FAR 22.1012-2—Wage determinations based on collective bargaining agreements.
Plain-English Summary
FAR 22.1012-2 explains when a new or changed collective bargaining agreement (CBA) becomes effective for purposes of the Service Contract Labor Standards wage determination process, and when it does not. It addresses two different acquisition methods: sealed bidding and other contractual actions such as negotiated procurements, successor contracts, and certain modifications. The section ties directly to the timing rules in 41 U.S.C. 6707(c), the notice requirement in FAR 22.1010, and the successor-contract timing rules in FAR 22.1007(b). It also covers what the contracting officer must do when a wage determination based on a CBA is requested from the Department of Labor through an e98 submission but DOL does not respond in time. In practice, this section is about protecting the procurement schedule while also determining whether a later CBA wage increase must be flowed into the solicitation or contract. It is especially important in service contracts where incumbent employees are covered by a CBA and the successor contractor may be bound by the agreement’s wage and fringe benefit terms.
Key Rules
Sealed bidding timing rule
In sealed bidding, a new or changed CBA is not effective if the agency receives notice of the CBA terms less than 10 days before bid opening and the contracting officer finds there is not enough time to incorporate the change into the solicitation. This prevents last-minute CBA changes from disrupting the bidding process when there is no practical opportunity to amend the solicitation.
Other contract actions timing rule
For actions other than sealed bidding, a new or changed CBA is not effective if notice is received after award of a successor contract or specified modification, as long as performance starts within 30 days of award or modification. If performance does not start within 30 days, then a CBA notice received at least 10 days before work begins is effective for the successor contract.
Timely notice is a condition
The timing limits in paragraphs (a) and (b) apply only if the notification requirements of FAR 22.1010 were met. If the required notice was not timely given, these protections and cutoffs do not operate the same way.
Follow up on delayed DOL response
If the contracting officer submits an e98 request for a CBA-based wage determination and DOL has not responded within 10 days, the contracting officer must call the Wage and Hour Division to learn when the determination can be expected. This is a mandatory follow-up step, not just a best practice.
Use the CBA directly if needed
If DOL cannot provide the wage determination by the latest date needed to keep the acquisition on schedule, the contracting officer must incorporate the CBA itself into the solicitation or other contract action, such as an option exercise, and create a wage determination referencing that CBA using the Wage Determinations at SAM.gov website.
Responsibilities
Contracting Officer
Determine whether a new or changed CBA is effective under the timing rules for sealed bidding or other contract actions. Ensure the solicitation or contract reflects the correct wage determination, follow up with DOL if an e98 request is delayed, and use the CBA itself with a SAM.gov-generated wage determination when necessary to preserve the acquisition schedule.
Department of Labor
Provide wage determinations based on CBAs in response to contracting agency requests. When contacted after a 10-day delay, advise the contracting officer when the wage determination can be expected so the agency can plan accordingly.
Contracting Agency
Receive and process timely notice of CBA terms, coordinate with DOL, and ensure the procurement record reflects whether the CBA is effective for the action. The agency must also comply with the notice framework in FAR 22.1010 for the timing rules to apply.
Offerors/Bidders
Monitor solicitation amendments and CBA-related wage information, especially in sealed bidding, because late CBA changes may not be incorporated if received too close to bid opening. Bidders must price based on the wage determination actually included in the solicitation.
Incumbent Contractor/Union
Provide timely notice of new or changed CBA terms to the contracting agency so the agency can determine whether the agreement will be effective for the successor contract or solicitation. Late notice may prevent the new terms from being incorporated for the current procurement action.
Practical Implications
This section is mainly about timing, so missing a deadline can change which wage rates apply and who bears the cost risk. A CBA that arrives too late may not be effective for the current procurement action, even if it would otherwise govern a successor contract.
Contracting officers should track both the date of notice and the start-of-performance date, because the 30-day rule for non-sealed-bid actions can make the difference between using the new CBA terms or the prior wage determination.
A common pitfall is assuming any newly negotiated CBA automatically applies. It only applies if the notice and timing requirements are satisfied and the action falls within the rule’s coverage.
If DOL is slow to respond to an e98 request, the contracting officer cannot simply wait indefinitely. The rule requires a phone follow-up after 10 days and, if necessary, use of the CBA itself to keep the procurement moving.
For contractors, the practical risk is pricing uncertainty. If the solicitation does not yet reflect a later CBA, the contractor may still be bound by the wage determination ultimately incorporated into the contract, so careful review of amendments and award documents is essential.
Official Regulatory Text
(a) In sealed bidding, a new or changed collective bargaining agreement shall not be effective under 41 U.S.C. 6707(c) if the contracting agency has received notice of the terms of the new or changed collective bargaining agreement less than 10 days before bid opening and the contracting officer determines that there is not reasonable time to incorporate the new or changed terms of the collective bargaining agreement in the solicitation. (b) For contractual actions other than sealed bidding, a new or changed collective bargaining agreement shall not be effective under 41 U.S.C. 6707(c) if notice of the terms of the new or changed collective bargaining agreement is received by the contracting agency after award of a successor contract or a modification as specified in 22.1007 (b), provided that the contract start of performance is within 30 days of the award of the contract or of the specified modification. If the contract does not specify a start of performance date which is within 30 days of the award of the contract or of the specified modification, or if contract performance does not commence within 30 days of the award of the contract or of the specified modification, any notice of the terms of a new or changed collective bargaining agreement received by the agency not less than 10 days before commencement of the work shall be effective for purposes of the successor contract under 41 U.S.C. 6707(c) . (c) The limitations in paragraphs (a) and (b) of this subsection shall apply only if timely notification required in 22.1010 has been given. (d) If the contracting officer has submitted an e98 to Department of Labor requesting a wage determination based on a collective bargaining agreement and has not received a response from the Department of Labor within 10 days, the contracting officer shall contact the Wage and Hour Division by telephone to determine when the wage determination can be expected. (The telephone number is provided on the e98 website.) If the Department of Labor is unable to provide the wage determination by the latest date needed to maintain the acquisition schedule, the contracting officer shall incorporate the collective bargaining agreement itself in a solicitation or other contract action ( e.g., exercise of option) and include a wage determination referencing that collective bargaining agreement created by use of the Wage Determinations at SAM.gov website (see 22.1008-1 (d)(2)).