Doc. L 3Co. 2.08 : 5e fc/2- ■ SERVICE CONTRACT WAGE DETERMINATIONS UN MANUAL OF OPERATIONS OSITCfflfi UNIVERSr" ^ ILLINOIS H9n«- \VIPA!GN U.S. DEPARTMENT OF LABOR EMPLOYMENT STANDARDS ADMINISTRATION WAGE AND HOUR DIVISION SEPTEMBER 1988 WITHp^awn WITHDRAWN University of Illinois Library at Ur^3n3'Ch iiv paiQ nSERVICE CONTRACT WAGE DETERMINATIONS MANUAL OF OPERATIONS U.S. DEPARTMENT OF LABOR EMPLOYMENT STANDARDS ADMINISTRATION WAGE AND HOUR DIVISION SEPTEMBER 1988This Manual has been developed to provide comprehensive information and technical procedures to promote uniformity and accuracy in the wage determination process. Sharp increases in Government service contracting and the number of requests for Service Contract Act (SCA) wage determinations have highlighted the need for updated guidelines for the development and issuance of SCA wage determinations. The use of this new resource will contribute to a more efficient and effective program of wage determinations. I Paula V. Smith AdministratorThe Service Contract Wage Determinations Manual of Operations was prepared under the direction of Dr. Alan Moss, Director of the Division of Wage Determinations. Editing and direction were provided by: Harry H. Matsuura, Division Program Specialist; Robert V. Setera, Chief, Branch of Service Contract Wage Determinations; Michelle M. Bechtoldt, West Section Chief of the Branch; and Clarence D. Strain, East Section Chief. Technical Assistance and Training Corporation (TATC) wrote and produced the Manual, performing the work under DOL Contract Nos. J-9-M-6-0061-020 and J-9-M-6-0037-009. Special appreciation is expressed to the members of the Wage Determinations SCA Manual Review Work Group who provided guidance and technical support, and to the following technical and legal staff who provided their knowledge and expertise to the author through in-depth interviews. Wage and Hour Division William W. Gross, Deputy Assistant Administrator, Office of Program Operations Thomas J. Obert, Wage and Hour Analyst, Branch of Service Contract Operations Bureau of Labor Statistics Kenneth J. Hoffmann, Project Director of Area Wage Surveys Office of the Solicitor of Labor Gregory B. Taylor, Counsel for Legal Advice Arthur Bolstein, Attorney Additional Technical and Legal Staff Melvin W. Leeper, Jr., Salary and Wage Specialist, Wage-Hour Eugenia R. Schenecker, Salary and Wage Specialist, Wage-Hour Benefrido M. Dimaguila, Salary and Wage Specialist, Wage-Hour Linda Nivens, Salary and Wage Specialist, Wage-Hour Shirley Moore, Salary and Wage Specialist, Wage-Hour Philip M. Doyle, Labor Economist, Bureau of Labor Statistics Douglas J. Davidson, Counsel For Trial Litigation, Office of the Solicitor Alan Sommers, Pay Specialist for Wage Grade, Office of Personnel ManagementPURPOSE AND USE OF THE MANUAL The development and distribution of this Manual represents part of a continuing effort by the Wage and Hour Division of the Employment Standards Administration (ESA) to increase its efficiency in administering the Service Contract Act. The objective of the Manual is to prescribe guidelines, standards, and techniques which will enhance the program's ability to issue timely and accurate Service Contract wage determinations. This Manual includes "how to" information on analyzing and using data on wages and fringe benefits for developing and issuing Service Contract wage determinations. Special emphasis is given throughout the document on the importance of utilizing statistical and occupational analysis procedures and practices that maximize objectivity and uniformity of approach. The goal is not only to strengthen technical performance in the wage determination process, but also to enhance the program's overall credibility. The Manual is primarily intended as a working guide for employees of ESA assigned to the Service Contract program in the Washington, D.C. headquarters. It is also recognized that this guide may be used in the orientation and training of new employees in the program. As the principal source of information on the procedures and practices to be followed for the processing of wage determination requests, analysis of wage data, and the development and issuance of wage determinations, this document should be useful to other audiences as well. For example, this Manual should be of interest to contractors, union and association personnel, and representatives of Federal Government agencies. The Manual may be ordered by calling (202) 783-3238 or writing to the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. ORGANIZATION OF THE MANUAL This Manual is organized into five sections, each consisting of several chapters. Section I, consisting of two chapters, introduces the Service Contract Act, providingPREFACE (CONTINUED) information on its purpose, history, and coverage. Section I also examines administration of the Act and profiles the authority, organization, and functions of the various units of the Department of Labor responsible for the program. The role of other organizations is also discussed. Section II consists of five chapters. The section explains and defines the major concepts and terms used in wage determination functions under the Act and provides detailed information on the various data sources and tools used to develop and issue Service Contract wage determinations. Section III, consisting of two chapters, presents the procedures to be followed by contracting agencies in submitting a wage determination request. A chapter is devoted to each of the two types of requests. Section IV contains the guidelines, policies, and recommended procedures used to issue wage determinations. It explains the processing of requests, analysis of source data on compensation levels used as the basis for wage determinations, and development and issuance of wage determinations. This section consists of seven chapters. Section V discusses recommended procedures, guidelines, and policies used to address three types of post-determination actions affecting the wage determination process. It consists of three chapters, one devoted to each of the three actions. The sections and their respective chapters have been designed so that readers may focus on topics of interest more easily. Sections and their respective chapters contain numerous exhibits. These exhibits have been designed as day-to-day reference guides for use by ESA staff as needed. The appendices provide useful additional information, including a list of ESA contacts for questions, a copy of the Act, and various other reference materials.ALJ: Administrative Law Judge AWS: Area Wage Survey (BLS) BLS: Bureau of Labor Statistics BSCWD: Branch of Service Contract Wage Determinations CBA: Collective Bargaining Agreement CFR: Code of Federal Regulations DB: Davis-Bacon Act DBRA: Davis-Bacon and Related Acts DOL: U.S. Department of Labor DOT: Dictionary of Occupational Titles ESA: Employment Standards Administration FIPS: Federal Information Processing Standards (codes) FLS: Fair Labor Standards (a Division Within the SOL) FLSA: Fair Labor Standards Act FWS: Federal Wage System GS: General Schedule (Federal Pay Schedule) H&W: Health and Welfare Fringe Benefits MSA: Metropolitan Statistical Area NAF: Non-Appropriated Funds (Federal Wage System Surveys and Pay Schedules) OEAM: Occupational Earnings in All Metropolitan Areas (BLS) OMB: Office of Management and Budget 0PM: Office of Personnel Management PATC: National Survey of Professional, Administrative, Technical, and Clerical Pay (BLS) PCA: Public Contracts Act (Walsh-Healey Public Contracts Act) PMSA: Primary Metropolitan Statistical Area SCA: Service Contract Act (McNamara-0'Hara Service Contract Act) SF-98: Standard Form 98--Notice of Intention to Make a Service Contract SIC: Standard Industrial Classification Manual of Industry Codes SOC: Standard Occupational Classification Manual of Occupational Codes SOL: Solicitor of Labor (Office of) WB: Wage Board (Appropriated Funds-Federal Wage System Surveys and Pay Schedules) WD: Wage Determination WD-ATS: Wage Determination Automated Tracking System WG: Wage Grade (FWS Blue Collar Grades, either Wage Board or NAF Job Grades) W-H: Wage and Hour DivisionFOREWARD....................................................i ACKNOWLEDGEMENTS...........................................ii PREFACE...................................................iii LIST OF FREQUENTLY USED ABBREVIATIONS.......................v SECTION Is BACKGROUND CHAPTER Is THE SERVICE CONTRACT ACT.....................3 Introduction...........................................3 General Provisions of the Act..........................3 History and Rationale of the Act.......................4 Regulations............................................7 All-Agency Memoranda...................................8 CHAPTER 2 s ADMINISTRATION OF THE ACT....................9 Introduction...........................................9 DOL Authority and Responsibility.......................9 Wage and Hour Division National Office................10 Regional Offices......................................23 Other Agencies and Organizations......................23 SECTION IIs CONCEPTS, DATA SOURCES, AND TOOLS CHAPTER 3 s SCA CONCEPTS AND DEFINITIONS................31 Introduction..........................................31 Covered Contracts and Covered Workers.................32 Requests for Wage Determinations......................39 SCA Wage Determinations...............................45 Types of Wage Determination Responses.................52 Post-Determination Actions............................54 CHAPTER 4 s BUREAU OF LABOR STATISTICS DATA SOURCES.....61 Introduction..........................................61 Area Wage Surveys.....................................62 SCA Area Surveys and Special Studies..................79 Occupational Earnings in All Metropolitan Areas......103 National Survey of Professional, Administrative, Technical, and Clerical Pay.......................104 Industry Wage Surveys................................118 BLS Occupational Wage Survey Concepts and Methods.... 121 Employment and Earnings Survey Establishment Series..128CHAPTER 5: FEDERAL WAGE SYSTEM DATA SOURCES...........137 Introduction.........................................137 Purpose of FWS Surveys and Wage Schedules............138 Appropriated Funds Surveys and Wage Schedules........139 Non-Appropriated Funds Surveys and Wage Schedules.... 152 CHAPTER 6: OTHER SELECTED DATA SOURCES................173 Introduction.........................................173 Selected State Surveys...............................173 Collective Bargaining Agreements.....................177 Federal General Schedule.............................183 Davis-Bacon Wage Determinations......................184 Incumbent Contractor Wage Rates......................184 Wage and Hour Surveys or Studies.....................189 CHAPTER 7s TOOLS USED TO PROCESS, DEVELOP, AND ISSUE WAGE DETERMINATIONS........................191 Introduction.........................................191 Processing and Records Maintenance Tools.............191 Wage Determination Development Tools.................195 Wage Determination Issuance Tools....................227 SECTION Ills WAGE DETERMINATION REQUEST PROCEDURES CHAPTER 8 s INDIVIDUAL SF-98 REQUESTS..................247 Introduction.........................................247 Timing...............................................247 Content..............................................248 CHAPTER 9 s BLANKET SF-98 REQUESTS.....................257 Introduction.........................................257 Program Participation................................258 Timing...............................................261 Content..............................................262SECTION IVs THE WAGE DETERMINATION PROCESS CHAPTER 10s THE SIX PHASES OF THE PROCESS..............279 Introduction.........................................27 9 Process Overview.....................................279 CHAPTER 11s PHASE 1 — SF-98 REQUEST INTAKE AND PRE-SCREENING..............................283 Purpose and Functions................................283 Procedures...........................................284 Workflow.............................................287 CHAPTER 12 s PHASE 2 — SUPERVISORY REVIEW OF REQUESTS...................................291 Purpose and Functions................................291 Procedures for Individual Requests...................292 Procedures for Blanket Requests......................303 Workflow.............................................306 •CHAPTER 13s PHASE 3 — SCREENING AND ISSUANCE OF CURRENT WAGE DETERMINATIONS................311 Purpose and Functions................................311 Procedures for Individual Requests...................312 Procedures for Blanket Requests......................316 Workflow.............................................326 CHAPTER 14s PHASE 4 — DATA SOURCE SELECTION FOR DEVELOPING NEW/REVISED WAGE DETERMINATIONS........................331 Purpose and Functions................................331 Procedures...........................................332 Workflow.............................................350CHAPTER 15 s PHASE 5 — DEVELOPMENT AND ISSUANCE OF NEW/REVISED WAGE DETERMINATIONS.........353 Introduction.........................................353 Principles (Prevailing WDs )..........................354 Purpose and Functions (Prevailing WDs)...............357 Procedures (Prevailing WDs)..........................359 Principles (Section 4(c) and Union Dominance WDs)....392 Purpose and Functions (Section 4(c) and Union Dominance WDs)....................................397 Procedures (Section 4(c) and Union Dominance WDs)....398 Procedures to Prepare New/Revised WD Issuance (All WDs)................................403 Workflow.............................................405 CHAPTER 16s PHASE 6 — OUTPROCESSING...................423 Purpose and Functions................................423 Procedures...........................................423 Workflow..............................................426 SECTION Vs POST-DETERMINATION ACTIONS AND APPEALS CHAPTER 17 s CONFORMANCES...............................431 Introduction.........................................431 General Requirements.................................431 Request and Relevant Time Frames.....................433 Processing Procedures and Decision-Making Criteria... 434 Conformance Decision Appeals.........................443 Indexing Previously-Conformed Wage Rates.............443 CHAPTER 18s REVIEW AND RECONSIDERATION.................447 Introduction.........................................447 Request and Relevant Time Frames.....................447 Processing Procedures and Decision-Making Criteria... 448 Higher Appeals.......................................453CHAPTER 19s SECTION 4(c) SUBSTANTIAL VARIANCE AND ARM'S LENGTH ADMINISTRATIVE HEARINGS.......457 Introduction.........................................457 Request and Relevant Time Frames.....................458 Processing Procedures and Decision-Making Criteria... 463 Provision of Technical Expertise to SOL..............47 8 Appeals to the Board of Service Contract Appeals.....478 APPENDICES APPENDIX A: CONTACTS FOR SCA INFORMATION...............A-l APPENDIX B: SERVICE CONTRACT ACT.......................B-l APPENDIX C: ALL-AGENCY MEMOS #138 AND #136 — 1984 SCA REGULATORY REVISIONS..............C-l APPENDIX D: ANNOTATED LIST OF SCA-RELATED ALL-AGENCY MEMOS...........................D-l APPENDIX Es SELECTED BUREAU OF LABOR STATISTICS SURVEY FORMS...............................E-l LIST OF EXHIBITS Exhibit Is Employment Standards Administration Organization Chart..........................11 Exhibit 2: Wage and Hour Division Organization Chart...13 Exhibit 3: Division of Wage Determinations Organization Chart..........................17 Exhibit 4: Employment Standards Administration Regional Organization Chart.................25 Exhibit 5: Illustrative Types of Covered Services......35 Exhibit 6: Sample Blank SF-98..........................41 Exhibit 7: Sample Blank SF-98a.........................43 Exhibit 8 s Sample Wage Determination...................47 Exhibit 9 s Standard Occupational Groupings For Blanket Wage Determinations.................55 Exhibit 10i Metropolitan Statistical Areas — Definitions and Examples....................65 Exhibit 11: BLS Area Wage Survey Ninety-Area Sample.....67 Exhibit 12: BLS Area Wage Survey Industries Surveyed by Two-Digit SIC Code for Major Groups......71 Exhibit 13: BLS Area Wage and SCA Area Surveys Occupations Surveyed....................... .75 Exhibit 14: AWS Wage Data — Sample Page................77 Exhibit 15: AWS Indexes of Earnings — Sample Page......81 Exhibit 16: AWS Fringe Benefits — Sample Page..........83Exhibit 17: AWS Fringe Benefits — Sample Page..........85 Exhibit 18: AWS Fringe Benefits — Sample Page..........87 Exhibit 19: AWS Fringe Benefits — Sample Page..........89 Exhibit 20: BLS SCA Area Survey Area Sample.............91 Exhibit 21: BLS SCA Special Annual Studies..............95 Exhibit 22: SCA Area Survey Wage Data — Sample Page....99 Exhibit 23: SCA Special Study Wage Data — Sample Page.101 Exhibit 24: SCA Area Survey Fringe Benefits Data — Sample Page................................105 Exhibit 25: OEAM Wage Data — Sample Page..............107 Exhibit 26: BLS PATC Survey Industries Surveyed by Two-Digit SIC Code for Major Groups.....Ill Exhibit 27: BLS PATC Survey Occupations Surveyed.......113 Exhibit 28: Combined PATC Wage Data — Sample Page.....119 Exhibit 29: Hospital Industry Wage Survey Wage Data — Sample Page........................123 Exhibit 30: BLS Employment and Earnings Industries Surveyed by Two-Digit SIC Code for Ma j or Groups...............................131 Exhibit 31: Employment & Earnings Establishment Wage Data — Sample Page...................135 Exhibit 32: FWS Appropriated Funds Regular Survey List of Wage Areas.........................141 Exhibit 33: FWS Appropriated Funds Regular Survey Industries by Two-Digit SIC Code for Major Groups...........................147 Exhibit 34: FWS Appropriated Funds Regular Survey Occupations Surveyed.......................149 Exhibit 35: FWS Appropriated Funds Survey — Sample Page of Table 1 Wage Data.......................153 Exhibit 36: FWS Appropriated Funds Survey — Sample Page of Table 4 Wage Data.......................155 Exhibit 37: FWS Appropriated Funds Wage Schedule — Sample Page................................157 Exhibit 38: FWS Non-Appropriated Funds Regular Survey List of Wage Areas.........................159 Exhibit 39: FWS Non-Appropriated Funds Regular Survey Industries Surveyed by Four-Digit SIC Code...................................167 Exhibit 40: FWS Non-Appropriated Funds Regular Survey Occupations Surveyed.......................169 Exhibit 41: FWS Non-Appropriated Funds Wage Schedule — Sample Page................................... Exhibit 42: Hawaii State Survey Wage Data — Sample Page...................................Exhibit 43: Idaho State Survey Wage Data — Sample Page................................179 Exhibit 44: CBA Wage Data — Sample Page...............181 Exhibit 45: CBA Fringe Benefits Data — Sample Page....185 Exhibit 46: GS Schedule — Sample Page.................187 Exhibit 47: Management Report — Sample Page of Overall Workloads.......................... 197 Exhibit 48: Management Report — Sample Page of WD Workloads..................................199 Exhibit 49: Management Report — Sample Page of Agency Workloads...........................201 Exhibit 50: BLS Schedule of Area Wage Survey Dates.....203 Exhibit 51: FWS AF Survey List — Sample Page..........205 Exhibit 52: FWS NAF Survey List — Sample Page.........207 Exhibit 53: FIPS County Codes — Sample Page...........211 Exhibit 54: SCA Directory of Occupations — Sample Page................................213 Exhibit 55: Standard Occupational Classification — Sample Page................................217 Exhibit 56: Dictionary of Occupational Titles — Sample Page................................219 Exhibit 57: Job Grading System for Labor Occupations -- Sample Page.................221 Exhibit 58: Standard Industrial Classification — Sample Page................................223 Exhibit 59: OPM Printout of FWS Workers — Sample Page................................225 Exhibit 60: Standard Fringe Basis Sheet................229 Exhibit 61: Sample Basis Sheet for Prevailing WDs Based on BLS Surveys.......................231 Exhibit 62: Sample Basis Sheet for Section 4(c) WDs....233 Exhibit 63: Sample Basis Sheet for Prevailing WDs Based on Union Dominance...................235 Exhibit 64: Register of Wage Determinations — Sample Format Page.........................237 Exhibit 65: Standard Explanatory Notes — Usually Included...........................241 Exhibit 66: Sample SF-98 Completion Form...............243 Exhibit 67: Sample Completed Individual SF-98..........249 Exhibit 68: Sample Completed Individual SF-98a.........251 Exhibit 69: Metropolitan Statistical Areas for Which Blanket Wage Determinations Are Established (As of 8/88)...................259 Exhibit 70: Sample Completed Blanket Cover Memo........263Exhibit 71: Sample Completed Blanket SF-98.............265 Exhibit 72: Sample Completed Blanket Continuous/ Multi-Year Contract Worksheet..............267 Exhibit 73: Sample Completed Blanket Continuous/ Multi-Year Contracts Job Title Worksheet... 269 Exhibit 74: Sample Completed Blanket Recurring & One-Time Contracts Worksheet...............271 Exhibit 75: The Six Phases of the SCA Wage Determination Process......................281 Exhibit 76: Workflow Diagram of Phase 1 -- SF-98 Request Intake & Pre-Screening.............289 Exhibit 77: Statutory Exemptions.......................295 Exhibit 78: Guidelines for Determining SCA-Exempt Occupations — Bona Fide Executive, Administrative, and Professional Employees......297 Exhibit 79: Workflow Diagram of Phase 2 -- Supervisory Review of Individual Requests..............307 Exhibit 80: Workflow Diagram of Phase 2 — Supervisory Review of Blanket Requests.................309 Exhibit 81: List of Classes Included in the Standard Occupational Groupings for Which Blanket -- WDs Are Established........................319 Exhibit 82: Workflow Diagram of Phase 3 — Screening & Issuance of Current WDs for Individual Requests....................327 Exhibit 83: Workflow Diagram of Phase 3 — Screening & Issuance of Current WDs for Blanket Requests.......................329 Exhibit 84: SF-98 and WD Docket File Information Evaluated in Conjunction with the Source Data Selected for Developing Prevailing WDs.'.... 335 Exhibit 85: Key Conditions and Verifications for Determining Union Dominance as the Basis for a Prevailing WD........................337 Exhibit 86: Data Sources Used Most Frequently for SCA WDs Key Characteristics................339 Exhibit 87: Survey Extentions..........................343 Exhibit 88: Workflow Diagram of Phase 4 — Data Source Selection for New/Revised WDs (Individual & Blanket WDs).................351 Exhibit 89: Dated Survey Adjustments...................361 Exhibit 90: Job Description Evaluations................365 Exhibit 91: Measures of Central Tendency and Related Data Concepts and Definitions..............371Exhibit 92: Wage Rate Frequency Distribution Patterns Concepts and Defintions....................375 Exhibit 93: Due Consideration Adjustments..............393 Exhibit 94: Key CBA Information Evaluated for Section 4(c) WDs or Prevailing WDs Based on Union Dominance...................399 Exhibit 95: Sample Blanket Prevailng WD................413 Exhibit 96: Sample Prevailing WD Based on Union Dominance..................................417 Exhibit 97: Workflow Diagram of Phase 5 — Development & Issuance of New/Revised Areawide WDs (Individual & Blanket WDs).................419 Exhibit 98: Workflow Diagram of Phase 5 — Development & Issuance of Section 4(c) & Areawide WDs Based on Union Dominance (Individual WDs Only)......................421 Exhibit 99: Workflow Diagram of Phase 6 — Outprocessing (All Requests)...............427 Exhibit 100: Sample Conformance Request.................435 Exhibit 101: Sample Conformance Response Letter.........441 Exhibit 102: Indexing Wage Rates of Previously- Conformed Classes..........................445 Exhibit 103: Sample Review and Reconsideration Request....................................449 Exhibit 104: Sample Review and Reconsideration Response...................................455 Exhibit 105: Sample Substantial Variance Hearing Request....................................459 Exhibit 106: Sample Substantial Variance Hearing Response...................................467 Exhibit 107: Sample Order of Reference for Substantial Variance Hearing...............471 Exhibit 108: Sample Certificate of Service for Substantial Variance Hearing...............475This section provides general information on the Service Contract Act and the authority and responsibilities of the U.S. Department of Labor in administering the Act. Section I contains the following two (2) chapters. • CHAPTER Is THE SERVICE CONTRACT ACT CHAPTER 2: ADMINISTRATION OF THE ACTCHAPTER Is THE SERVICE CONTRACT ACT INTRODUCTION This chapter describes the general scope of the Service Contract Act, briefly outlines the legislative and regulatory history and rationale for passage of the Act, and references current legislative, regulatory, and policy documents. Definitions and further details concerning various provisions of the Act mentioned herein are covered in section II, chapter 3. This chapter consists of the following major sections. • GENERAL PROVISIONS OF THE ACT • HISTORY AND RATIONALE OF THE ACT • RULES AND PROCEDURES GENERAL PROVISIONS OF THE ACT The McNamara-O'Hara Service Contract Act of 1965, as amended (hereinafter referred to as the Service Contract Act, SCA, or the Act) provides protection to workers employed on service contracts entered into by the United States Government and the District of Columbia. It establishes standards for minimum compensation and safety and health protection of employees performing work for contractors and subcontractors under all SCA-covered service contracts. The Act gives the Secretary of Labor authority to determine the minimum compensation based on locally prevailing wage rates and fringe benefits. Under the provisions of the SCA, contractors or their subcontractors performing on contracts over $2,500 are required to pay service workers no less than the locally prevailing wage rates and fringe benefits so-determined; or, in certain cases, the wages and fringe benefits contained in a predecessor contractor's collective bargaining agreement. In addition, the Act gives authority to the Secretary of Labor to issue administrative limitations, variations, tolerances, and exemptions. Provisions of the Act apply to all Federal or District of Columbia contracts principally for services performed by service employees except for seven exemptions specified in section 7 of the Act. For SCA-covered contracts in excess of $2,500, contracts are required to contain the:• provision of minimum wages and fringe benefits as set by the Secretary of Labor in accord with those prevailing in the locality (Note: In certain cases, the wages and fringe benefits contained in a predecessor contractor's collective bargaining agreement become the minimum payable to employees working on a successor contract.); • provision for safe and sanitary working conditions for those providing services under the contract; • assurance that covered contract employees will be notified of the minimum compensation required by the Secretary's determination; and • provision that in no case shall any employee of the contractor be paid less than the minimum wage specified by the Fair Labor Standards Act (FLSA), section 6(a)(1). The geographic scope of the Act's coverage includes all 50 States, the District of Columbia, Puerto Rico, Virgin Islands, Outer Continental Shelf Lands as defined in the Outer Continental Shelf Lands Act, American Samoa, Guam, Wake Island, Commonwealth of the Northern Mariana Islands, and Johnston Island. Geographic coverage does not include any other U.S. territory or any U.S. base or possession within a foreign country. HISTORY AND RATIONALE OF THE ACT The Service Contract Act is one of several pieces of related remedial labor legislation that seeks to support a minimum standard of wages. In addition to the SCA, such laws include the following. • Fair Labor Standards Act of 1938, as amended (general minimum wage law). • Davis-Bacon Act of 1931, as amended, and Davis-Bacon Related Acts (minimum compensation requirements for Federal and District of Columbia Government construction contracts, and Federally-financed State and local contracts). • Walsh-Healey Public Contracts Act of 1936, as amended (minimum compensation requirements for Federal and District of Columbia Government manufacturing and supply contracts). • Contract Work Hours and Safety Standards Act of 1962, as amended (overtime provisions for employees working on Federal or District of Columbia Government contracts).The SCA, enacted in 1965, is codified, as amended, at 41 U.S.C. 351-359 (1976). A copy of the Act, as amended, is contained in appendix B of this Manual. Rationales for SCA Passage Rationales for extending such prevailing wage coverage in 1965 included the following. • Service workers are primarily low-paid, low-skilled, least likely to be organized, and thus most likely to benefit from a Federal minimum wage floor. • Due to Federal contracting rules requiring the Government to accept the lowest bid of any responsible bidder, low bidding on service contracts can result in downward wage pressure. Given the frequency of annual rebidding and low wage rates inherent to service contracts, such "wage-busting" can have a significant adverse effect on the wage structure of the service industry. • Service contracting had been increasing over the years, and the Federal Government indirectly employs many low-paid service workers under service contracts. In addition, it was viewed that the extension of such prevailing wage coverage should not interfere with local labor market conditions. It should reflect such conditions and protect local wage structures. Lastly, passage of the SCA would provide an opportunity to ensure that covered service workers would have protection with regard to safe and healthy working conditions. The Legislative Amendments The 1965 Act has been amended three (3) times — 1972, 1973, and 1976. The 1973 amendment simply added Canton Island to the definition of the United States with regard to geographic coverage of the Act. Canton Island has since been removed from the definition of the United States due to a change in its nation-state affiliation. Eniwetok and Kwajalein Atolls are no longer covered by the Act as a result of the Compact of Free Association (Pub.L. 99-239, January 14, 1986) governing the Republic of the Marshall Islands and the Federated States of Micronesia which effectively removed these Atolls from coverage of various U.S. laws, including the SCA. The Northern Mariana Islands have been added to the Act's geographic scope due to the Covenant to Establish A Commonwealth of the Northern Mariana Islands (48 USC 1681) which makes applicable to the Islands all U.S. laws that applyto Guam. The 1972 and 1976 amendments were primarily enacted to address the following areas of concern. • The treatment of wage rates and fringe benefits in incumbent contract/contractor collective bargaining agreements (CBAs) with regard to their application to a successor contract/contractor. • The need to clarify the types of service employees to whom prevailing wage rates would apply. Thus, the 1972 amendment added key provisions to the Act including the: • modification of section 2 and addition of section 4(c) to provide for the issuance of 4(c) wage determinations for successor contracts based on the CBA rates governing the predecessor contract; • requirement that, in determining prevailing wage rates and fringe benefits, due consideration be given to the rates (Federal Wage System, blue collar pay schedules) that would be paid by the Federal Government if the service employees were direct-hires; • addition of section 10 requiring that by 1977, wage determinations must be made for all covered contracts under which more than five service employees would be employed (phased-in mandate); • requirement that multi-year service contracts not subject to annual U.S. Congressional appropriations (up to five years) have a periodic adjustment of the wage determination at least once every two years; • limitation on the authority of the Secretary of Labor to issue limitations, variations, tolerances, and exemptions to and from any or all provisions of the Act (other than section 10 discussed above) only where special circumstances exist; and • limitation on the Secretary's discretion to relieve violators from debarment to cases involving unusual circumstances. The 1976 amendment addressed the definition of a service employee by adding language that clarifies the Act's application to white collar service workers, except bona fide executive, administrative, or professional employees as defined in the regulations at 29 CFR 541. In addition, the application of due consideration of Federal wage and fringe benefit rates as discussed above was extended to include white collar (General Schedule) as well as blue collar (Federal Wage System) rates.Regulatory Changes For each of the amendments discussed above, the Act's implementing regulations were modified accordingly. While no legislative amendments have been enacted since 1976, a major regulatory change became effective in 1984. The change was designed to further ensure proper application, and enforcement of and compliance with the Act as a result of: • the effect of various court case rulings on the administration of the Act since 1976; • Administrator rulings issued since 1976 putting into place various limitations, variations, tolerances, and exemptions deemed necessary; and • the need to clarify how wage rate and fringe benefit determinations are made, including the application of CBA rates with regard to successor contractors. Significant changes affected primarily the contract clauses, contract coverage and exemptions, and various provisions related to the development and issuance of wage determinations. appendix C of this Manual provides a thorough description of these changes. REGULATIONS The Secretary of Labor has issued regulations for the SCA as Parts 4, 6, and 8, under Title 29 of the Code of Federal Regulations (CFR). (The CFR is an annual codification of the permanent rules published in the Federal Register). • Part 4 — Labor Standards For Federal Service Contracts This part contains the rules and procedures for the determination of wage rates and fringe benefits, the responsibilities of service contractors/subcontractors and contracting agencies, definitions of covered contracts and covered service employees, and sanctions for non-compliance, among other items. • Part 6 — Rules of Practice for Administrative Proceedings Enforcing Labor Standards in Federally and Federally Assisted Construction Contracts and Federal Service Contracts: This part addresses the rules and procedures governing disputes before Administrative Law Judges.• Part 8 — Practice Before the Board of Service Contract Appeals: This part addresses the rules and procedures governing appeals to this Board with regard to disputed rulings and decisions. ALL-AGENCY MEMORANDA The Wage and Hour Division, Employment Standards Administration of the U.S. Department of Labor may issue SCA-related all-agency memoranda for distribution to all agencies of the Federal Government and the District of Columbia. They are used to announce policies and practices adopted by the Department governing the application and/or enforcement of the Act and its regulations. Generally, these serve to alert agencies to upcoming changes or to modify/clarify policies and procedures. An annotated list of SCA-applicable memoranda, including information on how to secure copies, is contained in appendix D of this Manual.CHAPTER 2s ADMINISTRATION OF THE ACT INTRODUCTION This chapter provides an overview of the authority and organizational network established within the U.S. Department of Labor (DOL) to administer the Service Contract Act. Also examined is the role of other government units in the operation of the wage determination process. The chapter consists of the following major sections. • DOL AUTHORITY AND RESPONSIBILITY • WAGE AND HOUR DIVISION NATIONAL OFFICE • REGIONAL OFFICES • OTHER AGENCIES AND ORGANIZATIONS DOL AUTHORITY AND RESPONSIBILITY As provided by section 4 of the Service Contract Act, and sections 4 and 5 of the Walsh-Healey Public Contracts Act, the Secretary of Labor is authorized and directed to administer and enforce the provisions of the SCA, as amended. The Secretary has the authority to make rules and regulations, issue orders, and take other appropriate action under the Act. Thus, the Secretary of Labor is assigned the responsibility of s • determining the locally prevailing wage rates and fringe benefits that are to be paid as a minimum by contractors providing services under SCA-covered contracts; and • enforcing compliance with wage rate and fringe benefit determinations and other related provisions in the Act. The Secretary also has the authority to make reasonable limitations and to make rules and regulations allowing reasonable variations, tolerances, and exemptions to and from various provisions of the Act, except section 10. (Section 10 states that prevailing wage rate and fringe benefit determinations must be issued for all SCA-covered contracts utilizing over 5 service employees.)Such limitations, variations, tolerances, and exemptions can only be made by the Secretary of Labor when special circumstances dictate that such action is necessary and proper in the public interest or to avoid serious impairment of the conduct of government business. Action taken must be in accord with the remedial purposes of the Act to protect prevailing labor standards. The prescribed functions of the Secretary have been delegated to the Assistant Secretary for Employment Standards which have, in turn, been delegated to the Administrator of the Wage and Hour Division. The Wage and Hour Division (W-H) has the responsibility for planning, directing, and administering the Service Contract Act, among other delegated statutes providing minimum wage, prevailing wage, overtime, and other protections to covered workers. W-H has programmatic responsibility for issuing wage rate and fringe benefit determinations and enforcement responsibility for ensuring that service employees are paid in accordance with the provisions of the Act. Exhibit 1 illustrates the organizational structure of ESA which includes the Wage and Hour Division as one of its primary units. WAGE AND HOUR DIVISION NATIONAL OFFICE Wage and Hour carries out its programmatic and enforcement responsibilities under the Service Contract Act through its staff in the Washington, D.C. headquarters, and in its 10 Regional Offices, 65 Area Offices, and 245 Field Stations throughout the United States. The Service Contract Act wage determination program involves a coordinated effort by national office personnel. This section focuses on W-H headquarters in Washington, D.C., covering only W-H units with SCA wage determination programmatic and enforcement responsibilities and counterpart units with similar responsibilities for the Davis-Bacon Act. Exhibit 2 provides the W-H organizational structure. Office of the Administrator The mission of this office is to plan, establish, and administer a wide variety of labor standards programs, national in scope, under various delegated statutes providing minimum wage, prevailing wage, overtime, and other labor standards protections to covered workers. Major statutes include the following. • Service Contract Act of 1965, as amended fSCAW Provides for minimum compensation requirements andEXHIBIT 1 EMPLOYMENT STANDARDS ADMINISTRATION ORGANIZATION CHART OFFICE OF THE ASSISTANT SECRETARY — ■ ■ - ' x " ’T~ ~ DEPUTY ASSISTANT SECRETARY EQUAL EMPLOYMENT mmmd OPPORTUNITY UNIT I OFFICE OF MANAGEMENT ADMINISTRATION AND PLANNING I WAGE AND HOUR DIVISION I OFFICE OF WORKER'S COMPENSATION PROGRAMS OFFICE OF INFORMATION AND CONSUMER AFFAIRS 1 OFFICE OF STATE LIAISON AND LEGISLATIVE ANALYSIS OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS EXHIBIT 1EXHIBIT 2 m X z 5 H 10 WAGE AND HOUR DIVISION ORGANIZATION CHART OFFICE OF THE ADMINISTRATOR DEPUTY ADMINISTRATOR ASSISTANT REGIONAL ADMINISTRATORS FOR WAGE AND HOUR OFFICE OF PROGRAM OPERATIONS I-1 u> DIVISION OF FLSA OPERATIONS DIVISION OF FARM AND CHILD LABOR PROGRAMS DIVISION OF CONTRACT STANDARDS OPERATION BRANCH OF SPECIAL EMPLOYMENT BRANCH OF FARM LABOR PROGRAMS BRANCH OF CHILD LABOR PROGRAMS BRANCH OF SERVICE CONTRACT OPERATIONS BRANCH OF CONSTRUCTION CONTRACT OPERATIONS DIVISION OF WAGE DETERMINATIONS BRANCH OF SERVICE CONTRACT WAGE DETERMINATIONS BRANCH OF CONSTRUCTION WAGE DETERMINATIONSrelated labor standards protections for service employees working under Federal or District of Columbia Government service contracts. • Fair Labor Standards Act of 1938, as amended (FLSA): Provides minimum wage standards, overtime and child labor provisions, and related labor standards protections for most employees. • Migrant and Seasonal Agricultural Worker Protection Act of 1983 (MSPA): Provides labor standards protection to migrant and seasonal agricultural workers. • Walsh-Healev Public Contracts Act of 1936, as amended (PCA): Provides minimum compensation requirements and related labor standards protections for employees working under Federal or District of Columbia Government manufacturing or supply contracts. • Davis-Bacon Act of 1931, as amended and Davis-Bacon Related Acts (DBRA)s Provides minimum compensation requirements and related labor standards protections for employees working under Federal and District of Columbia, or Federally assisted State and local government construction contracts. • Contract Work Hours and Safety Standards Act of 1962, as amended (CWHSSA): Provides labor standards protections concerning overtime provisions for employees working on Federal or District of Columbia Government contracts. • Copeland Act of 1934: Regulates payroll deductions on Federal or Federally-assisted construction contracts and requires contractors to submit certified payroll statements. Provides protections and criminal sanctions with regard to workers giving back any wages to their employers (i.e., anti-kickback provisions of the Act). • Employee Polygraph Protection Act of 1988: Prevents employers engaged in interstate commerce from using any lie detector tests, with certain exemptions, either for pre-employment screening or during the course of employment. • Immigration Reform and Control Act of 1986 fIRCA): Under this law, W-H provides investigations and inspections with regard to the temporary alien agricultural labor certification program (H-2A) and resulting work contract obligations concerning wages,transportation, meals, and housing provided during employment. Reporting to the Administrator are the Deputy Administrator, Assistant Administrator for the Office of Program Operations and Assistant Administrator