Finding Text
2024-004 Wage Rate Requirements - Contract Language ALN and Title: 20.106 - Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass Through Entity: Georgia Department of Transportation Identifying Number: 313SBGP0582023 Award Year: 2023 Special Tests and Provisions-Wage Rate Requirements Criteria or Specific Requirement - 2 CFR 200.303(a) requires non-Federal entities expending Federal awards to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of Federal awards. All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); 0MB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Condition - Required prevailing wage rate clauses were not included in the contract or subcontract. Cause of Condition -The County was not aware the prevailing wage rate clauses were required to be include in the construction contract. Effect of Condition - The contract was not in compliance and did not contain the language that notified the contractor that prevailing wages were required under the contract. Questioned Costs - Undetermined Response of Management - Management concurs with this finding and will develop and implement policies to ensure that contracts and subcontracts with contractors or subcontractors working on projects financed by federal assistance funds contain prevailing wage rate clauses.