Federal agencies shall furnish to the Administrator by April 30 and October 31 of each calendar year semi-annual reports on compliance with and enforcement of the labor standards provisions of the Davis-Bacon Act and its related acts covering the periods of October 1 through March 31 and April 1 through September 30, respectively. Such reports shall be prepared in the manner prescribed in memoranda issued to Federal agencies by the Administrator.

As a result of the requirement in 29 CFR 5.7, made applicable to those performing DBA covered work, those with contracts, grants, or loans/loan guarantees must provide the information to the DOE for incorporation into the Agency’s Semi-Annual Enforcement Report.

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Q: You mentioned the semi-annual report. Is there a form for this report?

A: DOE’s Form 1910-5165 provides the format for the report. Approximately one-month prior to the date due, your DOE point of contact will request the information.

Q: We have a local prevailing wage ordinance, which is based on State prevailing wage law. We require all projects to comply. However, we do not collect weekly payrolls. With an upgraded HVAC unit installation where there is some duct work, but not much - how much is 'incidental'? If some duct work, but not a lot, do we still have to collect the certified payrolls?

A: Contractors and subcontractors must comply with State and Federal prevailing wage laws. The contractor/subcontractor must complete weekly certified payrolls and submit them to the Agency or as directed by the Agency.

Each specific contract/loan/grant must be reviewed on a case-by-case basis for a determination as to whether the installation of equipment is covered by the Davis-Bacon Act. The Davis-Bacon Act includes “altering, remodeling, installation (where appropriate) on the site of the work of items fabricated off-site.” 29 C.F.R.

5.2(j)(1)(i). Where a Recovery Act-funded grant includes funding for both the purchase of equipment and installation, and installation requires substantial amounts of construction, reconstruction, alteration, or repair work (as compared to being incidental to the purchase of equipment), the DBA would be applicable.

Factors to be considered in determining whether installation requires substantial amounts of construction include the extent to which structural modifications to buildings are needed to accommodate the equipment (i.e., widening entrances, relocating walls, or installing electrical wiring), and the cost of the installation work - either in terms of absolute amount or in relation to the cost of the equipment and the total project cost. For a definitive decision on whether the DBA would apply to the installation of the HVAC equipment, please contact the Contracting Officer or Contracting Specialist.

Q: Where do we get form 1413? I cannot find it on www.wdol.gov.

A: You may download Standard Form 1413 from the General Services Administration website at: http://www.gsa.gov/portal/forms/download/115794.

Q: As an employer paying a prevailing wage to an employee, should the employer be receiving more for the work to compensate for the difference?

A: Employers who bid to work on a project where Davis-Bacon applies must factor the Davis-Bacon wage rates into their bid amount.