for the Office of Policy, Planning and Review. Office of Program Operations The Office of Program Operations (0P0) is responsible for providing interpretive direction to a nationwide field staff concerning the administration and enforcement of the Acts listed above. In addition, 0P0 is responsible for administering the prevailing wage rate and fringe benefit determination programs prescribed by the Service Contract Act and Davis-Bacon Act, and related programmatic operations. Four divisions, each with separate program responsibilities, report to 0P0. Two of these — the Division of Wage Determinations and the Division of Contract Standards Operations — have day-to-day Service Contract Act responsibilities. Division of Wage Determinations This unit directs and coordinates the determination and issuance of prevailing wage provisions under SCA and DBRA. It supervises a program of data collection, analysis, and studies related to wage determination operations. Reporting to the Director of this Division are the Branch of Service Contract Wage Determinations and Branch of Construction Wage Determinations, with only the former of these Branches having service contract responsibilities. In addition, a Central Processing Unit, reporting to the Division Director, provides support to the two Branches. Exhibit 3 provides the Division's organizational structure. Branch of Service Contract Wage Determinations The Branch of Service Contract Wage Determinations has the assigned programmatic mission of determining and issuing prevailing wage rate and fringe benefit determinations as required under the SCA. To develop and issue required determinations, the Branch maintains thousands of files of information, including wage surveys and related source data, collective bargaining agreements (CBAs), and previously established wage determinations.EXHIBIT 3 DIVISION OF WAGE DETERMINATIONS ORGANIZATION CHART i—1 -j EXHIBIT 3Within the Branch, program functions are organized on a geographic basis under the day-to-day supervision of two Section Chiefs (Supervisory Salary and Wage Specialists), each responsible for a particular section of the nation (East Section; West Section). Appendix A of this Manual outlines this geographic division of responsibility. Direction and management of the wage determination function is provided by the Branch Chief, who, in turn, reports to the Director of the Division of Wage Determinations. The primary SCA duties and responsibilities of the Branch include the following. • Researches and analyzes wage rate, fringe benefit, and related economic data. Conducts a continuing program of gathering relevant, current, and available survey data and other wage determination information. • Determines and issues prevailing wage rates and fringe benefits for various classes of workers in various localities nationwide. • Issues decisions in response to requests for adding classifications to existing wage determinations in accordance with the applicable regulations. • Issues decisions with regard to requests for review and reconsideration of issued wage rate and/or fringe benefit determinations and requests for administrative hearings in accordance with applicable regulations. > • Advises on the need for new or revised policies and procedures to effectively and efficiently implement the wage determination program. Develops interpretations and guidelines to assure uniform and consistent use of wage data as the basis for issuing wage determinations. • Serves as a focal point for the identification and resolution of problems in the gathering of relevant, current, and available wage data to be used as a basis for issuing wage determinations. • Responds to inquiries regarding the status, development, accuracy, and application of SCA wage determinations. • Maintains liaison with government contracting agencies, contractors, associations, and labor organizations, and provides technical advice and guidance on the uniform and consistent issuance and application of service contract wage determinations. • Provides technical assistance to the Office of the Solicitor of Labor in connection with wage determinationcases before Administrative Law Judges, Board of Service Contract Appeals, or the civil courts as necessary. Most of the remaining chapters of this Manual are devoted to the SCA wage determination process and related responsibilities of this Branch. Branch of Construction Wage Determinations The Branch of Construction Wage Determinations has the assigned mission of determining and issuing prevailing wage determinations as required under the Davis-Bacon Act. Primary Davis-Bacon duties and responsibilities of this Branch are similar to those performed by the Branch of Service Contract Wage Determinations. The Davis-Bacon Construction Wage Determinations Manual of Operations published in April 1986 describes the guidelines, standards, and techniques used to develop and issue Davis-Bacon prevailing wage determinations. Central Processing Unit This unit provides various document-processing and wage determination tracking support for the two operational branches in the Division of Wage Determinations: Branch of Service Contract Wage Determinations; and Branch of Construction Wage Determinations. In particular, this unit maintains and updates the Wage Determination Automated Tracking System (WD-ATS) and performs various data entry and data retrieval services. The WD-ATS is a computerized management information system designed to assist both Branches in tracking selected activities concerning their respective wage determination processes. Division of Contract Standards Operations This unit is charged with implementing regulations and issuing interpretations concerning the administration and enforcement of statutory provisions that provide prevailing wage, overtime, and related labor standards applicable to employees of contractors covered by various Federal contract and related grant statutes. The Division oversees and coordinates overall enforcement functions, including those of Federal/State agencies primarily under the following statutes: SCA, DBRA, PCA, CWHSSA, Arts and Humanities Act, section 3 of the TVA, and Copeland Act. Reporting to the Division Director are the Branch of Service Contract Operations and the Branch of Construction Contract Operations. The former unit has SCA enforcement responsibilities.Branch of Service Contract Operations This unit is the focal point for enforcement of the SCA, PCA, CWHSSA (with respect to SCA-related provisions), section 3 of the TVA, Copeland Act (with respect to Davis-Bacon-related provisions), and the Arts and Humanities Act. The Branch performs the following SCA activities. • Provides advice and guidance to, and maintains working relationships with, contracting agencies on an ongoing basis to ensure proper compliance with the Act. • Advises on the need for new or revised policies and regulations to effectively and efficiently administer and enforce the Act. • Develops interpretations and guidelines to ensure uniform and equitable enforcement of the Act and coordination with other related acts. • Assists the field staff in their conduct of investigations to determine violations of the Act by providing advice and guidance as necessary. • Assists the field staff in their identification, evaluation, and/or preparation of cases for possible litigation by the Solicitor of Labor. • Responds to inquiries concerning enforcement and interpretations. • Processes investigation files for CWHSSA/SCA liquidated damages and works with contracting agencies with regard to the monetary assessment of such damages. • Provides decisions governing contract or worker coverage issues with regard to the issuance of wage rate and fringe benefit determinations. • Prepares recommendations for placement of contractors violating SCA labor standards on the government-wide debarment list. • Provides technical assistance to the Office of the Solicitor of Labor in connection with enforcement cases before Administrative Law Judges, Board of Service Contract Appeals, or the civil courts as necessary. Branch of Construction Contract Operations This unit is the focal point for the enforcement of Davis-Bacon Act and the Davis-Bacon labor standards of a number of statutes authorizing Federalconstruction. This unit is also responsible for enforcement of the CWHSSA and the Copeland Act with respect to Davis-Bacon-related provisions. Primary Davis-Bacon enforcement duties and responsibilities of this Branch are similar to those performed for SCA enforcement by the Branch of Service Contract Operations. Office of Policy, Planning and Review The Office of Policy, Planning and Review (OPPR), through its Division of Policy and Analysis: • develops, formulates, and issues new and updated program policies, regulations, directives, and procedures; • conducts analyses and evaluations of regulatory options for general impact, effectiveness, reporting requirements, and recordkeeping burdens; • communicates operational policies and procedures to the W-H field staff; • develops specifications for new or amended legislation needed to improve program administration; • analyzes legislation and administrative proposals to determine their impact on the SCA and other W-H programs; and • develops and implements guidelines for the disclosure of W-H documents under the Freedom of Information Act (FOIA) and Privacy Act. The OPPR Division of Planning and Review is responsible for various planning and evaluation functions including the: • development of W-H planning and budgetary reports and measures; • evaluation of program accomplishments through the Accountability Review Program; and • generation and analysis of management reports on program accomplishments, enforcement findings, and program activities utilizing the WHMIS, an automated management information system of the Wage and Hour Division.There are ten (10) ESA Regional Offices which carry out various labor standards responsibilities. With regard to Wage and Hour Division concerns, each Regional Office has an Assistant Regional Administrator (ARA) for Wage and Hour. The ARA is the executive manager for Davis-Bacon and Related Acts, Fair Labor Standards Act, Service Contract Act, Copeland Act, the Migrant and Seasonal Agricultural Worker Protection Act, and other acts administered by Wage and Hour. The ARAs and the 65 Wage and Hour Area Offices and 245 Field Stations around the country are engaged generally in enforcement and compliance activities under these statutes. Exhibit 4 outlines the ESA regional structure. OTHER AGENCIES AND ORGANIZATIONS There are several other agencies and organizations that have a role with regard to the Service Contract Act. A brief discussion of each follows. Bureau of Labor Statistics The Bureau of Labor Statistics (BLS) is the economic and statistical research arm of DOL and the primary Federal agency charged with the collection, analysis, and reporting of labor economic data. BLS provides the primary source of wage rate and fringe benefit data used to issue SCA wage determinations. The Bureau conducts a regular program of cross-industry and other surveys of wages and fringe benefits paid to a variety of occupational classes. Many of these surveys are conducted under a contract with ESA. Section II, chapter 4 provides a detailed discussion of the BLS surveys used to develop SCA wage determinations. Solicitor of Labor The Solicitor of Labor (SOL) is the legal arm for all agencies within the U.S. Department of Labor, providing legal representation for and assistance to the Department in all matters that come before Administrative Law Judges, appeals boards, and the civil courts. For DOL legal matters reaching the civil courts, the U.S. Attorney General provides legal representation, with assistance from SOL. In addition, SOL provides legal advice and assistance to DOL agencies with regard to statutory and regulatory interpretations needed for day-to-day administration.The Office of the Solicitor of Labor is divided into various divisions. The Division of Fair Labor Standards (FLS) provides legal assistance to the Wage and Hour Division for all the laws it administers, including the Service Contract Act. In effect, the Wage and Hour Division is a "client" of this SOL Division. Administrative Law Judges Administrative Law Judges (ALJs) preside over hearings to determine violations and other issues brought before them in accordance with applicable statutes, regulations, and case law pertaining to the authority and responsibilities of the Federal Government. The U.S. Department of Labor maintains an ALJ process similar to all Federal departments and agencies. With regard to Service Contract Act issues, 29 CFR Parts 4 and 6 govern the issues and procedures for referral to an ALJ, and their subsequent disposition. ALJs make decisions based on findings of fact and conclusions of law with regard to the issues specified in the regulations. Various decisions rendered by the ALJ may be appealed by submitting a petition for review to the Board of Service Contract Appeals. In general, there are five types of SCA issues that can be brought before an ALJ. • Substantial variance pursuant to section 4(c) of the Act. • Arm's length negotiations pursuant to section 4(c) of the Act. • Substantial interest pursuant to section 5(a) of the Act. • Enforcement/compliance violations of any provision of the Act. • Debarrment of contractors because of violations of the Act. Section V, chapter 18 of this Manual provides further details concerning the first two issues listed above which affect the SCA wage determination process. The latter three issues are enforcement/compliance issues which are not addressed by this Manual. Board of Service Contract Appeals For the Service Contract Act, appeals can be made to the Board of Service Contract Appeals pursuant to 29 CFR Parts 4I NJ . U1 I EXHIBIT 4 EMPLOYMENT STANDARDS ADMINISTRATION REGIONAL ORGANIZATION CHART EMPLOYMENT STANDARDS ADMINISTRATION OFFICE OF THE REGIONAL ADMINISTRATOR OFFICE OF THE ARA FOR FEDERAL CONTRACT COMPLIANCE PROGRAMS OFFICE OF THE ARA FOR WAGE HOUR OFFICE OF THE ARA FOR WORKER'S COMPENSATION PROGRAMS OFCCP AREA OFFICES (50) FIELD OFFICES (11) WAGE HOUR AREA OFFICES (65) FIELD STATIONS (245) DISTRICT OFFICES (30) SUBDISTRICT OFFICES ____(6)____ FIELD STATIONS (14) EXHIBIT 4and 8. The Board has jurisdiction over appeals concerning questions of fact and law with regard to issues specified in the regulations. The Board of Service Contract Appeals was instituted by regulations which became effective in 1984. To date, appointments to the Board have not been made by the Secretary of Labor. Authority to carry out the responsibilities of the Board has been delegated to the Deputy Secretary of Labor according to interim procedures outlined in 29 CFR Part 8. In general, the SCA issues that can be brought before the Board include the following. • Final rulings of the Administrator, Wage and Hour Division. • Decisions of Administrative Law Judges. These issues are further discussed in section V, chapters 16, 17, and 18 of this Manual. Comptroller General The Comptroller General of the United States resides within the U.S. General Accounting Office. The SCA provides for the Comptroller General to maintain and distribute a list to all agencies of the Federal Government with the names of persons or firms who have been declared debarred because of violations of the Act. The Secretary of Labor or other officials to whom authority has been delegated submits such names to the Comptroller General after an Administrative Law Judge has made a finding of a violation. Persons or firms on this debarred contractors list are ineligible to receive further Federal contracts for 3 years from the date they are so-listed. The General Services Administration prepares a master list for circulation of all debarred contractors to which those debarred due to SCA violations are added. Occupational Safety and Health Administration DOL's Occupational Safety and Health Administration (OSHA) has responsibility for occupational safety and health activites including the: • development and promulgation of workplace safety and health standards and regulations;• conduct of investigations and inspections to determine the status of compliance with these standards and regulations; and • issuance of citations and the imposing of penalties for non-compliance with standards and regulations. Section 2 of the SCA contains a.provision that services covered by the Act must not be performed in buildings or surroundings, or under working conditions which are unsanitary or unsafe to the service employees engaged to furnish the services. It is OSHA's responsibility to enforce this provision of the SCA. Contracting Agencies Contracting agencies are responsible for knowing their obligations under the SCA, especially with regard to: • timely submission of a Notice of Intention to Make a Service Contract (Standard Forms 98/98a) to the Administrator, Wage and Hour Division for each SCA-covered service contract in excess of $2,500; • incorporation of the appropriate wage determinations and contract clauses in corresponding contract bid solicitations or negotiations, designation of the work to which each wage determination applies, and incorporation of the same in the contract itself; • notification to the Wage and Hour local offices of any SCA violations encountered; r • honoring DOL requests for withholding of contract payments to cover back wages resulting from non-compliance with the Act; and • not utilizing contractors appearing on the Lists of Parties Excluded From Federal Procurement or Non-Procurement Programs. Responsibilities and procedures concerning the submission of the Notice of Intention to Make a Service Contract are covered in section III, chapters 7 and 8.This section provides detailed information on the concepts, data sources, and tools needed to understand the service contract wage determination request procedures, development and issuance process, and post-determination actions discussed in sections III, IV, and V respectively. Concepts and related terminology based on the Act and its regulations are defined, data sources used to develop wage determinations and address post-determination needs are described, and the processing, development, and issuance tools needed by staff are outlined. The section is divided into five (5) chapters as follows. • CHAPTER 3s SCA CONCEPTS AND DEFINITIONS • CHAPTER 4: BUREAU OF LABOR STATISTICS DATA SOURCES • CHAPTER 5s FEDERAL WAGE SYSTEM DATA SOURCES • CHAPTER 6s OTHER SELECTED DATA SOURCES • CHAPTER 7: TOOLS USED TO PROCESS, DEVELOP, AND ISSUE WAGE DETERMINATIONSCHAPTER 3s SCA CONCEPTS AND DEFINITIONS INTRODUCTION The SCA embodies many concepts and definitions necessary to the administration of the wage determination program. For purposes of this Manual, the following selected concepts and related terms are defined in this chapter. • COVERED CONTRACTS AND COVERED WORKERS Principal Purposes To Furnish Services Service Employees Geographic Scope Contract Amount and Number of Service Employees Contract Period of Performance • REQUESTS FOR WAGE DETERMINATIONS Individual SF-98 Requests Blanket SF-98 Requests • SCA WAGE DETERMINATIONS Prevailing Wage Determinations Section 4(c) Wage Determinations • TYPES OF WAGE DETERMINATION RESPONSES Individual Wage Determination Responses Blanket Wage Determination Responses • POST-DETERMINATION ACTIONS Conformances Review and Reconsideration Administrative Hearings The discussion of concepts and terms is limited to the information needed for an operational understanding of the development and issuance of wage determinations as called for by the Act. Further understanding of concepts and terms with regard to enforcement of the SCA and compliance with the Act may be gained from the regulations, especially 29 CFR Part 4, Subparts C, D, and E.The Service Contract Act (SCA) applies to Federal and District of Columbia contracts (prime and any subcontract thereunder), the principal purpose of which is to furnish services through the use of service employees. In general, contracts and bid solicitations in excess of $2,500 are required to contain a wage determination issued by DOL specifying the minimum monetary wages and fringe benefits to be paid service employees engaged in the contract's performance. The Act applies to Federal or District of Columbia contracts (prime and any subcontracts thereunder) if: • the principal purpose of the contract as a whole is to furnish services; • service employees will be used in providing such services; and • such services are furnished in the United States (geographic scope as defined by the Act). These three criteria are used to determine whether a given contract falls within the purview of the SCA, thereby constituting a covered contract. All SCA-covered contracts so-determined are subject to the Act. The Act, however, does not require the issuance and subsequent inclusion of a wage determination in all SCA-covered contracts and bid specifications. Considerations important for determining whether a wage determination is required for a given covered contract include the contract amount and number of employees. In addition, the contract period of performance affects when an updated wage determination is required. The following subsections discuss these criteria and considerations. Principal Purpose: To Furnish Services Under its terms, the Act applies to a "contract . . . the principal purpose of which is to furnish services ..." Neither the Act nor the regulations provide a precise definition of "principal purpose". The determination of whether a contract's principal purpose is to furnish services is largely dependent upon a case-by-case evaluation of all the facts against three key areas of inquiry discussed below: legislative intent and regulatory guidance; types of services; and statutory and regulatory exemptions.Legislative Intent and Regulatory Guidance The legislative history of the SCA defines contracts for services as those which have as their principal purpose the procurement of something other than construction activity (as described in the Davis-Bacon Act) or materials, supplies, articles, and equipment (as described in the Walsh-Healey Act). As noted in chapter 1, the SCA was enacted subsequent to the Davis-Bacon and Walsh-Healey Acts to cover Federal contracts to which no labor standards protections applied. Sections 4.131 and 4.132 of 29 CFR Part 4 further clarify principal purpose as follows. • A procurement that requires tangible items (e.g., vehicles or equipment) be supplied as part of the services being furnished is covered by the SCA, provided that the use of such non-labor items is of secondary importance to the contract's principal purpose of furnishing services. • A single contract which combines both specifications for services and specifications for other different or unrelated work (i.e., covered by Davis-Bacon or Walsh-Healey) is covered by the SCA if the contract as a whole is principally to furnish services. Only the specifications which pertain to services, however, are covered by the SCA. One of the other acts may apply to the non-service specifications. Types of Services The types of SCA-covered contracts are varied. Exhibit 5 shows an illustrative list of many of the types of services frequently covered by the SCA. The types of services that can be furnished under SCA-covered contracts are not directly limited by the Act. They are, however, indirectly limited by the Act's definition of a service employee (see Service Employees subsection, page 37). Therefore, an evaluation of the type of services to be furnished in conjunction with the type of employees to be used in furnishing the services dictates whether SCA does or does not apply. For example: A contract whose principal purpose is to furnish services, but intends to utilize exclusively bona fide professional, executive, or administrative employees would not be covered by the SCA.Statutory and Regulatory Exemptions Section 7 of the Act specifically excludes from SCA coverage the following types of contracts. • Any contract for construction, alteration, and/or repair, including painting and decorating of public buildings or public works (i.e., contracts for the procurement of construction activity covered by the Davis-Bacon Act). • Any work required to be done in accordance with the provisions of the Walsh-Healey Public Contracts Act (i.e., specifications or requirements for the procurement of materials, supplies, articles, and/or equipment). • Any contracts for the carriage of freight or personnel by vessel, airplane, bus, truck, express, railway line, or oil or gas pipeline where published tariff rates are in effect. • Any contract for the furnishing of services by radio, telephone, telegraph, or cable companies, subject to the Communications Act of 1934. • Any contract for public utility services, including electric light and power, water, steam, and gas. • Any employment contract providing for direct services to a Federal agency by an individual or individuals. • Any contract with the Post Office Department, the principal purpose of which is the operation of postal contract stations. The regulations at 29 CFR Part 4, sections 4.116 through 4.122 explain the application of these statutory exemptions. In addition, several regulatory exemptions have been issued by the Secretary of Labor, pursuant to the authority provided under section 4(b) of the Act to issue limitations, tolerances, and exemptions. For examples Under certain conditions, contracts for the maintenance, calibration, and/or repair of certain ADP (automated data processing), scientific/medical, and office/business equipment are exempt from the SCA. Also, under certain conditions, contracts for the carriage of mail and contracts for the carriage of freight or personnel subject to rates covered by section 10721 of the Interstate Commerce Act are exempt from the SCA. Further details are provided in section 4.123 of 29 CFR Part 4 and appendix C. pages C-10 through C-12 of this Manual.ILLUSTRATIVE TYPES OF COVERED SERVICES Aerial Spraying Aerial Reconnaissance for Fire Detection Ambulance Service Barber and Beauty Shops Cafeteria and Food Operations Cataloging Chemical Testing and Analysis Clothing Alteration and Repair Computer Operations Concessionaire Operations Custodial, Janitorial, and Housekeeping Data Collection, Processing, and/or Analysis Drafting and Illustrating Film Processing Fire Fighting and Protection Fueling Operations Furniture Repair and Rehabilitation Geological Field Surveys and Testing Grounds Maintenance Guard and Watchman Security Inventory Operations Keypunching and Keyverifying Laboratory Analysis Laundry and Dry Cleaning Linen Supply Lodging and/or Meals Mail Hauling Mailing and Addressing Operations Mess Attendant Operations Mortuary Operations Motor Pool Operation Nursing Home Operations Packing and Crating Pest Control Property Management Snow Removal Stenographic Reporting Support Services at Military Installations Taxicab Operations Vending Machine Operations Visual and Graphic Arts Warehousing or StorageService Employees The Act covers service contracts only where 11 service employees" will be used in performing the services to be procured through the contract. Section 8(b) of the Act defines a "service employee" as follows. "The term service employee means any person engaged in the performance of a contract entered into by the United States and not exempted under section 7, whether negotiated or advertised, the principal purpose of which is to furnish services in the United States (other than any person employed in a bona fide executive, administrative, or professional capacity, as those terms are defined in part 541 of Title 29, Code of Federal Regulations, as of July 30, 1976, and any subsequent revision of those regulations); and shall include all such persons regardless of any contractual relationship that may be alleged to exist between a contractor or subcontractor and such persons." The Act's coverage does not extend to contracts for services to be performed exclusively by persons who are bona fide executive, administrative, or professional personnel as defined by 29 CFR Part 541. For example: A contract for medical services furnished exclusively by professional personnel is not an SCA-covered contract. Regulatory guidance in section 4.113 of 29 CFR Part 4 further states that service contracts to be performed essentially by such exempt personnel with the use of service employees being only a minor factor in the contract's performance are not covered by the SCA. In contrast, service contracts involving a significant or substantial use of service employees with some use of bona fide executive, administrative, or professional personnel in the contract's performance are SCA-covered contracts. For these covered contracts, wage determinations are issued for service workers only, however. For example: Contracts for drafting or data processing services are often performed by drafters, computer operators, or other service employees and are subject to the Act even though the work of such employees may be performed under the direction and supervision of bona fide executive, professional, or administrative employees. Geographic Scope The Act covers contract services furnished in the United States, which is defined as any of the 50 States, the District of Columbia, Puerto Rico, the Virgin Islands, Outer Continental Shelf Lands (as defined in the Outer Continental Shelf Lands Act), American Samoa, Wake Island, Commonwealth of the Northern Mariana Islands, and Johnston Island. This definition expressly excludes any other territory under the jurisdictionof the United States and any United States base or possession within a foreign country. Contracts wherein some services are performed inside, and some are performed outside of the United States as defined above, are covered by the SCA. The Act's provisions, however, are applied to only those services performed within the statutory geographic scope. Contract Amount and Number of Employees Two factors, the contract amount and number of employees, are not determinative of whether SCA does or does not apply. These factors do affect the wage determination requirements of the Act, however, as follows. • A wage determination request is required for any SCA-covered contract in excess of $2,500. • A wage determination must be issued for any SCA-covered contract in excess of $2,500 which intends to utilize more than 5 service employees. In addition, all SCA-covered contracts and bid specifications must contain certain wage clauses as prescribed by the regulations, including employee notification requirements. Such clauses and notices, however, vary depending upon whether the SCA-covered contract amount is over $2,500 or indefinite, or $2,500 or less. Sections 4.5, 4.6, and 4.7 of 29 CFR Part 4 provide further details. All SCA-covered contracts, regardless of contract amount or number of employees, must comply with section 2(b)(1) of the SCA. Thus, where no wage determination is applicable, all workers employed in the performance of the SCA-covered contract must be paid at least the minimum wage, or a higher wage if called for by another applicable labor law. Contract Period of Performance In general, there are two types of SCA-covered contracts that differ according to their stated period of performances annual contracts, which may be later modified, amended, or extended; and multi-year contracts, that are in effect for a specified number of years. The application of SCA wage determination provisions varies somewhat depending upon the type of contract as discussed below.Whenever a modification or amendment of an annual SCA-covered contract results in significant changes in the labor requirements of the contract, it is considered a "new" contract. All contract extensions (term of existing contract is extended pursuant to an option clause or otherwise) are also considered "new" contracts, regardless of whether or not the labor requirements are changed by the extension. "New" contracts created as a result of modifications, amendments, or extensions as defined above are subject to the issuance of a new or revised wage determination as if they were completely new contracts. Multi-Year Contracts There are two types of multi-year, SCA-covered contracts: those for which continuation from year to year for a specified number of years is dependent upon annual U.S. Congressional appropriations; and those that are not. Multi-year service contracts which are not subject to annual U.S. Congressional appropriations include, for example, long-term research and development service contracts with Federal agencies such as the National Aeronautics and Space Administration (NASA) or contracts with the U.S. Department of Defense (DOD) for the provision of PX services on a concession basis. For multi-year service contracts that are dependent upon annual U.S. Congressional appropriations, each annual contract period is considered a completely "new" contract with regard to the issuance of a wage determination. Multi-year service contracts not subject to annual U.S. Congressional appropriations may only be awarded for a maximum time period of 5 years. Such contracts are treated as completely "new" contracts at least every two years for purposes of issuing a wage determination. REQUESTS FOR WAGE DETERMINATIONS The initial responsibility for determining whether a proposed contract may be subject to the SCA and requires a wage determination rests with the contracting agency. For any SCA-covered contract exceeding $2,500, the contracting agency must request a wage determination. There are two types of wage determination requests briefly described below: individual SF-98 requests; and blanket SF-98 requests. Section III outlines key requirements and proceduresfor the completion of forms and the submission of each type of request. Individual SF-98 Requests For each proposed contract, contracting agencies must submit an individual SF-98 request unless they are officially participating in the Blanket Wage Determination Pilot Program. To do so, the Notice of Intention to Make a Service Contract -Standard Form (SF) 98, with an attached SF-98a, must be submitted for each anticipated contract. Exhibits 6 and 7 illustrate a blank sample SF-98 and SF-98a. The wage determination issued in response to the request must be incorporated into the bid specifications and the resultant contract. The SF-98 specifies the relevant procurement dates, the geographic location of the work to be performed, the type of services to be performed under the contract, and provides information on incumbent contractors, previous wage determinations, and collective bargaining agreements that may apply. The SF-98a identifies the occupations (classes) of service employees to be employed, the number to be employed, and the hourly wage rates that would be paid if such workers were Federally-employed. This information is evaluated in conjunction with the best available data to develop and issue the wage determination. Chapter 8 provides further details. Blanket SF-98 Requests The use of blanket wage determination requests for selected SCA-covered procurements began in 1985 with the development of the Blanket Wage Determination Pilot Program. The Pilot Program is designed to test the development of more efficient submission, processing, and wage determination issuance procedures. A blanket request involves the submission of one annual SF-98 request by the contracting agency to cover most SCA-covered contracts in a particular geographic locality and respective service employees anticipated for the upcoming contract year (12-month period). In so doing, an individual SF-98 need not be submitted for each anticipated covered contract. A wage determination is issued in response to the blanket request to cover all anticipated classes of service employees for all anticipated contracts listed in the request*.:; for an effective period of 12 months. The blanket SF-98 request includes the same types of information as the individual request, but the format and it detail differ somewhat. A blanket request includes the submission of the SF-98, but not the SF-98a. In place o| MlSAMPLE BLANK SF-98 STANDARD FORM 9* R«v. Fab. 1973 US. DEPARTMENT OF LABOR EMPLOYMENT STANDARDS ADMINISTRATION NOTICE OF INTENTION TO MAKE A SERVICE CONTRACT AND RESPONSE TO NOTICE (See Instructions on Reverse) 1. NOTICE NO. A 1 297442 MAIL TO: r L Administrator Wage and Hour Division U.S. Department of Labor Washington, D.C. 20210 2. Estimated solicitation data (««< numeral4) ~i Month Day Year 3. Estimated date bids or proposals to be opened or negotiations begun (uee numerals) Month Day Year _i 4. Date contract performance to begin (uae numerals) Month Day Year 5. PLACE(S) OF PERFORMANCE 6. SERVICES TO BE PERFORMED id^cribt) 7. INFORMATION ABOUT PERFORMANCE A. 0 Services now performed by a contractor B. Q Services now performed by Federal employees C. 3 Services not presently being performed S. IF BOX A IN ITEM 7 IS MARKED. COMPLETE ITEM 8 AS APPLICABLE a. Name and address of incumbent contractor j b. Nu:n!>er(s) of any wage determination(s) in incumbent’s contract c. Name(s) of union(s) if services are being performed under collective bargaining agreement(s). Important: Attach copies of current applicable collective bargaining agreements RESPONSE TO NOTICE (by Department oj Labor) 1 A. Q The attached wage deteimination(s) listed below apply to procurement. 9. OFFICIAL SUBMITTING NOTICE TYPE OR PRINT NAME TELEPHONE NO. 10. TYPE OR PRINT NAME AND TITLE OF PERSON TO WHOM RESPONSE IS TO BE SENT AND NAME AND ADDRESS OF DEPARTMENT OR AGENCY. BUREAU. DIVISION. ETC. r L _i B. Q As of this date, no wage determination applicable to the specified locality and classes of employees is in effect. C. Q From information supplied, the Service Contract Act does not apply (see attached explanation). D. Q Notice returned for additional information (see attached explanation). Signed: (1/.S. Department of Labor)SAMPLE BLANK SF-98a STANDARD rortu 98a Feb'u»ry 1973 U.S. DEPARTMENT OF LABOR Employment Standards Administration NOTICE OF INTENTION TO MAKE A SERVICE CONTRACT AND RESPONSE TO NOTICE (Attachment A) 11. NOTICE NO. 12. CLASSES OF SERVICE EMPLOYEES TO BE EMPlOYEO ON CONTRACT 13. NUMPER OF EMPLOYEES IN EACH CLASS 14. HOURLY WAGE RATE THAT WOULO BE PAID IF FEDERALLY employed SF-98a, worksheets are prepared to document the services, classes, and number of service employees needed, and the comparable Federal wage rates, among other items. In addition, blanket requests differ from individual requests in that they cannot be submitted for certain types of procurements as listed below. Rather, individual SF-98 requests must be submitted for such contracts. • Successor SCA-covered contracts subject to predecessor collective bargaining agreements (CBAs) under sections 2(a)(1), 2(a)(2), and 4(c) of the Act requiring section 4(c) wage determinations (see page 51 for a definition of this type of wage determination). • Contracts whose place of performance is unknown at the solicitation stage. • Contracts that may displace Federal employees (i.e., OMB Circular A-76 studies to gauge contractor versus Federal employee capabilities and costs). • Contracts involving consolidations or reconfigurations of existing contracts. Numerous contracting agencies are currently participating in this Pilot Program. All others must submit individual SF-98 requests as described previously. The Pilot Program is gradually expanding and will eventually be used for many SCA-covered contracts. Chapter 9 provides further details. SCA WAGE DETERMINATIONS The SCA wage determination (WD) sets the minimum wages and fringe benefits that contractors or their subcontractors must pay covered service employees working under SCA-covered contracts. These minimum levels are established for occupational classes of covered service employees listed in the SF-98 request. Wages are defined as monetary compensation provided to employees. They are usually listed in the wage determination as minimum hourly wage rates. Fringe benefits are defined in section 2(a)(2) of the Act as follows. "Such fringe benefits shall include medical or hospital care, pensions on retirement or death, compensation for injuries or illness resulting from occupational activity, or insurance to provide any of the foregoing, unemployment benefits, life insurance, disability and sickness insurance, accident insurance, vacation andholiday pay, costs of apprenticeship or other similar programs and other bona fide fringe benefits not otherwise required by Federal, State, or local law to be provided by the contractor or subcontractor." The various fringe benefits listed in the Act are illustrative of those which may be included in the WD. Which fringe benefits are included in the WD depends upon the type of WD to be issued and the evaluation of source data used to develop the WD. Fringe benefits may be provided as monetary compensation (cash payments) in lieu of providing the listed benefit. One of two types of wage determinations may be issued: prevailing WDs; or section 4(c) WDs. Essentially, they differ according to the basis used for their development and issuance as called for by the Act and regulations. The specific terms and definitions that pertain to each of these two types of WDs are discussed below. Exhibit 8 provides a sample section 4(c) WD. (For a sample prevailing WD, see exhibit 95. page 413.) Section IV is devoted to the procedures followed to develop and issue a WD. Prevailing Wage Determinations Prevailing wage determinations are based on the wage rates and fringe benefits determined to prevail in the locality where the place of contract performance is located. The best available data are used to determine what is prevailing, while giving due consideration to Federal wage rates that would apply if workers were Federal direct-hires. Such WDs are developed in accordance with sections 2(a)(1), 2(a)(2), and 2(a)(5) of the Act. The relevant terms, locality, prevailing, best available data, and due consideration, are discussed below. Note that "prevailing wage determinations" are often referred to as "areawide wage determinations" or "areawide, prevailing wage determinations". Such terms are used interchangeably by Wage and Hour staff, Federal procurement agencies, and contractors. They are therefore used interchangeably in this Manual even though the SCA regulations only use the term "prevailing" to describe such wage determinations. Locality Locality is the geographic area where the SCA-covered contract will be performed (place of performance). The legislative history of the Act indicates that the establishment of minimum compensation levels should reflect and not interfere with local labor market conditions.EXHIBIT 8 SAMPLE WAGE (Page DETERMINATION 1 of 2) U.S. DEPARTMENT OF LABOR EMPLOYMENT STANDARDS ADMINISTRATION WAGE AND HOUR DIVISION WASHINGTON, D.C. 20210 REGISTER OF WAGE DETERMINATIONS UNDER THE SERVICE CONTRACT ACT By direction of the Secretary of Labor Page 1 of 2 Moss Director Division of Wage Determinations State: CALIFORNIA CA LOCALITY Area: Presidio of San Francisco, San Francisco County 075 Wage determination number: 8 8-496 Date: July 22, 1988 Minimum Fringe benefit payments Clast of service employee hourly wage Health & Welfare Vacation Holiday Other !. - * 1 2 2 ■ 1 - ■ 48 11.73 12.21 9.25-13.71 - - - M -• 2 4 :r 7 1 - 2 i b 4 6 4 1 1 3 Gratters II........................................ 20 9.97 9.62 9.06-11.10 - - * -1 A i 3 7 1 2 1 - ' - 1 - * Electronics technicians...................... 