Government Contracts

How Department of Labor Regulations Affect Government Bidding featured image

How Department of Labor Regulations Affect Government Bidding

When a contractor is awarded a government contract, it gives them the unique opportunity to provide labor and supplies to public works projects that can have a long-lasting effect on society as a whole. From the construction of bridges to the repair of highways and renovation of important government buildings, contractors who submit successful bids gain access to projects that are both profitable and beneficial to their firm’s reputation.

With that being said, contractors need to be aware of the rules and regulations that dictate what does and does not constitute a legitimate bid. Certain actions won’t be tolerated when a bid is up for review, and negligence could lead to a violation of federal labor laws, like the Davis-Bacon Act, if you don’t take preventive action and partner with a Charlotte bid protest lawyer.

Prevailing Wages

Within the Department of Labor (DOL), the Wage & Hour Division (WHD) administers and enforces an array of laws governing payment provisions on government contracts. For example, the Davis-Bacon and Related Acts require contractors and subcontractors working on federal and federally-assisted projects valued in excess of $2,000 to pay their workers in accordance with the local prevailing wages and fringe benefits of other similar projects in the area.

Therefore, when you submit a bid for a government project, you must include information pertaining to employee compensation. If your numbers don’t meet the local prevailing wage rate, you will not be awarded the bid. Conversely, if your bid does assert that the local prevailing wage rate is being utilized to compensate employees, but your records reveal otherwise, you could face steep fines, debarment on future contracts, and even prison time.

Accounting for Overtime, Minimum Wage, and More

Another important federal labor law, the Contract Work Hours and Safety Standards Act (CWHSSA) also affects government bids because it forces contractors to reassess their budgets if there’s a possibility that overtime work will be needed to complete a project in accordance with the terms of the contract. Workers must be compensated at one and one-half times their basic rate of pay for any hours worked exceeding the federally approved 40-hour workweek. On a similar note, the Walsh-Healey Public Contracts Act requires all workers to be paid at least the minimum wage and overtime pay when furnishing materials, supplies, or equipment for federal contracts. These laws must be taken into account when bidding on government projects or even protesting a bid that has been awarded to another contractor. Remember, a Charlotte bid protest attorney can provide you with an array of bid-related services including submitting or disputing a winning bid.

If you would like to speak with a Charlotte bid protest attorney, please contact us today.


Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.