My construction firm is bidding on a federal project. It is an Invitation for Bid (IFB) for a new building on a military base, NAICS 236220. The project is above the simplified acquisition threshold, and the solicitation states the Davis-Bacon Act applies. We are the prime contractor. I have seen the wage determinations in the solicitation. What are my responsibilities as the prime contractor regarding the Davis-Bacon Act, especially concerning my subcontractors?
As the prime contractor on a federal construction project where the Davis-Bacon Act applies, you are responsible for ensuring all laborers and mechanics on the job, including those employed by your subcontractors, receive no less than the local prevailing wages and fringe benefits for corresponding classes of laborers and mechanics, as determined by the Department of Labor. The Davis-Bacon Act applies to federal contracts in excess of $2,000 for construction, alteration, or repair of public buildings or public works, as stated in FAR 22.403-1. You must include the applicable wage determinations in all subcontracts. This means you need to flow down the requirements to your subs and monitor their compliance. If a subcontractor fails to pay the correct wages, the prime contractor is ultimately liable to the government for any underpayments.