65 15.27 16.31 15.53-16.43 - - - _ - - - 3 ■ 1 i * 3 - 9 43 Electronics technicians III.............. 58 15.70 16.31 15.53-16.43 - - "! - •j ■ “ 1 - 1 i 2 2 • - 8 43 Maintenance electricians................... 135 14.59 16.31 12.48-16.31 - . _ -• - - 3 2 1 - 7 _ 21 2 16 10 5 68 - Maintenance machinists.................... 92 14.25 16.31 11.15-16.31 - - - .1 .i - - •» - - 12 24 - - - - 1 55 - Maintenance mechanics (machinery)..................................... 107 15.08 16.31 14.07-16.31 - - . -* - - 2 - - | 16 6 - 10 9 64 Maintenance pipefitters..................... 74 15.87 16.31 16.31-16.31 - - - - ” - - - - - 4 4 * 6 58 ■ Motor vehicle mechai lies.................. 29 13.53 14.68 12.45-15.83 - - - * - - - 6 - - ' 1 - 1 1 12 2 • General maintenance workers.......... 57 10.33 11.11 7.00-13.05 1 - 2 2 1 3| 7! 2i - - 1 • b - 16 - - * - Tool and die makers.......................... 44 12.21 12.23 11.12-13.73 - - - - - - 1 - « ' 3 \0\ 5 6 • 10 * 1 Stationary engineers.......................... 16 12.35 12.14 11.61-14.96 ” - - 2 “• " " ■ ■ * ! 4 4 2 4 ' Truckdrivers........................................ 125 12.19 14.93 8.65-15.25 ' - 1 2 9 2i 9 -• - 20 - - - 2 - 1 - - 14 59 _ - Truckdrivers, tractor-trailer............ 32 13.66 14.93 14.93-15.58 _ - - - * - 6 - - - - - - 1 - - 10 15 * • Shipping packers................................ 89 11.39 10.65 9.37-14.35 - - - - 17. 1 5 - 12 12 i - 3 - * 39 ■ - • Forklift operators................................ 288 12.03 14.50 10.40-15.03 12 - - - 4 221 30 -1 - i 1 - 11 11 41 - 8 2 * 17 117 12 • 50 14.58 14.70 14.70-15.03 - - - - 1 * ’1 - - - - - - 4 29 16 - • Janitors, porters, and cleaners......... 118 12.02 14.63 11.00-14 63 2! 1 3 - 1 i1 - . 3 * 16 1 1 77 - ,. _ 1 Excludes premium pay lor overtime and lor work on wookonds, holidays, and luie shilts. Also oxcludod aro porfoimunco bonuses and lump-sum payments of the type negotiated in the aulo and aerospace industries, as well as profit-sharing payments, attendance bonuses, Christmas or year-end bonuses, and other nonproduction bonuses. Pay increases—bul not bonuses—under cost-of-living allowance clauses and incentive payments, however, are includod. Hourly oarnings reported lor salaried workers are derived Irom regular salaries divided by the corresponding standard hours ol work. The wages ol learners, apprentices, and handicapped workers aro excluded. The mean is computed lor each job by lolaling the earnings ol iill worker:, and dividing l>y II10 number ol woikors. Iho median designates position—ono-hall Of the workers rocoivo the same as or moie than ilns rale and one-hall receive Iho same as or loss than this rale The middlo range is defined by two rales ol pay; ono-lourlli ol U>e woikors earn tho same as or less than the lowor ol those ralos and ono-lourth earn the samo as or more than Iho higher rate Middle tangos are nol provided when lower than 15 workers aro reported. 1 Tor occupations with more :han one level, data are included in iho overall classification whon a subclassilicalion is not shown or inlorm.ilion to Mibda-.siiy is nol available EXHIBIT 22SCA SPECIAL STUDY WAGE DATA — SAMPLE PAGE Forestry and Logging Wage Survey Montana 1987 U.S. Department of Labor Bureau of Labor Statistics Summary February 1988 This summary presents results of a survey of occupational wages in the forestry and logging industries in the State of Montana. This study was conducted by the Bureau of Labor Statistics at the request of the Employment Standards Administration of the U.S. Department of Labor for use in administering the Service Contract Act of 1965. This study covered forestry operations employing 4 workers or more (industry 08, as defined in the 1972 edition of the Standard Industrial Classification Manual) and logging camps or logging contractors employing 10 workers or more (industry 2411). A sample of 34 establishments was selected to represent 74 establishments, the estimated total of all establishments within the scope of the survey. The wage information included in this report relates to nonsupervisory workers. To reflect seasonality of certain activities, data for tree planters refer to May 1987 and data for all other occupations refer to July 1987. Occupational classification was based on a uniform set of job descriptions designed to take account of variations in job duties among establishments. The job descriptions used in the survey are available on request. A survey covering most private industries is also conducted in this area. A current report is available from any of the Bureau’s regional offices listed on the back page of this report. Table 1. Occupational earnings of workers In forestry and logging In Montana, 1987 Hourly earnings (in dollars)1 Number ol workers receiving straight-time hourly earnings (In dollars) of — Occupation* Number of workers Mean Median Middle range 7.50 and under 8.00 8.00 8.50 8.50 9.00 9.00 9.50 9.50 10.00 10.00 10.50 10.50 11.00 11.00 11.50 11.50 12.00 12.00 12.50 12.50 13.00 13.00 13.50 13.50 14.00 14.00 14.50 14.50 15.00 15.00 15.50 15.50 16.00 16.00 16.50 16.50 17.00 17.00 17.50 17.50 18.00 18.00 18.50 18.50 and over 24 12 42 12.52 10.90-12.80 . 1 m 2 3 1 1 2 9 2 _ . . . - 1 2 - - - - 276 13.61 14.10 11.06-15.63 6 .7 11 11 9 19 5 6 15 19 20 6 4 2 10 11 78 4 7 7 4 9 8 Forestry heavy equipment opera- 328 13.02 12.00 11.25-13.75 7 3 20 31 76 9 36 35 19 17 15 6 7 4 7 5 2 4 4 21 55 13.22 12.50 11.66-13.85 . . - 3 - 4 3 3 4 4 19 1 1 - - 3 - - 3 - - - •7 156 12.50 11.25 11.25-13.09 . . . 3 3 8 14 55 2 21 8 10 1 7 1 3 - 5 1 2 4 4 4 38 11.96 12.00 11.30-13.00 3 • 1 1 3 - 2 - 16 2 2 2 2 4 - - - - - - - - 32 11.7F 12.00 10.63-12.75 . 3 - 1 1 3 - 2 - 14 - 2 2 2 2 34 10.18 9.50 9.00-11.37 - - 8 5 6 2 1 5 1 3 1 2 • Excludes premium pay lor overtime and for work on weekends, holidays, and late shifts. Also exclude^ are performance bonuses and lump-sum payments of the type negotiated in the auto and aerospace industries, as well-as profit-sharing payments, attendance bonuses. Christmas or year-end bonuses, and other nonproduction bonuses. Pay increases—but not bonuses—under cost-of-living allowance clauses and incentive payments, however, are included. Hourly earnings reported for salaried workers are derived from regular salaries divided by the corresponding standard hours of work. The wages ol learners, apprentices, and handicapped workers are excluded. The mean is computed lor each |ob by totaling the earnings ol all workers and dividing by the number ol workers. The median designates position—one-hall ol the workers receive the rates ol pay; one-lourth ol the workers earn the same as or less than the lower ol these rates and one-lourth earn the same as or more than the higher rate. Middle ranges are not provided when fewer than 15 workers ate reported. ' The overall classifications for truckdrivers and heavy equipment operators may include data for workers not identified by type of equipment. • Workers were distributed as follows: 3 at $18.50 to $19.00; 2 at $20.00 to $20.50; and 2 at $21.00 to $21.50. ☆ U.S. GOVERNMENT PRINTING OFFICE: 1988-202-096/60201• Paid vacation provisions for full-time workers. • Health insurance and pension plans offered to full-time workers. Exhibit 24 presents a sample fringe benefit data page from the SCA Area Survey. As with AWSs, these data are used to determine what fringe benefits prevail in a locality. OCCUPATIONAL EARNINGS IN AT.T. METROPOLITAN AREAS This BLS Summary is based on the data collected for Area Wage Surveys. The Occupational Earnings in All Metropolitan Areas (OEAM) Summary is thus developed, based on AWS data, to be representative of all metropolitan areas. The sample selected for AWS surveys is drawn in such a way as to be a valid statistical sample that can be used to represent all metropolitan areas in the 48 States. This allows for the AWS findings of each area to be combined, after appropriate weighting, to yield national and regional wage rates. For SCA WD purposes, this data source is usually used as a supplementary resource. In most cases, OEAM data are used to develop or verify relationships between occupational classes and between job levels within an occupational classification family. The development of relationships is an important technique used when wage rate data are not provided by an AWS or SCA Area Survey for particular classes required by the WD. The area-specific wage data and the regional OEAM data are utilized together to develop appropriate wage rates for classes not surveyed. The need for and procedures followed to develop wage rate relationships will be discussed in section IV, chapters 14 and 15. OEAM is useful in this regard primarily for white collar workers. Federal Wage System wage rates are usually used in the same manner for blue collar classes. These sources are described in chapter 5. In addition, OEAM data may be used as a primary source if the procurement is truly regional or nationwide in scope. If not, area-specific data should always be used unless none are available. Geographic Scope The OEAM is essentially a "weighted roll-up" of data collected for AWS surveys. It provides nationwide and regionalwage data for the occupations surveyed. There are four (4) regional breakouts: Northeast, South, Midwest, and West. In general, only the regional data are used for SCA WD purposes unless a procurement is nationwide in scope. Industrial Scope Given that the OEAM is based on AWS survey data, the industrial scope is the same as described on page 63 for the AWS. Occupational Scope Given that the OEAM is based on AWS survey data, the occupational scope is the same as described on page 64 for the AWS. Survey Cycles The OEAM Summary is issued annually. It combines data collected through the annual Area Wage Survey (AWS) into nationwide and regional wage rates. Note, however, that there is a one year "lag" time — the AWS annual survey data used to develop the OEAM are data that were collected in the year prior to the publication of the OEAM Summary. Types of Data Collected/Reported As with the AWS, average straight-time weekly or hourly earnings are reported for each occupation and industry division, including the wage rates for all industries. This resource does not report fringe benefit data, however. Data provided represent all metropolitan areas in the U.S., with regional breakouts for the Northeast, South, Midwest, and West. Exhibit 25 illustrates a sample page of regional data. NATIONAL SURVEY OF PROFESSIONAL, ADMINISTRATIVE, TECHNICAL. AND CLERICAL PAY Purpose The National Survey of Professional, Administrative, Technical, and Clerical Pay (PATC) is an annual, nationwide salary survey of selected white collar occupations in the private sector conducted by BLS. The nationwide salary information is representative of establishments in a broad105 EXHIBIT 24 SCA AREA SURVEY FRINGE BENEFITS DATA — SAMPLE PAGE Table 2. Annual paid holidays for full-time workers in Battle Creek, Ml, July 1987 Item Production and Office related workers workers All full-time workers 100 100 In establishments not providing 1 C) In establishments providing 99 99 Number of holidays: C) - (') • ~ (*) 3 7 Plus 3 half days.................................................................. - 1 2 1 Plus 2 half days.................................................................. 1 C) 21 9 Plus 2 half days.................................................................. - 1 6 4 C) 1 16 25 15 12 9 6 26 16 11 3 Average number of paid holidays 11.5 10.3 where provided (in days)........................................................... * Less than 0.5 percent. Note: Because of rounding, sums of individual items may not equal totals. EXHIBIT 24OEAM WAGE DATA — SAMPLE PAGE Table 1. Average weekly earnings for selected office, professional, and technical occupations, all metropolitan areas, by region, August 1987 Average straight-time earnings' Occupation1 and level Total number of workers All metropolitan Region3 areas Northeast South Midwest West Secretarial and keyboarding occupations Secretaries ............................................................. 302,407 $411.50 $414.00 $393.50 $403.50 $442.00 Secretaries 1....................................................... 40,820 332.00 332.50 316.00 341.50 357.50 Secretaries II...................................................... 63,965 373.00 377.00 363.50 342.50 407.50 Secretaries III..................................................... 115,044 414.50 411.50 407.00 413.00 434.00 Secretaries IV .................................................... 53,701 471.00 474.00 467.00 442.50 494.00 Secretaries V ..................................................... 17,738 543.50 540.50 524.50 537.50 571.50 Stenographers........................................................ 9,173 406.00 389.00 412.00 406.00 430.50 Stenographers 1................................................. 4,801 381.00 359.50 397.00 379.50 385.00 Stenographers II................................................ 4,316 435.00 421.50 449.50 429.50 464.00 Typists..................................................................... 37.050 280.50 268.00 272.00 285.50 314.50 Typists 1 .............................................................. 24,430 257.50 248.50 256.50 249.50 298.50 Typists II ............................................................. 12,301 326.50 320.00 304.00 338.50 347.00 Word processors ................................................... 37,991 337.00 336.00 335.00 313.50 365.00 Word processors 1............................................. 20,050 308.50 310.00 313.00 280.50 331.00 Word processors II............................................ 17,790 368.50 363.00 366.00 348.00 395.00 Key entry operators .............................................. 107,475 283.50 286.00 273.00 278.50 304.50 Key entry operators 1........................................ 73,113 264.00 263.00 262.00 257.50 281.50 Key entry operators II....................................... 33,250 327.00 331.50 311.50 321.00 343.00 Other clerical occupations Accounting clerics.................................................. 247,833 319.00 318.50 310.50 310.50 345.00 Accounting clerks 1 ........................................... 29,102 250.50 253.50 243.50 238.50 279.00 Accounting clerks II .......................................... 125,867 297.00 298.50 289.50 290.50 320.50 Accounting clerks III ......................................... 64,959 351.00 354.00 335.50 343.50 378.50 Accounting clerks IV......................................... 24,574 423.00 439.00 404.50 437.50 431.00 Payroll clerks.......................................................... 35,263 337.00 341.00 325.50 329.50 360.00 File clerks ............................................................... 38,432 232.50 225.00 240.50 223.00 249.00 File clerks 1 ........................................................ 24,179 211.00 208.50 210.50 205.00 226.50 File clerks II ....................................................... 11,711 257.50 239.00 276.00 244.00 282.00 File clerks III ...................................................... 2,483 329.50 313.50 385.00 278.00 342.50 Messengers............................................................ 12,116 248.50 241.00 243.00 247.00 286.50 Order clerks ........................................................... 52,007 310.50 309.00 286.50 311.00 347.00 Order clerks 1..................................................... 30,971 278.00 283.50 266.00 271.00 302.50 Order clerks II.................................................... 20,539 359.50 354.00 341.50 350.50 401.00 Receptionists ......................................................... 10,590 268.00 278.50 251.00 258.50 298.50 Switchboard operators.......................................... 17,631 269.50 291.00 244.00 275.00 281.50 Switchboard operator-receptionists..................... Professional and technical occupations 53,197 267.50 281.00 256.50 259.50 279.50 Computer systems analysts................................. 113,916 700.00 724.50 683.50 686.00 707.00 Computer programmers........................................ 110,925 562.00 591.50 540.50 519.00 595.00 Computer operators .............................................. 78,319 387.50 391.00 375.50 380.50 414.00 Peripheral equipment operators .......................... 3,046 340.00 305.00 316.50 354.50 386.50 Computer data librarians...................................... 3,326 339.00 349.00 320.00 332.00 361.50 Drafters................................................................... 64,715 462.00 469.50 447.00 467.00 ' 465.50 Drafters 1 ............................................................ 1,938 268.00 268.50 281.00 254.50 - Drafters II ........................................................... 9,130 320.00 305.50 324.00 316.00 343.50 Drafters III .......................................................... 18,659 412.00 419.00 414.50 400.50 422.00 Drafters IV.......................................................... 20,090 494.00 501.00 488.50 490.50 502.50 Drafters V........................................................... 13,487 610.00 604.50 627.50 625.50 551.50 Electronics technicians......................................... 110,876 518.00 495.00 494.50 535.00 552.00 Electronics technicians 1 .................................. 18,736 360.50 356.00 322.50 434.50 364.50 Electronics technicians II ................................ 58,423 530.00 523.00 522.00 531.00 544.00 Electronics technicians III ................................ 32,725 586.00 565.00 566.00 583.50 619.50 Registered industrial nurses................................. 6,137 526.50 539.00 509.50 521.50 561.50 ' Total employment and average earnings for overall classifications may include data for workers not classified by level. 2 Earnings relate to regular straight-time salaries that are paid for standard workweeks. 3 The regions are defined as follows: Northeast—Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont; South—Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mis- sissippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia; Midwest— Illinois, Indiana, Iowa, Kansas, Michigan. Minnesota, Missouri, Nebraska, North Dakota. Ohio. South Dakota, and Wisconsin; and West—Arizona, California, Colorado. Idaho. Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. NOTE: Dashes indicate that data do not meet publication criteria.spectrum of industries throughout the United States, except Alaska and Hawaii. In conducting this survey, BLS carries out its responsibility under the Federal Pay Comparability Act of 1970 which currently governs general pay adjustments for Federal white collar employees. Under the Act, a Pay Agent designated by the President (currently the Secretary of Labor, and the Directors of the Office of Management and Budget and the Office of Personnel Management) sets up comparability procedures, and reports annually to the President. The report compares salaries of Federal employees with those paid in private industry for the same levels of work, as determined by the PATC survey. As of 1987, the PATC survey scope has been changed. Previously, all surveys were conducted on a cross-industry basis similar in industrial scope to the AWS and SCA Area Surveys discussed earlier. In 1987, the survey was limited to service industries; in 1988, to nonservice industries. Starting with the March 1989 PATC survey, industrial scope will alternate each year between service-producing industries and goods-producing industries (construction, mining, and manufacturing). Consequently, starting with the March 1987 survey, PATC results will not be directly comparable with previous surveys. Changes made are designed to broaden the coverage of the PATC survey to more industries, including health care and educational services, and to smaller establishments. These changes were part of a proposal by the President's Cabinet Council on Management and Administration to expand the PATC survey to major segments of the labor force not covered previously, and to use this additional information to broaden the base of the Federal pay comparability process. For SCA wage determination purposes, PATC is usually used in a similar way as the OEAM discussed previously. Given that the primary sources used (AWS/SCA Area Surveys) do not always include data on all the occupations that may be required by a prevailing, areawide WD, supplementary sources may be needed. Such supplementary sources are used to develop relationships between job classifications and job levels within classification families that can be used to develop an appropriate prevailing wage rate. Methods for evaluating and developing such relationships are described in section IV, chapters 14 and 15. Note that the PATC covers white collar occupations and can therefore only be used to develop relationships for white collar jobs. In addition, if a procurement is nationwide in scope, the PATC could be used as the primary source data for developing prevailing wage rates for white collar workers.Geographic Scope The survey is nationwide in scope, excluding Alaska and Hawaii. The survey presents data representative of the nation as a whole which includes both metropolitan and nonmetropolitan areas; and presents data representative of metropolitan areas only, excluding Alaska and Hawaii. Metropolitan data relate to all 326 MSA's and PMSA's within the contiguous 48 States as defined by the U.S. Office of Management and Budget. Industrial Scope The industrial scope of the PATC survey began alternating year to year beginning with the March 1987 survey which included all service industries only — all four-digit level industries included in the two-digit SIC Codes 70 through 88. Such service industries primarily include personal, business, educational, health, legal, recreational, and technical services. The March 1988 survey includes all nonservice industries except agricultural, private households, and government operations, thereby excluding services surveyed in the previous year. Exhibit 26 lists the goods-producing and service-producing industries by two-digit SIC Code that will be surveyed in alternating years starting in 1989. For a complete list of industry divisions by 4-digit SIC Code level, consult the numerical index of the SIC Manual. Note that although the PATC changes in industrial scope from year-to-year, each annual bulletin report includes a table of combined data that provides wage data for all industries surveyed in both years. Thus, starting in 1987, a table is included which provides wage data representative of all industries, except farms, private households, and government operations. In producing the combined data, BLS updates the portion of the economy surveyed the previous year with an appropriate component in the Employment Cost Index for wages and salaries, and combines the updated statistics with the results of the current year's survey. The PATC survey sample is drawn from establishments employing at least 50 workers as the minimum size criterion. Occupational Scope The PATC is a survey of approximately 30 white collar occupations usually spanning about 133 job levels. Exhibit 27 presents a list of the occupations and job levels studied.BLS PATC SURVEY INDUSTRIES SURVEYED BY TWO-DIGIT* SIC CODE FOR MAJOR GROUPS GOODS PRODUCING SURVEY MINING SIC 10 through 14. Includes all four-digit SIC industry divisions listed therein. CONSTRUCTION SIC 15 through 17. Includes all four-digit SIC industry divisions listed therein. MANUFACTURING SIC 20 through 39. Includes all four-digit SIC industry divisions listed therein. SERVICES PRODUCING SURVEY TRANSPORTATION, COMMUNICATION, AND OTHER PUBLIC UTILITIES SIC 40 through 49. Includes all four-digit SIC industry divisions listed therein except those listed under SIC 43 (U.S. Postal Service) from which no industries are selected. WHOLESALE TRADE SIC 50 and 51. Includes all four-digit SIC industry divisions listed therein. RETAIL TRADE SIC 52 through 59. Includes all four-digit SIC industry divisions listed therein. FINANCE, INSURANCE. AND REAL ESTATE SIC 60 through 67. Includes all four-digit SIC industry divisions listed therein. SERVICES SIC 70 through 89. Includes all four-digit SIC industry divisions listed therein except those listed under SIC 88 (Private Households) from which no industries are selected. *For a listing of industry divisions by four-digit SIC code, see the numerical index of the SIC Manual.BLS PATC SURVEY OCCUPATIONS SURVEYED* ACCOUNTANTS & AUDITOR BUYER OCCUPATIONS OCCUPATIONS Buyer Accountant Buyer I Accountant I Buyer II Accountant II Buyer III Accountant III Buyer IV Accountant IV Accountant V COMPUTER SYSTEMS ANALYST Accountant VI OCCUPATIONS Auditor Computer Systems Analyst Auditor I Computer Systems Analyst I Auditor II Computer Systems Analyst II Auditor III Computer Systems Analyst III Auditor IV Computer Systems Analyst IV Computer Sytsterns Analyst V Public Accountant Public Accountant I COMPUTER PROGRAMMER OCCUPATIONS Public Accountant II Public Accountant III Computer Programmer Public Accountant IV Computer Programmer I Computer Programmer II Chief Accountant Computer Programmer III Chief Accountant I Computer Programmer IV Chief Accountant II Computer Programmer V Chief Accountant III Chief Accountant IV PERSONNEL MANAGMENT OCCUPATIONS Chief Accountant V Job Analyst ATTORNEY OCCUPATIONS Job Analyst I Job Analyst II Attorney Job Analyst III Attorney I Job Analyst IV Attorney II Attorney III Director of Personnel Attorney IV Director of Personnel I Attorney V Director of Personnel II Attorney VI Director of Personnel III Director of Personnel IV Director of Personnel V ♦Occupations surveyed are from the 1987 PATC survey for services industries. Essentially the same occupations are used for the PATC non-services survey.  BLS PATC SURVEY OCCUPATIONS SURVEYED* CHEMIST & ENGINEER (CONTINUED) TECHNICAL SUPPORT OCCUPATIONS OCCUPATIONS (CONTINUED) Chemist Civil Engineering or Survey Chemist I Technician/Construction Chemist II Inspector Chemist III Civil Engineering ... I Chemist IV Civil Engineering ... II Chemist V Civil Engineering . . . Ill Chemist VI Civil Engineering ... IV Chemist VII Civil Engineering ... V Chemist VIII Engineer Engineering Technician Engineering Technician I Engineer I Engineering Technician II Engineer II Engineering Technician III Engineer III Engineering Technician IV Engineer IV Engineering Technician V Engineer V Engineer VI Drafter Engineer VII Drafter I Engineer VIII Drafter II REGISTERED NURSES Drafter III Drafter IV OCCUPATIONS Drafter V Registered Nurse (RN) COMPUTER OPERATOR OCCUPATIONS RN I RN II Computer Operator RN III Computer Operator I RN IV Computer Operator II TECHNICAL SUPPORT Computer Operator III Computer Operator IV Computer Operator V OCCUPATIONS Licensed Practical Nurse Computer Operator VI (LPN) PHOTOGRAPHER OCCUPATIONS ' LPN I LPN II Photographer LPN III Photographer I Nursing Assistant Photographer II Photographer III Nursing Assistant I Photographer IV Nursing Assistant II Photographer V Nursing Assistant III Nursing Assistant IV BLS PATC SURVEY OCCUPATIONS SURVEYED* (CONTINUED) CLERICAL OCCUPATIONS Accounting Clerk Accounting Clerk I Accounting Clerk II Accounting Clerk III Accounting Clerk IV File Clerk File Clerk I File Clerk II File Clerk III General Clerk General Clerk I General Clerk II General Clerk III General Clerk IV Key Entry Operator Key Entry Operator I Key Entry Operator II Messenger Personnel Clerk/Assistant (Employment) Personnel Clerk/Assistant (Employment) I Personnel Clerk/Assistant (Employment) II Personnel Clerk/Assistant (Employment) III Personnel Clerk/Assistant (Employment) IV Personnel Clerk/Assistant (Employment) V CLERICAL OCCUPATIONS (CONTINUED^ Purchasing Clerk/Assistant Purchasing Clerk/Assistant I Purchasing Clerk/Assistant II Purchasing Clerk/Assistant III Purchasing Clerk/Assistant IV Secretary Secretary I Secretary II Secretary III Secretary IV Secretary V Stenographer Stenographer I Stenographer II Typist Typist I Typist IITo assure collection of pay data for work levels equivalent to the General Schedule grade levels, the Office of Personnel Mangement (OPM), in cooperation with BLS, prepares the occupational work level definitions used in the survey. Definitions are developed by OPM according to standards established for each grade level. Survey Cycles The PATC is an annual, nationwide survey; however, beginning in 1989, the industrial scope of the survey alternates between services-producing and goods-producing industries. Data for the survey are obtained primarily by personal visits of the Bureau's field representatives to a nationwide sample of establishments. Types of Data Collected/Reported Salaries reported for most survey occupations are those paid to full-time employees for standard work schedules, i.e., the straight-time salary corresponding to the employee's normal work schedule excluding overtime hours and premium pay for work on weekends, holidays, and late shifts. However, in some cases, premium pay for overtime is included in reported salaries of workers in certain occupations. Excluded are performance bonuses and lump-sum payments of the type negotiated in the auto and aerospace industries, as well as profit-sharing payments, attendance bonuses, Christmas or year-end bonuses, and other nonproduction bonuses. Pay increases (but not bonuses) under cost-of-living allowance clauses and incentive payments, however, are included. The PATC does not provide any fringe benefit data. For SCA wage determination purposes, salary data used are for all-industries surveyed nationwide. The table of combined data (i.e., Table B-2 which provides the combined results of the services-producing survey and the goods-producing survey, each conducted in alternating years) is primarily used. This is due to the fact that SCA areawide WDs are based on cross-industry data and not on survey data of a narrowly-defined industry sample. Exhibit 28 illustrates a sample PATC survey page from the 1987 services survey.Purpose These surveys are routinely conducted by BLS to provide data for occupations selected to represent a range of activities performed by workers in a selected industry (e.g., hospitals). Data are obtained by personal visits to a statistically valid sample of establishments within the scope of the survey. These Industry Wage Surveys are usually used for SCA wage determinations to supplement data provided by BLS AWS or SCA Area Surveys. Typical situations where such supplementary data may be needed include the following. • A contract for services calls for special or unique occupations usually associated with a particular industry and for which the cross-industry surveys do not provide adequate data. For example: The BLS Hospital Industry Wage Survey is useful because AWS and SCA Area Surveys do not survey medical occupations except registered industrial nurses. • The primary source data (e.g., AWS or SCA Area Survey) may show inconsistencies or anomalies and an Industry Wage Survey may be of use in evaluating the wage data for developing the WD. Geographic Scope Industry Wage Surveys vary somewhat from survey to survey in terms of their geographic scope. Nearly all of the manufacturing, utilities, and mining industries are studied on a nationwide basis, with breakouts for regions and major areas of concentration, where appropriate. Most other surveys are conducted on a locality basis. Thus, some are area-specific and some are not. For those that are not area-specific, data are usually reported on a nationwide basis and for regions. Consequently, only where the place of performance is truly regional in scope can these data be used effectively as a primary source for developing a WD. Thus, this type of survey is usually used as a supplementary resource. Industrial Scope Given that these surveys are conducted for a particular industry group and are not cross-industry in scope, the specific industries at the 4-digit SIC Code level will vary from survey to survey. The Standard Industrial ClassificationCOMBINED PATC WAGE DATA — SAMPLE PAGE TABLE B-2. Average Salaries lor Selected Occupations, National Survey of Professional, Administrative, Technical, and Clerical Pay, All Private Industries Surveyed In March 1986 and March 1987'—Continued Occupational Classification Number of workers Annual mean salary Annual median salary Attorneys IV............................................................... 3,924 $65,944 $64,992 Attorneys V............................................................... 1.960 80,856 79,995 Attorneys VI............................................................... 609 105,658 106,235 Chemists I.................................................................. 3,833 23,205 23,003 Chemists II................................................................. 6,685 28,238 28,042 Chemists III................................................................ 10,140 35,504 34,910 Chemists IV............................................................... 8,869 43,480 43.015 Chemists V................................................................ 7,176 52,927 52,569 Chemists VI............................................................... 3,539 63,548 63,499 Chemists VII.............................................................. 871 78,605 75,921 40,460 28,958 29,392 Engineers II ............................................................... 75,123 32,295 32,205 Engineers III .............................................................. 147,085 37,235 37,006 Engineers IV.............................................................. 160,817 44.360 44,083 112,374 52,698 52,303 50,605 61,807 61,440 Engineers VII............................................................. 12,223 71,475 70.291 2,755 81,060 80,517 Registered nurses I.................................................. 38,257 21,012 20,830 Registered nurses II................................................. 366,888 24,127 23.835 Registered nurses III................................................ 20.402 31,216 31,073 Registered nurses IV................................................ 392 34,383 33,735 Licensed practical nurses I ..................................... 31,195 14,636 14,559 Licensed practical nurses II .................................... 165,049 16,487 16.285 Licensed practical nurses III ................................... 2,061 18,837 18,836 Nursing assistants I.................................................. 148,366 8,558 8,111 Nursing assistants II................................................. 269,803 10,872 10,248 Nursing assistants III................................................ 22,075 14,369 14,394 Engineering technicians I ........................................ 5,524 17.577 17.288 Engineering technicians II ....................................... 17,215 21.131 20,792 Engineering technicians III ...................................... 32.443 24,857 24.627 Engineering technicians IV...................................... 35,064 29,732 29.475 Engineering technicians V ....................................... 18,367 34,360 34,186 Buyers I...................................................................... 8,119 21,779 21,610 Buyers II................................................................ 24,706 27,184 26,939 Buyers III.................................................................... 18,459 34,818 34,035 Buyers IV ................................................................... 4,953 42.772 42,139 Computer operators I ............................................... 10,476 14.339 14,162 Computer operators II.............................................. 44,318 17,690 17,288 Computer operators III............................................. 28,475 22,207 21,657 Computer operators IV ............................................ 9,011 25,441 25,098 Computer operators V ............................................. 1,457 30.295 30,522 Photographers III ...................................................... 1,079 27.712 27,558 Photographers IV...................................................... 410 33,452 34,317 Photographers V....................................................... 81 37,961 Computer programmers I......................................... 16,995 21,398 21.387 Computer programmers II ....................................... 42,721 25,056 24,936 Computer programmers III ...................................... 52,523 30,320 30,048 Computer programmers IV...................................... 23,412 36,422 36,143 Computer programmers V....................................... 9,763 44,693 44,698 Systems analysts I ................................................... 23,249 30,111 29,849 Systems analysts II .................................................. 53,410 36,103 35,960 Systems analysts III ................................................. 39,382 43,592 43,070 Systems analysts IV................................................. 14,342 51,537 50,912 Systems analysts V.................................................. 2,685 61,673 60,582 Systems analysts VI ................................................. 246 74,632 74,378 3,645 13,258 13,086 13,523 16,479 16.064 27,346 21,071 20,759 25,978 25,621 25,185 13,747 32,117 31,539 1 This tabulation combines the results of the March 1987 salaries of private industry white-collar occupations, survey in the service industries with updated results from the excluding sales, was used tor updating. This adjustment March 1986 survey of private industries, excluding services. factor was a 3.9 percent increase between March 1986 and The BLS Employment Cost Index component for wages and March 1987. (SICM Manual is used to classify industries selected for a given survey. Occupational Scope As with industrial scope, the list of occupations that will be surveyed varies from industry to industry. The Dictionary of Occupational Titles (DOT^ and other sources are used as resources in developing job titles for occupations to be surveyed. BLS then develops the job descriptions in the same manner as is done for the AWS and SCA Area Surveys. Survey Cycles Cycles vary by survey from two to six years. Types of Data Collected/Reported Straight-time first shift rates (or hours and earnings for incentive workers) for individuals in the selected occupations are reported. Many of these surveys also provide wage data for broad employment groups such as production and related workers or nonsupervisory workers. Fringe benefits and other related data are also collected, including items particular to the industry itself. Exhibit 29 illustrates a sample wage data page from the Hospital Industry Wage Survey. BLS OCCUPATIONAL WAGE SURVEY CONCEPTS AND METHODS Although each BLS-conducted occupational wage survey discussed above differs somewhat in scope, presentation format, and uses, all of these surveys are based on a common set of administrative forms, a single manual of procedures, and common concepts and methods. The following subsections describe generally these concepts and methods. BLS survey publications usually contain introductory notes and appendices which provide specifics with regard to the methods utilized for the given survey. These should be consulted before using a survey for SCA WD development purposes. Key Concepts and Definitions For all BLS occupational wage surveys discussed above, there are three key concepts or definitions to be understood.• Occupations s Occupations are carefully defined in advance of a survey. The job description is designed to identify the essential elements of skill, difficulty, and responsibility that establish the basic concept of the given occupation regardless of the establishments or areas of the country wherein the occupation is performed. Details on how the job descriptions are developed and used are provided below. • Wage Rates; These are highly specific wage measures for individual workers based on weekly or hourly earnings, usually excluding premium pay for overtime and for work on weekends, holidays, and late shifts. Production bonuses, commissions, and cost-of-living bonuses are counted as earnings. Non-production bonuses such as year-end or Christmas bonuses, or profit-sharing payments are not included. Unless otherwise stated in a given survey, pay rates do not include tips, or meal, room, uniform, or other similar allowances. Pay rates reported as weekly earnings/salaries relate to standard weekly hours for which the regular straight-time salary is paid. When weekly earnings are reported, data tables usually provide the average number of hours representing the standard work-week for the given occupation. • Fringe Benefits: Tabulations of paid holidays, paid vacations, health insurance, and pension plans are based on the assumption that they apply to all production or office non-supervisory personnel, if a majority of such workers are eligible or can expect to eventually qualify for benefits. Insurance and pension plans are limited to those for which the employer bears at least part of the cost. Survey Methods General methods key to understanding BLS surveys are described below in terms of the six (6) phases of the process: planning; universe compilation; sample selection and weighting; job description development and job matching; data collection; data validation; and data compilation/presentation. Planning Consultations are held with appropriate management, labor, and government representatives to obtain views and recommendations related to scope, timing, selection, and definitions of survey items, and types of tabulations. This is especially important for Industry Wage Surveys, the PATC Survey, and those conducted specifically for use in administering the SCA.123 EXHIBIT 29_______ HOSPITAL INDUSTRY WAGE SURVEY WAGE DATA — SAMPLE PAGE Table 11. Average hourly earnings of part-tlrfie employees: All hospitals (except Federal)—-Continued (Number of employees and average straight-time hourly earnings' in selected occupations and metropolitan areas,* by type of hospital, August 1985) South—Continued Midwest Houston Miami- Hialeah Washington, D.C. Chicago Occupation and sex Total Private Government Private Private Total Private Number of workers Average hourly earnings Number of workers Average hourly earnings Number of workers Average hourly earnings Number of workers Average hourly earnings Number of workers Average hourly earnings Number of workers Average hourly earnings Number of workers Average hourly earnings Registered professional nurses Supervisors of nurses.................................. 72 $15.02 69 $14.82 Women..................................................... - - - - - - - - - - 67 15.09 64 14.89 Clinical specialists........................................ - - - - - - - - - - 36 13.60 29 13.34 Women..................................................... - - - - - - - - - - - - - - Nurse anesthetists....................................... 25 $19.53 25 $19.53 - - - - - - 65 14.88 65 14.88 Women..................................................... 