Posts in By Daniel Abrahams
Application of the Davis-Bacon Act By “Operation of Law” Is Here

New Davis-Bacon Act (“DBA”) regulations went into effect at the end of October 2023. Among other things, they purport to make the DBA clauses and wage determinations apply by operation of law. But they also provide for price adjustments for contractors. Exactly how it plays out is yet to be determined, but it might be prudent for the contractor to take any omitted clauses or wage determination problem slowly, and not just jump ahead into supposed compliance only to find out they have a fight to get a price adjustment.

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Who Will Be the Bag Holder -- the TPAs or the Employers -- for the Admin Fees DOL Recently Disallowed For Davis-Bacon Act and Maybe SCA H&W plans?

DOL’s new DBRA regulations has some clarifications and guidance as to its future treatment of benefit plan administrative expenses charged by third party administrators to various DBRA and SCA H&W plans. Get ready for more enforcement actions by DOL to disallow plan expenses and for more disputes between employers and TPAs over the cost of such fees.

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One of These Things is Not Like the Other – Confusion Over the Two Different Contractor Minimum Wage Executive Orders Clauses With the Same FAR Section Number

We have two different Contractor Minimum Wage Executive Orders. One requires a $12.15 minimum wage. The other requires a $16.20 an hour minimum wage. But the curious thing is they both use the same FAR section clause number — FAR 52.225-55. Confused.? So am I.

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Trees Don’t Grow to the Sky: New Service Contract Act Health and Welfare Levels Are Finally Set

The new Service Contract Act (“SCA”) health and welfare (“H&W”) rates are out and made effective to new solicitations and contracts on June 27, 2023. Except for in Hawaii, the new H&W rates are $4.57 an hour if the sick leave executive order applies, and $4.98 an hour if it doesn’t.

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Working for the Man Doesn’t Seem to Be Paying Off – Federal Contractors Don’t Prove to Be Good Investments

Government contractors, at least as an investment option, continue to underperform the S&P 5000 average. The lack luster 2023 year to date returns (and downright losses) come on the heals of a miserable 2022 performance. If you are working for a government contractor and invested heavily in its stock, perhaps you should be wishing for a recession to revive your lagging performnce.

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