The Davis-Bacon Act and Brownfields
United States
Environmental Protection
Agency
Introduction
By their design, EPA Brownfields grants depend upon the efforts of
a wide range of participants, including public- and private-sector
entities who finance transformation of brownfields sites, as well as
the individual workers and laborers on the front lines of cleanup and
redevelopment. The U.S. government has laws in place to ensure
that any worker involved in a federally-funded public works project
is compensated in a fair and timely manner. This legislation, known
as the Davis-Bacon Act, applies to EPA-funded brownfields cleanup
activities and projects funded under EPA Brownfields Cleanup and
Revolving Loan Fund (RLF) grants.
Background on the Davis-Bacon Act
The Davis-Bacon Act was enacted in 1931 in response to the
rampant unemployment of the depression era. At the time, the
primary intent of the Act was to promote the hiring of skilled, local
workers, by discouraging the import of laborers from other regions
who would work for lower wages.
Since its enactment, Davis-Bacon has been amended three times,
in 1935,1964, and 1994. The Act was briefly suspended twice—
in 1992 and 2005—to facilitate emergency response activities
following Hurricanes Andrew and Katrina. The Act is administered
and enforced by the Wage and Hour Division of the Employment
Standards Administration, which falls underthe U.S. Department
of Labor (DOL).
How Davis-Bacon Applies to Brownfields Grants Funded
Throuah the American Recoverv and Reinvestment Act
It should be noted that the same Davis-Bacon requirements apply to
Brownfields Cleanup and RLF grants funded through the American
Recovery and Reinvestment Act. There are no differences as to how
Davis-Bacon requirements should be met for such grants.
Overview of the Act
The Davis-Bacon Act applies to EPA Brownfields grants by way of
section 104(g) of the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA), under which:
"...all laborers and mechanics employed by contractors or
subcontractors employed in the performance of construction,
alteration, or repair work funded in whole or in part [by
Brownfields grants] shall be paid locally prevailing wages."
These locally prevailing wage rates are determined by the U.S.
Department of Labor, and can be accessed in a searchable database
at the following address: http://www.access.gpo.gov/davisbacon/.
The Act covers all contractors and subcontractors performing work
on federally-funded or-assisted construction contracts in excess of
$2,000. While apprentices and trainees may be employed at less
than predetermined rates, apprentices must be employed pursuant
to an apprenticeship program registered with the Department of
Labor or with a state apprenticeship agency recognized by
the Department.
How Does the Act Apply to Brownfields Projects?
The Davis-Bacon Act applies to all construction, alteration, and repair
(including painting and decorating) contracts and sub-contracts
awarded with EPA grant funds. For cleanup activities funded through
EPA Brownfields Cleanup and Revolving Loan Fund grants, recent
and applicable wage rates from the U.S. Department of Labor must
be incorporated into construction, alteration, and repair (including
painting and decorating) solicitation and contracts.
How Davis-Bacon Applies to Cleanup of Petroleum-
Contaminated Brownfields
Some cleanup activities
at sites contaminated
by petroleum are not
subject to Davis-Bacon
Act requirements. Such
activities include site
remediation through
..... brownfields sit
drilling temporary
recovery wells, drawing out contaminated soil or water, treating the
contaminated soil/water on site, removing the treatment technology
and closing recovery wells, and restoration of the area surrounding tank
removal that involves only filling and compaction of soil. However,
the Davis-Bacon Act does apply to the following petroleum-related
cleanup activities:
• Installing piping to connect households or businesses to public
water systems or replacing public water system supply well(s) and
associated piping due to groundwater contamination.
• Soil excavation/replacement when undertaken in conjunction with
the installation of public water lines/wells described above.
• Soil excavation/replacement, tank removal, and restoring the area
by paving or pouring concrete when the soil excavation/replacement
occurs in conjunction with both tank removal and paving or concrete
replacement.
Note: if a Brownfields grant recipient is uncertain about whether
a cleanup activity falls under Davis-Bacon Act requirements, the
recipient should discuss the situation with EPA before authorizing
work on the site.
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In specific legal terms, "the recipient must ensure that solicitations and contracts contain the clauses required by 29 CFR 5.5 and any applicable EPA
guidance." Please note that EPA and the U.S. Department of Labor are responsible for overseeing Brownfields grantees' compliance with Davis-Bacon
Act requirements, and EPA Regional project managers are available to assist grantees (and in the case of RLFs, subgrant recipients) in this regard.
RLF grantees may require that RLF borrowers and/or subgrantees perform portions of the Davis-Bacon Act requirements identified in the
flow chart below.
EPA Brownfields Cleanup
cooperative agreement awarded or
for RLF cooperative agreements, a
site has been identified and a loan or
subgrant is in progress.