24 19.62 24 19.62 - - - - - - 44 14.77 44 14.77 Nurse practitioners....................................... - - - - - - - - - - 13 13.58 12 13.48 Women..................................................... _ _ _ - - - - - - - 13 13.58 12 13.48 Nursing instructors....................................... - - - - - - - - 15 $13.20 44 14.25 44 14.25 Women..................................................... _ - - - - - - - 15 13.20 42 14.34 42 14.34 General duty nurses .................................... 1,920 11.18 1,726 11.23 194 $10.75 739 $12.32 3,757 11.64 6,204 11.60 6,002 11.58 Men........................................................... - - - - - - - - 54 12.60 - - - - Women..................................................... 1,613 11.15 1,441 11.21 172 10.68 - - 3,701 11.63 - - - - Technicians snd technologists Diagnostic medical so nograph ers.............. . 33 10.18 33 10.18 Registered .................................................. - - - - - - - - - - 33 10.18 33 10.18 Nonregistered............................................. - - - - - - - - - - - — — — EEG technicians........................................... - - - - - - 7 9.89 - - - - - - EKG technicians........................................... 22 5.48 21 5.40 - - 15 6.29 55 6.37 177 7.10 177 7.10 Men........................................................... _ _ - - - - - - 29 6.31 - - - - Women..................................................... 18 5.50 17 5.40 - - 15 6.29 26 6.44 151 7.12 151 7.12 Class A ....................................................... _ _ . _ - - - - 23 6.45 42 7.20 42 7.20 Women..................................................... _ _ _ _ - - - - 15 6.74 40 7.24 40 7.24 Class B ....................................................... 17 5.32 _ - - - 12 6.39 31 6.26 131 7.07 131 7.07 Men........................................................... _ _ _ - - - - - 20 6.40 - - - - Women..................................................... _ _ _ - - - 12 6.39 11 6.01 107 7.08 107 7.08 Medical laboratory technicians................... 31 7.66 31 7.66 - - 20 8.17 172 8.61 323 8.37 322 8.37 Men........................................................... - _ _ _ - - - 47 8.43 - - - - Women..................................................... _ _ _ - - - 9 8.82 125 8.68 192 8.79 191 8.78 Registered .................................................. 27 7.91 27 7.91 - - 17 8.17 106 8.66 151 9.07 150 9.07 _ _ _ - . - - - 30 8.44 31 8.21 31 8.21 Women..................................................... _ _ _ _ _ - 6 9.14 76 8.75 114 9.36 113 9.36 Nonregistered............................................. - - - - - - - - - - 122 7.41 122 7.41 Women..................................................... — — ' See footnotes at end of table. EXHIBIT 29Universe Compilation The industrial universe of each survey is identified using State unemployment insurance lists of employers by industry type. Depending on the survey, the scope may be standard (e.g., AWS always uses the same industry divisions) or may vary (e.g., Industry Wage Surveys). Once the scope is set, the Standard Industrial Classification (SIC) Manual assists BLS in determining the industry division to which a specific surveyed establishment belongs. Establishments to be surveyed are limited according to size. While this varies somewhat survey to survey, the limitation point is set where those excluded would yield negligible data for most occupations surveyed. Also, the smaller the establishment, the greater the difficulty encountered in classifying workers using standard job descriptions. Sample Selection and Weighting Probability sampling and stratification techniques are used to select establishments to be surveyed from a master list that is as close as possible to the universe of establishments that fall within the designated scope of the survey. Techniques utilized yield a sample that: • is a statistically valid representation of the universe according to area and/or industry similarities; • accounts for any wide variations in the occupational structures of various industry segments; and • yields unbiased estimates by the assignment of proper weights to the sampled establishments so that proportionate shares of total employment are taken into account. Sampled establishments participate in the surveys on a voluntary basis. Individual establishment data collected are kept confidential. Job Description Development and Job Matching The classification of occupations for study is based on the development of a uniform set of job descriptions designed to take into account inter-establishment and inter-area variations in duties within the same job. Using standard job descriptions is very important for the consistent classification of workers who are often employed under a variety of payroll titles and different work arrangements from establishment to establishmentand area to area. This permits grouping of occupational wage rates representing comparable job content. The development of job descriptions is based on review and evaluation of occupational duties according to the essential elements of skill, difficulty, and responsibility. Job descriptions include, as appropriate, various levels (e.g., secretary I, secretary II) and provide distinguishing features that allow for proper job level designations. Occupational titles used by BLS are developed using the Dictionary of Occupational Titles (DOT), a compilation of job classifications issued by the U.S. Department of Labor, Employment and Training Administration (see chapter 7, page 215 for a description of the DOT). Occupational titles are cross-referenced to the Standard Occupational Classification (SOC) Manual, another compilation of job titles and definitions which is described in chapter 7, page 210. BLS job descriptions are frequently more specific and restricted, however, than those found in these manuals. BLS job descriptions, however, are usually shorter and more generalized than those used by a given establishment as they must be applicable to many establishments in many areas. Job matching, wherein job functions and establishment factors are carefully compared to BLS job descriptions, is performed for the occupations to be surveyed. Job matching is accomplished through one or more of the following methods: • interviewing key officials; • reviewing records (e.g., pay structure plans, organizational charts, company position descriptions); and/or • job observation. How well the duties of a particular worker or group of workers fit a standard job description is the basis for their exclusion or inclusion. In general, workers are included in a given classification, if the described duties are performed a major part of the time, and the remainder is spent on related duties requiring similar or lesser skill and responsibility. Where workers may regularly perform a combination of duties involving more than one occupation, primary consideration is given to those elements of the job which are most important with regard to setting pay levels.In applying job descriptions to the establishments to be surveyed, BLS usually excludes working supervisors, apprentices, and part-time, temporary, and probationary workers. Handicapped workers whose earnings are reduced because of their handicap are also usually excluded. Learners, beginners, and trainees, unless specifically included in a given job description, are also excluded. For AWS and SCA Area Surveys, the booklet entitled, Questions and Answers Relating to AWS and SCA Survey Job Descriptions, January 1986 provides details used in the process of matching a job's actual duties to one of the standard job descriptions so that the appropriate wage data are selected for use. In addition, the BLS survey Bulletins include an appendix which provides specifics concerning definitions of surveyed occupations. Data Collection BLS field representatives collect the survey data. Most are college graduates with economics backgrounds. Data are usually collected through periodic personal, on-site visits to each of the sample establishments according to the cycle established for the given survey. In intervening surveys, data may be obtained primarily by mail or telephone. Wage data are generally obtained from payroll, personnel, or other related records. Fringe benefits and other data are generally obtained from company officials, booklets, and labor-management agreements. Four (4) basic reporting forms (questionnaires) are used by BLS field representatives to record data obtained. Supplementary forms are used to meet additional survey data needs as appropriate. • BLS 2751A: Used to record data on each establishment studied such as products or services, shift operations and differentials, work schedules, benefits provided, union agreements, and other related items. • BLS 2725A: Used to record wage information concerning the establishment as a whole. • BLS 2753G: Used the first time an establishment is surveyed to record data for each worker studied such as occupation, sex (where collected), pay rate or earnings, and method of payment (salaried/hourly), and hours (where needed).• BLS 2753F; Used to record new wage data for establishments surveyed in the past. The form includes prior data. Copies of these forms are included in this Manual as appendix E. Data Validation The work of field representatives is checked for quality of reporting and accuracy in job matching. In addition, any outliers (extreme values reported) are checked for accuracy to be sure they are not the result of a mistake in reporting or computation. Note that valid outliers are used in compiling survey data. Data Compilation/Presentation Average earnings for an industry or occupation are computed as the arithmetic mean of individual employee earnings. These are weighted averages which take into account the establishment weights so as to yield unbiased estimates that are statistically representative of the industry and/or area and the occupations for which the survey is being performed. Data collected are also used to calculate the various statistics frequently presented in a survey (e.g., medians, middle ranges, and overall means). All data are reviewed carefully befpre publication. Earnings data collected for some listed occupations and/or some industry divisions may not be reported, however, if: • data collected are insufficient to provide meaningful statistical results; or • data collected could serve to disclose earnings information of a specific establishment. EMPLOYMENT AND EARNINGS SURVEY ESTABLISHMENT SERIES Purpose The Employment and Earnings Survey Establishment Series is a cooperative effort between BLS and State Employment Security Agencies (SESAs). Data are based on reports from employers (establishment records) which collect data each month on employment, hours, and earnings from a sample of nonagricultural industries (including government).From these data, a large number of employment, hours, and earnings data in considerable industry and geographic detail are prepared and published each month. The employment data include information on all employees, women workers, and production or nonsupervisory workers. Hours and earnings data include average hourly earnings, average weekly hours, and average weekly overtime hours. Various seasonally adjusted data are also published. For SCA purposes, the establishment earnings data are used to determine whether the primary source data selected for use as the SCA WD basis (i.e., AWS or SCA Area Surveys) need to be adjusted because they are not sufficiently current. Employment and Earnings monthly data provide a reference for determining wage rate trends over time which are used to decide how the primary source data should be adjusted, if at all. If such adjustments are needed, Employment and Earnings data may be used to calculate how much of an adjustment should be applied. Section IV, chapters 14 and 15 discuss how such data are so-used. Geographic Scope The survey is nationwide in scope. For certain data collected, however, break-outs by State and selected metropolitan areas within States are provided. Industrial Scope Employment and Earnings establishment data are collected essentially on a cross-industry basis, including nearly all industries except agricultural operations. Note that government operations are included in the survey, but the survey Summary reports these data separate from the private industry tables. Average hours and earnings data are derived for production and related workers in manufacturing and mining, construction workers in construction, and nonsupervisory employees in private services-producing industries. The Standard Industrial Classification (SIC) Manual is used to classify industries surveyed. Exhibit 30 presents the major industry groups surveyed at the 2-digit SIC Code level. For a complete list of industry divisions (4-digit SIC Code level) that constitute these major groups, consult the numerical index of the SIC Manual. Occupational Scope In manufacturing industries, data are collected for production and related workers. This group, in general, coversemployees, up through the level of working supervisors, who are engaged directly in the manufacture of the product of the establishment. It includes working supervisors and all nonsupervisory workers (includ' g group leaders and trainees) engaged in fabricating, proces „ng, pssembling, inspecting, receiving, storing, handling, packing, warehousing, shipping, trucking, hauling, maintenance, repair, janitorial, guard services, product development, auxiliary production for plant's own use (e.g., power plant), recordkeeping, and other services closely associated with production operations. Production workers in mining are defined in a similar manner as for manufacturing industries. In construction, the term construction workers covers workers, up through the level of working supervisors, who are engaged directly on the construction project either at the site or in shops or yards at jobs ordinarily performed by members of construction trades. Construction workers include the following employees in the construction division: working supervisors, qualified craft workers, mechanics, apprentices, helpers, laborers, etc., engaged in new work, alterations, demolition, repair, maintenance, etc., whether working at the site of construction or working in shops or yards at jobs (such as precutting and preassembling) ordinarily performed by members of the construction trades. Excluded from this category are executive and managerial personnel, professional and technical employees, and workers in routine office jobs. In the remaining industries (transportation, communications, and public utilities; retail and wholesale trade; finance, insurance, and real estate; and the service industries), data are collected for nonsupervisory workers. Nonsupervisory workers include most employees except those in top executive and managerial positions. Nonsupervisory employees include employees (not above the working supervisory level) such as office and clerical workers, repairers, salespersons, operators, drivers, physicians, lawyers, accountants, nurses, social workers, research aides, teachers, drafters, photographers, beauticians, musicians, restaurant workers, custodial workers, attendants, line installers and repairers, laborers, janitors, guards, and other employees at similar occupational levels whose services are closely associated with those of the employees listed. Survey Cycles Survey data are collected on a monthly basis and published in a monthly BLS newsletter of preliminary statistics. The compilation of monthly data spanning a 12-month period is used for SCA wage determination purposes in evaluating wage trendsBLS EMPLOYMENT AND EARNINGS INDUSTRIES SURVEYED BY TWO-DIGIT* SIC CODE FOR MAJOR GROUPS MINING SIC 10 through 14. Data are collected at the three-digit SIC industry group levels listed therein. CONSTRUCTION SIC 15 through 17. Data are collected at the three-digit SIC industry group levels listed therein. MANUFACTURING SIC 20 through 39. Data are collected at the four-digit SIC industry divisions listed therein. TRANSPORTATION, COMMUNICATION. AND OTHER PUBLIC UTILITIES SIC 40 through 49. Data are collected at the three-digit SIC industry group levels listed therein except those under SIC 43 (U.S. Postal Service) from which no industries are selected. WHOLESALE TRADE SIC 50 and 51. Data are collected at the three-digit SIC industry group levels listed therein. RETAIL TRADE SIC 52 through 59. Data are collected at the three-digit SIC industry group levels listed therein. FINANCE, INSURANCE, AND REAL ESTATE SIC 60 through 67. Data are collected at the three-digit SIC industry group levels listed therein. SERVICES SIC 70 through 89. Data are collected at the three-digit SIC industry group levels listed therein except those listed under SIC 88 (Private Households) from which no industries are selected. GOVERNMENT SIC 91 through 96. Data are collected at the three-digit SIC industry group levels listed therein. *For a listing of industries by three- and four-digit SIC code, see the numerical index of the SIC Manual. __over time. This compilation is issued monthly and provides greater detail than that provided in the newsletters. In addition, historical volumes or supplements for Employment and Earnings Series are published periodically. These provide monthly data and annual averages from the beginning date of each series. Types of Data Collected/Reported Employment, hours, and earnings establishment data are used for SCA purposes. These are reported by the C-l table series: Average hours and earnings of production or nonsupervisory workers on private nonagricultural payrolls by major industry. Exhibit 31 illustrates a sample page from this table. Payroll data relate to full- and part-time production, construction, or nonsupervisory workers who received pay for any part of the pay period which includes the 12th of the month. The payroll is reported before deductions of any kind, e.g., for old-age and unemployment insurance, group insurance, withholding tax, bonds, or union dues. Also included is pay for overtime, holidays, vacation, and sick leave paid directly by the firm. Bonuses (unless earned and paid regularly each pay period), other pay not earned in the pay period reported (e.g., -retroactive pay), tips, and the value of free rent, fuel, meals, or other payments in kind are excluded. Fringe benefits (such as health and other types of insurance, contributions to retirement, etc., paid by the employer) are also excluded.EMPLOYMENT & EARNINGS ESTABLISHMENT WAGE DATA — SAMPLE PAGE ESTABLISHMENT DATA HISTORICAL HOURS AND EARNINGS C-1. Average hours and earnings of production or nonsupervisory workers' on private nonagrlcultural payrolls by major Industry, 1964 to date Year and month Total private' Mining Construction Weekly hours Hourly earnings Weekly earnings Weekly hours Hourly earnings Weekly earnings Weekly hours Hourly earnings Weekly earnings Annual averages 1964 ................................ 38.7 $2.36 $91.33 41.9 $2.81 $117.74 37.2 $3.55 $132.06 1965................................. 38.8 2.46 95.45 42.3 2.92 123.52 37.4 3.70 138.38 1966................................. 38.6 2.56 98.82 42.7 3.05 130.24 37.6 3.89 146.26 1967 ................................. 38.0 2.68 101.84 42.6 3.19 135.89 37.7 4.11 154.95 1968 ................................. 37.8 2.85 107.73 42.6 3.35 142.71 37.3 4.41 164.49 1969................................. 37.7 3.04 114.61 43.0 3.60 154.80 37.9 4.79 181.54 1970................................. 37.1 3.23 119.83 42.7 3.85 164.40 37.3 5.24 195.45 1971 ................................. 36.9 3.45 127.31 42.4 4.06 172.14 37.2 5.69 211.67 1972................................. 37.0 3.70 136.90 42.6 4.44 189.14 36.5 6.06 221.19 1973 ................................. 36.9 3.94 145.39 42.4 4.75 201.40 36.8 6.41 235.89 1974 ................................. 36.5 4.24 154.76 41.9 5.23 219.14 36.6 6.81 249.25 1975................................. 36.1 4.53 163.53 41.9 5.95 249.31 36.4 7.31 266.08 1976................................. 36.1 4.86 175.45 42.4 6.46 273.90 36.8 7.71 283.73 1977 ................................. 36.0 5.25 189.00 43.4 6.94 301.20 36.5 8.10 295.65 1978................................. 35.8 5.69 203.70 43.4 7.67 332.88 36.8 8.66 318.69 1979................................. 35.7 6.16 219.91 43.0 8.49 365.07 37.0 9.27 342.99 1980................................. 35.3 6.66 235.10 43.3 9.17 397.06 37.0 9.94 367.78 1981 ................................. 35.2 7.25 255.20 43.7 10.04 438.75 36.9 10.82 399.26 1982................................. 34.8 7.68 267.26 42.7 10.77 459.88 36.7 11.63 426.82 1983................................. 35.0 8.02 280.70 42.5 11.28 479.40 37.1 11.94 442.97 1984 ................................. 35.2 8.32 292.86 43.3 11.63 503.58 37.8 12.13 458.51 1985................................. 34.9 8.57 299.09 43.4 11.98 519.93 37.7 12.32 464.46 1986................................. 34.8 8.76 304.85 42.2 12.44 524.97 37.4 12.47 466.38 1987” ............................... 34.8 8.98 312.50 42.3 12.44 526.21 37.8 12.66 478.55 Monthly data, not seasonally adjusted 1986: 34.8 S8.86 $308.33 42.4 $12.63 S535.51 36.8 $12.77 S469.94 1987: 34.4 8.90 306.16 42.5 12.66 538.05 37.2 12.58 467.98 34.5 8.92 307.74 42.0 12.56 527.52 36.8 12.51 460.37 34.6 8.92 308.63 41.8 12.51 522.92 37.4 12.59 470.87 34.6 8.91 308.29 41.8 12.43 519.57 37.4 12.55 469.37 34.8 8.93 310.76 42.4 12.42 526.61 38.5 12.60 485.10 35.0 8.92 312.20 42.4 12.44 527.46 38.1 12.61 480.44 July................................ 35.1 8.91 312.74 42.1 12.31 518.25 38.6 12.57 485.20 35.3 8.94 315.58 42.4 12.32 522.37 38.6 12.67 489.06 34.7 9.06 314.38 42.1 12.43 523.30 36.4 12.77 464.83 October......................... 34.9 9.09 317.24 42.7 12.34 526.92 38.8 12.79 496.25 34.8 9.14 318.07 42.5 12.46 529.55 37.1 12.81 475.25 34.9 9.13 318.64 42.8 12 46 533.29 37.8 12.81 484.22 See footnotes at end of table.INTRODUCTION The current Federal Wage System (FWS) operated by the Office of Personnel Management (OPM) was established by law in 1972. Regulations governing the FWS are contained in 5 CFR, Part 532. The FWS calls for paying wages which approximate local prevailing private sector wage rates for comparable skill levels to Federal blue collar workers, and, in some cases to Federal white collar workers. With the exception of employees of the Postal Service, Tennessee Valley Authority, and other similar Federal Government corporations, most Federal civilian blue collar workers are covered by wage schedules developed under the FWS. There are nearly half a million FWS employees nationwide. FWS wage schedules are developed based on area-specific surveys. There are two types of survey processes and resultant wage schedules as follows. The vast majority of FWS wage surveys/schedules concern the first type listed below. • Appropriated Fund (AF) Survey and Wage Schedule; This survey process and the resultant wage schedules are used for Federal blue collar employees working in jobs covered by U.S. Congressional appropriated funds. Guidance is provided by OPM's, Federal Personnel Manual System. FPM Supplement 532-1. Federal Wage Svstem-Appropriated Fund Employees, most recently updated on June 29, 1984. • Nonappropriated Fund (NAF) Survey and Wage Schedule: This survey process and the resultant wage schedules are used for Federal blue collar employees and a few white collar employees working in jobs not covered by U.S. Congressional appropriated funds. Guidance is provided by OPM's, Federal Personnel Manual System. FPM Supplement 532-2. Federal Wage Svstem-Nonappropriated Fund Employees. most recently updated on March 16, 1981. Under the FWS, OPM delegates the authority to conduct the surveys and establish the resulting wage schedules to lead Federal agencies. OPM sets broad policy, establishes criteria and guidelines, and provides procedural guidance governing how lead agencies are to conduct the surveys. The lead agency is usually the Federal agency located in the local labor market of the survey which has the most AF or NAF employees and the ability to conduct the survey. For the AF, the U.S. Department of Defense (DOD) Wage Fixing Authority is the lead agency which conducts most ofthe area wage surveys. The Veterans Administration and National Aeronautics and Space Administration are also lead agencies for a number of AF surveys. For the NAF, the DOD Wage Fixing Authority is the lead agency for all the area surveys because they employ most of the NAF workers. The AF and NAF surveys and resultant wage schedules differ primarily in terms of industrial and occupational scope. In addition, some specific survey areas and their corresponding survey cycles differ between the two types. Both types of resultant wage schedules report hourly wage rates; however, the wage grade and step structure varies slightly. Thus, the sections in this chapter describing these two types of FWS surveys and resultant wage schedules are organized as follows. • Geographic Scope • Industrial Scope • Occupational Scope • Survey Cycles • Types of Data Collected/Reported The purpose (as related to SCA WD needs) for the two types of surveys/wage schedules is essentially the same. The first section below addresses this, followed by separate AF and NAF sections organized as listed above. PURPOSE OF FWS SURVEYS AND WAGE SCHEDULES Federal Wage System (FWS) area wage schedules (based on area-specific surveys) are usually used as supplementary data for SCA WD purposes for the development of prevailing wage rates for blue collar occupations. Only wage data are collected and provided by the wage schedule. Fringe benefits for Federal blue collar workers are governed by various applicable laws and regulations and not by these surveys/wage schedules. The resultant wage schedules and not the direct survey data are used as supplementary data for SCA WD development. FWS wage rates, in conjunction with primary source data (BLS AWS or SCA Area Surveys), are used to develop wage rate relationships between occupations as a basis for issuing blue collar prevailing wage rates required by the WD. Developing such relationships is an important technique used when the primary source does not provide direct data for occupations required by the WD. Just as the BLS OEAM and PATC surveys are used to develop such relationships for white collar classes notsurveyed or listed by the primary source as described in the previous chapter, FWS wage schedules are used for blue collar classes. APPROPRIATED FUNDS SURVEYS AND WAGE SCHEDULES Geographic Scope The United States is divided into local wage areas for FWS survey and wage setting purposes. These wage areas are established where there are large concentrations of FWS employment along with concentrations of private industry employment. Each wage area consists of a survey area (counties in which wage data are collected) and the adjacent area of application (counties where the FWS wage schedule is applied in addition to the survey area). The AF survey area is usually centered on a Metropolitan Statistical Area, consisting of one county; but for some geographic areas, it may include several counties. There are 135 wage areas in the 50 States, District of Columbia, and Puerto Rico for which AF regular surveys are conducted and wage schedules are developed. OPM has also authorized a number of special surveys/wage schedules for specific industries where the regular surveys/wage schedules are inadequate (e.g., printing and lithographies, and electrical, electronic, and communications). Only the regular wage schedules are used for SCA purposes; however, as they are cross-industry in scope. Exhibit 32 presents a list of FWS AF wage areas by State. Note that the wage area consists of both the specific area surveyed and all other nearby areas to which the resulting wage schedule will be applied. For a listing of the specific area surveyed and all specific areas within the wage area to which the resulting wage schedule applies, consult the FPM Supplement 532-1 for AF. Industrial Scope AF surveys cover a standard set of industries designated by OPM in the manufacturing, wholesale trade, and transportation, communications, and public utilities groups. The Standard Industrial Classification (SIC) Manual is used to classify establishments by industry groupings. Exhibit 33 lists the specific major industry groups by two-digit SIC Code that are surveyed for each regular AF survey. For a complete list of industry divisions (4-digit SICCode level) that constitute these major groups, consult the numerical index of the SIC Manual. A lead agency may not omit any of these standard industries, but may add industry classes to a regular survey where such industries evidence significant proportions of local private employment of the kinds and levels found in local Federal employment. In all cases except Alaska, establishments with fifty (50) or more employees are surveyed from the industries described above. For Alaska, establishments with twenty (20) or more employees are surveyed. In small survey areas, all firms meeting the industry and size specifications are contacted. This is referred to as a universe survey. In larger areas where this is not practical, a sample survey is conducted. The results are then weighted to represent all the firms within the scope of the survey. Occupational Scope In each local wage survey, wage rate data are collected for a prescribed list of jobs which cover a wide range of blue collar occupations common in skill and responsibility in both industry and the Federal Government. Survey job descriptions are prepared by OPM. They are keyed to industrial work situations and are also representative of occupations and work levels in the Federal Government. Consult the AF FPM Supplement 532-1 for job definitions so-developed. A standard set of 22 blue collar jobs representing common AF occupations and skill levels are surveyed in each area. In some areas, additional, optional jobs are added to the survey if there is significant AF employment in these kinds of jobs. Sometimes jobs may be added to obtain data for future development purposes. These are called provisional jobs. Exhibit 34 provides a list of the occupations surveyed by the AF survey. Survey Cycles AF surveys are conducted at approximately annual intervals. Two kinds of wage surveys are conducted on an alternating basis as follows. • Full-Scale Survey: This is conducted every second year in an area and includes the development of a current sample of establishments and collection of wage data by personal visits to the establishments. Thus, in any one year, full-scale surveys are conducted in about half of the areas.FWS APPROPRIATED FUNDS REGULAR SURVEY LIST OF WAGE AREAS* STATE WAGE AREA Alabama Anniston-Gadsden Birmingham Dothan Huntsville Alaska Alaska Arizona Northeastern Arizona Phoenix Tucson Arkansas Little Rock California Fresno Los Angeles Sacramento Salinas-Monterey San Bernardino-Riverside-Ontario San Diego San Francisco Santa Barbara Stockton Colorado Denver Southern & Western Colorado Connecticut New Haven-Hartford New London Delaware Wilmington District of Columbia Washington, D.C. Florida Cocoa Beach-Melbourne Jacksonville Miami Orlando Panama City Pensacola Tampa-St. Petersburg *A wage area includes the specific area surveyed and all areas located within the wage area to which the resultant wage schedule is applied. See OPM's FPM Supplement 532-1, AF for a detailed list delineating each of these specific areas. FWS APPROPRIATED FUNDS REGULAR SURVEY LIST OF WAGE AREAS* (CONTINUED) STATE WAGE AREA Georgia Albany Atlanta Augusta Columbus Macon Savannah Hawaii Hawaii Idaho Boise Illinois Champaign-Urbana Chicago Indiana Bloomington-Bedford-Washington Fort Wayne-Marion Indianapolis Iowa Cedar Rapids-Iowa City Davenport-Rock Island-Moline Des Moines Dubuque Kansas Topeka Wichita Kentucky Lexington Louisville Louisiana Lake Charles-Alexandria New Orleans Shreveport Maine Augusta Central and Northern Maine Portland Maryland Baltimore Hagerstown-Martinsburg-Chambersburg Massachusetts Boston Central and Western MassachusettsFWS APPROPRIATED FUNDS REGULAR SURVEY LIST OF WAGE AREAS* (CONTINUED) STATE WAGE AREA Michigan Detroit Northwestern Michigan Oscoda-Alpena Southwestern Michigan Minnesota Duluth Minneapolis-St. Paul Mississippi Biloxi Columbus-Aberdeen Jackson Meridian Missouri Kansas City St. Louis Southern Missouri Montana Great Falls Nebraska Omaha Nevada Las Vegas Reno New Hampshire Portsmouth New Mexico Albuquerque New York Albany-Schenectady-Troy Buffalo Newburg New York Northern New York Rochester Syracuse-Utica-Rome North Carolina Asheville Central North Carolina Charlotte Southeastern North Carolina North Dakota North DakotaFWS APPROPRIATED FUNDS REGULAR SURVEY LIST OF WAGE AREAS* (CONTINUED) STATE WAGE AREA Ohio Cincinnati Cleveland Columbus Dayton Oklahoma Oklahoma City Tulsa Oregon Portland Southwestern Oregon Pennsylvania Harrisburg Philadelphia Pittsburgh Scranton-Wilkes-Barre Puerto Rico Puerto Rico Rhode Island Narragansett Bay South Carolina Charleston Columbia South Dakota Eastern South Dakota Tennessee Eastern Tennessee Memphis Nashville Texas Austin Corpus Christi Dallas-Fort Worth El Paso Houston-Galveston-Texas City San Antonio Texarkana Waco Western Texas Wichita Falls-Southwestern Oklahoma Utah UtahFWS APPROPRIATED FUNDS REGULAR SURVEY LIST OF WAGE AREAS* (CONTINUED) STATE Virginia Washington West Virginia Wisconsin WAGE AREA Norfolk-Portsmouth-Newport News- Hampton Richmond Roanoke Seattle-Everett-Tacoma Southeastern Washington-Eastern Oregon Spokane West Virginia Madison Milwaukee Southwestern Wisconsin Wyoming WyomingFWS APPROPRIATED FUNDS REGULAR SURVEY INDUSTRIES SURVEYED BY TWO-DIGIT* SIC CODE FOR MAJOR GROUPS MANUFACTURING SIC 20 through 26 and SIC 28 through 38. Includes all fourdigit SIC industry divisions listed therein. TRANSPORTATION, COMMUNICATION, AND OTHER PUBLIC UTILITIES SIC 40, 41, 42, 45, 48, and 49. Includes all four-digit SIC industry divisions listed therein except those listed under SIC 412 (Taxicabs). WHOLESALE TRADE SIC 50 and 51. Includes all four-digit SIC industry divisions listed therein. *For a listing of industry divisions by four-digit SIC Code, see the numerical index of the SIC Manual._FWS APPROPRIATED FUNDS REGULAR SURVEY OCCUPATIONS SURVEYED OCCUPATIONS REQUIRED TO BE OCCUPATIONS WHICH MAY BE SURVEYED SURVEYED (OPTIONAL) Janitor (Light) Central Office Repairer Janitor Heavy Mobile Equipment Material Handler Mechanic Maintenance Laborer Heavy Mobile Equipment Packer Operator Helper (Trades) Air Conditioning Mechanic Warehouseman Rigger Fork Lift Operator Trailer Truck Driver Material Handling Tool Crib Attendant Equipment Operator Painter (Finish) Truckdriver (Medium) Light Vehicle Operator Truckdriver (Heavy) Boiler Plant Operator Machine Tool Operator I (WG-9) Machine Tool Operator II Boiler Plant Operator Carpenter (WG-10) Electrician Meat Cutter Automotive Mechanic Equipment Mechanic Sheet Metal Mechanic Boom Crane Operator Pipefitter Boom Crane Operator Welder (Precision) Machinist Tool and Parts Attendant Electronics Mechanic Painter (Rough) Toolmaker OCCUPATIONS WHICH MAY BE OCCUPATIONS WHICH MAY BE SURVEYED (OPTIONAL) SURVEYED FOR DEVELOPMENT PURPOSES I OPTIONAL) Aircraft Structures Assembler B Industrial Electronic Aircraft Structures Controls Repairer Assembler A Electronic Test Equipment Aircraft Mechanic Repairer Electrician, Ship Electronic Computer Pipefitter, Ship Mechanic Shipfitter Television Station Shipwright Mechanic Machinist, Marine Cable Splicer (Electric) Electric Lineman Electrician (Powerplant) Telephone Installer- Repairer • Waqe-Chanqe Survey: This is conducted every other year using the same employers, occupations, and weights of occupations used in the preceding full-scale survey. Data may be collected by telephone or mail, or personal contact. Types of Data Collected/Reported Wage survey results are usually provided to Wage and Hour and generally consist of a series of tables which present various types of statistics. Exhibits 35 and 36. provide sample pages. The information reported is similar to that reported by the BLS Area Wage Surveys and the SCA Area Surveys discussed in chapter 4. For SCA wage determination purposes, however, wage rates from the resulting wage schedules for geographic areas are used. This is because the lead agency has already evaluated the survey results to determine what wage rates prevail in the locality for the various occupations surveyed. Such prevailing rate determinations form the basis of the resulting wage schedule. Consequently, for WD development, the wage schedule rates can be used as a supplementary source in combination with primary source data to determine prevailing wage rates. Wage rates reported in the AF regular wage schedules are for three varying wage rate categories as follows. • WG Rates: Wage Grade used for nonsupervisory AF positions. • WL Rates: Wage Leader used for leader AF positions. • WS/WD/WN Rates: Wage Supervisor used for supervisory AF positions, and nonsupervisory production facilitating (WD) and supervising production facilitator (WN) AF positions. (Note: WD and WN positions are mostly U.S. Navy- and U.S. Air Force-related jobs.) For SCA WD development purposes, only the WG rates for nonsupervisory occupations are used. Exhibit 37 presents a sample AF wage schedule. Note that throughout the remainder of this Manual, the term "Wage Board" is often used to refer to the FWS "AF or Appropriated Funds" surveys/wage schedules. This term predates the 1973 introduction of the NAF surveys/wage schedules. Prior to 1973, only the AF (Wage Board) existed. The term "Wage Board" is still commonly used, however, by Wage and Hour staff, Federal contracting agencies, and contractors involved with the SCA, and is therefore used herein, as appropriate.Geographic Scope As with the AF surveys/wage schedules, the United States is divided into local wage areas for the FWS Nonappropriated Funds (NAF) surveys and wage schedules. These wage areas are established where there are large concentrations of NAF employment along with concentrations of private industry employment. Most of these wage areas are concentrated near U.S. military bases and installations as DOD employs most of the Federal NAF workers. As with the AF, each NAF wage area consists of a survey area (counties in which wage data are collected) and the nearby area(s) of application (counties where the resulting wage schedule is applied in addition to the survey area). The survey area is defined by OPM to coincide with the political unit of a county or an independent city, or a combination of such units. The regular NAF surveys and resultant wage schedules are developed for 141 wage areas. The boundaries of these areas are limited to the immediate locality. Consequently, the NAF geographic areas of application of the resultant wage schedules are much more limited in scope than those outlined for the AF. A few special surveys/schedules are used for specific occupations in selected geographic areas. In most cases, these surveys/wage schedules concern special wage practices in effect prior to 1972 (when the FWS was changed) that remain in use today. Some examples currently include tailors, watchmakers, and auto mechanics. The few remaining special schedules are undergoing review; however, as a result of which they may be replaced with a regular schedule or otherwise revised. For SCA purposes, the regular schedules are used, however. Exhibit 38 presents a list of wage areas by State for which surveys are conducted and wage schedules developed. As with the AF, the wage area includes the specific area surveyed and specific areas to which the resulting wage schedule applies. For a list showing the specific area surveyed and specific areas within the wage area to which the resulting wage schedule applies, consult the FPM Supplement 532-2 for NAF. Industrial Scope Unlike the AF surveys whose standard industrial scope is determined by OPM, the NAF regular survey industrial scope is established by law. Industries surveyed are defined and classified according to the Standard Industrial Classification (SIC) Manual. The industrial scope for NAF surveys is much narrower than that used for AF surveys and includes specific153 r EXHIBIT 35 _ FWS APPROPRIATED FUNDS SURVEY — SAMPLE PAGE OF TABLE 1 WAGE DATA TABLE 1 FEDERAL WAGE SYSTEM PAGE 1 SANTA BARBARA* CALIFORNIA — SURVEY DATE: SEP 86 NUMBER OF OBSERVATIONS* MEANS* MEDIANS* AND OTHER DATA BY SURVFY JOB JOB TITLE FEDERAL GRADE OBSER-VATIONS MEAN MEDIAN MIN MAX ouartiles 1ST 3RD JANITOR (LIGHT) 1 36 6.24 6.43 4.00 7.86 5.47 6.73 JANITOR 2 102 8.66 7.97 5.90 1 1 *55 6.53 11.31 material handler 2 24 R . 4 9 8.84 6.31 10.08 6.67 10.08 PACKER 4 12 6.93 6.85 4.75 8.50 6.35 7.57 HELPER (TRADES) 5 8 10.78 11*19 7.50 13.37 8.13 13.37 WAREHOUSEMAN 5 206 8.99 8.36 5.00 14.28 7.00 10.71 FORKLIFT OPERATOR 5 61 8.56 8.82 6.40 10.38 7.20 10.38 TRUCKDRIVER (MEDIUM) 6 36 12.34 12.57 6.50 15.78 10.38 15.78 TRUCKDRIVER (HEAVY) 7 52 10.93 1 1 .02 4.50 15.78 9.19 11.42 MACHINE TOOL OPR II B 32 6.59 6.34 5.40 8.49 6.03 7.26 MACHINE TOOL OPR 1 9 71 8.85 8.92 6.12 12.94 7.49 9.51 CARPENTER 9 22 14.15 14.04 11.45 15.60 13.64 15.20 PAINTER (FINISH) 9 32 12.68 12.65 9.10 15.54 11.58 14.02 ELECTRICIAN 10 39 13.40 13.96 10.00 15.83 12.17 14.86 AUTOMOTIVE MECHANIC 10 26 14.02 14.02 10.00 17*56 12.40 15.97 SHEET METAL MECHANIC 10 106 13.08 12.95 12.95 15.33 12.95 12.95 WELDER 10 60 12.57 1 1 .45 9.50 15.88 11.32 14.02 MACHINIST 10 100 12.29 12.14 9.40 16.58 1 1.05 13.80 ELECTRONICS MECHANIC 11 286 15.25 15.33 11.01 17.24 15.33 16.05 toolmaker 13 S3 14.68 14.00 1 1 .50 17.41 13.48 16.02 EXHIBIT 35FWS APPROPRIATED FUNDS SURVEY — SAMPLE PAGE OF TABLE 4 WAGE DATA table 4 FEDERAL WAGE SYSTEM PAGE 4 SANTA BARBARA . CALIFORNIA -« SURVEY DATE 1 SEP 86 DISTRIBUTION OF ESTABLISHMENTS PROVIDING DATA RY SURVEY JOB AND HOURLY RATE CATEGORY (M-»* m NO OBSERVATIONS) I HOURLY RATE CATEGORY I T I I BELOW 4.50 5.00 5.50 6.00 6.50 7.00 7.50 8,00 8.50 9.00 9 .so 10,00 10.50 11 .00 ABOVE i I I JOB TITLE ♦ .50 4 . 99 5.49 5.99 6.49 6.99 7.49 7.99 8.49 8.99 9.49 9 .99 10.49 10.99 11 .49 11 .49 I JANITOR (LIGHT) 1 2 3 2 2 1 3 • - - - - . . - janitor m m - 1 3 2 1 3 4 2 • 4 • - 2 1 material handler - - - - 1 1 1 1 - - - • 2 - • - PACKER 1 1 2 3 2 1 2 * I HOURLY RATE CATEGORY I f I I BELOW 5.00 5.50 6.00 6.50 7.00 7.50 8.00 8.50 9.00 9.50 10 ,00 10.50 1 1.00 11 .50 ABOVE I I I JOB TITLE 5.00 5.49 5.99 6.49 6.99 7.49 7.99 8.49 8.99 9.49 9.99 10 .49 10.99 1 1.49 11 .99 11 • 99 I HELPER (TRADES) m m • m 1 1 1 - - - . 1 warehouseman - 1 4 12 5 7 2 3 7 5 2 2 4 1 2 4 forklift operator - m - 1 - 3 - 1 1 - 2 - - m m TRUCKDRIVER (MEDIUM) • m - - 1 2 1 - 1 - 2 - 1 • 2 TRUCKORIVER (HEAVY) 1 I 1 1 - 1 - - 1 • - 2 - 1 MACHINE TOOL OPR II m 1 1 6 4 4 4 m I HOURLY RATE CATEGORY I T I I BELOW 9.00 9.50 10.00 10.50 1 1 .00 11.50 12.00 12.50 13.00 13.50 14 .00 14.50 15.00 IS • 50 ABOVE 1 I I JOB TITLE 9.00 9.49 9.99 10.49 10.99 11.49 11.99 12.49 12.99 13.49 13.99 14 .49 14.99 15.49 15 .99 15 .99 I MACHINE TOOL OPR I 8 6 2 2 4 . 