Figuring out how to price contracts for services and brokering can seem tricky, especially in the complex realms of construction and non-construction industries. One key to solving this puzzle lies in understanding wage determinations. Let's break it down:
Wage Determinations – What are they?
Think of wage determinations like a set minimum wage. They're rules that decide the least amount you can pay your service and construction workers on federal contracts.
Types of Wage Determinations
Davis-Bacon Act: This rule applies if you're working on a federal contract related to the construction, alteration, or repair of public buildings or public works. It sets the least amount you should pay your workers - the local prevailing wages and fringe benefits.
McNamara-O'Hara Service Contract Act (SCA): This act concerns contracts where the main goal is to provide services using service employees. Contractors need to meet minimum wage and safety standards, among other requirements.
Collective Bargaining Agreements (CBA): A CBA is an agreement between a labor union and an employer. It sets the terms of employment, like wage rates, working hours, conditions, and more.
How to Find Wage Determinations on SAM
To find wage determinations, turn to SAM (System for Award Management). Here, you'll find the wage determinations relevant to your contracts.
Pricing your Contract
Once you understand wage determinations, you can use this knowledge to set your prices. Keep in mind the Federal Acquisition Regulation (FAR) labor laws when doing so.
The Non-manufacturers Rule for Brokers
If you're a broker, pay attention to the non-manufacturer rule. It says you can qualify as a small business if you don't manufacture the goods you sell. The focus is on providing services, not products.
Government contracting may seem like a maze of rules and regulations. But with a bit of knowledge and support, you can find your way. Let USFCR be your guide and help you navigate through it all.
To speak with a Registration and Contracting Specialist, Call: (866) 216-5343
This is an advanced pricing webinar. If you want to start with a basic pricing webinar, watch part 4 of our Proposal Writing 101 series.
Anna Rose