Finding Text
2 CFR § 3474.1 provides the Department of Education (DOE) adopts the Office of Management and Budget (OMB) Guidance in 2 CFR part 200. Thus, this section gives regulatory effect to the OMB guidance and supplements the guidance as needed for the DOE, except as otherwise noted in that section.
2 CFR Part 200, Appendix II(D) states 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). During fiscal year 2024 the District adjusted a total of $39,725 in salaries and equipment costs initially paid from the Permanent Improvement Fund (non-federal fund) to the ESSER Fund (federal fund) for a portion of the Evaporator and Condenser replacement project. The required prevailing wage language was not included in a project contract even though $9,051 was paid for salaries related to the project. Due to a lack of proper internal controls, the District failed to include clauses concerning prevailing wage rates in the related project quote.
Failure to have effective controls in place over wage-rate requirements may result in the District and its contractors or subcontractors failing to pay prevailing wages when required by Federal law and could result in reduction of future Federal funding or other sanctions imposed by Federal grantors.
When required by Federal grant legislation, the District should ensure construction contracts in excess of $2,000 paid with Federal grant monies contain provisions that require the contractor to comply with wage rate requirements.