2 2 . - m - m m - CARPENTER m - - - - 1 1 1 1 m 3 1 2 1 • PAINTER (FINISH) + m 1 1 - - 3 1 1 1 - 1 2 2 1 1 m ELECTRICIAN m - - 1 - 1 3 3 2 2 1 2 2 1 1 • AUTOMOTIVE MECHANIC m - - 1 \ 1 2 1 - • - 1 . I 1 1 4 SHEET METAL MECHANIC m - - - - - - 1 - - 2 - 1 - • WELDER m - 2 - 3 3 2 3 2 - 2 2 3 2 • MACHINIST m 2 2 6 5 6 8 8 6 8 4 2 1 1 1 2 ELECTRONICS MECHANIC m • - - - 1 2 1 1 1 1 3 2 1 4 toolmaker m m 1 1 2 4 2 m 1 I 4 EXHIBIT 36FWS APPROPRIATED FUNDS WAGE SCHEDULE — SAMPLE PAGE (Page 1 of 2) AC- 124 DEPARTMENT OF DEFfeNSE WAGE FIXING AUTHORITY ALEXANDRIA* VIRGINIA 22331-1200 ISSUE DATE: 5 APRIL 1988 SUBJECT t FtDERAL WAGE SYSTEM REGULAR AND SPECIAL PRODUCTION FACILITATING WAGE HATE SCHEDULES FOR THE WAGE AREA OF MEMPHIS* TENNESSEE TO: COMMA! DING OFFICERS OF MILITARY DEPARTMENTS AND DOD COMPONENT INSTALLATIONS IN THE AWEA. the schedules si-own relow have been established unoeh authority of dod directive 5120.39* ••DEPARTMENT OF I’EFENSE WAGE FIXING AUTHORITY — APPROPRIATED FUND COMPENSATION*** APRIL 24* 1980* SUBJECT TO THE LIMITATIONS CONTAINEO IN FPM BULLETIN 532-76 DATED 24 FEBRUARY 1988* AND ARE TO BE APPLIED IN ACCORDANCE WITH THE PROVISIONS OF FPM SUPPLEMENT 532-1 Tn ALL INSTALLATIONS LISTED ON THE REVERSE SIDE. WD-WN WL-WS w G-RATES WL -RATES WS-WD-WN RATES PAY GRADE } 2 3 4 5 1 2 3 4 5 1 2 3 4 5 LEVEL 1 5.62 5.83 6.07 6.32 6.55 6.17 6.42 6.69 6.94 7.21 9. 15 9.52 9.90 10.30 10.66 2 6.31 6.56 6.83 7.09 7.36 6.9? 7.22 7.51 7.HO H.09 9.83 10.23 10.64 11.06 11.46 3 6.96 7.26 7.55 7.85 8.13 7.68 7.99 8.31 8,63 8.95 10.46 10.91 11.34 11.77 12.20 1 4 7.SB 7.92 8.25 8.56 8.87 8.35 a. 71 9.05 9.41 9.76 11.05 11.50 11.96 12.44 12.88 2 5 8.25 8.58 8.92 9.27 9.62 9.06 9.45 9.83 10.21 10.59 11.68 12.18 12.67 13.15 13.65 3 6 8.89 9.26 9.63 10.01 10.37 9.78 10.18 10.60 10.99 11.40 12.33 12.84 13.37 13.88 14.'39 4 7 9.52 9.91 10.32 10.71 11.10 10.46 10.92 11.36 11.80 12.22 12.92 13.46 14.01 14.54 15.08 5 1 8 10.12 10.57 10.97 11.40 11.83 11.14 11.62 12.08 12.S5 13.01 13.53 14.12 14.68 15.23 15.79 6 2 9 10.76 11.20 11.64 12.09 12.53 11. «3 12.33 12.82 13.31 13.80 14.16 14.75 15.34 15.94 16.53 7 3 10 1 1.36 11.83 12.30 12.78 13.23 12.49 13.01 13.52 14.05 14.56 14.76 15.38 15.99 16.60 17.23 8 4 11 11.96 12.47 12.97 13.46 13.97 13.15 13.71 14.25 14.81 15.36 15.17 15.81 16.43 17.06 17.70 9 5 12 12.56 13.12 13.65 14.17 14.71 13.87 14.45 15.02 15.60 16.19 15.70 16.36 17.01 17.67 18.32 10 6 13 13.18 13.74 14.30 14.84 15.41 14.53 15.14 15.73 16.34 16.97 16.36 17.04 17.72 18.41 19.09 1 1 7 14 13.81 14.41 14.98 15.55 16.11 15.18 15.82 16.47 17.09 17.72 17.13 17.86 18.57 19.28 20.00 8 15 14.43 1S.02 15.62 16.23 16.84 15.88 16.54 17.20 17.87 18.52 18.04 18.79 19.55 20.29 21.06 9 IN ACCORDANCE WIfH THE PROVISIONS OF FPM SUPPLEMENT 532-1 WS-16 19.06 19.85 20.66 21.45 22.24 OETERMINATION HAS BEEN MADE THAT THERE IS NO DOMINANT IN- wS-17 20.22 21.07 21.90 22.74 23.60 OUSTRY IN FEDERAL EMPLOYMENT IN THE WAGE AREA. therefore. WS-18 21.50 22.38 23.28 24.19 25.08 THERE IS NO APPi^l CAT/ION Ofe 1 5 U.S. C. 5343(D) FOR ! THIS WS-19 22.89 23.86 24.80 25.76 26.72 SCHEDULE . U Cc-Z. &^ CECIL E. ALLEN ORDER DATE: 2 FEBRUARY 1988 DInECTOR EFFECTIVE DATE: THE FIRST DAY OF THE FIRST PAY PERIOD TECHNICAL STAFF BEGINNING ON OR AFTER 9 JULY 1988 SUPERSEDES SCHEDULE ISSUED 31 MARCH 19H7FWS APPROPRIATED FUNDS WAGE SCHEDULE — SAMPLE PAGE (Page 2 of 2) Installations authorized the Memphis Tennessee wage area schedule: DEFENSE! LOGISTICS AGENCY Defense Depot Memphis, Memphis, TN DRMO, Blytheville, AR DEPARTMENT OF THE ARMY USAR empls at Jonesboro, AR USAS empls at Memphis, TV US Army Engr Dist, Vicksburg empls at Arkabutla Lake Field Ofc, US Army Engr Dist, Memphis, TN US Army Engr Dist, Memphis, Waynne Area Ofc empls.at W. G. Huxtable Pumping Plant, Lee County, AR Military Entrance Processing Station, Memphis, TN DEPARTMENT OF THE NAVY Naval Air Station, Memphis, TM Nav3l Regional Medical Center, Memphis, TN Naval Air Technical Training Center, Memphis, TN Naval Commissary Store, Memphis, TN Naval Air Reserve Training Unit, Memphis, TN Chief of Naval Air Technical Training, Memphis, TN Naval Air Maintenance Training Group, Memphis, TN Naval Reserve Readiness Command, Millington, TN DEPARTMENT OF THE AIR FORCE Blytheville AFB, Blytheville, AR NATIONAL GUARD BUREAU National Guard Technicians in Carroll, Chester, Gibson, Madison and Shelby Counties, TN; and Craighead, Crittenden and Lee Counties, AR; Tate and Tippah Counties, MS Survey Ar«»: Tennes see: Shelby Tipton Arkansas: Crittenden ‘lississippi Mississippi: DeSoto Area of Application: Survey area plus: Tennessee: Carroll Chester Crockett Dyer Fayette Cibson Hardecan Hardin Hayvood Lake Lauderdale Madison McNairy Obion Mis souri: Dunklin Petniscct Arkansas: Craighead Crosa Lee Foinsect St. Francis Mississippi: Benton Lafayette* Marshall Pontotoc* Tate Tippah Tunical Union * 1 - Holly Springs National Forest portion only.FWS NON-APPROPRIATED FUNDS REGULAR SURVEY LIST OF WAGE AREAS* STATE WAGE AREA Alabama Calhoun Madison Montgomery Alaska Anchorage Arizona Maricopa Pima Yuma Arkansas Pulaski California Alameda-Contra Costa Imperial Kern Los Angeles Marin-Sonoma Merced Monterey Orange Riverside Sacramento San Bernardino San Diego San Francisco San Joaquin Santa Barbara Santa Clara Solano Ventura Colorado Adams-Denver El Paso Connecticut New London Delaware Kent District of Columbia Washington, D.C. *A wage area includes the specific area surveyed and all areas located within the wage area to which the resultant wage schedule is applied. See OPM's FPM Supplement 532-2, NAF for a detailed list delineating each of these specific areas. FWS NON-APPROPRIATED FUNDS REGULAR SURVEY LIST OF WAGE AREAS* (CONTINUED) STATE WAGE AREA Florida Bay Brevard Dade Duval Escambia Hillsborough Monroe Okaloosa Orange Georgia Chatham Clayton-Cobb-Fulton Columbus Dougherty Houston Lowndes Richmond Guam Guam Hawaii Honolulu Idaho Ada-Elmore Illinois Champaign Cook Lake Rock Island St. Clair Indiana Marion Kansas Sedgwick Kentucky Clark-Hardin-Jefferson Louisiana Bossier-Caddo Orleans Rapides Maine Aroostook CumberlandFWS NON- -APPROPRIATED FUNDS REGULAR SURVEY LIST OF WAGE AREAS* (CONTINUED) STATE WAGE AREA Maryland Anne Arundel Charles-St. Marys Harford Montgomery-Prince Georges Washington Massachusetts Hampden Middlesex Norfolk Michigan Macomb Marquette Minnesota Hennepin St. Louis Mississippi Harrison Lauderdale Lowndes Missouri Jackson, Missouri Montana Cascade Nebraska Douglas-Sarpy Nevada Churchi11-Washoe Clark New Hampshire Rockingham New Jersey Burlington Monmouth Morris Ocean New Mexico Bernalillo Dona AnaFWS NON- APPROPRIATED FUNDS REGULAR SURVEY LIST OF WAGE AREAS* (CONTINUED) STATE WAGE AREA New York Clinton Kings-Queens Niagara Oneida Onondaga Orange North Carolina Craven Cumberland Wayne North Dakota Grand Forks Ward Ohio Franklin Greene-Montgomery Oklahoma Comanche Oklahoma Pennsylvania Allegheny Bucks-Montgomery Cumberland Franklin Lebanon Philadelphia York Puerto Rico Guaynabo-San Juan Rhode Island Newport South Carolina Charleston Horry Richland South Dakota Pennington Tennessee ShelbyFWS NON- -APPROPRIATED FUNDS REGULAR SURVEY LIST OF WAGE AREAS* (CONTINUED) STATE WAGE AREA Texas Bell Bexar Dallas El Paso Harris Lubbock Nueces Tarrant Taylor Tom Green Travis Wichita Utah Davis-Salt Lake-Weber Virginia Alexandria-Arlington-Fairfax Chesterfield-Richmond Hampton-Newport News Norfolk-Portsmouth-Virginia Beach Prince William Washington King Kitsap Pierce Spokane Wyoming Laramieindustries from the wholesale trade, retail trade, services, and recreation groups. The list is provided in its entirety by 4-digit SIC Code level as exhibit 39. A lead agency may not omit an industry listed; however, it may add other industries from within the wholesale, retail, and service industry divisions where they account for significant proportions of local private employment of the kinds and levels found in local NAF employment. All establishments having 20 or more employees in the prescribed industries within a survey area are included within the survey universe except those as noted in exhibit 39 which will be included if they have 8 or more employees. In areas with relatively few establishments, surveys cover all establishments within the prescribed industry and size groups. Usually, however, a sample of the universe is surveyed. Occupational Scope In each local NAF wage survey, wage rate data are collected for a prescribed list of jobs which cover a wide range of occupations common in skill and responsibility in both industry and NAF activities. Survey job descriptions, prepared by OPM, are keyed to industrial work situations and are also representative of wage occupations and work levels in NAF activities. Descriptions of survey jobs which are authorized to be used in regular wage surveys are provided by the NAF FPM Supplement 532-2. There are 25 occupations which must be surveyed by each regular survey. A lead agency may survey an optional job under certain conditions prescribed by OPM. Exhibit 40 provides a list of jobs that must be surveyed, and optional jobs that may be surveyed. In addition, a job not listed may be added to the survey for future development purposes according to guidelines provided by OPM. NAF Survey Cycles NAF surveys are conducted annually using the same full-scale/wage-change cycles used for AF surveys (see page 140).NAF surveys are not generally provided to Wage and Hour as is done for AF surveys. Data collected are used to develop the resulting NAF wage schedules for each wage area which are based on wage rates determined to prevail in the area as indicated by the NAF survey results. As with the AF, these NAF wage schedules are used as supplementary resources in combination with primary source data for SCA WD development. Wage rates reported in the NAF regular wage schedules for crafts and trades are for three varying wage rate categories as follows. • NA Rates: Wage Grade used for nonsupervisory NAF positions. • NL Rates: Wage Leader used for leader NAF positions. • NS Rates: Wage Supervisor used for supervisory NAF positions. For SCA WD development purposes, only the NA rates for nonsupervisory crafts and trades positions are used. Note that NAF also has schedules for adminstrative support (AS) and patron services (PS) to cover some white collar positions (e.g., clerks working at a military base PX). These are not used for SCA WD purposes, however. Exhibit 41 presents a sample NAF crafts and trades wage schedule.FWS NON-APPROPRIATED FUNDS REGULAR SURVEY INDUSTRIES SURVEYED BY FOUR-DIGIT SIC CODE SIC INDUSTRY TITLE WHOLESALE TRADE: 5013 Automotive Parts and Supplies 5122 Drugs, Drug Proprietaries, and Druggists Sundries 5198 Paints, Varnishes, and Supplies 5133 Piece Goods (Woven Fabrics) 5134 Notions and Other Dry Goods 5136 Men's and Boys' Clothing and Furnishings 5137 Women's, Children's, and Infants' Clothing and Accessories 5139 Footwear 5145 Confectionery 5064 Electrical Appliances, Television, and Radio Sets 5065 Electrical Parts and Equipment 5072 Hardware 5171 Petroleum Bulk Stations and Terminals 5172 Petroleum and Petroleum Products Wholesalers, Except Bulk Stations and Terminals 5194 Tobacco and Tobacco Products 5111 Printing and Writing Paper 5112 Stationary Supplies 5113 Industrial and Personal Service Paper 5021 Furniture 5023 Home Furnishings 5041 Sporting and Recreational Goods and Supplies 5042 Toys and Hobby Goods and Supplies 5043 Photographic Equipment and Supplies 5094 Jewelry, Watches, Diamonds, and Other Precious Stones 5099 Durable Goods, Not Elsewhere Classified 5159 Farm-Product Raw Materials, Not Elsewhere Classified 5191 Nondurable Goods, Not Elsewhere Classified RETAIL TRADE: SERVICES: 5311 Department Stores 7011 Hotels, Motels, and 5331 Variety Stores Tourist Courts 5962* Automatic Merchandising, 7933* Bowling Alleys Machine Operators 7997* Membership Sports and 5541* Gasoline Service Stations Recreation Clubs 5812 Eating Places 5813 Drinking Places (Alcoholic Beverages) *These establishments shall be included in the survey universe if they have 8 or more employees. **Only Golf and Country Clubs shall be surveyed._FWS NON-APPROPRIATED FUNDS REGULAR SURVEY OCCUPATIONS SURVEYED OCCUPATIONS REQUIRED TO BE SURVEYED Janitor (Light) Food Service Worker (NA-1) Food Service Worker (NA-2) Fast Food Worker Janitor Laborer (Light) Laborer (Heavy) Service Station Attendant (NA-3) Stock Handler Short Order Cook Materials Handling Equipment Operator Warehouseman Service Station Attendant Truck Driver (Light) Truck Driver (Medium) Truck Driver (Heavy) Building Maintenance Worker (NA-7) Cook Building Maintenance Worker (NA-8) Air Conditioning Equipment Mechanic (NA-8) Carpenter Painter Automotive Mechanic Electrician Air Conditioning Equipment Mechanic (NA-10) OCCUPATIONS WHICH MAY BE SURVEYED (OPTIONAL} Service Station Attendant (NA-1) Groundskeeper Grill Attendant Tractor Operator Bowling Equipment Mechanic Vending Machine Mechanic Truck Driver (Trailer) 171 EXHIBIT 41 I I AC- 151 FWS NON-APPROPRIATED FUNDS WAGE SCHEDULE — SAMPLE PAGE (Page 1 of 2) department of defense wage fixing authority ALEXANDRIA* VIRGINIA 22331-1200 ISSUE DATE: 26 FEBRUARY 1988 SUBJECT: NAF REGULAR MAGE RATE SCHEDULES FOR THE WAGE AREA OF LEAVENWORTH# KANSAS/JACKSON-JOHNSON, MO ;o: COMMANDING OFFICERS OF MILITARY DEPARTMENTS AND DOD COMPONENT INSTALLATIONS IN THE AREA. THE CRAFTS AND TRAOES SCHEDULES SHOWN BELOW HAVE BEEN ESTABLISHED UNDER AUTHORITY OF OOD DIRECTIVE 5120.42 "DEPARTMENT OF DEFENSE WAGE FIXING AUTHORITY—NONAPPROPRIATEO FUNO COMPENSATION PROGRAMS,H 19 MAY 1977# ANO ARE TO BE APPLIED IN ACCORDANCE WITH THE PROVISIONS OF FPM SUPPLEMENT 532-2 TO INSTALLATIONS LISTED ON THE REVERSE SIDE. THESE SCHEDULES ALSO CONFORM WITH FPM BULLETIN 532-76 DATED 24 FEBRUARY 1988# SUBJECT: FISCAL YEAR 1988 LIMITATION ON WAGE SCHEOULE AND WAGE RATE ADJUSTMENTS FOR PREVAILING RATE EMPLOYEES. nl-ns NA-RATES nl-rates NS-RATES GRAOE 1 2 3 4 5 1 4. 3 4 5 1 2 3 4 5 1 3.91 4*08 4.25 4.41 4.57 4.31 4.49 4.67 4.85 5.03 5.57 5.81 6.04 6.27 6.50 2 4.40 4.57 4.76 4.94 5.14 4.83 5.03 5.22 5.44 5.66 6.07 6.34 6.59 6.85 7.10 3 5.07 5.29 5.48 5.71 5.93 5.48 5.73 5.97 6.18 6.41 6.37 6.66 6.92 7.19 7.46 4 5.47 5.72 5.96 6.17 6.40 5.79 6.04 6.30 6.53 6.78 6.71 6.98 7.27 7.55 7.83 5 5.79 6.04 6.30 6.53 6.78 6.33 6.59 6.87 7.12 7.40 7.21 7.50 7.80 8.10 8.40 6 6.24 6.49 6.75 7.00 7.26 6.86 7.15 7.43 7.73 8.00 7.66 7.98 8.30 8.61 8.93 7 6.69 6.96 7.25 7.52 7.81 7.38 7.69 7.99 8.30 8.60 8.14 8.51 8.85 9.18 9.52 8 7.20 7.49 7.79 8.09 8.38 7.90 8.25 8.57 8.90 9.24 8.62 8.98 9.35 9.72 10.07 9 7.58 7.92 8.25 8.56 8.87 8.35 8.71 9.05 9.41 9.76 9.13 9.51 9.89 10.29 10.65 10 8.02 8.35 8.69 9.03 9.37 8.83 9.19 9.55 9.92 10.31 9.63 10.04 10.44 10.83 11.25 11 8.45 8.82 9.16 9.51 9.86 9.29 9.70 10.08 10.46 10.88 10.13 10.58 10.98 11.41 11.84 12 8.88 9.25 9.62 10.00 10.36 9.77 10.17 10.59 10.98 11.39 10.65 11.09 11.55 11.98 12.44 13 9.29 9.70 10*08 10.46 10.88 10.22 10.65 11.08 11.50 11.94 11.17 11.64 12.11 12.57 13.05 14 9.72 10.11 10.53 10.94 11.35 10.69 11.14 11.60 12.05 12.49 11.66 12.16 12.65 13.13 13.62 15 10.13 10.58 10.98 11.41 11.84 11.15 11.63 12.09 12.66 13.04 12.18 12.68 13.18 13.71 14.21 NS-16 12.68 13.21 13.74 14.26 14.81 NS-17 13.17 13.73 14.29 14.83 15.39 NS-18 13.71 14.26 14.84 15.43 15.99 % , NS-19 14.20 14.80 15.39 15.98 16.57 I L. T. BEIERMANN ACTING DIRECTOR TECHNICAL STAFF OROER date: 2 EFFECTIVE DATE NOVEMBER 1987 : THE FIRST DAY OF THE FIRST PAY PERIOD BEGINNING ON OR AFTER 6 APRIL 1988 SUPERSEDES SCHEDULE EFFECTIVE 8 APRIL 1987 AREA- 151 LEAVENWORTH, EXHIBIT 41FWS NON-APPROPRIATED FUNDS WAGE SCHEDULE — SAMPLE PAGE (Page 2 of 2) Installations authorized the Kansas City, Missouri wage area schedule: DEPARTMENT OF THE ARMY US Army Home Town News Center, Kansas City, MO Military Entrance Processing Station, Kansas City, MO USAR empls at Kansas City and Olatha, KS Fort Leavenworth, Kansas Fort Leavenworth, KS empls at Sherman Army Air Field Fort Leonard Wood empls at St. Joseph, MO and Kansas City, KS US Army Engr District, Kansas City, MO US Army Engr Dist, Kansas City empls at Long Branch Project Ofc, Macon, MO; Hillsdale Resident Ofc., Hillsdale, KS; Clinton Project Ofc, Lawrence, KS; Napoleon Resident Ofc, Napoleon, MO; Smithville Project Ofc, Smithville, MO; Longview-Blue Springs Lake Ofc, Kansas City, MO; Knasas City Resident Ofc., Kansas City, MO. Lake City Army Ammo Plant, Independence, MO DEPARTMENT OF THE NAVY Navy Air Reserve Training Detachment, Industrial Airport, KS HQS 9th Marine Corps Dist., Shawnee Mission, KS Naval & Marine Corps Reserve Training Center, Kansas City, MO DEPARTMENT OF THE AIR FORCE Whiteman Air Force Base, Knob Noster, MO Rlchards-Gerbaur Air Force Base, MO NATIONAL GUARD BUREAU National Guard Technicians in Buchanan, Cass, Jackson, Johnson, Saline Counties, Missouri and Bourbon, Franklin, Allen, Wyandotte Counties, Kansas DEPARTMENT OF DEFENSE Defense Personnel Support Center, Kansas City, MO Defense Mapping Agency, Topographic Center, Kansas City Ofc, Kansas City, MO DEFENSE LOGISTICS AGENCY DRMO empls located at Fort Leavenworth, KS; Richards-Gerbaur AFB, MO and Whiteman AFB, MO AND ACTIVITIES NOT LISTED ABOVE BUT LOCATED IN ANY OF THE COUNTIES LISTED BELOW: Survey Area: Missouri: Cass, Clay, Jackson, Platte, and Ray Kansas: Johnson, Leavenworth, and Wyandotte Area of Application: Survey area plus: Missouri: Adair Andrew Atchison Bates Buchanan Caldwell Kansas: Allen Anderson Carroll Gentry Johnson Charlton Grundy Lafayette Clinton Harrison Linn Cooper Henry Livingston Daviess Holt Maconq De Kalb Howard Mercer Atchison Doniphan Franklin Bourbon Douglas Linn Schuyler Sullivan Miami Nodaway Pettis Putnam SalineINTRODUCTION This chapter describes briefly other selected data sources used to develop SCA WDs. Some of these resources are used as primary data sources; some are used as supplementary data sources. Although the resources discussed in chapters 4 and 5 are used most frequently for SCA WD development purposes, either as primary or supplementary data sources, under certain circumstances the sources described in this chapter may need to be used instead of, or in addition to those described previously. These sources include the following. • SELECTED STATE WAGE SURVEYS • COLLECTIVE BARGAINING AGREEMENTS • FEDERAL GENERAL SCHEDULE • DAVIS-BACON WAGE DETERMINATIONS • INCUMBENT CONTRACTOR WAGE RATES • WAGE AND HOUR SURVEYS OR STUDIES SELECTED STATE WAGE SURVEYS For certain areas of the United States where there is significant SCA-covered contract activity, BLS does not conduct area-specific surveys (e.g., Area Wage Surveys or SCA Area Surveys). Two key areas where this situation exists are Hawaii and Idaho. Wage and Hour has determined that there is no need to request BLS to conduct an SCA Area Survey for areas in these States under the ESA-BLS contractual arrangement. High-quality, State-conducted surveys exist that may be used as primary source data for developing areawide, prevailing WDs. A brief description of the Hawaii and Idaho surveys follows. Hawaii Survey The Hawaii survey used for SCA purposes is an annual Statewide survey conducted jointly by the Hawaii Employers Council and the State of Hawaii, Department of Personnel Services.A survey Summary provides wage rate data for over 100 white and blue collar occupations. A separate Summary provides fringe benefits data. Occupations are defined and job descriptions are developed using procedures similar to those followed by BLS as described in chapter 4. The survey Summary provides the job descriptions so-developed. The survey is cross-industry in scope and collects data from a statistically valid sample of establishments selected from the following seven (7) broad industry groups in the private sector. • Agriculture • Trade • Utilities and Transportation • Finance • Manufacturing • Services • Miscellaneous Data are also collected and reported separately for government operations. Wage rate data are reported by occupation for all private sector industries surveyed as well as separate break-outs for each of the seven (7) broad industry groups listed above and for government operations. In addition, break-outs are provided for selected islands of Hawaii. Exhibit 42 illustrates a sample wage data page from this Hawaii survey. For SCA wage determination purposes, the data are evaluated and used as primary source data for WDs involving Hawaii procurements in the same manner as BLS Area Wage and SCA Area Surveys are used. Procedures followed are described in section IV, chapters 14 and 15. Idaho Survey The Idaho wage survey used for SCA purposes is an annual Statewide survey conducted by the State of Idaho, Department of Employment. The survey provides wage rate data for over 150 white and blue collar occupations. It does not, however, provide fringe benefits data. Occupations are defined and job descriptions developed using procedures similar to those followed by BLS asHAWAII STATE SURVEY WAGE DATA — SAMPLE PAGE CLERK Industry Jobs $ Full Range $ Mid-50% Rangr* $ Median $ Mean Agriculture 47 950 - 1,625 1,238 - 1,449 1,359 1,332 Util. $ Trans. 77 700 - 2,319 1,291 - 1,676 1,586 1,537 Trade 232 607 - 2,328 817 - 1,190 1,020 1,060 Service 250 650 - 1,713 1,165 - 1,285 1,212 ' 1,188 Manufacturing 53 800 - 2,298 1,125 - 1,905 1,636 1,483 Finance 591 600 - 1,515 905 - 1,100 998 1,009 Miscellaneous 78 693 - 2,142 950 - 1,349 1,035 1,238 ALL INDUSTRY 1328 600 - 2,328 925 - 1,245 1,079 1,126 Kauai 45 800 - 1,625 1,111 - 1,4 51 I, lo5 1,239 Oahu 1163 600 - 2,328 916 - 1,231 1,055- 1,110 Maui 78 607 - 2,319 1.057 - 1,449 1,269 1,304 Hawaii 42 825 - 1,793 949 - 1,212 1 ,088 1,112 SENIOR CLERK Industry Jobs $ Full Range $ Mid-50% Range $ Median $ Mean Agriculture 13 1 ,325 - 1,833 1 536 1,536 1,552 Util. 5 Trans. 31 1,150 - 2,607 1,765 - 1,777 1,765 1,878 Trade 87 950 - 3,066 1,243 - 2,574 1,511 1,852 Service 66 797 - 2,000 1,289 - 1,565 1,40o % 1,390 Manufacturing 38 1 ,150 - 2,117 1,760 - 2,016 1,825 1,805 Finance 431 760 - 1,755 1,090 - 1,408 1,237 1,252 Miscellaneous 43 950 - 2,367 1,125 - 1,936 1,425 1,531 ALL INDUSTRY 709 760 - 3,066 1,141 - 1,565 1,325 1,418 Kauai 19 1 ,234 - 1,990 1,286 _ 1,688 1,509 1,500 1 Oahu 625 760 - 3,066 1,131 - 1,565 1,314 1,417 Maui 33 912 - 1,990 1,187 - 1,536 1,400 1,364 Hawaii 32 910 - 2,045 1,200 - 1,609 1,400 1,449described in chapter 4. The survey Summary provides the job descriptions so-developed. The survey is cross-industry in scope and collects data from a statistically valid sample of establishments selected from the following four (4) broad industry groups, including the public sector. • Trade • Manufacturing • Nonmanufacturing • Government Wage rate data are reported by occupation for all the industries and separately for each industry listed above. In addition, break-outs are provided for three substate planning areas. Exhibit 43 illustrates a sample wage data page from this Idaho survey. For SCA wage determination purposes, the data are evaluated and used as primary source data for WDs involving Idaho procurements in the same manner as BLS Area Wage and SCA Area Surveys are used. Procedures followed are described in section IV, chapters 14 and 15. COLLECTIVE BARGAINING AGREEMENTS As discussed in chapter 3, page 51, section 4(c) WDs must be based on the applicable collective bargaining agreement (CBA) of the incumbent or predecessor contract/contractor. In addition, an areawide, prevailing WD may be based upon a particular CBA, if and only if, the wage structure of the locality of the place of performance is dominated by one or more unions for one or more of the occupational classes required by the WD to be issued. The procedures followed and criteria used to- analyze a CBA and develop the WD are essentially the same, even though the rationale differs as follows. • Section 4(c^ WD: Issued when the wage rates and fringe benefits of an incumbent contractor's employees working on the SCA-covered contract are governed by a CBA. According to SCA sections 2(a) and 4(c), these CBA wage rates and fringe benefits are to be used as the basis of the WD issued to govern the minimum compensation that the successor contractor must pay employees working on the subsequent SCA-covered contract for the same orsubstantially the same services in the same locality (see also chapter 15, page 392). • Areawide WD Based on Union Dominance: This type of areawide, prevailing WD is issued for occupational classes in a given geographic area wherein compensation for a majority (50%+) of the employees in the class is governed by a CBA. Such a situation results in a single rate being paid a majority of the workers in the class, thus constituting the prevailing rate. The applicable CBA's fringe benefits would also be considered prevailing. The wage rates and fringe benefits in the CBA of the dominant union in the geographic area are used as the sole basis for the affected classes to be included in an areawide WD based on union dominance (see also chapter 15, page 392). Thus, in these two instances, a CBA is used as the primary and only source of data for developing the SCA WD. CBA's vary in size from a few pages to over 100 pages. Most are complex documents due to the diversity of employment situations among various industries and companies, and the resulting complicated management-union issues a CBA is negotiated to address. In addition to wage rates and fringe benefits, they cover all types of employer-employee contract arrangements. Non-economic provisions such as grievance procedures, seniority, and work rules are never included in the WD, however. With regard to wages, all CBA provisions must be researched and analyzed for inclusion in the hourly rates issued by the WD, including, for example, the following. • Straight time hourly and/or salary pay rates. • Cost-of-living allowances. • Shift, hazardous pay, and other similar pay rate differentials. • Other wage rate provisions as found. Note that wage rate provisions found in the applicable CBA may differ for each class needed. And, wage rates found in the CBA document may be expressed as a single rate or as a wage rate range (i.e., minimum/maximum based on longevity, performance, or other similar wage differential standards). Exhibit 44 illustrates a sample CBA page of wage rate information. In this illustration the basic wage rates are provided by an attachment to the CBA. Other wage rate related information that may need to be evaluated is often contained in, the text of the CBA.IDAHO STATE SURVEY WAGE DATA — - SAMPLE PAGE TABLE 1: AVERAGE SALARIES - ALL INDUSTRIES EFFECTIVE WAGE RANGE NO. OF FIRST THIRD OCCUPATIONS RESPONSE MEAN MEDIAN QUARTILE MANAGERIAL AND ADMINISTRATIVE OCCUPATIONS CONTROLLER 145 15.64 15.00 10.83 18.75 CONSTRUCTION SUPERINTENDENT 190 15.41 13.93 11.25 18.25 FOOD SERVING/LODGING MANAGER 210 8.24 8.08 5.88 10.00 GENERAL MGR. & TOP EXECUTIVE 3163 15.94 14.92 10.39 19.23 MANAGER TRAINEE 259 6.86 7.03 5.00 8.27 PURCHASING MANAGER 297 11.03 10.39 7.58 12.S9 TRAINING MANAGER * * * * * PROFESSIONAL, PARAPROFESSIONAL, AND TECHNICAL OCCUPATIONS ACCOUNTANT, SR. 162 13.70 13.87 10.32 16.93 ACCOUNTANT AND AUDITOR 388 12.37 10.97 9.15 14.37 ARCHITECT 40 13.74 13.OS 12.02 15.50 CHEMISTS 42 15.53 15.37 1 1.60 18.95 COMPUTER PROGRAMMER 174 11.87 12.01 9.63 13.30 COMPUTER PROGRAMMER/ANALYST 166 15.01 14.47 12.02 17.22 CREDIT ANALYST 91 10.95 9.81 S.66 12.98 DESIGNER 53 7.33 5.00 4.25 7.50 D P SYSTEM SOFTWARE SPEC. 20 14.69 1 7.55 7.04 18.55 DRAFTER 263 10.64 10.60 8.25 12.96 ELECTRICAL/ELECTRONIC TECH. 215 11.53 12.15 9.01 14.05 ENGINEER, CIVIL 83 17.68 18.00 15.71 19.41 ENGINEER, ELECTRIC/ELECTRONIC 186 17.16 16.83 14.52 20.20 ENGINEER, INDUSTRIAL 20 12.95 14.38 7.93 16.35 ENGINEER, MECHANICAL 313 18.02 17.29 15.15 .19.79 ENGINEER, NUCLEAR 46 19.71 17.53 16.21 26.07 ENGINEER, PROJECT 94 16.33 16.83 13.24 19.11 ENGINEER, WATER RESOURCE * * * * * ENGINEER-IN-TRAINING 43 12.67 12.92 12.00 14.42 F.L. SPVSR/MGR. ACCTNG. 243 13.83 12.12 9.80 16.83 F.L. SPVSR/MGR. ARCHITECT * * * * * LABORATORY ASSISTANT 142 7.45 6.76 6.14 9.10 LICENSED PRACTICAL NURSE 501 7.23 6.82 6.36 8.40 MEDICAL/CLINICAL LAB TECH. 217 . 11.20 11.31 10.27 11.72 MICROBIOLOGIST SENIOR 18 10.23 9.12 7.71 13.58 NURSE PRACTITIONER 102 8.69 7.65 7.59 7.70 PERSONNEL/LABOR REL. SPEC. 139 13.51 13.23 11.01 15.92 PHARMACIST 159 14.23 14.69 13.22 15.74 PURCHASING AGENT/BUYER 249 10.28 9.81 7.79 12.85 RADIOLOGIC TECHNICIAN 130 8.91 8.52 8.51 9.54 •DATA NOT PUBLISHED DUE TO INADEQUATE RESPONSE CBA WAGE DATA — SAMPLE PAGE APPENDIX "A" WAGES Effective October 1, 1987, Wages will be as follows: COOK I $10.28 COOK II $ 8.05 MESS ATTENDANT $ 7.00 CLERK/S ECRETARY $ 7.00 TRUCK DRIVER $ 8.05 CASHIER $ 7.00 STORE ROOM CLERK $ 9.00 BAKER $10.28 All classes listed in the CBA needed for contract performance and their respective wage rate provisions must be issued in the corresponding section 4(c) WD. For an areawide WD based on union dominance, those classes listed in the SF-98 request whose wage rates are governed by union dominance are provided CBA-based wage rates in the WD issued. For any other classes listed in the SF-98 that are not governed by union dominance, the WD wage rates issued are based on survey or other related sources as warranted. With regard to fringe benefits, all CBA provisions must be included in the WD issued including, for example, the following. • Holidays. • Vacations. • Sick leave. • Other leave benefits such as funeral, jury duty, military leave. • Insurance plans such as life, accidental death, disability, medical, and dental. • Retirement plans. • Severance pay. Also, the CBA may provide for limitations, requirements, or qualifications controlling eligibility that must be taken into account in issuing the WD. Exhibit 45 illustrates a sample CBA page of health and welfare fringe benefits information. In this illustration, the basic fringe benefits data are provided as attachments to the CBA. Other related information that may need to be evaluated is often contained in the text of the CBA. Lastly, the CBA must be reviewed for any prospective changes in wage rates and/or fringe benefits. These may affect the WD issued as well. FEDERAL GENERAL SCHEDULE On occasion, the Federal General Schedule (GS pay rates) may be used as a primary or supplementary data source for SCA WD development. The GS pay rate schedule sets the annual salaries to be paid to Federal white collar employees. It is established by the Office of Personnel Management (OPM) on thebasis of salary and wage administration practices used to classify employees based on job content (i.e., knowledge, skills, and duties) and to develop appropriate salaries. It consists of 18 GS grades and 10 steps. Exhibit 46 provides a copy of the current GS Schedule. For SCA purposes, GS pay rates may only be used as a primary, direct source for areawide, prevailing WDs where the Federal Government dominates as the principal employer (e.g., air traffic controllers). GS pay rates are nationwide in scope and are based on Federal Government work, even though private sector pay rates for similar work are taken into account in accordance with the Federal Pay Comparability Act of 1970. Thus, the use of GS rates as a direct basis of the WD is generally not appropriate. However, when absolutely no other appropriate data source exists, GS rates may be used as the primary basis for the WD. DAVIS-BACON WAGE DETERMINATIONS As mentioned in section I, chapters 1 and 2, a counterpart program to the issuance of SCA wage determinations involves the issuance of Davis-Bacon prevailing wage rates and fringe benefits for Federal and District of Columbia construction contracts. Under very rare circumstances. wage rates from Davis-Bacon WDs may be used as the primary basis for selected classes needed for SCA areawide, prevailing WDs. Such Davis-Bacon survey-based wage rates are used rarely and only for construction-related classes in situations, for example, involving emergency clean-up after a natural disaster or where demolition services are needed and replacement is not anticipated. Davis-Bacon rates are provided in prevailing wage determinations issued under the Davis-Bacon and Related Acts. The Davis-Bacon Construction Wage Determinations Manual of Operations issued April 1986 describes in detail how these wage determinations are developed and issued. In addition, the Branch of Construction Wage Determinations should be consulted to obtain a copy of the appropriate wage determination and for assistance in analyzing and using the information properly. INCUMBENT CONTRACTOR WAGE RATES Under rare circumstances, wage rates paid by an incumbent contractor may be used as the direct or primary basis for the wage rates issued for selected classes of a given areawide, prevailing WD. Such wage rates are used rarely and only forCBA FRINGE BENEFITS DATA — SAMPLE PAGE APPENDIX "B" HEALTH AND WELFARE Health and Welfare contributions will be paid on all hours worked, all hours paid for vacation, holidays and sick leave, but shall not exceed forty (40) hours in any one week, and the payments per hour shall be as follows s Current and Effective October 1, 1987 The company shall provide Forty Five ($.45) cents per hour worked in Health and Welfare benefits, said sum to be contributed to the ITPE-NMU WELFARE PLAN. In executing this Agreement, the Company agrees to be bound by the terms and conditions of the Agreement and Declaration of Trust establishing the ITPE-NMU Welfare Plan and any amendments duly adopted thereto. The Company further agrees to be bound by all resolutions and other actions taken by the Board of Trustees of such Plan.187 EXHIBIT 46 i i GS SCHEDQU5 — SAMPLE PAGE THE NEW FEDERAL PAY SCBEDOUB ANNUAL SALARIES BCR 1988 STEPS 1 2 3 4 5 6 7 8 9 10 GRADES 1 $9,811 $10,139 $10,465 $10,791 $11,117 $11,309 $11,631 $11,955 $11,970 $12,275 2 11,032 11,294 11,659 11,970 12,103 12,459 12,815 13,171 13,527 13,883 3 12,038 12,439 12,840 13,241 13,642 14,043 14,444 14,845 15,246 15,647 4 13,513 13,963 14,413 14,863 15,313 15,763 16,213 16,663 17,113 17,563 5 15,118 15,622 16,126 16,630 17,134 17,638 18,142 18,646 19,150 19,654 6 16,851 17,413 17,975 18,537 19,099 19,661 20,223 20,785 21,347 21,909 7 18,726 19,350 19,974 20,598 21,222 21,846 22,470 23,094 23,718 24,342 8 20,739 21,430 22,121 22,812 23,503 24,194 24,885 25,576 26,627 26,958 9 22,907 23,671 24,435 25,199 25,963 26,727 27,491 28,255 29,019 29,783 10 25,226 26,067 26,908 27,749 28,590 29,431 30,272 31,113 31,954 32,795 11 27,716 28,640 29,564 30,488 31,412 32,336 33,260 34,184 35,108 36,032 12 33,218 34,325 35,432 36,539 37,646 38,753 39,860 40,967 42,074 43,181 13 39,501 40,818 42,135 43,452 44,769 46,086 47,403 48,720 50,037 51,354 14 46,679 48,235 49,791 51,347 52,903 54,459 56,015 57,571 59,127 60,683 15 54,907 56,737 58,567 60,397 62,227 64,057 65,887 67,717 69,547 71,377 16 17 18 64,397 73,958* 86,682* 66,544 76,423* 68,691 78,888* 70,838 81,353* 72,500 83,818* 73,660* 75,765* 77,870* 79,975* ‘Federal workers who make more then $72,500 receive no increase as a result of congressional action. EXHIBIT 46specialty classes on contracts performed in economically unique areas and situations. For example: In some circumstances involving barbershop and beauty shop occupations used on military service contracts awarded on a concession basis, incumbent contractor rates are used due to the lack of survey-based or other related data. However, in order to use such data, the following key criteria should be met. • The locality of the place of performance must have its own wage structure, unaffected by the surrounding area. • The incumbent contractor's employees of a given class must represent a majority of the employees in the area for the same class. WAGE AND HOUR SURVEYS OR STUDIES Under rare circumstances. Wage and Hour may conduct its own surveys or studies. Usually they would be conducted by staff of the Division of Wage Determinations, Branch of Service Contract Wage Determinations. They may be formal or informal, depending upon the data needs. Such surveys or studies are performed in order to: • develop wage rate and/or fringe benefit data where none are readily available; • obtain more relevant, current, and/or reliable data upon which to base a wage determination (WD) than what are readily available; and/or • clarify information for use in evaluating discrepancies between available data sources or other problems incurred in using such sources. Surveys or studies are only conducted by Wage and Hour as a last resort — when no single or combination of existing, readily available data can provide a sufficient basis for determining prevailing wage rates and fringe benefits for a given locality. Some may be performed routinely (usually on an annual basis). Others may be performed only once to address an isolated situation not likely to occur again. Formal (written) and informal (telephone) surveys may be conducted depending upon data needs and the size of the survey universe or scope of the study needed.Informal surveys or studies usually involve the gathering of information needed to clarify data available from existing BLS and other sources routinely used for SCA purposes. These are performed on an ad-hoc basis when the need arises. Formal surveys or studies constitute major efforts wherein an existing payroll data set may be analyzed, or a survey instrument designed/utilized to collect information by mail or through on-site visits.CHAPTER 7s TOOLS USED TO PROCESS, DEVELOP, AND ISSUE WAGE DETERMINATIONS INTRODUCTION In addition to the data sources discussed in chapters 4, 5, and 6, SCA wage determination staff use a variety of tools to process, develop, and issue wage determinations. Some of the tools are maintained as desk references. Others are central ' files or related resources. This chapter describes each of these tools briefly. They are organized according to their primary use as follows. • PROCESSING AND RECORDS MAINTENANCE TOOLS • WAGE DETERMINATION DEVELOPMENT TOOLS • WAGE DETERMINATION ISSUANCE TOOLS Section IV provides further details on when and how these tools are used in the processing, development, and issuance of a wage determination (WD). PROCESSING AND RECORDS MAINTENANCE TOOLS WD processing and records maintenance tools discussed in this section include the following. • WD Numbering System • WD Docket File and Filing System • Microfiche Document System • WD Screening Board • WD Recordbook • Master Control File • New/Revised WD Logbook • Blanket WD Logbook • Wage Determination Automated Tracking SystemWD Numbering System Each WD is assigned a unique number, e.g., 77-201, which indicates the year in which it was first issued (1977) and its sequence in that year (201). When an initial WD is revised, it keeps the same number; however, the revision number is added, for example, 77-201 (Rev. 1) for the first time it is revised, 77-201 (Rev. 2) for the second revision, and so forth. WDs are filed according to these numbers in the WD Docket Filing System discussed below. WD Docket File and Filing System Each WD, its subsequent revisions, and all supporting documentation (e.g., source data, basis for issuance, applicable CBA, job descriptions and related correspondence) are maintained as the WD Docket File (file folder). Dockets are the official record of a given WD. They are filed in the Division of Wage Determination's Mail and File Room in sequential order. WD Docket Files provide historical, up-to-date information used for WD tracking and development purposes. Microfiche Document System A copy of every SF-98 request for a wage determination, including the SF-98a, is maintained on microfiche for easy retrieval. Each SF-98 request has a pre-printed unique number by which it is accessed from the system. Once a WD is issued to address the need of a given request, the WD number(s) are marked on the SF-98. Note that there are two primary document filing systems (the Microfiche Document System and the WD Docket Filing System described above). This is needed because a given WD and its accompanying documentation may apply to more than one SF-98. And, a given SF-98 mey call for the issuance of more than one WD. While some WDs are contract-specific in their application, most are applicable to a given geographic area (i.e., prevailing in the locality). Consequently, the same WD may apply to any number of contracts, where the place of performance falls within the same geographic area (locality). An SF-98 may have more than one WD issued in order to cover all the occupational classes needed. WD Screening Board The WD Screening Board is one of two indices that can be used to research active WDs. All active WDs (i.e., WDs that have been issued previously and are currently in effect for a given geographic area or specific contracts within given areas)are listed by number on the WD Screening Board. Individual and blanket WDs are listed by region, state, and county, and by the type of services covered. In addition, active WDs that have been issued as section 4(c) wage determinations and special WDs such as those issued for nationwide or regional procurements are coded. The WD Screening Board is used to locate active WDs by geographic area and type of services that may be applicable to the place of performance and services indicated on the SF-98 request. WD Recordbook The WD Recordbook is the other index that can be used to research active WDs. This 3-ring binder contains all active individual and blanket WDs organized in a similar manner as the WD Screening Board. It is a desk reference guide used for the same purpose; however, wage determination staff only maintain recordbooks of listings for their assigned geographic areas; whereas, the WD Screening Board covers all areas. Master Control File The Master Control File contains index cards on all WDs — active and inactive. Index cards are filed sequentially according to the WD number. The file is divided into an active part (WDs still in effect) and an inactive part (WDs that have been replaced by other WDs and/or otherwise withdrawn). This Master Control File is the central active/inactive WD file. Although not organized according to geographic areas (the key to locating an active WD that may be applicable to a given SF-98 request), it is important for identifying WDs that have been superseded by subsequent issuances. New/Revised WD Logbook Once a new or revised individual or blanket WD is issued, the SF-98 number, WD number, geographic area of application, contracting agency that submitted the request, and mail-out date are entered into the New/Revised WD Logbook. When wage determination staff are researching to find active WDs that may be applicable to a given SF-98 request, this logbook provides up-to-date documentation of any new or recently revised WDs. While the WD Screening Board and WD Recordbook listed above are routinely updated, there may be some lag time in doing so. Blanket WD Logbook The Blanket WD Logbook is similar to the New/Revised WD Logbook described above. It is used to track information onblanket SF-98 requests for wage determinations in addition to blanket WDs issued. Given that the development and issuance of blanket WDs is a Pilot Program, the Blanket Pilot Program Manager maintains this logbook. Wage Determination Automated Tracking System The Wage Determination Automated Tracking System (WD-ATS) is an on-line computer system which serves as the central information file for all SCA and Davis-Bacon wage determination requests. With regard to information needed to manage the SCA wage determination program, it has been developed to: • maintain the inventory and status of all SCA wage determination requests; • provide submitting agencies with postcard notification of SCA wage determination request receipt and expected time of completion; • assist wage determination staff in answering inquiries about pending SCA determination requests through on-line data base search capability; and • provide timely, comprehensive reports to assist management of the SCA wage determination workload. Depending upon the information needed, the WD-ATS data base can be searched in a variety of ways listed below. • SF-98 by Its Assigned, Unigue Number: Provides immediate access to the full record of information on a given SF-98. • SF-98 Inguirv bv Wage Determination Number: Allows grouping of all SF-98s to which a given WD applies. • SF-98 Inguirv bv County, State, Service, and Reguest Date: Allows for finding a given SF-98 if the SF-98 number is unknown by searching based upon location, type of service, and specified timeframe. • SF-98 Inguirv bv Agency and Reguest Date: Provides for finding a given SF-98 when the number is unknown, but the agency and the request date are known. • SF-98 Statistics Inguirv bv Agency: Permits display of the number of SF-98s received from the agency and the timeframe within which they were received (e.g., 30-60 days or less than 30 days from the solicitation date). In addition, various workload statistics can be obtained, including periodic reports on the status of overall workloadsand upcoming due dates, staff and East/West Section workloads, workloads by State, and type of service workloads. Such statistics are used to create management reports such as those illustrated by exhibits 47, 48, and 49. The Central Processing Unit staff maintain the currency of the WD-ATS data base by entering into the WD-ATS information on each SCA wage determination request and issuance at the key points within the process. Although the WD-ATS is primarily used for processing status and workload checks as described above, various data base search outputs provide WD and/or SF-98 numbers which can then be used to locate specific documents as needed. Depending upon which documents (WDs or SF-98s) are required, one of the two manual filing systems described above (Microfiche or WD Docket) is then used to retrieve the document information needed. The Wage Determination Automated Tracking System (WD-ATS) User Manual provides additional details on access to and operating procedures for the system. WAGE DETERMINATION DEVELOPMENT TOOLS The wage determination development tools described herein include the following. • Data Source Files • BLS Schedule of Area Wage Survey Dates • FWS Survey Lists • Worldwide Geographic Location Codes Handbook • Historical Information in the WD Docket File • Maps • SCA Directory of Occupations • Job Descriptions • Standard Occupational Classification Manual • Dictionary of Occupational Titles • Job Grading System For Trades and Labor Occupations List • Standard Industrial Classification Manual • OPM Federal Wage System Employment Printout• Standard Fringe Basis Sheet Data Source Files Data Source Files contain multiple copies of the BLS Area Wage and SCA Area Surveys, Federal Wage System pay schedules, State surveys, and other source data for given geographic areas that are used for developing WDs. Files are organized by geographic areas by State. BLS Schedule of Area Wage Survey Dates The Bureau of Labor Statistics (BLS) issues an annual timetable which provides information on when the Area Wage Surveys and SCA Area Surveys will be performed and ready for use during the fiscal year. It also provides descriptive information about each upcoming survey so that the staff can determine which upcoming or currently available surveys will be applicable to the development of a given WD. Surveys are listed on the schedule by geographic area within the ten standard Federal regions. Copies of these surveys are provided to Wage and Hour and filed by staff in the Data Source Files described above which are organized according to these geographic areas. Exhibit 50 provides a sample page from the FY 88 schedule. FWS Survey Lists These lists provide information on the geographic coverage of wage surveys conducted by the Federal Wage System (FWS). New lists are issued periodically. They are used to determine whether a Wage Board or NAF survey exists for a given geographic area of application. The lists provide area designations and reference numbers so that the appropriate survey can be located in the Data Source Files described above. Exhibits 51 and 52. illustrate sample pages from the current lists. Worldwide Geographic Location Codes Handbook The Worldwide Geographic Location Codes Handbook published by the General Services Administration references standard codes (numbers) for use in identifying States, cities, and counties. These codes have been developed as Federal Information Processing Standards (FIPS Codes) for government-wide use by the National Bureau of Standards in an effort to maintain consistency in information processing activities.MANAGEMENT REPORT — SAMPLE PAGE OF OVERALL WORKLOADS SERVICE CONTRACT ACT WAGE DETERMINATION ANALYSIS WORKLOAD MONTH: M.