FAR 22.404-7—Correction of wage determinations containing clerical errors.
Plain-English Summary
FAR 22.404-7 explains how to handle wage determinations under the Davis-Bacon and related labor standards when the Department of Labor finds a clerical error. It covers who may initiate the correction, what kinds of errors are covered, when the correction becomes effective, and how the contracting officer must respond both before award and after award. The section also ties the correction process to the specific procedures in FAR 22.404-5 for pre-award actions in sealed bidding and negotiated procurements, and to FAR 22.404-6 for post-award actions, including a special rule for option exercises. In practice, this provision matters because a clerical mistake in a wage determination can affect solicitation terms, bid pricing, contract administration, and labor compliance, and the contracting officer must act quickly to ensure the correct wage rates are applied. The rule is designed to keep wage determinations accurate without treating clerical corrections like substantive wage revisions, while still protecting the integrity of the procurement and the contractor’s obligations.
Key Rules
Clerical errors may be corrected
The Department of Labor’s Administrator, Wage and Hour Division, may correct a wage determination that contains a clerical error. The correction can be made on the Administrator’s own initiative or at the request of the contracting agency.
Corrections are immediately effective
Once corrected, the wage determination takes effect immediately. The corrected determination applies to any solicitation or active contract, so the contracting officer must treat it as controlling as soon as it is issued.
Pre-award sealed bidding procedures apply
Before award in sealed bidding, the contracting officer must follow the procedures in FAR 22.404-5(b)(1) or (2)(i) or (ii). This ensures the solicitation and bid evaluation process reflect the corrected wage determination.
Pre-award negotiation procedures apply
Before award in negotiated procurements, the contracting officer must follow FAR 22.404-5(c)(3) or (4). These procedures govern how the corrected wage determination is incorporated into the negotiation and award process.
Post-award procedures generally apply
After award, the contracting officer must follow FAR 22.404-6(b)(5) to address the corrected wage determination in the active contract. This is the normal post-award path for implementing the correction.
Option exercise has a special rule
If the correction affects a contract modification that exercises an option to extend the contract term, the contracting officer must use FAR 22.404-6(d)(2) instead of the general post-award procedure. This recognizes that option exercises have their own timing and administrative requirements.
Responsibilities
Department of Labor, Administrator, Wage and Hour Division
Identify clerical errors in wage determinations and issue corrections, either on its own initiative or in response to a contracting agency request. Ensure the corrected wage determination is effective immediately upon issuance.
Contracting Agency
Request correction from the Department of Labor when a wage determination appears to contain a clerical error. Coordinate with the contracting officer to implement the corrected determination in the solicitation or contract.
Contracting Officer
Apply the corrected wage determination immediately and follow the required FAR procedures depending on procurement stage: pre-award sealed bidding procedures, pre-award negotiation procedures, or post-award procedures. Use the special option-exercise procedure when the correction affects an option extension.
Offerors/Bidders and Contractors
Comply with the corrected wage determination once it is issued and incorporated into the solicitation or contract. Adjust pricing, payroll, and labor compliance practices as needed to reflect the corrected rates.
Practical Implications
A clerical correction is not a discretionary policy change; it must be treated as effective immediately, so delays can create compliance problems and pricing errors.
The contracting officer must first determine whether the procurement is pre-award or post-award, because the required FAR procedure changes depending on timing.
A common pitfall is assuming all wage determination changes are handled the same way; this section is specifically about clerical errors, not substantive wage revisions.
If the correction arrives during an option exercise, the contracting officer must use the special option-extension procedure rather than the general post-award rule.
Contractors should review solicitations and active contracts promptly when notified of a correction, because the corrected wage rates can affect bid strategy, certified payrolls, and contract cost calculations.
Official Regulatory Text
Upon the Department of Labor’s own initiative or at the request of the contracting agency, the Administrator, Wage and Hour Division, may correct any wage determination found to contain clerical errors. Such corrections will be effective immediately, and will apply to any solicitation or active contract. Before contract award, the contracting officer must follow the procedures in 22.404-5 (b)(1) or (2)(i) or (ii) in sealed bidding, and the procedures in 22.404-5 (c)(3) or (4) in negotiations. After contract award, the contracting officer must follow the procedures at 22.404-6 (b)(5), except that for contract modifications to exercise an option to extend the term of the contract, the contracting officer must follow the procedures at 22.404-6 (d)(2).