Recipient obtains prevailing Wage
Determination (WD) for the locality
the cleanup will occur in from the
Department of Labor (DOL) Web site.
forNon-Profit Cleanup Recipients Only
Non-Profit Cleanup grant recipients must submit the proposed
WD to the EPA Davis-Bacon Point of Contact (POC) listed in their
cooperative agreement Terms and Conditions (T&Cs).
The EPA Davis-Bacon POC must verify the WD prior to the
non-profit recipient placing the WD in any solicitations.
If the WD does not include a labor category to be employed under
the contract, the recipient shall submit information regarding the
proposed classification and wage rates for that labor category to
the EPA Award Official. The EPA Award Official will submit the
request to DOL for authorization of the classification and wage
rate and will notify the recipient of the appropriate classification
and wage rate to use in their executed contract(s).
Recipients must ensure the correct WDs for the locality the cleanup will take
place in are included in all prime contract solicitations for construction,
alteration, or repair (including painting and decorating) as interpreted by the
T&Cs of their Brownfields grants that are funded all, or in part, with EPA funds.
Note: RLF recipients must ensure that prevailing WDs are included in borrower and
subgrantee solicitations for prime contracts. Unlike subgrantees, EPA's grant regulations
do not require that borrowers award prime contracts competitively, although such a
requirement may be imposed by state or local law.
Recipients must ensure all executed prime contracts and subtracts for
construction, alteration, or repair (including painting and decorating) as
interpreted by the T&Cs of their Brownfields grants funded all, or in part,
through the grant, loan or subgrant, specify that wages must meet the locally
prevailing wage rates in effect at the time the contract is executed. Recipients
must also ensure that the contracts and subcontracts contain the Davis-Bacon
clauses provided in EPA's Davis-Bacon T&Cs.
Note: RLF recipients must ensure that prevailing wage rates are included in all borrower
and subgrantee contracts and subcontracts. RLF recipients must also ensure that the
t clauses provided in EPA's
Download DOL's Employee Fair
Compensation Notice.This
notice must be posted at the
worksite, along with a list of
locally prevailing wage rates.
DOL Site Notice [Poster]
Regarding Fair Compensation:
h ttp://www. dol. gov/esa/whd/regs/
compliance/posters/fedprojcpdf
Contractor submits payroll
information and "Statement of
Compliance" regarding
payment of Davis-Bacon wages
on a weekly basis to
the recipient.
DOL Payroll Form WH-347:
h ttp://www. dol.gov/esa/whd/form
s/wh347.pdf
Davis-Bacon T&C.
Recipients must immediately report, or
require borrowers or subgrantees to
immediately report potential violations of the
Davis-Bacon prevailing wage requirements to
the EPA Davis-Bacon POC identified in their
T&Cs and to the appropriate DOL Wage and
Hour District Office listed at:
http://www.dol.gov/esa/whd/america2.htm.
Compare payroll records to employee interviews to
confirm and document compliance with
Davis-Bacon requirements.
Note: Recipients are required to maintain a copy of the
completed WH-347 and employee interviews as part of
the cooperative agreement file and be able to provide a
copy of the payroll verification to EPA upon request.
Perform on-site verification/
interviews with workers entitled to
Davis-Bacon wages.
GSA Standard Form 1445:
http://contacts.gsa.goV/webforms.nsf/0/l
2BF5DOE2DC4484685256CBC0062F375/$
file/sf1445_e.pdf
For more detailed information, including copies of explanatory brochures
and regulatory and interpretative materials, please refertothe links
below or contact your local Wage and Hour Division office (a list of local
Wage and Hour Division offices is available at http://www.dol.gov/esa/
whd/america2.htm). A Wage and Hour Division help line is also available
at 1-866-4US-WAGE (487-9243).
Related Links
Davis-Bacon and Related Acts Home Page at the U.S. Department of Labor
http://www.dol.gov/esa/whd/progmms/dbm/index.htm
Davis-Bacon Act Compliance Guide
(U.S. Department of Labor's Office of Compliance Assistance Policy)
http://www.dol.gov/compliance/guide/dbm.htm
Additional Davis-Bacon Wage Determination Reference Material
http://www.access.gpo.gov/davisbacon/referencemat.html
Brownfields cleanup In Boston, Massachusetts.
Contact Information
EPA's Office of Brownfields and Land Revitalization (OBLR)
http://www.epa.gov/brownfields • (202) 566-2777
United States
Environmental Protection
Agency
Davis-Bacon Act and
Brownfields Fact Sheet
Solid Waste
and Emergency
Response (5105T)
EPA-560-F-09-478
August 2009
www.epa.gov/brownfields
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