-,rcr> 19 3 3 CURRENT MO. PREVIOUS MO. YEAR-AGO-MO. WD Request Rec' d *-g,5A6 2 »9*6 3• '31 WD's Completed *3.619 3 ..30 3 3, 4. -_ Er.d of Month Inventory **< . 753__5,36? ~ . 36 3 No. Over 60 Days % Over 6 0 Days 39.90 43.23 28.20MANAGEMENT REPORT — SAMPLE PAGE OF WD WORKLOADS SERVICE CONTRACT ACT WAGE DETERMINATION REPORT PROCESSING MONTH : March 1933 Current Mo. Previous Mo. Year-Aao-Mo. Averaqe Days WD Developed (A) S*.S 69.8 682 No WD (B) 433 *9.3 55.3 SCA Doesn't Apoly (C) 109.3 49.4 I 10. 0 Sent Back to Aqencv (D) 23.2. 11.1 11.6 No. of Documents WD Developed (A) 3*120 2.6S3 2,953 No WD (B) 629 65Z 710 SCA Doesn't Apoly n CO VO 3 Back to Aaencv (D) 131 164 267 4000 NO. Or DOCUMENTS o o * m \ / 2500 \ / c ! S") 1500 ' " 1 ' " 0001 500 1-1- 1 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT 00 I AVERAGE DAYS O C \ G C il<’ OCT NOV DEC JAN FE3 MAR APR MAY JUN JUL AUG SEPTMANAGEMENT REPORT — SAMPLE PAGE OF AGENCY WORKLOADS 6ERVICE CONTRACT ACT WAGE DETERMINATION REQUEST PROCESSING BY AGENCY USPS AGENCY NAME:___ March 19 8 8 MONTH: No. of Requests Ave. Days to Process Current Mo. 325 13.9 Previous Mo. 331 55 ,4_ Year-Ago-Mo. 364 58.8 o203 EXHIBIT 50 BLS SCHEDULE OF AREA WAGE SURVEY DATES — SAMPLE PAGE ►1sea 1 1986 AWS and SCA FINAL Turntables Philadelphia Region AHS Area Pavrol1 Period ffrequency/ Geographic 1.0.) s»ia_ a- ules Sog-gos tad Startinq Cpllec-t loo Closeout Oa to F irva 1 Table Apor' vl Oate 0a to Publi-cat ion Sent to GPO Payroll Perlod Type ( r roquency/ Caoqr»utuc l.D. I Oeslq-rva tod No. of Sc» modules Suq-oes ted Start ir>a Colloc* t ion Closoout Da tu r lna 1 Table Apor vl Da to Oate PubTl-cat ion Sent t. GPO Philadelphia, PA-NJ YorX, PA Pittsburg, PA Nash inq ton, OC-MD-VA Scranton-Hilk.es ftarr*> PA &a1t more, MO 60S 908 620 864 740 072 Nov *87 Jan *88 Fab '88 Mar '88 Aua *88 Swt '88 AMS - XI (A/PMSAI AHS - F (B/MSAI AHS - I (A/MSA I (B/MSA I AHS - F AMS - I S00 ISO 250 255 170 190 Aua 7 Nov 9 Nov SO Jan 8 June 6 July 8 Nov 6 Jan 4 Jan 19 Jan 8 Mar 11 Mar SI Feb 12 Apr 15 May 5 Mar 4 May 6 May 20 Auq 5 Oct 7 Oct 27 Soot 2 Oct 28 Nov 14 Oooo Sea Freic^tters Deeo Sea TanKers "tin Southwest Viminia **Norfolk-Virginia Beach-Nowport Moms, VA Most Virginia (Statewide) Lower Eastern Shore. M0-VA-DE 001 Nov •87 Mantlmo - II (A/NON-MET ) 002 Nov •87 Hantino - I (A/NON-METI S20 Dec •87 Reqular - F (B/MSA) 95S Dec •87 Rocfjlar - II IA/NON-MET) 564 June •88 Reqular - I (A/MSA) 905 July *88 Reqular - II (A/NON-MET) 955 Aug 88 Reqular - II (A/NON-MET) 25 5 ISO 140 160 140 70 Oct 5 Oct 16 Apr 22 May 20 Jino 10 Mar 4 Apr 29 May 9 Mar 4 Apr 29 May 9 Dec 4 Jan 29 Feb 1 Dec 4 Jan 29 Feb 8 June 10 Aug 5 Auq 1! July 8 Scot 2 Sept l: Auq 5 Sept 30 Oct i: addod for AHS Full surveys. The publication to GPO dates aro cooouted bv adding 20 davst to the table approval date for AHS Fu SCA Interns surveys. PROCESSING AS SOON AS closeout date Full surveys S00".^ ?°5SI*LEi_IHl!?fF9R?l ™5 BEGI0NAL OFFICES ARE EXPECTE0 ,'?£ Full and Interna surveys. 6} days ere ! IS days for AHS Interin end SCA Full surveys; and 10 days tor ••Collect schedules us inq AHS tab lists. Data Mill be mfcliehed in SCA forsat. FREQUENCY INDICATORS ares "A" tor annual surveys I “8“ for biennial surveys. SO-1 Reoorting—-Particularly at the beg inn inq and end of each vear, be sure to reoort all wo rK tune (universe refinement, collection, review, processing. sioervision, and COAI under the PAS Code of the fiscal vear in which the survey is fir*ded. EXHIBIT 50FWS AF SURVEY LIST — SAMPLE PAGE Arkansas—Continued California—Continued Little Rock—Continued Fresno—Continued Cleveland Kings Conway Tulare Crawford Area, of Application. Survey area plus: Dallas California: Desha Inyo1 Drew Kern2 Faulkner Madera Franklin Mariposa Fulton Merced Garland Tuolumne3 Grant Los Angeles (013) Greene Survey Area Hot Spring California: Independence Los Angeles Izard Area of Application. Survey area plus: Jackson California: Johnson Inyo4 Lawrence Kern5 Lincoln Orange Logan Riverside6 San Bernardino7 Lonoke Ventura Madison Sacramento (014) Marion Monroe Survey Area California: Montgomery Placer Newton Ouachita Sacramento Perry Yolo Phillips Area cf Application. Survey area plus: Pike California: Polk Alpine Pope Amador Prairie Butte Randolph Colusa Scott Del Norte Searcy El Dorado Sebastian Glenn Sharp Humboldt Stone Lake Union Modoc Van Buren Nevada White Woodruff 1 Docs not include the Death Valley National Monument and China Lake Naval Yell Weapons Center portions. California 3 Does not include China Lake Naval Weapons Center, Edwards Air Force Base and portions occupied by Federal activities at Boron (City). 1 Only includes Yoseraite National Park portion. Fresno (012) Survey Area 4 Only includes the Death Valley National Monument portion. 5 Only includes the China Lake Naval Weapons Center, Edwards Air Force Base and portions occupied by Federal activities at Boron (City). California Fresno * Only includes (he Joshua Tree National Monument portion. 1 All ofSan Bernardino County except that portion occupied by, and south and west of the Angeles and San Bernardino National Forests.FWS NAF SURVEY LIST — SAMPLE PAGE Georgia—Continued Claylon-F ulton-Cobb—Continued Fulton Area of application. Survey area plus: Georgia: Bartow Clarke De Kalb Columbus Survey area Georgia. Columbus Area of application. Survey area plus: Georgia: Chattahoochee Dougherty Sur\'ey area Georgia. Dougherty Area of application. Survey area. Houston Sur\-ey area Georgia: Houston Area of application. Survey area plus: Georgia: Laurens Lowndes Sun ey area Georgia: Lowndes Area of application. Survey area. Richmond Suney area Georgia: Richmond Area of application. Survey area plus: South Carolina: Aiken Guam Guam Survey area Guam Area of application. Survey area. Hawaii Honolulu Survey area Hawaii: Honolulu Area of application. Survey area plus: Hawaii (counties): Hawaii Kauai Maui Pacific Islands Midway Island Johnston Island Idaho Ada-Elmore Survey area Idaho: Ada Elmore Area of application. Survey area. Illinois Champaign Survey area Illinois: Champaign Area of application. Survey area plus: Illinois: Ford Vermillion Cook Sur\’ey area Illinois: Cook Area of application. Survey area. Lake Survey area Illinois: Lake Area of application. Survey area plus: Wisconsin: Dane Milwaukee Rock Island Survey area Illinois: Rock IslandFor each SF-98 request, the county corresponding to the place of performance is so-coded directly on the form. These FIPS codes for counties are used in document tracking by the WD-ATS. Exhibit 53 illustrates a sample page of FIPS county codes. Historical Information In the WD Docket File The WD Docket File discussed on page 192 provides historical information on all previous work done with regard to the initial establishment of the WD and its subsequent revisions, as well as any post-determination actions taken. When developing any WD, staff review the history of its development as part of the process of determining wage rates and fringe benefits in response to a current wage determination request. Maps Detailed Statewide maps, showing county boundaries and providing information, for example, on cities, towns, and population levels, are used to clarify questions arising with regard to the application of given surveys to the development of a WD. In particular, when no survey exists for the exact locality needed, another survey of an adjacent similar geographic area (e.g., surrounding counties) may be usable. The map and related data are used to determine if adjacent area survey data may be appropriate for use as the basis of the WD. SCA Directory of Occupations The SCA Directory of Occupations is a U.S. Department of Labor, Employment Standards Administration publication developed for use in the SCA wage determination process. It provides 262 standardized occupational titles and job descriptions (duties/requirements) for jobs most often the subject of SCA wage determinations. The Directory is available from the U.S. Government Printing Office (GPO). In order to implement effectively its primary assignment of developing and issuing wage determinations, the Branch of Service Contract Wage Determinations requires standard occupational language for use with all of the Federal contracting agencies. Since payroll titles and work assignments vary among contractors and geographic areas, standard job titles and descriptions are needed for classifying workers by occupation so that wage rates representing the appropriate job content can be established. The Directory provides a standard means of communication between contractors, contracting agencies, and Branch of Service Contract Wage Determinations personnel.SF-98 wage determination requests must utilize these standard job titles and job descriptions in listing the occupational classes in the SF-98a. If no appropriate job title/job description can be found in the Directory, the contracting agency must submit a title and description for the occupational class needed. The Directory contains occupational titles and descriptions and a classification structure under which the jobs are arranged according to their interrelationships. It makes available uniform occupational information by providing composites of similar jobs performed in many geographic areas all over the country. To produce the Directory, occupational descriptions prepared by BLS and the Branch of Service Contract Wage Determinations, as well as other standard occupational classification reference manuals including the Dictionary of Occupational Titles, the Standard Occupational Classification Manual, and the Job Grading System for Trades and Labor Occupations were used. These manuals are described below. Note that the coding system utilized in the Directory features a cross-walk reference to comparable Standard Occupational Classification Manual entries. Also, note that BLS survey job descriptions are included in the Directory. Exhibit 54 provides a sample page from the Directory. Job Descriptions As noted above, for occupations not listed in the SCA Directory of Occupations it is important for contracting agencies to submit job titles and job descriptions with their SF-98 request. Staff need to evaluate the job duties of non-standard occupational classes, (i.e., those not included in the Directory^ in order to properly develop the WD. If the SF-98 request calls for a section 4(c) WD, the job titles and descriptions of the classes needed are governed by the applicable CBA. Standard Occupational Classification Manual The Standard Occupational Classification Manual (S0C1 is prepared jointly by the U.S. Department of Commerce, Office of Federal Statistical Policy and Standards and the Executive Office of the President, Office of Management and Budget. The Manual provides an occupational classification system to allow for more comparability in occupational statistics by developing common definitions/classes that take into account occupational interrelationships and demographic characteristics. The classification system is designed for use in statistical analysis and presentation of data about occupations211 EXHIBIT 53 ___ FIPS COUNTY CODES — SAMPLE PAGE Nttnt Cottot Nam* Cadn Nam* Codti Nam* Cod** Suit Gtv 2© uni y State Cily ‘ouniy State Gtv Xtuni y State City County NEW VC^H 26 NEW VCfl« 36 NEW VCRK 36 NcW YC»K AlfiAKY 001 CLEENS 081 ACCCPL 000 b 111 ANCES 01E0 025 ALLEGANY 002 PENSSELIfP 003 ACM A 00 Jd 0 39 ANCOVER 01*0 003 BPCN> cc; F ICH^CNt C fc 5 ACAMS OOiO 045 ANGELICA 0200 003 PPCCKE 007 PCCKLAKC 087 ACA*« HAS IN 001 i 055 ANGOLA . 0210 02 9 CATTARAl'GlS oos SI IAWPEME 089 ACAKS CtNUfc 001c 045 annanoale-tn-hlcscn 02 15 027 CIVIC# oil SIR A ICC* 091 AHC ISCN 0020 101 ANTWERP 0220 045 CHAL'T ALOLA 013 SCHENECTACY 093 AC 1 RCNCACK 002* 113 APALACMN 0221 107 Chf*l*C 01 I SCHCHAR IE 095 AFTCN 0030 017 APPIETCN 0224 063 CFENAKGC 011 SCHllVLEP 097 AKRCN 0040 029 APULI A ST ATICN 022 6 067 Cl INTCK 01« SENECA 099 ALABAMA 0042 037 ACLE0CCLE 0227 103 CCLUKE1A 021 STELBEN 101 ALBANY 0050 001 ARCACE 0220 121 CCf Tl ANC 022 StFfCLK 103 ALRCPTSON JOii 059 AfiCEN 0235 071 CE IAWAPE 02! SCllIVAN 105 ALB ICN 0060 0 73 APCGNIt 0226 111 OlTCHESS 02 7 1 ICG A 107 ALCEN 0070 029 A«CSLEV 0240 119 E» IE 029 TC*PKIN< 109 ALCEP CREEK 00 7 i 065 ARGVLE 025C 115 ESSE* 031 ti I STEP ill ALEXANCER 0080 037 ARKPORT • 0260 101 FPANKL IN 032 WARREN 113 ALE XANCR IA BAY 0090 045 ARKVUIF 0265 025 FllTCN O’? WASHINGTON 115 ALFPEC 0100 003 ARLINGTCN 0270 027 GEKESEE 037 W A VNE 117 ALPINE 0106 097 ABHCNK 0275 119 GPEENE 02' WESTCHESUP 119 ALLEGANY 0110 009 ASHARCKEN 02E0 103 HA MIT CN 041 WVC* INC 121 allentcwn 0115 003 ASHLANC 0261 039 *- E (■ K ! K E p 042 YATES 123 ALPA 0117 003 ASHCKAN 0262 111 JEFFEPSCK 04! AIMCND 0120 003 ASHVILLE 02e2 013 K 1NG S 04 7 ALMCNO 0120 101 ATHENS 0290 039 LEWIS C49 /L PLAUS 0125 093 ATHCL SPRINGS 0292 029 L IVI NGSTCN on ALTA^CNT 013 u 001 ATLANT / 02*4 101 MACISCK 052 altmap 0140 075 ATLANTIC PEACH 0295 059 PCMCE 055 altcn 0141 117 ATTICA 0300 C37 mcntgo*erv 057 altcna Ol 42 019 ATT ICA 0300 121 NASSAl 059 /HAWALK 0144 119 AUeURN 0310 Oil NE V VC PK C61 AKAGANSET T 014b 103 AUGLSTA 0212 065 NI AGAPA 062 AHBCY 014b 067 AUR IE SV ILL F 0312 057 CNE ICA 06 5 AKEN 1 A 0147 027 AUSABLE CMS* 0316 019 CNCNCACA 0 6 7 AMES 0150 057 All SABLE FCCKS 0320 019 CNTAP IC 06« APHEPST 0156 029 AU SABLE FCOKS 0320 021 CPANGE 071 AK I T Y 01 5 9 071 AUPGRA 0330 Oil CPIEANS 072 A*ITYV ILLE 0 160 103 AUSTERLITZ 0222 021 CSWEGC 075 APSTERUAM 0170 057 AVA 0334 C65 OTSECC 077 A N C R A K 0 17 b J21 AVERIIL PAPK 0 2 3 5 oe3 PLTN AK C79 ANCRAHOALE lo 1 7 7 021 A VCC A 0240 101 EXHIBIT 53SCA DIRECTORY OF OCCUPATIONS — SAMPLE PAGE 21000 MATERIALS HANDLING AND PACKING OCCUPATIONS This category includes occupations concerned with preparing and arranging materials and products in bulk and nonbulk -forms for distribution or storage; moving and loading or unloading equipment, materials, and products; pumps and pipelines to transfer liquids; driving forklifts, and related material-handiing machinery and equipment; and using scoops, handtrucks, and wheelbarrows to load and move materials. 21010 FUEL DISTRIBUTION SYSTEM OPERATOR Receives, stares, transfers, and issues fuel through pipelines at main—line or terminal stations. Receives fuel by tanker, Ships fuel by pipeline, tank car, tank truck, and barge. Prepares and checks receiving or ship's documents. Connects lines, grounding wires, and loading and off loading arms or hoses to pipelines. Visually inspects samples of fuel, and checks gravity and flashpoint. Gauges tanks for water, temperature, and fuel levels. Checks pumping systems for correct operating pressure or unusual noises. Performs preventive maintenance and repairs on terminal systems. Assists in maintenance of government—owned railroad loading and switch area. Performs general housekeeping and grounds maintenance for terminal, pipeline and dock areas. 21040 MATERIAL HANDLING LABORER* Performs physical tasks to transport or store materials or merchandise. Duties involve one or more of the fallowing: Manually loading or unloading freight cars, trucks, or other transporting devices; unpacking, shelving, or placing items in proper storage locations; or transporting goods by handtruck, cart, or wheelbarrow. 21070 P0WER-TRUCK OPERATOR* Operates a manually controlled gasoline- or electric-powered truck or tractor to transport goods and materials of all kinds about a warehouse, manufacturing plant, or other establi shment. For wage study purposes, workers are classified by type of powertruck, as follows: 21071 FORKLIFT OPERATOR 21072 P0WER-TRUCK OPERATOR (Other Than Forklift) * Bureau of Labor Statistics Survey descriptionthroughout the U.S. economy — both public and private sectors. The SOC Manual incorporates information from the Dictionary of Occupational Titles (described below) which provides more detail with regard to actual job descriptions/duties. The latest edition of the SOC was issued in 1980. The system will be modified in upcoming years as necessary. The SOC is used as a reference for job titles and descriptions of occupations not included in the SCA Directory, as well as a resource for the development of the SCA Directory as noted earlier. In addition, note that the SCA Directory of Occupations uses reference codes that provide a cross-walk to the SOC, which provides the Federal Government standard for occupational titles and descriptions. Exhibit 55 illustrates a sample page. Dictionary of Occupational Titles The Dictionary of Occupational Titles (DOT) is prepared by the U.S. Department of Labor, Employment and Training Administration. It focuses on occupational classes and their definitions including standardized and comprehensive descriptions of job duties/requirements and related information for about 20,000 occupations found in the U.S. economy. Although the numbering/classification system differs from that used in the Standard Occupational Classification Manual, the titles and groupings are comparable. Job duties and requirements are based on on-site job analyses conducted by the Occupational Analysis Program of the U.S. Employment Service and selected State Employment Security Agencies. First issued in 1939, it has been revised periodically. The current 1977 version is the fourth edition. The DOT is used as a reference for job titles and descriptions of those occupations not included in the SCA Directory, as well as a resource for the development of the SCA Directory as noted above. Exhibit 56 provides a sample page. Job Grading System For Trades and Labor Occupations List This list has been developed by the Wage and Hour Division, Branch of Service Contract Wage Determinations as a reference guide for establishing Federal grade equivalencies for various occupational classes. It lists the GS, WB, and NAF grade levels (e.g., GS-1, WG-2, and NA-3) associated with various occupational titles found in the SCA Directory of Occupations. The list is used for evaluating and clarifying relationships between and among occupations by using the Federal pay grades to establish equivalency between jobs. Such equivalency evaluations are needed to analyze survey data usedto develop prevailing wage rates for WD issuance. Exhibit 57 illustrates a sample page from the list. Standard Industrial Classification Manual The Standard Industrial Classification (SIC^ Manual is prepared by the Executive Office of the President, Office of Management and Budget. The SIC defines industries in accordance with the composition and structure of the economy. The industrial classification system of codes used in the Manual assists statistical research efforts in maintaining comparability among different studies. The SIC is revised periodically to reflect the changing industrial composition of the economy while maintaining statistical comparability between and among industrial classes for use in historical comparisons. The current 1987 edition represents the first major revision since 1972. Exhibit 58 provides a sample page. Although the SIC codes contained in this Manual are not directly used by staff in the wage determination development process, it is important to understand this industrial classification system for survey evaluation purposes. As noted in chapters 4 and 5 on data sources, various surveys collect data from a sample of establishments drawn from selected SIC groupings. OPM Federal Wage System Employment Printout The Office of Personnel Management (OPM) periodically provides a computer printout of Federal Wage System (FWS) employment to the Wage and Hour Division. This printout documents the number of FWS blue collar workers employed by the Federal Government in various geographic areas of the U.S. Exhibit 59 provides a sample page from the printout. Such data are used by wage determination staff to apply due consideration to Federal wage rates as called for by section 2(a)(5) of the SCA. How to use this information is discussed in section IV, chapter 15. Standard Fringe Basis Sheet A wage determination includes a determination of prevailing fringe benefits. For areawide WDs, prevailing fringe benefits like prevailing wage rates are based on survey data (usually BLS Area Wage and SCA Area Surveys). A particular fringe benefit is considered to prevail if it is furnished to 50% or more of the workers surveyed. How to determine this is discussed in section IV.STANDARD OCCUPATIONAL CLASSIFICATION — SAMPLE PAGE MARKETING AND SALES OCCUPATIONS 42 INSURANCE, SECURITIES, REAL ESTATE, AND SERVICE SALES OCCUPATIONS This major group includes occupations concerned with selling various types of insurance; selling and leasing real estate; buying and selling securities; and selling advertising and business services. 422 INSURANCE, REAL ESTATE, AND SECURITIES SALES OCCUPATIONS This minor group includes occupations concerned with selling insurance to clients, buying and leasing real estate, and buying and selling securities. 4222 Insurance Sales Occupations This unit group includes occupations involving selling life, endowment, fire, accident and other types of insurance to clients, and determining if applicants arc good risks. Hospital-insurance representative....................................................................473..... 166267014 Placer...............................................................................................................473..... 239267010 Sales agent, insurance...................................................................................... 473..... 250257010 4223 Real Estate Sales Occupations This unit group includes occupations involving renting, buying, selling, and appraising property on behalf of clients. Appraiser, real estate..... Superintendent, sales..... Building consultant........ Leasing agent, residence Sales agent, real estate ... 4224 Securities and Financial Services Sales Occupations This unit group includes occupations involving buying and selling securities at customer’s requests; advising and furnishing them with information regarding stocks, bonds, market conditions, and history and prospects of organizations in which investments are contemplated; and with providing financial services such as loans, tax and securities counseling, and accounting or auditing. Broker's floor representative............... Securities trader I.......................;........ Sales agent, securities.......................... Sales agent, financial services............. Sales representative, travelers' checks Sales agent, financial-report service.... 425 SERVICES SALES OCCUPATIONS This minor group includes occupations concerned with selling services such as building maintenance, credit reporting, bookkeeping, security, advertising, printing, telecommunication, and other miscellaneous services to industrial, commercial, institutional, professional and other enterprises. 4252 Business Services Sales Occupations This unit group includes occupations involving selling services such as building maintenance, credit reporting, bookkeeping, security, printing and telecommunication to industrial, commercial, institutional, professional and other enterprises. Note - See page R for explanation of job title codes 375..... 162157014 375..... 162157042 375..... 251 157010 375..... 251257010 375..... 251257018 187..... 251357014 731..... 191267010 271..... 250157010 948..... 250357010 731..... 250357014 731..... 250357018DICTIONARY OF OCCUPATIONAL TITLES — SAMPLE PAGE 3 SERVICE OCCUPATIONS This category includes occupations concerned with providing domestic services in private households; preparing and serving food and drink in commercial, institutional, or other establishments; providing lodging and related services; providing grooming, cosmetic, and other personal and health care services for children and adults; maintaining and cleaning clothing and other wearing apparel; providing protection for people and property attending to the comfort or requests of patrons of amusement and recreation facilities; and performing cleaning and maintenance services to interiors of buildings. 30 DOMESTIC SERVICE OCCUPATIONS This division includes occupations concerned with tasks in and around a private household. 301 HOUSEHOLD AND RELATED WORK This group includes occupations concerned with performing such duties in a private household as cleaning, making beds, caring for children, planning meals, marketing, and cooking. Includes workers managing private household and directing work activities of other workers performing these duties. Occupations concerned primarily with washing and ironing are included in Group 302, and preparation and cooking food in Group 305. 301.137-010 HOUSEKEEPER, HOME (dotn. ser.) manager, household. Supervises and coordinates activities of household employees in a private residence: Informs new employees of employer's desires and gives instructions in work methods and routines. Assigns duties, such as cooking and serving meals, cleaning, washing, and ironing, adjusting work activities to accomodate family members. Orders foodstuffs and cleaning supplies. Keeps record of expenditures. May hire and discharge employees. Works in residence employing large staff 301.474-010 HOUSE WORKER, GENERAL (dom. ser.) housekeeper, home. Performs any combination of the following duties in keeping private home clean and orderly, in cooking and serving meals, and in rendering personal services to family members: Plans meals and purchases foodstuffs and household supplies. Prepares and cooks vegetables, meats, and other foods according to employer's instructions or following own methods. Serves meals and refreshments. Washes dishes and cleans silverware. Oversees activities of children, assisting them in dressing and bathing. Cleans furnishings, floors, and windows, using vacuum cleaner, mops, broom, cloths, and cleaning solutions. Changes linens and makes beds. Washes linens and other garments by hand or machine, and mends and irons clothing, linens, and other household articles, using hand iron or electric ironer. Performs additional duties, such as answering telephone and doorbell, and feeding pels. Is usually only worker employed. 301.677-010 CHILD MONITOR (dom. ser.) nurse, children’s. Performs any combination of the following duties to attend children in private home: Observes and monitors play activities or amuses children by reading to or playing games with them. Prepares and serves meals or formulas. Sterilizes bottles and other equipment used for feeding infants. Dresses or assists children to dress and bathe. Accompanies children on walks or other outings. Washes and irons clothing. Keeps children's quarters clean and tidy. May clean other parts of home. When in charge of infants, may be designated as NURSE, INFANTS (dom. ser.).' When ! employed on a daily or hourly basis, may.be designated as BABY SITTER (dom. ter.). 301.687-010 :• CARETAKER (dom. «er.) odd-job worker. - Performs any combination -of the following -duties tn keeping private home clean and in good condition: deans and dusts furnishings,'hallways, and lavatories. Beats and vacuums rugs and i scrubs them: with-cleaning solutions: Washes' windows and waxes and. polishes floors.-. Removes and hangs draperies. Cleans and oils furnace,' Shovels coal into furnace and removes ashes. Replaces light switches and repairs broken screens, latches, or doors. Paints exterior structures, such as fences, garages, and sheds. May drive family car. May mow and rake lawn. May groom and exercise pets. When duties are confined to up keep of house, may be designated as HOUSE WORKER (dom. ser.). 301.687-014 DAY WORKER (dom. ser.) Performs any combination of the following domestic duties, in accordance with employer's instructions: Cleans and dusts furnishings, hallways, and lavatories. Changes and makes beds. Washes and irons clothing by hand or machine. May watch children to keep them out of mischief. May wash windows and wax and polish floors. 301.687-018 YARD WORKER (dom. ser.) Performs any combination of the following duties, in accordance with instructions of employer, to keep grounds of private residence in neat and orderly condition: Plants, transplants, fertilizes, sprays with pesticides, prunes, cultivates, and waters flowers, shrubbery', and trees. Seeds and mows lawns, rakes leaves, and keeps ground free of other debris. Whitewashes or paints fences. Washes and polishes automobiles. Cleans patio furniture and garage. Shovels snow from walks. May cultivate flowers, shrubbery, and other plants in greenhouse. May wax floors, tend furnace, or groom and exorcise pets. May divide time between several homes, working on hourly or daily basis. When duties arc confined to upkeep of grounds, may be designated as GARDENER (dom. ser.). 302 LAUNDERERS, PRIVATE FAMILY This group includes occupations concerned with washing and ironing clothes and household linens for one or several private families. 302.685-010 LAUNDRY WORKER, DOMESTIC (dom. ser.) Tends automatic washing and drying machines to clean and dry household articles and presses household articles using hand iron. Sorts articles by color and fabric, and loads into automatic washing machine. Adjusts machine settings for temperature, water level, and time duration of wash. Adds measured amounts of detergent, bluing, starches, and fabric softener as required. Removes articles from washer and loads into dryer. Sorts, irons, and folds dried articles. May iron only (IRONER (dom. ser.)]. May perform other housework (HOUSE WORKER, GENERAL (dom. ser.)]. May use electric ironing machine. 302.687-010 IRONER (dom. ser.) Dampens and irons wearing apparel, household. linens, and other household articles with hand iron. May use electric ironing machine (mangle). May be employed on hourly basis. 305 COOKS, DOMESTIC This group includes occupations concerned with preparing and cooking food, including special diets, for private household. 305-281-010 COOK (dom. ser.) Plans menus and cooks meals, in private home, according to recipes or tastes of employer. Peels, washes, trims, and prepares vegetables and meats for . cooking. Cooks. vegetables and bakes breads and pastries. Boils, broils, fries, and roasts meats. Plans menus and orders foodstuffs. Cleans kitchen and cooking :utens2£ May serve meals. May perform seasonal cooking duties, such as preserving > and canning fruits and vegetables, and making jellies. May prepare fancy dishes and pastries May prepare food for special diets. .May. specialize in preparing and serving dinner . for . employed, retired, or . other persons and be designated FAMILY-DINNER SERVICE SPECIALIST (dom. ser.).JOB GRADING SYSTEM FOR LABOR OCCUPATIONS—SAMPLE PAGE GRADE LEVELS SCA DIRECTORY WG* CODE* 07000 WG-8 07010 WG-5 07041 WG-8 07042 WG-1 07070 WG-1 07100 WG-8 07130 WG-2 07160 09000 WG-9 09010 WG-5 09040 WG-9 09070 WG-5 09100 WG-8 09130 11000 WG-2 11121 WG-3 11122 WG-2 11150 WG-2 11180 WG-2 11210 WG-5 11270 WG-2 11300 13000 13010 GS-4 13011 GS-5 13012 GS-7 13013 13040 GS-4 13041 GS-5 13042 GS-7 13043 GS-4 13071 GS-5 13072 GS-7 13073 SERVICES/OCCUPATIONS FOOD PREPARATION AND SERVICE OCCUPATIONS Baker Cook I Cook II Dishwasher Food Service Worker Meat Cutter Mess Attendant FURNITURE MAINTENANCE AND REPAIR OCCUPATIONS Electrostatic Spray Painter Furniture Handler Furniture Refinisher Furniture Refinsher Helper Upholsterer GENERAL SERVICES AND SUPPORT OCCUPATIONS Housekeeping Aid I Housekeeping Aid II Janitor, Porter, or Cleaner Laborer Laborer, Grounds Maintenance Pest Controller (Exterminator) Refuse Collector INFORMATION AND ARTS OCCUPATIONS Exhibits Specialist Exhibits Specialist I Exhibits Specialist II Exhibits Specialist III Illustrator Illustrator I Illustrator II Illustrator III Photographer I Photographer II Photographer III *GS and WG refer to the General Schedule and Wage Board/NAF pay grade assigned to the occupation. SCA Directory Code is the number assigned to the occupation by the SCA Directory of Occupations.STANDARD INDUSTRIAL CLASSIFICATION — SAMPLE PAGE MANUFACTURING Major Group 20.—FOOD AND KINDRED PRODUCTS The Major Group as a Whole This major group includes establishments manufacturing or processing foods and beverages for human consumption, and certain related products, such as manufactured ice, chewing gum, vegetable and animal fats and oils, and prepared feeds for animals and fowls. Group Industry No. No. 201 MEAT PRODUCTS 2011 Meat Packing Plants Establishments primarily engaged in the slaughtering, for their own account or on a contract basis for the trade, of cattle, hogs, sheep, lambs, and calves for meat to be sold or to be used on the same premises in canning and curing, and in making sausage, lard, and other products. Establishments primarily engaged in killing, dressing, and packing poultry, rabbits, and other small game are classified in Industry 2016; and those primarily engaged in killing and processing horses and other nonfood animals arc classified in Industry 2047. Establishments primarily engaged in manufacturing sausages and meat specialties from purchased meats are classified in Industry 2013; and establishments primarily engaged in canning meat for baby food are classified in Industry 2032. Abattoirs, on own account or for the Meat extracts, mitse trade : except nonfood animals Meat, mitse Bacon, slab and sliced : mitse Meat packing plants Beef, mitsc Mutton, mitsc Blood meal l’ork, mitse Canned meats, except baby foods: Sausages, mitsc mitse Slaughtering plants: except nonfood Cured meats, mitsc animals Hams and picnics, mitsc Variety meats (fresh edible organs). Hides, cured or uncured : mitsc mitse Idmb, mitsc Veal, mitsc Lard, mitsc 2013 Sausages and Other Prepared Meat Products Establishments primarily engaged in manufacturing sausages, cured meats, smoked meats, canned meats, frozen meats, natural sausage casings, and other prepared meats and meat specialties, from purchased carcasses and other materials. Sausage kitchens and other prepared meat plants operated by packing houses as separate establishments also are included in this industry. Establishments primarily engaged in canning or otherwise processing poultry, rabbits, and other small game are classified in Industries 2016 and 2017. Establishments primarily engaged in the cutting up and resale of purchased fresh carcasses are classified in trade industries. Establishments primarily engaged in canning meat for baby food are classified in Industry 2032. Bacon, side and sliced : mfpm Meat extracts, mfpm Beef, dried : m/pm Meat products: cooked, cured, frozen, Bologna, mfpm smoked, spiced, and boneless— Boneless moat, mfpm mfpm ' Calf’s foot jelly I'astraml, mfpm Canned meats, except baby foods : Pigs’ feet, cooked and pickled : mfpm mfpm Pork: pickled, cured, salted, or Casings, sausage : natural smoked—mfpm Corned beef Potted meats Corned meats, mfpm Puddings, meat: mfpm Cured meats: brined, dried, and Roast beef salted—mfpm Sandwich spreads, meat : mfpm Dried meats, mfpm Sausage casings, natural Frankfurters, canned or not canned : Sausages, mfpm mfpm Scrapple, mfpm Ham : boiled, boneless, roasted, and Smoked meats, mfpm smoked—mfpm Spreads, sandwich : meat—mfpm Ham, canned : mfpm Stew, beef and lamb Head cheese, mfpm Tripe, mfpm Lard, mfpm Vienna sausage, canned or not canned Luncheon meat, cannedEXHIBIT 59 m x X CD H Ol Ol OPM PRINTOUT OF FWS WORKERS — SAMPLE PAGE FWS GRADE/STEP DISTRIBUTION PAGE 9 TAB 4-3 ALL WORK SCHEDULES - ALL AGENCIES FILE DATE 09/30/87 WAGE AREA - ALASKA RUN DATE 01/28/88 NUMBER OF EMPLOYEES PAY GRADE STEP STEP STEP STEP STEP STEP UNSPEC TOTAL WTD WTD * RECORDS PLAN 1 2 3 4 5 0 AVG AVG WITH RETAIN RATE STEP • SALARY WG 01 11 7 4 2 2 0 0 26 13.21 2. 12 26 02 40 29 34 3 40 2 0 148 14.31 2.85 148 03 47 42 22 9 34 3 0 157 15.08 2.66 157 04 17 21 12 10 26 3 0 89 16.04 3. 15 89 05 85 85 48 28 100 13 1 360 16.84 3.00 360 06 15 22 24 19 70 3 0 153 17.90 3.74 152 07 31 41 17 13 70 6 0 178 18.59 3.35 177 08 27 42 37 27 67 12 0 212 19.48 3.42 *12 09 44 75 50 26 109 6 0 310 20. 1 1 3.30 309 10 56 158 128 83 351 30 0 - 806 2 1.26 3.71 806 11 9 32 36 32 205 13 1 328 22.56 4.28 328 12 0 2 3 5 26 0 0 36 23.54 4.53 36 13 0 0 0 0 1 0 0 1 24.39 5.00 1 TOTAL 382 556 415 257 1 101 91 2 2.804 19.31 3.47 2.801 WL 02 1 1 1 0 3 0 0 6 16.24 3.50 6 04 0 0 0 0 2 0 0 2 18.57 5.00 2 05 0 2 0 1 7 1 0 1 1 19.51 4.36 1 1 06 0 1 0 0 3 0 0 4 19.90 4.25 4 07 0 0 2 0 3 0 0 5 20.75 4.20 5 08 1 1 1 1 7 0 0 1 1 21 .64 4.09 11 09 0 0 4 6 10 0 0 20 22.71 4.30 20 10 1 2 7 1 1 32 1 0 54 23.77 4.35 54 • 1 1 0 0 0 3 8 2 0 13 25.46 4.77 13 TOTAL 3 7 15 22 75 4 0 126 22.54 4.33 126 WS 01 0 0 0 2 0 0 0 2 20.43 4.00 2 02 0 0 0 1 1 0 0 2 21.61 4.50 2 03 t 1 1 2 2 0 0 7 2 1 .67 3.43 7 04 3 1 1 2 8 0 0 15 22.58 3. 73 15 05 1 6 1 2 4 0 0 14 22.85 3. 14 14 06 2 1 0 2 6 3 0 14 25.07 4 .07 14 07 3 8 3 6 7 0 0 27 24.79 3.22 27 08 4 5 8 3 1 1 1 0 32 25.65 3.44 32 09 4 15 14 8 42 2 0 85 27.01 3.86 85 10 8 10 13 14 44 13 0 102 27.60 4.00 102 1 1 1 0 4 2 8 0 0 15 27.95 4.07 15 12 0 0 0 2 0 1 0 3 28.24 4.33 3 13 1 0 1 2 8 0 0 12 28.65 4.33 12 14 1 0 0 2 10 0 0 13 29.01 4.54 13 15 0 0 0 0 6 0 0 6 29. 77 5.00 6 16 0 0 0 0 1 0 0 1 29.03 5.00 1 17 0 0 0 0 2 0 0 2 30.06 5.00 2 TOTAL 29 47 46 50 160 20 0 352 26.53 3. 