FAR 22.1013—Review of wage determination.
Plain-English Summary
FAR 22.1013 tells contracting officers how to review a wage determination before using it in a solicitation or contract, and when to escalate concerns to the agency labor advisor. It covers two different situations: wage determinations based on an incumbent collective bargaining agreement and wage determinations based on something other than an incumbent collective bargaining agreement. For incumbent CBA-based determinations, the section focuses on whether wages, fringe benefits, or periodic increases differ substantially from local prevailing rates, and whether the agreement may not have been reached through arm’s-length bargaining. For non-CBA-based determinations, it requires the contracting officer to check whether the determination matches prevailing local wages and fringe benefits and whether it contains significant errors or omissions. The practical purpose is to catch questionable labor standards data early, before it is incorporated into a procurement, so the Government does not rely on an inaccurate or potentially improper wage determination. In practice, this section is a trigger for review and escalation, not a final decision rule: the contracting officer must involve the agency labor advisor whenever the listed concerns appear.
Key Rules
Review CBA-based determinations
When a wage determination is based on an incumbent collective bargaining agreement, the contracting officer must review whether the wages, fringe benefits, or periodic increases vary substantially from those prevailing for similar services in the locality. If they do, the contracting officer must immediately contact the agency labor advisor to consider using the procedures in FAR 22.1021.
Question non-arm’s-length agreements
If the contracting officer believes an incumbent or predecessor contractor’s collective bargaining agreement was not the result of arm’s-length negotiations, the contracting officer must contact the agency labor advisor to determine the appropriate action. The issue is not resolved by the contracting officer alone; it must be elevated for labor-law review.
Check non-CBA determinations for locality match
When a wage determination is not based on an incumbent collective bargaining agreement, the contracting officer must determine whether it conforms to wages and fringe benefits prevailing for similar services in the locality. A mismatch is a basis for contacting the agency labor advisor.
Identify errors and omissions
For wage determinations not predicated on a CBA, the contracting officer must also look for significant errors or omissions. If such problems are evident, the contracting officer must contact the agency labor advisor to determine the proper next step.
Escalation is mandatory
Whenever the listed concerns are present or apparent, the contracting officer is required to involve the agency labor advisor. The section does not authorize the contracting officer to ignore, correct, or substitute judgment for the labor advisor’s review.
Responsibilities
Contracting Officer
Review the wage determination under the correct standard depending on whether it is based on an incumbent collective bargaining agreement or on other sources. Identify substantial deviations from local prevailing wages and fringe benefits, possible non-arm’s-length bargaining, and significant errors or omissions, and immediately contact the agency labor advisor when any of these concerns arise.
Agency Labor Advisor
Evaluate the contracting officer’s concerns and determine the appropriate action, including whether procedures under FAR 22.1021 should be considered for CBA-based determinations or what other corrective action is warranted for questionable wage determinations.
Agency
Provide labor-advisor support and ensure the contracting officer has access to the labor expertise needed to review wage determinations and address potential inconsistencies, errors, or bargaining concerns before the procurement proceeds.
Practical Implications
This section is an early-warning checkpoint: if a wage determination looks off, the contracting officer should not wait until award or performance to address it.
A common pitfall is assuming a collective bargaining agreement is automatically reliable; FAR 22.1013 requires scrutiny for substantial departures from local prevailing rates and for possible lack of arm’s-length bargaining.
For non-CBA wage determinations, the contracting officer must look beyond the face of the document and compare it to local prevailing wages and fringe benefits, while also checking for missing classifications, rates, or other obvious defects.
The contracting officer should document the basis for concern and the referral to the agency labor advisor, because the section requires escalation and the record may later need to show why action was taken.
Failure to identify problems early can lead to an incorrect wage determination being used in the solicitation, which can create compliance issues, pricing distortions, and potential labor standards disputes later in the acquisition.
Official Regulatory Text
(a) Based on incumbent collective bargaining agreement. (1)If wages, fringe benefits, or periodic increases provided for in a collective bargaining agreement vary substantially from those prevailing for similar services in the locality, the contracting officer shall immediately contact the agency labor advisor to consider instituting the procedures in 22.1021 . (1) If the contracting officer believes that an incumbent or predecessor contractor’s agreement was not the result of arm’s length negotiations, the contracting officer shall contact the agency labor advisor to determine appropriate action. (b) Based on other than incumbent collective bargaining agreement. Upon receiving a wage determination not predicated upon a collective bargaining agreement, the contracting officer shall ascertain- (1) If the wage determination does not conform with wages and fringe benefits prevailing for similar services in the locality; or (2) If the wage determination contains significant errors or omissions. If either subparagraph (b)(1) or (b)(2) of this section is evident, the contracting officer shall contact the agency labor advisor to determine appropriate action.