FAR 22.1015—Discovery of errors by the Department of Labor.
Plain-English Summary
FAR 22.1015 addresses what happens when the Department of Labor (DOL) later discovers that a contracting officer incorrectly decided the Service Contract Labor Standards (SCLS) statute did not apply to an acquisition, or failed to include the required wage determination in a covered contract. It explains the corrective process both before and after award, including the contracting officer’s duty to add the SCLS clause at FAR 52.222-41 and any applicable wage determination within 30 days after DOL notification. The section also covers the special rule for contracts subject to 41 U.S.C. 6707(c), under which the Administrator may require retroactive application of the wage determination. Finally, it requires an equitable adjustment to the contract price when incorporation of the clause or wage determination changes the contractor’s cost of performance. In practice, this provision protects service employees, ensures statutory wage protections are applied even after an initial mistake, and gives agencies a mechanism to correct solicitation or contract errors without ignoring the cost consequences.
Key Rules
DOL error discovery triggers correction
If DOL determines that the SCLS statute was wrongly found inapplicable, or that a covered contract omitted the required wage determination, the contracting officer must correct the contract. The rule applies whether DOL discovers the error before award or after award.
Add SCLS clause and wage determination
Within 30 days after DOL notifies the contracting officer, the contract must be modified to include FAR 52.222-41 and any applicable wage determination issued by the Administrator. This ensures the contract reflects the labor standards that should have been included originally.
Retroactive application may be required
For contracts subject to 41 U.S.C. 6707(c), the Administrator may require the wage determination to apply retroactively. That means the contractor may have to comply as though the correct wage determination had been in place earlier.
Equitable price adjustment required
The contracting officer must equitably adjust the contract price to account for any change in performance cost caused by adding the wage determination or revision. The adjustment is intended to keep the contractor whole for increased labor costs, not to provide a windfall.
Applies to covered contracts only
This section is about contracts covered by the Service Contract Labor Standards statute. If the acquisition is not covered, the correction and wage-determination requirements in this section do not apply.
Responsibilities
Department of Labor
Discover and determine whether the contracting officer made an erroneous SCLS coverage decision or omitted an applicable wage determination, and notify the contracting officer of the error.
Contracting Officer
Within 30 days of DOL notification, modify the contract to include FAR 52.222-41 and the applicable wage determination; if required, process any retroactive application; and make an equitable adjustment to the contract price for changed performance costs.
Administrator
Issue the applicable wage determination and, for contracts subject to 41 U.S.C. 6707(c), determine whether retroactive application is required.
Contractor
Comply with the added SCLS clause and wage determination once incorporated, and support any request for equitable adjustment by showing the cost impact of the change.
Practical Implications
This section is a correction mechanism, so an initial coverage mistake does not end the matter; agencies must fix the contract once DOL identifies the error.
The 30-day clock matters. Contracting officers should act quickly after DOL notice to avoid compliance gaps, employee underpayment issues, and administrative delay.
Contractors should preserve payroll, labor mix, and pricing data so they can substantiate an equitable adjustment if a wage determination is added or revised.
Retroactive application can create back-pay exposure and compliance complexity, especially on longer performance periods or contracts with multiple option years.
A common pitfall is assuming that omission of the wage determination means no SCLS obligations exist; if DOL later finds coverage, the contract must be corrected and priced accordingly.
Official Regulatory Text
If the Department of Labor discovers and determines, whether before or after a contract award, that a contracting officer made an erroneous determination that the Service Contract Labor Standards statute did not apply to a particular acquisition or failed to include an appropriate wage determination in a covered contract, the contracting officer, within 30 days of notification by the Department of Labor, shall include in the contract the clause at 52.222-41 and any applicable wage determination issued by the Administrator. If the contract is subject to 41 U.S.C. 6707(c) , the Administrator may require retroactive application of that wage determination. The contracting officer shall equitably adjust the contract price to reflect any changed cost of performance resulting from incorporating a wage determination or revision.