87 352 WAGE AREA - (007) ALASKASuch area-specific survey sources, however, do not provide data on employer contribution levels for health and welfare benefits. They only provide data used to determine which health and welfare benefits (H&W) prevail. Nationwide source data are available and used, however, to determine employer contribution levels for such benefits (i.e., employer cost calculated as x per hour contributed to employee health and welfare). Up until 1977, the BLS nationwide Biennial Survey of Employee Compensation in the Private Nonfarm Economy was used as the primary source for obtaining current nationwide cost data on H&W benefits. This survey was discontinued. Upon thorough review and analysis of possible sources to use to update previous levels issued, the Employment Cost Index (ECU was determined to be the best data. The ECI, developed by BLS, has been used to adjust the previously-issued H&W contribution levels. The ECI measures the change in the price of labor, indicating how much employers are paying into fringe benefits as part of the cost of labor. The annual change in this cost is calculated and can be applied to update the H&W benefit levels as illustrated by the Standard Fringe Basis Sheet shown as exhibit 60. This Standard Fringe Basis Sheet provides two H&W benefit levels: one for SCA-covered procurements involving Federal displacements and major support contracts; and one for all other contracts. For the former types of contracts a broader definition of H&W is used which includes life, accident, and health insurance plans, and sick leave, pension plans, civic and personal leave, severance pay, and savings and thrift plans. For the latter, H&W includes life, accident, and health insurance plans only. These two nationwide levels are applied to about 80% of all wage determinations issued, while 15% are based on collective bargaining agreements in accordance with section 4(c), and 5% are based upon union dominance for specific occupations, special surveys, State of Hawaii statutory requirements, or Davis-Bacon determinations. Of the two nationwide levels, the lower figure generally is issued for about 70% of all the appropriate wage determinations, while the higher level is issued for the remaining 30%. WAGE DETERMINATION ISSUANCE TOOLS Wage determination issuance tools described herein include the following. • Basis Sheets • Register of Wage Determinations• Standard Explanatory Notes • SF-98 Completion Form Basis Sheets This is an internal document used to describe the details of the analysis and basis upon which a given WD is developed and issued. It is filed in the corresponding WD Docket File for future reference should any questions arise concerning the WD and for evaluation the next time the WD is issued or revised. Selected standard forms developed for this use are illustrated by exhibits 61, 62, and 63. Register of Wage Determinations The Register of Wage Determinations is the official documentation of the wage determination issuance. Once all needed wage rates and fringe benefits are developed, they are typed in final form using the standard format of the Register. Exhibit 64 illustrates a blank sample Register. Exhibit 8, page 47 of chapter 3 illustrates a completed WD using the Register format. Standard Explanatory Notes There are various Standard Explanatory Notes which are included in the wage determination. Additional specific notes may be necessary as dictated by the request and the WD developed. These are discussed in section IV as they depend upon decisions made during the WD development process. For areawide, prevailing WDs, the following Standard Explanatory Notes are usually included. • Uniform Allowance: This note describes wage determination compliance requirements with regard to uniform allowances and how they are to be treated in relationship to the wage rates and fringe benefits established as the minimum payable by the WD. • Conformances: This note describes requirements with regard to initiating a conformance action as described in chapter 3, page 54. • SCA Directory of Occupations: This note explains the basis used for job definitions and that job descriptions listed in the Directory are not attached to the WD response sent to the contracting agency. For section 4(c) WDs, the following are included.STANDARD FRINGE BASIS SHEET BASIS FOR ISSUANCE OF WAGE DETERMINATION* UNDER THE SERVICE CONTRACT ACT This wage determination is being revised to increase health and welfare benefits due to policy decision based on BLS Employment Cost Index. Wage determinations containing .32 cents per hour in health and welfare benefits will be increased to .59 cents per hour, etc. Wage determinations containing $1.08 per hour for these benefits will be increased to $1.84 per hour. METHODOLOGY AND CALCULATIONS FOR UPDATING SERVICE CONTRACT ACT HEALTH AND WELFARE BENEFIT LEVELS 1. PREVIOUS UPDATED ESTIMATES: INSURANCE TOTAL BENEFITS NOT LEGALLY REQUIRED 1977: $0.32 1978: $1.08 2. Percent change in Employment Cost Index (ECI), Wages and Salaries Only, for Private Industry Workers from ... June 1977 - December 1979: June 1978 - December 1979: 87.5 : 72.2 = 1.21 87.5 : 77.8 = 1.JL2 1.21 x 0.32 = $0.39 1.12 x 1.08 = $1.21 3. Percent change in ECI, Total compensation, for Private Industry Workers, from December 1979 to September 1986... December 1979: 86.3 September 1986: 130.8 130.8 = 1.52 86.3 $0.39 x 1.52 = $0.59 $1.21 x 1.52 = $1.84SAMPLE BASIS SHEET FOR PREVAILING WDs BASED ON BLS SURVEYS BASIS FOR ISSUANCE OF WAGE DETERMINATION UNDER THE SERVICE CONTRACT ACT (SCA) Docket No. __ Date _ Locality: State ___ Area _ WAGE DATA This determination is based on a wage survey conducted in _ by the Bureau of Labor Statistics. The wage data collected in this survey and published by BLS are considered accurately representative of the wages being paid in the area convered by the survey for the class of employees included In the survey. The scope of the most recent survey and the wages and fringe benefits adopted as prevailing for the classes of service employees named In the determination are outlined in the attached materials. MINIMUM MONETARY WAGES FRINGE BENEFITS The paid holiday and vacation benefits which the BLS survey shows are furnished to the majority of all employees In the survey are adopted as prevailing for the locality. While wage rates vary among the different classes of employees, BLS surveys show that paid vacation and holiday benefits are provided to almost all employees on a nationwide as well as regional basis. (See Docket _). Also the BLS survey of this locality shows that health and welfare benefits are made available to the majority of workers in the survey. A contribution of _ an hour 1s determined to prevail for all employees on a nationwide basis and, accordingly, is adopted as prevailing for this locality. (See Docket _) NECESSITY This action was initiated as a result of a notice of intention to make a service contract for _ received from _SAMPLE BASIS SHEET FOR SECTION 4(c) WDs BASIS FOR ISSUANCE OF WAGE DETERMINATION UNDER THE SERVICE CONTRACT ACT Docket No. _ Date___ LOCALITY: State_ Area___ WAGE DATA This determination is based upon the collective bargaining agreement between the union __ and the incumbent contractor _ in accordance with Section 4(c) of the Service Contract Act, as amended. The wage rates listed in that collective bargaining agreement are applicable as minimum standards for employees working on this contract. A copy of the collective bargaining agreement is attached. FRINGE BENEFITS The fringe benefits listed on the determination are those found 1n the collective bargaining agreementn for the classes of service employees required to fulfill the requirements of this ocntract and are adopted for the purpose of this determination. NECESSITY This action was initiated as a result of a notice of Intention to make a service contract for ___ received from ____SAMPLE BASIS SHEET FOR PREVAILING WDs BASED ON UNION DOMINANCE BASIS FOR ISSUANCE OF WAGE DETERMINATION UNDER THE SERVICE CONTRACT ACT LOCALITY: State Area WAGE AND FRINGE BENEFIT DATA This wage determination is based on the claim of union dominance made by (name and title of union official) of_________ (union name, local number & telephone number) who asserted on _________ that the union local represents (date) the majority of the workers in the occupational class(es) (listed in the wage determination) in the locality and industry. The collective bargaining agreement covering the represented workers expires__. (date) NECESSITY This action was initiated upon receipt of a notice of intention to make a service contract from for the purchase of services.EXHIBIT 64 S X w H o> -P> NJ U) -J REGISTER OF WAGE DETERMINATIONS — SAMPLE FORMAT PAGE U.S. DEPARTMENT OF LABOR EMPLOYMENT STANDARDS ADMINISTRATION WAGE ANO HOUR DIVISION WASHINGTON, O.C. 20210 REGISTER OF WAGE DETERMINATIONS UNDER THE SERVICE CONTRACT ACT By direction of the Secretary of Labor Division of Wage Determinations lan Ti. Moss Director LOCALITY Slate: Area: Wage determination number: Class of service employee Minimum hourly w»9e Date: Fringo benefit payments Health & Welfare Vacation Holiday Other• CBA — Successorship (Section 4(cU? This note describes the regulatory requirements under the SCA with regard to the self-executing nature of compliance with the provisions concerning minimum compensation required for contracts subject to the CBA — Successorship principles (see chapter 3, page 51 for a discussion of these principles). • Uniform Allowance! This note (per above) is included when the applicable CBA does not address uniform allowances. Exhibit 65 provides the exact wording used in each of these standard notes included in the WD issued. SF-98 Completion Form This is an internal tracking form that is completed by staff once the wage determination is ready to be issued. It provides for documentation of key information concerning the given SF-98 request and the WD issued in response. This information is then entered into the WD-ATS data base. Exhibit 66 provides a sample.STANDARD EXPLANATORY NOTES — USUALLY INCLUDED FOR AREAWIDE WDs Uniform Allowance Note "Uniform Allowance; If employees are required to wear uniforms in the performance of this contract (either by the terms of the Government contract, by the employer, by state or local law, etc.), the cost of furnishing such uniforms and maintaining (by laundering or dry cleaning) such uniforms is an expense that may not be borne by an employee where such cost reduces the hourly rate below that required by the wage determination. The Department of Labor will accept payment in accordance with the following standards as compliance: The contractor or subcontractor is required to furnish all employees with an adequate number of uniforms without cost or to reimburse employees for the actual cost of the uniforms. In addition, where uniform cleaning and maintenance is made the responsibility of the employee, all contractors and subcontractors subject to this wage determination shall (in the absence of a bona fide collective bargaining agreement providing for a different amount, or the furnishing of contrary affirmative proof as to actual cost), reimburse all employees for such cleaning and maintenance at a rate of $3.35 a week (or 67 cents a day). However, in those instances where the uniforms furnished are made of "wash and wear" materials, may be routinely washed and dried with other personal garments, and do not require any special treatment such as dry cleaning, daily washing, or commercial laundering in order to meet the cleanliness or appearance standards set by the terms of the Government contract, by the contractor, by law, or by the nature of the work, there is no requirement that employees be reimbursed for uniform maintenance costs." Conformance Note "NOTE: The contracting officer shall require that any class of service employee which is not listed herein and which is to be employed under the contract (i.e., the work to be performed is not performed by any classification listed in the wage determination), be classified by the contractor so as to provide a reasonable relationship (i.e., appropriate level of skill comparison) between such unlisted classifications and the classifications listed in the wage determination. Such conformed class of employees shall be paid the monetary wages and furnished the fringe benefits as are determined. Such conforming procedure shall be initiated by the contractor prior to the performance of contract work by such unlisted class ofSTANDARD EXPLANATORY NOTES — USUALLY INCLUDED (CONTINUED) FOR AREAWIDE WDs (continued) Conformance Note (continued^ employee. A written report of the proposed conforming action, including information regarding the agreement or disagreement of the authorized representative of the employees involved, or, where there is no authorized representative, the employees themselves, shall be submitted by the contractor to the contracting officer no later than 30 days after such unlisted class of employees performs any contract work. The contracting officer shall review the proposed action and promptly submit a report of the action, together with the agency's recommendation and all pertinent information including the position of the contractor and the employees, to the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, for review. (See section 4.6(b)(2) of Regulations 29 CFR 4)." SCA Directory of Occupations Note "NOTE: The definitions of the occupations set forth herein are contained in the SCA Directory of Occupations. Information may be obtained by contacting the: Administrator of Wage and Hour, U.S. Department of Labor, Washington, D.C. 20210." FOR SECTION 4(c) WDs CBA Successorship Note "NOTE: In accordance with Section 4(c) of the Service Contract Act, as amended, the wage rates and fringe benefits set forth in this wage determination are based on a collective bargaining agreement(s) under which the incumbent contractor is operating. The wage determination sets forth the wage rates and fringe benefits provided by the collective bargaining agreement and applicable to performance on the service contract. However, failure to include any job classification, wage rates or fringe benefit encompassed in the collective bargaining agreement does not relieve the successor contractor of the statutory requirement to comply as a minimum with the terms of the collective bargaining agreement insofar as wages and fringe benefits are concerned." Uniform Allowance Note The uniform allowance note, as listed above for areawide WDs, is included in a Section 4(c) WD when the applicable CBA does not address uniform allowances.SAMPLE SF-98 COMPLETION FORM SF-98 COMPLETION FORM *SF-98 NUMBER: COUNTY: STATE: SERVICE PERFORMED: INCUMBENT CONTRACTOR: MULTIPLE WD: ♦RESPONSE: A BCD **WD NUMBER: R BLANKET: YES NO NUMBER OF CONTRACT: ♦COMPLETION DATE: ' **ACTION: 1 = NEW 2 = REVISED 3 = EXISTING WD **DECISION BASIS: 1 4 = BLS 2 = CBA 3 = UNION DOMINANCE = DBRA DECISION 5 = NAF 6 = OTHER **WD EFFECTIVE DATE: DOMINANT UNION: MAILING DATE: REOPEN DATE: POSTCARD FLAG: YES NO SECTION Ills WAGE DETERMINATION REQUEST PROCEDURES This section focuses on the key information needed and procedures followed by contracting agencies to complete and submit SF-98 requests for wage determinations. Contracting agencies have the initial responsibility for determining whether a proposed contract is subject to the SCA, and if so, to request a wage determination from the Wage and Hour Division. The information provided in the SF-98 request is carefully evaluated so that a proper WD can be developed. Section IV discusses how the information is used to do so. There are two types of SF-98 requests as defined previously in section II, chapter 3. The chapters of this section address the submission of these two types of requests as follows. • CHAPTER 8: INDIVIDUAL SF-98 REQUESTS • CHAPTER 9s BLANKET SF-98 REQUESTSINTRODUCTION For any contract exceeding $2r500 which may be subject to the SCA, the contracting agency requests the wage determination by submitting the Notice of Intention to Make a Service Contract — Standard Form fSF^ 98. The individual SF-98 request consists of two forms, the SF-98 and SF-98a, and any supporting documentation required. The request is sent to the Administrator, Wage and Hour Division, Employment Standards Administration, U.S. DOL, Washington, D.C. 20210. Supplies of the SF-98 and 98a are available in all GSA (General Services Administration) supply depots under stock numbers 7540-926-8972 and 7540-118-1008, respectively. Unless the contracting agency is participating in the Blanket Wage Determination Pilot Program, an individual SF-98 request must be submitted for each anticipated SCA-covered procurement. Contracting agencies having any doubts as to whether SCA applies to a given procurement should contact appropriate Wage and Hour personnel as listed in appendix A of this Manual. This chapter discusses submission procedures concerning these two key aspects. • TIMING • CONTENT TIMING The SF-98/98a and any required supporting documentation must be submitted to the Wage and Hour Division for recurring or known procurement needs not less than 60 days (nor more than 120 days except with the approval of the Wage and Hour Division) prior to: • any invitation for bids; • request for proposals; • commencement of contract negotiations; • exercise of options or contract extensions;• annual anniversary date of multi-year contracts subject to annual appropriations of the U.S. Congress; or • biennial anniversary date of multi-year contracts not subject to annual appropriations of the U.S. Congress, unless otherwise advised by the Wage and Hour Division. For unplanned procurement needs, individual SF-98 requests must be submitted as soon as possible, but not later than 30 days prior to the above listed contracting actions. For emergency procurement needs, appropriate Wage and Hour officials should be consulted prior to submission (see listing of contacts in appendix . Requests should then be submitted as soon as possible according to instructions provided by the Wage and Hour officials contacted. CONTENT The SF-98 specifies the relevant procurement dates, the geographic location of the work to be performed, the type of services to be covered by the contract, and provides information on incumbent contractors, previous wage determinations, and collective bargaining agreements that may apply. The SF-98a identifies the occupations (classes) of service employees to be employed under the SCA-covered contract, the number to be employed, and the hourly wage rates that would be paid if such workers were Federal direct-hires. The SF-98 includes instructions for proper completion. While all requested information is important for the proper issuance of the wage determination, certain items are key, as described below. Exhibits 67 and 68. illustrate a completed individual request (SF-98 and SF-98a). The items discussed below reference the appropriate SF-98 or SF-98a blocks. Procurement Dates (SF-98, Blocks 2. 3, 4) Procurement dates are important for evaluating the timeliness of requests and the WD response issued by Wage and Hour. In addition, these dates are important to the evaluation of the currency of data sources to be used in developing the WD and the proper tracking of annual vs. multi-year service contracts. Note that for multi-year contracts not subject to annual U.S. congressional appropriations, a written statement describing the type of funding and anticipated term of the proposed contract must be attached to the SF-98 request. As discussed in chapter 3, page 39, this type of multi-yearSAMPLE COMPLETED INDIVIDUAL SF-98 STANDARD FORM 98 Rav. Fab. 1973 U.S. DEPARTMENT OF LABOR EMPLOYMENT STANDARDS ADMINISTRATION NOTICE OF INTENTION TO MAKE A SERVICE CONTRACT AND RESPONSE TO NOTICE (Sec Instructions on Hr verse I 1. NOTICE NO. A 1775909 MAIL TO: Month Day Yaar r —I 09 05 ■ 88 Administrator Wage and Hour Division U.S. Department of Labor Washington, D.C. 20210 L _) 5. PLACE(S) OF PERFORMANCE Maxiiie Cuips^Logistics Base mewhere J County Someplace^/ California 2. Estimated solicitation date (us* numeral*) Month 10 Day 05 Yaar 88 4. Oate contract performance to begin (us* numerals) Month li Day 01 Yaar 88 6. SERVICES TO BE PERFORMED l1 o to VO271 EXHIBIT 74 SAMPLE COMPLETED BLANKET RECURRING & ONE-TTME CONTRACTS WORKSHEET BLANKET REQUEST Page 1 of 1 Pages DATE: 21 August 1987 NUMBER: A1497302 II. RECURRING AND ONE TIME CONTRACTS INDUSTRY GROUP DESCRIPTION OF SERVICE PLACE OF PERFORMANCE JOB TITLE COMPARABLE FEDERAL WG MOST RECENT WDff DOL RESPONSE Misc Repair Svc (769) Upgrade/Repair Parachute System Orlando, FL FAA Licensed Parachute Rigger $9.27 WG-10 None Misc Repair Svc (769) Repair/Service X-Ray Unit Chicago, IL X-Ray Technician $10,08 WG-11 87-93 Misc Business Svc (739) Instructor For Servicing/ Repair Hamilton Std Propeller System Windsor Locks CT , Instructor for Hamilton Std Propeller System $10.13 WL-10 None Misc Amusement Recreation Svc (799) Personal Svs (721) Series Boat Operator Install Carpet Hang Wallpaper Clean Carpet Key Largo, FL Pope AFB, NC Pope AFB, NC Pope AFB, NC Series Boat Operation Carpet Layer Wallpaper Hanger Carpet Cleaning Tech Carpet Cleaning Asst $9.59 WG-10 $9.12 WG-9 $9.12 WG-9 WG-4/2 $6.75 WG-2/2 $5.78 None None None None N None NOTE: 1. Unless indicated,^the duties of employees under Job titles listed are those described in the Service Contract Act Directory of Occupations, incorporated by reference. It is anticipated that most of the procurement, actions covered by this request will involve five or more employees* However, the wage determinationa) issued in response to this request will be applied to all procuments included regardless of employment size. EXHIBIT 74• Recurring and One-Time Contracts; Those likely to be initiated each year, after a break in service; and those solicited to provide a specific service on a one-time basis, over a limited period of time (exhibit 74). For each continuous and multi-year contract, the following information is listed in the blanket SF-98 request worksheet format as illustrated by exhibit 72. • Major industry group SIC title and 2-digit code. • Previous contract number. • Brief description of services to be performed. • Place of performance (county and installation). • Most recent governing WD number, if any. • DOL response column heading (blank column space for use by Wage and Hour staff to indicate WD or other required responses). For each continuous and multi-vear contract, a listing of all the service occupations likely to be utilized on the contract must be compiled in a separate worksheet as illustrated by exhibit 73. List each occupational class only once even though it may be needed for several of the contracts listed in the request. For each occupational class, the following must be provided in the worksheet. • Job title and corresponding code numbers, using occupational titles and codes from the SCA Directory of Occupations (see chapter 7, page 209). Submit a job title and comprehensive definition of the occupation if not found in the Directory. • Comparable Federal wage rate (pay grade such as GS-1, WG-1, or NA-1 and/or per hour rate of pay). For recurring and one-time contracts, the worksheet includes the following information for each contract as illustrated by exhibit 74. • Industry group SIC title and 3-digit code. • Brief description of services to be performed for each industry group. • Place of performance (county and installation) for each likely industry group. • SCA Directory job titles of occupations likely to be employed in the SIC industry group. Submit a job titleand comprehensive definition if the occupation is not listed in the Directory. • Comparable Federal wage rate for each occupation (pay grade and/or rate of pay — as above). • Most recent governing WD number for each contract in each industry group. • DOL Response Column heading (as above). Lastly, to fulfill legal requirements, two notes must be included in the worksheet. • "Unless indicated, the duties of employees under job titles listed are those described in the Service Contract Act Directory of Occupations, incorporated by reference." • - "It is anticipated that most of the procurement actions covered by this request will involve five or more employees. However, the wage determination(s) issued in response to this request will be applied to all procurements included regardless of the dollar and employment size." The Blanket SF-98 and Cover Memorandum Blocks 2-4 and 9-10 of the SF-98 form must be completed as illustrated by exhibit 71. For Blocks 2-4, provide the range of procurement dates that apply to all the contracts to be covered by the blanket wage determination. This involves estimates of the earliest and latest contract solicitation, bid opening, and performance dates. For Blocks 9 and 10, provide the name, title, and telephone number (designate FTS or commercial) of the agency contact person for the blanket request, and the name, title, and address to which the blanket wage determination should be transmitted. Enter the blanket SF-98 Notice No. on all corresponding blanket SF-98 request worksheets (upper left hand corner). Also, enter the date of submittal on both the SF-98 and the worksheets (directly above Notice No.). Lastly, a blanket request cover memorandum is developed to transmit the request materials to the Wage and Hour Division as illustrated by exhibit 70. The transmittal memo confirms compliance with provisions of the Memorandum of Understanding and should state that: • blanket wage determinations issued will be utilized for all contracts covered by this blanket request regardlessof the dollar and employment size of procurements included; • relevant sections of the SCA Directory of Occupations will be provided by the agency to all contractors responding to procurement announcements covered by blanket wage determinations; and • the appropriate wage determination components will be included in their entirety in relevant solicitations and contracts. Any special circumstances concerning processing of the blanket request should also be described in the cover memorandum.SECTION IV: THE WAGE DETERMINATION PROCESS This section describes in detail the procedures used by Wage and Hour staff to process, develop, and issue SCA wage determinations. The wage determination process consists of six phases. A chapter is devoted to each phase, with the first chapter providing an overview. • CHAPTER 10: THE SIX PHASES OF THE PROCESS • CHAPTER 11: • CHAPTER 12: • CHAPTER 13: • CHAPTER 14: • CHAPTER 15: PHASE 1 -- SF-98 REQUEST INTAKE AND PRE-SCREENING PHASE 2 — SUPERVISORY REVIEW OF SF-98 REQUESTS PHASE 3 — SCREENING AND ISSUANCE OF CURRENT WAGE DETERMINATIONS PHASE 4 — DATA SOURCE SELECTION FOR DEVELOPING NEW/REVISED WAGE DETERMINATIONS PHASE 5 — DEVELOPMENT AND ISSUANCE OF NEW/REVISED WAGE DETERMINATIONS • CHAPTER 16: PHASE 6 — OUTPROCESSINGINTRODUCTION This chapter provides an overview of the SCA wage determination process administered by various units of the Wage and Hour Division. The wage determination process consists of the following six (6) Phases which involve the performance of various processing, development, and issuance functions and procedures. • PHASE 1 — SF-98 REQUEST INTAKE AND PRE-SCREENING • PHASE 2 — SUPERVISORY REVIEW OF REQUESTS • PHASE 3 — SCREENING AND ISSUANCE OF CURRENT WAGE DETERMINATIONS • PHASE 4 -- DATA SOURCE SELECTION FOR DEVELOPING NEW/REVISED WAGE DETERMINATIONS • PHASE 5 — DEVELOPMENT AND ISSUANCE OF NEW/REVISED WAGE DETERMINATIONS PHASE 6 — OUTPROCESSING PROCESS OVERVIEW The process is initiated by Wage and Hour's receipt of individual or blanket wage determination requests (SF-98 and all relevant attachments as described in section III) from contracting agencies. Completion of the process results in Wage and Hour responding to a request in one of four possible ways as noted in the RESPONSE TO NOTICE segment of the SF-98 (see exhibit 67, page 49). • Box A — The attached wage determination(s) listed below apply to procurement. • Box B — As of this date, no wage determination applicable to the specified locality and classes of employees is in effect. • Box C — From information supplied, the Service Contract Act does not apply. • Box D — Notice returned for additional information.The resultant wage determination(s) (Box A response) sets forth the minimum compensation a contractor must provide to the specified service employees working on the SCA-covered contract. Wage and Hour generally has 60 days in which to respond from the date of receipt of the SF-98 request. For complicated procurements, it takes a full 60 days to complete the process. Others may take much less time, depending on staffing and workload conditions. For emergency, unscheduled procurements, Wage and Hour can generally respond within 30 days. Exhibit 75 provides a schematic illustrating the six (6) Phases of the SCA wage determination process, including their key functions, involved Wage and Hour Division units, and the approximate time required to complete the Phase. Each Phase is discussed in subsequent chapters according to these major sections. • PURPOSE AND FUNCTIONS • PROCEDURES • WORKFLOW Decision-making criteria or principles used to guide the process are explained as appropriate. The concepts, data sources, and tools defined and described in section II and the contents of SF-98 requests outlined in section III are an integral part of this process. Readers may therefore need to return to these segments of the Manual as appropriate. References are provided as needed.THE SIX PHASES OF THE SCA WAGE DETERMINATION PROCESS FUNCTIONS: • Date Stamp Incoming Requests • Batch Requests (East/West) • East/West Batch Counts • Initial Review for Completeness • Request Sorting • Data Entry PRE-SCREENING • Postcard Notification INVOLVED UNITS: • Mail & File Room • Central Processing Unit TIMING: • Daily (Upon Receipt) FUNCTIONS: • Review for Completeness • Evaluation of SCA Coverage • Flagging for Special Handling Needs PHASE 2: SUPERVISORY REVIEW OF • Assigning Staff for Screening REQUESTS INVOLVED UNITS: • BSCWD SectionChiefs, Branch Chief & Blanket Manager TIMING: • Within 1 WeekofReceipt FUNCTIONS: • Final Review for Completeness • Research & Evaluation of Previously Issued WDs PHASE 3: SCREENING & ISSUANCE OF — • Assigning Staff for New/Revised WD Development CURRENT WDs INVOLVED UNITS: • BSCWD Section Chiefs, Specialists & Pullers TIMING: • Within 6 Working Days of Assignment PHASE 4: DATA SOURCE SELECTION FOR NEW/REVISED WDs FUNCTIONS: • Type of WD Determination • Primary Data Source Selection • Supplementary Data Source Selection INVOLVED UNITS: • BSCWD Specialists & Pullers TIMING: • Not Applicable PHASE 5: DEVELOPMENT* ISSUANCE OF NEW/REVISED WDs FUNCTIONS FOR AREAWIDE WDs: • Preliminary Data Analysis • Survey Wage Rate Analysis • Wage Rate Structure Establishment • Survey Fringe Benefits Analysis • Application of Due Consideration • Prepare New/Revised WD Issuance FUNCTIONS FOR SECTION 4(C) & UNION DOMINANCE WDs: • Analyze CBA • Prepare New/Revised WD Issuance INVOLVED UNITS: • BSCWD Section Chiefs, Specialists, Assistants, Pullers & Blanket Manager TIMING: • Within45Daysof Assignment PHASE 6: OUTPROCESSING FUNCTIONS: • Outprocessing of Requests for Return • Outprocessing of Current WD Issuance • Outprocessing of New/Revised WD Issuance (Individual Requests) • Outprocessing of New/Revised WD Issuance (Blanket Requests) INVOLVED UNITS: • BSCWD Assistants, Pullers & Blanket Manager • Central Processing Unit • Mail & File Room TIMING: • Daily (Upon Receipt) EXHIBIT 75PURPOSE AND FUNCTIONS The Mail and File Room staff receive all SF-98 requests (both individual and blanket requests) submitted by contracting agencies, hundreds of which may be received in any given day. Currently, about 55,000 requests are received annually. Request intake involves the following two functions. • Date-Stamp Incoming Requestsi This documents the date and time all SCA wage determination requests are officially received. The date is important for determining the timeliness of requests and Wage and Hour's response to them. • Batch Requests (East/West^; This involves grouping requests into East and West batches because the Branch of Service Contract Wage Determinations (BSCWD) is divided into East and West sections. Each BSCWD section handles the preparation of WDs for the places of performance (geographic areas) corresponding to the States in their respective section. See appendix A for a list of States in the East and West Sections. The Central Processing Unit receives the daily East/West batches of requests from the Mail and File Room and performs essentially five functions. Note that some are performed for all requests, while others are performed for individual or blanket requests only. • East/West Batch Counts: This involves counting the number of contracts to be solicited per batch and recording the number on the cover sheet attached. (All Requests) • Initial Review For Completeness: This entails a review of each individual request to identify those that may need to be returned to the contracting agency for additional information. In addition, key SF-98 information is coded for WD-ATS data entry and tracking purposes. (Individual Requests) • Reguest Sorting: Requests must be further sorted and batched for delivery to appropriate Supervisors for their review. (Individual and Blanket Requests) • Data Entry: Data entry involves the documentation of initial information for tracking purposes using the WD-ATS computer system. (Individual Requests)• Postcard Notification: This involves the computer generation and mailing of postcards used to notify contracting agencies of request receipt and approximate response time. (Complete Individual Requests, i.e., those which provide all the information needed) Procedures followed by the Mail and File Room and Central Processing Unit staff to perform intake and pre-screening for individual and blanket requests are outlined below. They are grouped by function. PROCEDURES Date-Stamp Incoming Requests (All Requests^ 1. Mail and File Room staff date stamp each SF-98 request with the date and time received. Batch Requests (East/West^ 1. Mail and File Room staff sort all requests received that day, grouping and labeling them as East and West batches according to the contract's place of performance as indicated in the request (SF-98, Block 5 or blanket request worksheets). If more than one place of performance is listed, batch the request according to the first geographic area listed in alphabetical order. 2. Deliver date-stamped and East/West batched requests to the Central Processing Unit. East/West Batch Counts (All Requests^ 1. Central Processing Unit staff count all the contracts to be solicited and record the total number per batch on a cover sheet attached. Initial Review For Completeness (Individual Requests^ Each SF-98 request is reviewed and coded by the Central Processing Unit staff as follows. 1. Review all SF-98 Blocks of information for proper completion. 2. If Block 7A — Services now performed by a contractor is checked, review Blocks 8A — Name and address of incumbent contractor, 8B — Number(s) of any wage determination(s) inincumbent's contract, and/or 8C — Name(s) of union(s) if services are being performed under collective bargaining agreement(s) for proper completion. 3. If Block 8C is filled in, ensure that a collective bargaining agreement is attached. 4. Mark the Place of Performance (SF-98, Block 5) with the appropriate county code. The Worldwide Geographic Location Codes handbook is the reference used to obtain the appropriate county code. These codes are issued as Federal Information Processing Standards (FIPS Codes). 5. Mark the Services to Be Performed (SF-98, Block 6) with the appropriate type(s) of service code(s). The SCA Directory of Occupations handbook is the reference used to secure the appropriate code corresponding to the category of service. For example: The code for Administrative Support and Clerical Services is 01000. Classes corresponding to this service area include, for example, 01010 Accounting Clerk and 01011 Accounting Clerk I. 6. Mark the Contracting Agency (SF-98, Block 10) with the appropriate agency code. The code is obtained from a WD-ATS computer file of assigned code numbers, with new agencies receiving the next available number in the sequence. 7. For the SF-98a, ensure occupational classes are listed with a corresponding number of employees per class and comparable Federal wage rates. The Federal wage rate may be indicated with an exact figure (e.g., $5.05) or the appropriate FWS or GS schedule pay grade (e.g, WG-1 or NA-1, or GS-5). These items are critical for the development of the WD. 8. If any information is missing from an individual request, check Box D — Notice returned for additional information (SF-98, RESPONSE TO NOTICE segment). Prepare a cover letter identifying the additional information needed. Reguest Sorting (Individual and Blanket Reguests) As a result of the initial review, Central Processing staff will have identified incomplete and complete individual requests, and all blanket requests. These requests are sorted into four (4) batches as follows for proper distribution to those who will then perform Phase 2: Supervisory Review of Requests. 1. Sort all complete, individual SF-98s into East and West batches for delivery to the corresponding BSCWD Section Chief for their review.2. Place each incomplete, individual SF-98 with attached cover letter of explanation into a correspondence folder for delivery to the BSCWD Branch Chief for review and approval to return the request to the contracting agency, and for signature of the Director, Division of Wage Determinations. 3. Batch all blanket SF-98 requests for delivery to the Blanket Pilot Program Manager for review. Data Entry (Individual Requests) 1. Central Processing staff enter initial tracking information into the WD-ATS data base for all individual requests, including those with incomplete information. All data entry for blanket requests takes place later during Phase 6: Outprocessing. 2. Staff consult the WD-ATS User Manual for details on the initial data to be entered and data entry procedures to be followed. Postcard Notification (Complete Individual Requests and Blanket Requests) 1. For complete, individual SF-98s and all blanket requests, Central Processing staff generate a postcard notification of request receipt using the WD-ATS. For incomplete SF-98s designated for return to the requesting agency or those which have no mailing address, postcards are not generated. The postcard includes: • request receipt date; • expected date of processing completion (60 days from request receipt date); and • telephone number for processing status questions (202/FTS-523-7096). 2. Staff consult the WD-ATS User Manual for information on how to use the computer system to generate the postcards. 3. Central Processing staff send the postcards to BSCWD for mailing.WORKFLOW Exhibit 76 provides a workflow diagram summarizing the Phase 1 procedures described above. It provides a reference tool for day-to-day staff use as warranted.EXHIBIT 76 WORKFLOW DIAGRAM OF PHASE 1 -- SF-98 REQUEST INTAKE & PRE-SCREENING INPUT SF-98REQUESTS RECEIVED FROM CONTRACTING AGENCIES DAILY; \ PRODUCTION \ 1 MAIL & FILE ROOM DATE STAMPS EACH REQUEST. MAIL & FILE ROOM SORTS REQUESTS INTO EAST/WEST BATCHES. LABELS ACCORDINGLY, & DELIVERS TO CENTRAL PROCESSING UNIT. CENTRAL PROCESSING COUNTS EACH BATCH & RECORDS NUMBER OF CONTRACTS ON COVER SHEET (ALL REQUESTS). CENTRAL PROCESSING REVIEWS FOR COMPLETENESS (INDIVIDUAL REQUESTS). CENTRAL PROCESSING CODES FOR COUNTY. TYPE OF SERVICES & AGENCY (INDIVIDUAL REQUESTS). J CENTRAL PROCESSING CHECKS BOX D RESPONSE & PREPARES COVER LETTER EXPLANATION (INCOMPLETE INDIVIDUAL REQUESTS). CENTRAL PROCESSING SORTS REQUESTS INTO 4 BATCHES - (1) ALL BLANKETS (2) ALL INCOMPLETE INDIVIDUAL REQUESTS WITH COVER LETTERS (3) ALL COMPLETE EAST SECTION INDIVIDUAL REQUESTS (4) ALL COMPLETE WEST SECTION INDIVIDUAL REQUESTS. CENTRAL PROCESSING ENTERS INITIAL TRACKING DATA INTO WD-ATS DATA BASE (COMPLETE & INCOMPLETE INDIVIDUAL REQUESTS). CENTRAL PROCESSING GENERATES POSTCARD NOTICES (COMPLETE INDIVIDUAL & ALL BLANKET REQUESTS). OUTPUT \distribution DATE-STAMPED, REVIEWED, CODED & SORTED REQUESTS WITH COVER LETTERS OF EXPLANATION (INCOMPLETE INDIVIDUAL REQUESTS). DATE-STAMPED, CODED & SORTED EAST/WEST REQUESTS (COMPLETE INDIVIDUAL REQUESTS). T ALL INCOMPLETE INDIVIDUAL REQUESTS WITH COVER LETTERS OF EXPLANATION TO BSCWD BRANCH CHIEF FOR SUPERVISORY REVIEW. ALL COMPLETE INDIVIDUAL REQUESTS TO APPROPRIATE EAST/WEST BSCWD SECTION CHIEFS FOR SUPERVISORY REVIEW. DATE-STAMPED & SORTED BLANKET REQUESTS. INITIAL TRACKING DATA ADDED TO WD-ATS DATA BASE. ALL BLANKET REQUESTS TO BLANKET MANAGER FOR SUPERVISORY REVIEW. POSTCARD NOTICES OF RECEIPT READY FOR MAILING. POSTCARD NOTICES TO BSCWD FOR MAILING. NJ NPURPOSE AND FUNCTIONS The BSCWD Section Chiefs, Branch Chief, and Blanket Pilot Program Manager receive their respective daily batches of SF-98 requests (complete, incomplete, and blankets) from the Central Processing Unit. Essentially, four functions are carried out during this Phase. • Review for Completeness: Individual requests not flagged as incomplete by Central Processing are reviewed a second time by East/West Section Chiefs. Incomplete individual requests and draft cover letters of explanation are reviewed by the Branch Chief for approval to return to the contracting agency. Blanket requests are reviewed by the Blanket Pilot Program Manager. (All Requests) • Evaluation of SCA Coverage: Blanket and individual complete requests are evaluated for coverage questions. All requests for which SCA coverage is questionable are submitted to the Branch of Service Contract Operations (enforcement branch) for further review, and preparation of a cover letter explanation where SCA is determined not to apply. (Complete Individual and Blanket Requests) • Flagging For Special Handling Needs: Some requests require special handling with regard to the development and issuance of the applicable WD. Supervisory review results in flagging these requests to alert the Salary and Wage Specialist assigned for screening, to any special handling needs. (Complete Individual and Blanket Requests) • Assigning Staff for Screening: BSCWD Section Chiefs and the Blanket Manager assign requests for screening (Phase 3). Procedures followed for each function are discussed below. Note that although the functions are the same for both blanket and individual requests, the procedures followed are somewhat different. Therefore, there are two procedures segments — one for individual requests, and one for blanket requests. Also, note that functions performed by Section Chiefs may be delegated to East/West Team Leaders (Senior Salary and Wage Specialists) as appropriate.Review for Completeness (Complete Individual Requests^ 1. BSCWD Data Technicians ("Pullers") assigned to each (East/West) Section separate the respective batches of individual SF-98s by geographic area corresponding to State staffing assignments. Note that each Salary and Wage Specialist ("Specialist") has assigned geographic areas for which he/she performs screening and makes subsequent wage determinations, unless workload or special circumstances dictate otherwise. 2. Pullers deliver the separated stacks to their appropriate Section Chief for review. 3. Although Central Processing has already flagged requests with incomplete information for Branch Chief review, Section Chiefs review requests again to be sure all SF-98/98a blocks of information are properly completed (see Phase 1, page 284). Any requests found to be incomplete are submitted to Central Processing for preparation of cover letters of explanation. Central Processing then submits them to the Branch Chief for review and approval to return to the contracting agency. Review For Completeness (Incomplete Individual Requests^ 1. Branch Chief reviews all those flagged as incomplete by the Central Processing Unit staff, and any flagged by the Section Chiefs upon their review. These requests are approved for a Box D response — Notice returned for additional information (SF 98, RESPONSE TO NOTICE segment). Any special instructions necessary for finalizing a cover letter explanation are attached. 2. Branch Chief obtains review/approval and signature of the Director, Division of Wage Determinations. 3. Branch Chief sends all approved, incomplete requests back to the Central Processing Unit for return to the contracting agency (See Phase 6: Outprocessing). Evaluation of SCA Coverage (Individual Complete Requests^ Occasionally, wage determination requests are submitted for contracts that are not covered by the SCA. Supervisory review includes an initial evaluation of the request for possible coverage questions. The coverage evaluation rests on definitions and concepts discussed in chapter 3, page 32. Procedures followed and criteria used are provided below.1. Contract Coverage Evaluation: Supervisors review the request against contract and worker exclusions to determine whether the principal purpose of the contract is for services. Note that except indirectly, through the definition of a service employee, the Act does not define or limit the types of services which may be covered. Its provisions cover a variety of services. Therefore, the type of services and occupational classes to be used must be evaluated in conjunction with each other to determine the principal purpose of the contract. In addition, the regulations provide guidance on types of contracts and employees which are specifically excluded from SCA coverage. Exhibit 77 on statutory exemptions and exhibit 78 on bona fide executive, professional, and administrative employees provide guidance for the principal purpose evaluation. 2. Employee Coverage Evaluation: Supervisors review the request for service employee coverage to determine if any classes listed in the SF-98a request are not service employees as defined by the law. A contract can be principally for services, but the request may list occupational classes for bona fide executive, professional, or administrative employees. If so, the WD(s) issued in response would not include these classes. Exhibit 78 provides guidance for the employee coverage evaluation. 3. Geographic Scope Evaluation: Supervisors review the request for proper geographic scope of coverage. This concerns whether the place of performance is in the United States as defined by the SCA. For contracts where services are performed both within and without the geographic scope of the U.S. as defined by the Act, SCA coverage applies only to the services that are performed within the United States. United States is defined as the 50 States, District of Columbia, Puerto Rico, Virgin Islands, Outer Continental Shelf Islands (as defined by the Outer Continental Shelf Lands Act), American Samoa, Guam, Wake Island, Commonwealth of the Northern Mariana Islands, and Johnston Island. 4. Enforcement Branch Evaluation: If the initial evaluation raises any questions as to whether SCA applies with regard to contract and/or employee coverage, or geographic scope, the individual or blanket SF-98 is sent to the Branch of Service Contract Operations (enforcement branch) for review. BSCWD Section Chiefs receive requests returned by the enforcement branch whose evaluation will result in one of the following outcomes. • If SCA is not applicable, the Branch of Service Contract Operations returns the request to BSCWD with a Box C response — From information supplied, the Service Contract Act does not apply. A cover letter explanationis prepared by the enforcement branch. This branch also facilitates return of the request and attached cover letter to the contracting agency. • If SCA is applicable, the request is returned to BSCWD for issuance of a wage determination. Flagging For Special Handling Needs (Individual Requests) Supervisors review individual requests for special handling needs as follows. 1. Exempt Occupational Classes: Section Chiefs flag any SCA-covered contract that includes some bona fide executive, professional, or administrative classes so that the Specialist assigned for screening will not address these classes. 2. Collective Bargaining Agreement Status: The Section Chief checks the current status of the collective bargaining agreement (CBA) attached, when one is required. The date the contract performance is scheduled to begin (SF-98, Block 4) is compared against the effective date of the CBA to be sure it will be in effect for the contract start date. In addition, the Section Chief checks the CBA to ensure that it applies to the occupational classes listed in the SF-98a. If the CBA covers some, but not all of the classes listed, the SF-98 is flagged as a special circumstance in need of clarification by the assigned Specialist. A CBA must be current and must apply to the SF-98 listed services and occupational classes in order to use it to develop a section 4(c) wage determination. If not, the SF-98 is considered incomplete and submitted to the Branch Chief for approval to return to the agency as an incomplete request. 3. Reconfigured Contracts: Occassionally, contracting agencies decide to reconfigure a given, recurring service contract by expanding the scope of services to be provided and the occupational classes needed. Frequently, these reconfigurations result from combining several contracts into one. The Section Chief flags the SF-98 for special handling if, for example, as a result of a reconfiguration, the request requires development of both a section 4(c) and an areawide wage determination, the geographic area(s) of the contract's place of performance have changed, or any other complications are evident. 4. Displacement Contracts: If SF-98, Block 7B (Services now performed by Federal employees) is checked indicating that the contract may involve displacement of Federal employees as a result of OMB A-76 decisions (see chapter 8, page 254), the Section Chief will flag it for special handling.STATUTORY EXEMPTIONS Section 7 of the Act specifically excludes from SCA coverage the following types of contracts. • Any contract for construction, alteration, and/or repair, including painting and decorating of public buildings or public works (i.e., contracts for the procurement of construction activity covered by the Davis-Bacon Act). • Any work required to be done in accordance with the provisions ofthe Walsh-Healey Public Contracts Act (i.e., specifications or requirements for the procurement of materials, supplies, articles, and/or equipment). • Any contracts for the carriage of freight or personnel by vessel, airplane, bus, truck, express, railway line, or oil or gas pipeline where published tariff rates are in effect. • Any contract for the furnishing of services by radio, telephone, telegraph, or cable companies, subject to the Communications Act of 1934. • Any contract for public utility services, including electric light and power, water, steam, and gas. • Any employment contract providing for direct services to a Federal agency by an individual or individuals. • Any contract with the Post Office Department, the principal purpose of which is the operation of postal contract stations. 29 CFR 4.116 through 4.122 clarify and illustrate the application of these statutory exemptions.GUIDELINES FOR DETERMINING SCA-EXEMPT OCCUPATIONS — BONA FIDE EXECUTIVE, ADMINISTRATIVE, AND PROFESSIONAL EMPLOYEES RATIONALE SCA coverage of contracts and employees depends, in part, on the definitions of bona fide executive, administrative, and professional employees found in 29 CFR Part 541. SCA covers service contracts only where "service employees" will be used in performing the services to be procured by the contract. A "service employee" is any person (other than bona fide executive, administrative, or professional employees as defined by 29 CFR Part 541) engaged in the performance of a contract entered into by the United States and not exempted by Section 7 of the Act wherein the principal purpose of the contract is to furnish services. This includes all such persons regardless of any contractual relationship alleged to exist between a contractor or subcontractor and such persons. Based on the SCA regulations, contract and employee coverage determinations with regard to these SCA-exempt occupations concern the following. • If the contract is performed exclusively or essentially by bona fide executive, administrative, or professional personnel, the contract may not be covered by the SCA. The Branch of Service Contract Operations is to review the SF-98 request to determine whether or not the contract is covered and a WD is to be issued. • If the contract involves a significant use of service employees with some use of bona fide executive, administrative, or professional personnel, the contract is covered by the SCA. A WD is issued to cover only service employees, however. Generally, bona fide SCA-exempt employees (as provided by 29 CFR Part 541) are defined as follows. KYKrTrrTVK — Any employee who meets all of the criteria listed as #1 through #6, or meets criterion #7. 1. Primary duty is to manage the enterprise where employed or a recoqnized department/subdivision thereof. AND 2. Regularly directs the work of two or more other employees. AND 3. Has authority to hire/fire or recommend such actions; or whose recommendations on these and other actions affecting employees are given particular weight. ANDGUIDELINES FOR DETERMINING SCA-EXEMPT OCCUPATIONS — BONA FIDE EXECUTIVE, ADMINISTRATIVE, AND PROFESSIONAL EMPLOYEES (CONTINUED) EXECUTIVE (continued) 4. Regularly exercises discretionary powers. AND 5. Devotes at least 80% of his/her time in a workweek to responsibilities directly/closely related to the above (for retail or service establishments — at least 60%). This criterion does not apply to an employee who is in sole charge of an independent establishment or a physically separate branch, or who owns at least a 20% interest in the enterprise. AND 6. Must be paid on a salary basis at a rate of $155 or more per week ($130 or more per week in Puerto Rico, the Virgin Islands, and American Samoa), exclusive of board, lodging, or other facilities. OR 7. Meets the criteria of #1 and #2 above, and is paid on a salary basis at a rate of $250 or more per week ($200 or more per week in Puerto Rico, the Virgin Islands, and American Samoa), exclusive of board, lodging, or other facilities. Examples — Duties which are managerial when performed by the employee in managing a department or supervising others include: interviewing, selecting, and training employees; setting and adjusting pay rates and work hours; evaluating employee efficiency and productivity; planning and assigning work; and controlling flow and distribution of merchandise, materials, and supplies. ADMINISTRATIVE — Any employee who meets all of the criteria listed as #1 through #5, or meets criterion #6. 1. Primary duty is to perform either of the following: • office or nonmanual work directly related to management or general business operations of the employer or employer's customers; OR • work directly related to academic instruction or training conducted in the administration of a school system or educational establishment. ANDGUIDELINES FOR DETERMINING SCA-EXEMPT OCCUPATIONS — BONA FIDE EXECUTIVE, ADMINISTRATIVE, AND PROFESSIONAL EMPLOYEES (CONTINUED) ADMINISTRATIVE (continued) 2. Regularly exercises discretion and independent judgment, and has authority to make important decisions. AND 3. Performs work per one of the following: • regularly and directly assists a proprietor or a bona fide executive or adminstrative employee; OR • performs, under only general supervision, specialized or technical work requiring special training, experience, or knowledge; OR • performs, under only general supervision, special assignments. AND 4. Devotes at least 80% of his/her time in a workweek to responsibilities directly/closely related to those listed above (for retail or service establishments — at least 60%). AND 5. Must be paid in one of the following ways: • on a salary or fee basis at a rate of $155 or more per week ($130 or more per week in Puerto Rico, the Virgin Islands, and American Samoa), exclusive of board, lodging, or other facilities; OR • in the case of academic administrative personnel in private schools, is paid as described above, or on a salary basis at least equal to the entrance salary for teachers in the school system or educational establishment. OR 6. Meets the criteria of #1 and #2 above, and is paid on a salary or fee basis at a rate of $250 or more per week ($200 or more per week in Puerto Rico, the Virgin Islands, and American Samoa), exclusive of board, lodging, or other facilities. Examples — Types of administrative employees include: executive and administrative assistants; advisory specialists for management such as tax, insurance, and sales research experts, wage rate analysts, credit managers, and personnel directors; and school superintendents, principals, and their assistants._GUIDELINES FOR DETERMINING SCA-EXEMPT OCCUPATIONS — BONA FIDE EXECUTIVE, ADMINISTRATIVE, AND PROFESSIONAL EMPLOYEES (CONTINUED) PROFESSIONAL — Any employee who meets all of the criteria listed as #1 through #5, or meets criterion #6. 1. Primary duty is to perform one of the following: • work requiring advance knowledge in a field of science or learning acquired by a prolonged course of specialized instruction and study (not general academic education or apprenticeship or training in routine mental, manual, or physical processes); OR • work that is original and creative in a recognized artistic field dependent primarily on the employee's invention, imagination, or talent; OR • work as a teacher certified or recognized as such in the school system or educational institution where employed. AND 2. Consistently exercises discretion and judgment. AND 3. Work is predominantly intellectual and varied in character (not routine or mechanical duties). AND 4. Devotes at least 80% of his/her time in the workweek.to activities which are essential and necessary to the work described above. AND 5. Must be paid at a rate of $170 or more per week ($150 or more per week in Puerto Rico, the Virgin Islands, and American Samoa), exclusive of board, lodging, or other facilities. This criterion does not apply to an employee: who holds a valid license or certificate to practice law or medicine and who is actually engaged in such practice; or who holds the requisite academic degree for the general practice of medicine and is engaged in an internship or resident program; or who is a teacher in a school or educational institution. ORGUIDELINES FOR DETERMINING SCA-EXEMPT OCCUPATIONS — BONA FIDE EXECUTIVE g ADMINISTRATIVE, AND PROFESSIONAL EMPLOYEES (CONTINUED) PROFESSIONAL (continued) 6. Must be paid at a rate of $250 or more per week ($200 or more per week in Puerto Rico, the Virgin Islands, and American Samoa), exclusive of board, lodging, or other facilities, and meets one of the following: • criteria #1 (either work that pertains to advance knowledge or teaching requirements as described above) and #2 listed above; OR • meets criterion #1 above pertaining to work requiring invention, imagination, or talent in an artistic field. Examples — Generally, professions meeting criteria of prolonged specialized instruction/study include: law, medicine, nursing (RN), engineering, teaching, architecture, accountancy, actuarial computation, and various types of physical, chemical, and biological sciences, including pharmacy and registered or certified medical technology. Note that computer programmers and systems analysts are not generally considered bona fide professionals, but may be SCA-exempt if the criteria for bona fide administrative or executive employees are met.For displacement contracts, fringe benefit determinations are based on the average costs benefits package (see chapter 7, page 216). In addition, all displacement contracts result in the issuance of a WD regardless of the number of employees listed in the SF-98a. 5. Emergency Needs: Agencies that provide emergency services frequently submit SFr98s for contracts that must be processed quickly. These are flagged for fast turn-around time, usually within 24 hours. Care should be taken to ensure it is a real emergency situation before authorizing accelerated processing. Examples include disaster services, harzardous waste clean-up emergencies, emergency housing services, or national security needs. Assigning Staff for Screening (Individual Reguests) All requests not being sent back to the contracting agency because of incomplete information (Box D response) or because SCA does not apply (Box C response) are assigned for screening. Section Chiefs assign individual requests to appropriate Salary and Wage Specialists (Specialists) according to their respective geographic areas of assignment or special circumstances. PROCEDURES FOR BLANKET REQUESTS Blanket requests are submitted according to the Blanket Pilot Program discussed in section III, chapter 9. Due to their pilot program status, the Blanket Pilot Program Manager coordinates their processing. Review For Completeness (All Blanket Requests) 1. Blanket Pilot Program Manager reviews all blanket requests for completeness due to the special requirements associated with these requests. Note that blanket requests are not initially reviewed for completeness by the Central Processing Unit as part of Phase 1. Items reviewed include the following as outlined in detail in section III, chapter 9. • Submission is by a participating agency and eligible installation and locality (MSA). • Blanket request cover memorandum contains the required statements indicating compliance with the Pilot Program Memorandum of Understanding.• SF-98, Blocks 2-4 — Estimated solicitation, Estimated bid opening or negotiations start, and Contract performance start dates; and Blocks 9-10 — Officials submitting request and to whom response is to be sent are completed properly. • Separate worksheets are prepared for continuous/multi-year contracts and recurring/one-time contracts. The SF-98 Notice number and submission date should be included on all worksheets. • Worksheets contain the appropriate information for each contract, including place of performance, type of services, most recent WD, if any, job titles using those provided by the SCA Directory of Occupations, and comparable Federal grade levels or pay rates, among other items required. For occupations not listed in the SCA Directory, job titles and descriptions must be attached. • Notes for fulfilling legal requirements are properly included in the worksheet package. 2. If considerable information is missing or improperly provided, the Blanket Manager may have the request returned to the contracting agency with an explanation. For example: If the worksheets are not provided in the required format, the request must be returned. Or, where information for a few of the contracts is not properly provided, the Blanket Manager may have the WD developed and issued to cover only contracts and occupational classes for which complete information is included, indicating why certain contracts or occupational classes could not be addressed by the blanket WD and what the contracting agency should do to address the SCA requirements of contracts not covered. 3. Blanket Manager checks the timing of blanket requests received against the issuance of current, applicable BLS survey data for the given MSA. If the new survey needed to prepare the blanket WD is not yet available, the Blanket Manager may hold the request. Once the applicable, new BLS survey is available, the request is assigned to a Specialist for screening. 4. Blanket Manager completes the review by logging the request into the Blanket Logbook. 5. For any blanket request that must be returned to the contracting agency for additional information, the Blanket Manager prepares a cover letter of explanation and facilitates the outprocessing.Procedures followed by the Blanket Manager are the same as those utilized for individual requests (see page 292). The evaluation, however, is performed for each contract listed in the blanket request. Flagging For Special Handling Needs (Blanket Reguests) 1. Pilot Program Exclusions: The Blanket Manager flags blanket requests if any contracts listed involve the following pilot program exclusions. Such contracts are flagged because of their sensitivity and special nature with regard to the type of data needed and/or level of complexity in developing the WD required. For these types of contracts, individual requests must be submitted. • Successor contracts subject to predecessor collective bargaining agreements (CBAs) requiring the issuance of a section 4(c) WD. • Contracts whose place of performance is unknown at the solicitation stage. • Contracts that may displace Federal employees. • Contracts involving consolidations or reconfigurations of existing contracts. 2. No Job Descriptions: The Blanket Manager flags any occupational classes listed in the blanket request which are not in the SCA Directory of Occupations and for which no comprehensive job description has been provided. These may require the submission of an individual SF-98. Assigning Staff For Screening The Blanket Manager submits blanket requests to Ecist/West Section Chiefs for their assignment to selected Salary and Wage Specialists working on the Blanket Pilot Program, providing any special instructions as needed.WORKFLOW Exhibits 79 and jH) provide workflow diagrams summarizing the Phase 2 procedures for individual and blanket requests respectively. They provide a reference tool for day-to-day staff use as warranted.EXHIBIT 79 WORKFLOW DIAGRAM OF PHASE 2 -- SUPERVISORY REVIEW OF INDIVIDUAL REQUESTS INPUTEXHIBIT 80 WORKFLOW DIAGRAM OF PHASE 2 -- SUPERVISORY REVIEW OF BLANKET REQUESTS INPUTCHAPTER 13s PHASE 3 — SCREENING AND ISSUANCE OF CURRENT WAGE DETERMINATIONS PURPOSE AND FUNCTIONS Screening concerns essentially the review of the request and the index of wage determinations to determine the appropriate WD response (current WD or new/revised WD). Screening for both individual and blanket requests involves the four (4) functions listed below, performed primarily by assigned BSCWD Salary and Wage Specialists. • Final Review for Completeness: The Specialist makes a final check to be sure requests are completed properly and to determine if the request entails any special needs. • Research and Evaluation of Previously-Issued WDs: This function involves the identification, pulling, and evaluation of previously-issued WDs for the geographic area corresponding to the place(s) of performance listed in the SF-98 request. As a result, a decision can be made as to whether a current, revised, or new WD must be issued in response to a request. Often, wage determination requests involve localities, services and occupational classes for which WDs have been issued previously in response to other similar requests. Previously-issued WDs for a given locality are evaluated to determine whether one or more can be issued as is (current WD issuance), or whether one or more can be revised (expanded or updated) to address the request (revised WD issuance). Where research and evaluation uncovers no previously-issued WD(s) which is applicable, a new WD must be developed and issued. • Current WD Issuance: The function entails final steps taken by the Specialist to issue a current WD. If the research and evaluation locates a current WD that can be applied to a given request as is, it is issued immediately. If not, data evaluation and analysis are needed to develop and issue a new or revised WD. Note that individual requests requiring section 4(c) wage determinations generally require the development and issuance of revised or new WDs. Issuance of a current WD is generally applicable only to individual or blanket requests requiring a prevailing, areawide WD. • Assigning Staff For New/Revised WD Developments Section Chiefs assign individual and blanket requests for new/revised WD development to Specialists according to their geographic areas of assignment or specialcircumstances. Also, data needed to track assignments are entered into the WD-ATS data base by the Central Processing Unit. Procedures followed for each function are outlined below. Note that although the functions are essentially the same for both blanket and individual SF-98 requests, the procedures are somewhat different. This results from the more extensive contract and occupational class coverage to be established by the blanket WD(s) issued, the pilot program exclusions, and blanket request submission procedures. Therefore, there are two procedures segments — one for individual requests, and one for blanket requests. PROCEDURES FOR INDIVIDUAL REQUESTS Final Review for Completeness (Individual Requests) Although Central Processing Unit staff and the East/West Section Chiefs have already reviewed individual requests for completeness, screening involves a final check. It is important that once a request is assigned for WD development, all necessary information is available for the Specialist to do the work. Also, given that contracting agencies have solicitation and award schedules to meet, and BSCWD has an enormous daily workload, it is crucial that incomplete requests are detected early on in order to expedite efficiently the processing and development work for all involved. Having three reviews for completeness (Pre-Screening, Supervisory Review, and Screening), all taking place shortly after a request is received, ensures timely detection of incomplete information. Consequently, the Specialist reviews the SF-98 request as follows. 1. Checks the SF-98 and SF-98a for proper completion of all blocks of information and coding of the Place of Performance and Type of Service Blocks — SF-98, Blocks 5 and 6 (see Phase 1, page 284). 2. Obtains any clarification needed with regard to a reconfiguration, Federal displacement, or other special handling need noted by the Section Chiefs. 3. Ensures that an applicable collective bargaining agreement (CBA) is attached, is in effect for the contract start date, and applies to some or all of the occupational classes listed in the SF-98a. Based on Section Chief instructions, a given CBA may need clarification which the Specialist would obtain by calling appropriate persons.4. Reviews the request as to whether there is an incumbent contractor. If one exists, the SF-98 should list one or more WDs that apply to the incumbent contract (SF-98, Block 8B). If no WD is listed, the Specialist obtains clarification from the contracting agency. 5. Returns immediately any requests found to be incomplete to the East or West Section Chief with a Box D response, noting what information is missing. These are expedited for outprocessing by Section Chiefs as explained in Phase 2, page 292. Research and Evaluation of Previously-Issued WDs (Individual Requests) Information provided by the request is used to research, pull, and evaluate all active, previously-issued WDs which may be applicable to the request. Evaluation of the request and potentially applicable WDs results in decisions about the type of WD response needed — current, new, or revised WD. To accomplish the research and evaluation effort, the following six steps are followed, each requiring the application of certain criteria or techniques. 1. Determine the Type of WD Required: If the SF-98, Block 7A (Services now performed by a contractor) indicates services are being performed by an incumbent contractor and Block 8C (Name of Union) indicates a union agreement exists, then a section 4(c) WD is called for. If not, then a prevailing, areawide WD is called for. 2. Research Potentially Applicable WDs: The research and pulling effort involves obtaining all WDs listed in Block 8B (Number(s) of any wage determination(s) in incumbent's contract) of the SF-98 request and any others that may be applicable. For the latter, the Specialist searches the WD Recordbook or WD Screening Board to locate any previously-issued, active WDs (see chapter 7, pages 192 and 193). Section 4(c) WDs are marked by a special code to distinguish them from prevailing, areawide WDs. Blanket WDs are also listed on the WD Screening Board and in the WD Recordbook. As appropriate, these should also be researched when a prevailing, areawide WD is required for response to an individual request. A match must be made between potentially applicable WDs, and the needs of the request with regard to: • geographic location of the place of performance; • type of services to be performed; • whether a section 4(c) or prevailing, areawide WD is called for; and• classes of workers needed to accomplish the contract work. 3. Have Potentially Applicable WDs Pulled; The Specialist lists all potentially applicable WDs for retrieval by East/West Section Pullers. Pullers "pull" copies of these WDs for evaluation by the Specialist. 4. Evaluate WDs Pulled: Once pulled, the Specialist evaluates all potentially applicable WDs to determine if any can be issued as current WDs in response to the request. This generally pertains to areawide WDs only. Any request requiring a section 4(c) WD must be addressed as a new or revised WD due to the prospective increases usually contained in CBAs. Evaluation criteria used include the following. • Are there one, two, or more areawide WDs that cover all the occupational classes listed in the request for the place of contract performance? • Of those that apply, are they current, i.e., based on the latest available wage data sources, or are new data about to be released? There are two sources used to check this. - The BLS Schedule of Area Wage Survey Dates (see chapter 7, page 196) provides dates for Area Wage and SCA Area Survey availability in a given fiscal year. A new schedule is released every fall. For other types of surveys, see section II, chapters 4, 5, and 6 for information on their cycles, which are usually annual or biennial. 5. Determine Response Needed; Once potentially applicable WD(s) have been evaluated as discussed above, the Specialist determines which, if any, can be issued in response as a current WD. Also, the Specialist determines if more than one current WD will be needed to cover the occupational classes required by the request. If a current WD(s) can be issued in response to the request, the Specialist finalizes and processes it as discussed below. If the above criteria are not met, then either a revised or new WD is needed, except in some cases, where the request involves 5 employees or less. In these instances, DOL may use discretion with regard to developing and issuing a new or revised WD. If data are not available for developing a new or revised WD for a request involving 5 employees or less, DOL may choose to not issue a WD. In these instances, a Box B response would be sent to the contracting agency. Note that when a WD has been issued for contracts involving 5 or fewer employees, revised WDs continue to be issued as appropriate.6. Process Requests As Required: All requests requiring a new or revised areawide WD, all those requiring a section 4(c) WD, and those being returned with a Box B response are given to the appropriate East/West Section Chief along with any applicable, previously-issued WD(s) attached. Section Chiefs review the materials and assign Specialists to develop and issue the section 4(c) WDs and those requests requiring a new or revised areawide WD. Those with a Box B response are stamped with the Branch or Section Chief's signature and sent to Central Processing for Outprocessing (see Phase 6). See below for requests for which current WDs are to be issued. Current WD Issuance (Individual Requests) Before officially issuing a current WD, the Specialist conducts a final review by comparing the needs of the SF-98 individual request to the current, applicable WD(s) to be issued as follows. 1. Review the current WD(s) for accuracy. 2. Review WD(s) against the request to ensure all occupational classes needed are covered and the geographical area of WD coverage corresponds to the place of performance listed in the request. 3. Ensure that no new applicable BLS or other survey wage and fringe benefit data have since been issued, or will be issued in the near future according to the BLS Schedule of Area Wage Survey Dates. 4. Check the Box A response — The attached wage determination(s) listed below applies to procurement. Mark the number(s) of the current WD(s) to be issued in response to the request in the SF-98, RESPONSE TO NOTICE segment. 5. Fill out the SF-98 Completion Form (see chapter 7, page 239). This information is used by Central Processing to update the WD-ATS data base for SCA requests and determinations. 6. Submit request, copies of the current WD(s) to be issued, and SF-98 Completion Form to a Senior Specialist for review and approval. 7. When ready, submit the request, WD(s) to be issued, and the SF-98 Completion Form to the appropriate East/West Section Puller for initiating Phase 6: Outprocessing.Assigning Staff For New/Revised WD Development (Individual Reguests) 1. Section Chiefs review requests requiring new or revised WDs and make respective assignments for Specialists to develop and issue them. Any special handling instructions required are also provided. 2. The SF-98 Completion Form with the name of the assigned Specialist is attached to each stack of SF-98s so-assigned. 3. Section Chiefs send these stacks to Central Processing staff so that the WD-ATS data base can be updated accordingly for assignments. The stacks are returned to the Section Chiefs for distribution to assigned Specialists. PROCEDURES FOR BLANKET REQUESTS Final Review For Completeness (Blanket Reguests) Although the Blanket Pilot Program Manager has already reviewed the request for the items listed below, the Specialist makes a final check. The blanket requests are reviewed as follows to ensure that they are completed properly, to determine if any special needs exist, and to ensure that a blanket WD should be issued in response to a given contract or occupational class. This review also familiarizes the Specialist with the request in preparation for the development of the blanket WD. 1. Is the request completed properly? Is any information missing? (See Phase 2, page 303 for details on what to look for). 2. Are the localities of the places of performance located within the same BLS geographic survey area (MSA) for which a blanket WD can be established? Has a recent BLS survey been released, or is one about to be released for the geographic area needed? If a given contract's place of performance is not located in the appropriate BLS MSA survey area, an individual SF-98 request must be submitted for that specific contract. If the most current BLS data are not available or will not become available for the area in the near future the following steps are taken. • Where BLS data will become available in the near future, the request is placed "on hold" and the contracting agency is so-notified.• Where BLS data will not become available in the near future, the request is returned to the contracting agency with information explaining when and how it should be resubmitted. 3. Do the services and occupational classes listed in the blanket request fall within one or more of the standard eight (8) occupational groupings used to issue blanket WDs? If any of the services/occupational classes needed cannot be classified within one of these groupings, an individual SF-98 request may need to be submitted. Exhibit 81 lists these occupational groupings and their corresponding classes. 4. Are occupations listed that concern forestry services? If so, an individual request may need to be submitted depending upon the availability of data for such services/occupations and the special nature of these services. Forestry data may need to be obtained from special surveys. 5. Are all the occupations listed included in the SCA Directory of Occupations? Blanket request worksheets should include the corresponding SCA Directory code number for reference. Of those that are not, has a comprehensive job description been provided so that the job can be compared to other similar occupations in order to develop prevailing rates? If not, an individual SF-98 request may be required, or the Specialist may need to contact the contracting agency for clarification. 6. For all occupations, are the comparable Federal rates and/or grade levels listed in the worksheets? If not, an individual request may need to be submitted, or the Specialist may need to contact the contracting agency for clarification. 7. Do any of the contracts listed involve the Blanket Pilot Program exclusions? If so, an individual request,must be submitted. Note that WD Dockets may need to be reviewed before a final decision can be made with regard to these exclusions (see segment below on Research and Evaluation of Previously-Issued WD(s)). Research and Evaluation of Previously-Issued WDs (Blanket Requests) For the establishment of a blanket WD (first time blanket request and WD response), this function is particularly critical. The Specialist must identify and pull all prevailing, areawide WDs previously issued for the geographic area (MSA) corresponding to the place(s) of performance listed in the blanket request. WD Dockets are also pulled for review.All such WDs are pulled for screening and later development so that, where appropriate, the blanket WD(s) issued can be established to provide comprehensive wage determination coverage for the locality. A blanket WD will replace many of the previously-issued, individual WDs for the given locality. These individual WDs can then be withdrawn (removed from active status). Although the research and evaluation of previously-issued WDs is considered part of the screening process, it is of primary interest for the development and issuance of new/revised WDs for blanket requests, which will be discussed in chapter 15. The development phase includes a thorough evaluation of all previously-issued WD(s) which will result in withdrawing many of them as the blanket WD is established. Blanket requests and WD responses are relatively new. Therefore, many areas are undergoing first-time establishment of blanket wage determinations. In the future, there will be many occasions in which a current blanket WD can be issued as is (current WD issuance as is done for individual requests). Consequently, any previously-issued blanket WDs for the MSA needed must be reviewed carefully to determine if they can be issued as is. The general procedures followed to accomplish this function are listed below. 1. Specialist pulls automatically the WD Dockets and WD File copies of all WDs listed in the blanket request. The blanket request provides the number of all WDs that have been previously included in the contracts listed. 2. Specialist researches the WD Screening Board or WD Recordbook to identify all other prevailing, areawide WDs previously issued for the geographic area(s) of the place(s) of performance listed in the request, except for contracts or classes for which it has been determined that an individual SF-98 request is needed. All file copies of these WDs and their corresponding WD Dockets must be pulled. 3. Specialist reviews all these materials to further determine if any contracts listed in the blanket request must be excluded from the blanket WD due to contract exclusions. In particular, the WD Dockets will contain information useful with regard to the existence and status of any applicable CBAs, reconfigurations, or Federal displacements that may affect a listed contract. 4. Once the review, research, and pulling has been accomplished, the Specialist marks all contracts requiring the submission of an individual request. The Specialist notes "Submit SF-98" in the DOL Response Column provided inLIST OF CLASSES INCLUDED IN THE STANDARD OCCUPATIONAL GROUPINGS FOR WHICH BLANKET WDs ARE ESTABLISHED ADMINISTRATIVE SUPPORT AND CLERICAL OCCUPATIONS Secretary I Order Clerk I Secretary II Order Clerk II Secretary III Secretary IV Accounting Clerk I Secretary V Accounting Clerk II Accounting Clerk III Stenographer I Accounting Clerk IV Stenographer II Payroll Clerk Transcribing-Machine Typist Word Processor I Typist I Word Processor II Typist II Dispatcher, Motor Vehicle File Clerk I File Clerk II Inventory Clerk File Clerk III Receptionist Messenger Mail Clerk Switchboard Operator Work Order Control Clerk Switchboard Operator- Receptionist AUTOMATIC DATA PROCESSING OCCUPATIONS, INFORMATION AND ARTS OCCUPATIONS, LIBRARY AND ARCHIVE OCCUPATIONS, AND TECHNICAL OCCUPATIONS Key Entry Operator I Key Entry Operator II Drafter I Drafter II Computer Programmer I Drafter III Computer Programmer II Drafter IV Computer Programmer III Drafter V Computer Operator I Technician I Computer Operator II Technician II Computer Operator III Technician III Peripheral Equipment Operator Computer Systems Analyst I Computer Systems Analyst II Computer Data Librarian Computer Systems Analyst IIILIST OF CLASSES INCLUDED IN THE STANDARD OCCUPATIONAL GROUPINGS FOR WHICH BLANKET WDs ARE ESTABLISHED (CONTINUED) AUTOMATIC DATA PROCESSING OCCUPATIONS, INFORMATION AND ARTS OCCUPATIONS, LIBRARY AND ARCHIVE OCCUPATIONS, AND TECHNICAL OCCUPATIONS (CONTINUED) Exhibits Specialist I Exhibits Specialist II Exhibits Specialist III Illustrator I Illustrator II Illustrator III Photographer I Photographer II Photographer III Technical Information Specialist I Technical Information Specialist II Technical Information Specialist III Librarian Library Worker Laboratory Technican FURNITURE MAINTENANCE AND REPAIR, MACHINE TOOL OPERATION AND REPAIR OCCUPATIONS, MATERIAL HANDLING AND PACKING OCCUPATIONS. MECHANICS AND MAINTENANCE AND REPAIR OCCUPATIONS. TRANSPORTATION AND MOBILE EQUIPMENT OPERATION OCCUPATIONS, AND PLANT AND SYSTEM OPERATION OCCUPATIONS Electrician, Maintenance Machinist, Maintenance Mechanic, Maintenance (Machinery) Pipefitter, Maintenance Millwright Stationary Engineer Heating/Refrigeration/Air Conditioning Mechanic Sheet-Metal Worker, Maintenance Welder, Maintenance Heavy Equipment Mechanic Mason, Maintenance Carpenter, Maintenance Painter, Maintenance Plumber, Maintenance Appliance Mechanic Helper, Maintenance Trades Laborer I Truckdriver (Light) Truckdriver (Medium) Truckdriver (Heavy) Truckdriver (Tractor-Trailer) Shipper Receiver Shipper and Receiver WarehousemanLIST OF CLASSES INCLUDED IN THE STANDARD OCCUPATIONAL GROUPINGS FOR WHICH BLANKET WDs ARE ESTABLISHED (CONTINUED) FURNITURE MAINTENANCE AND REPAIR, MACHINE TOOL OPERATION AND REPAIR OCCUPATIONS. MATERIAL HANDLING AND PACKING OCCUPATIONS, MECHANICS AND MAINTENANCE AND REPAIR OCCUPATIONS, TRANSPORTATION AND MOBILE EQUIPMENT OPERATION OCCUPATIONS, AND PLANT AND SYSTEM OPERATION OCCUPATIONS (CONTINUED) Aircraft Mechanic Order Filler Shipping Packer Material Handling Laborer Forklift Operator Boiler Tender Sewage Plant Operator Upholsterer AUTOMOTIVE SERVICES OCCUPATIONS Automotive Glass Installer Automotive Worker Electrician, Automotive Mobile Equipment Servicer Motor Equipment Metal Mechanic Motor Vehicle Mechanic Motor Vehicle Mechanic Helper Aircraft Worker Aircarft Mechanic, Helper Tool and Parts Attendant Office Appliance Repairer Pneudraulic Systems Mechanic V Motor Vehicle Upholstery Worker Motor Vehicle Wrecker Painter, Automotive Radiator, Repair Specialist Tire Repairer Transmission Repair Specialist Motor Equipment Metal Worker Scheduler, MaintenanceLIST OF CLASSES INCLUDED IN THE STANDARD OCCUPATIONAL GROUPINGS FOR WHICH BLANKET WDs ARE ESTABLISHED (CONTINUED) FOOD AND LODGING SERVICES OCCUPATIONS Cook I Cook II Baker Cashier Food Service Worker Vending Machine Repairer Vending Machine Repairer, Helper PROTECTIVE SERVICES OCCUPATIONS Guard I Guard II LAUNDRY, DRY CLEANING. PRESSING. Sewing Machine Operator Tailor Assembler Dry Cleaner Finisher, Flatwork Vending Machine Attendant Desk Clerk Janitor, Porter, Cleaner Elevator Operator Laborer Grounds Maintenance Dishwasher Waiter/Waitress AND RELATED OCCUPATIONS Presser, Machine, Dry Cleaning Presser, Machine, Shirts Presser, Machine, Apparel (Laundry) Washer, Machine Court Security OfficerLIST OF CLASSES INCLUDED IN THE STANDARD OCCUPATIONAL GROUPINGS FOR WHICH BLANKET WDs ARE ESTABLISHED (CONTINUED) GENERAL SERVICES AND SUPPORT OCCUPATIONS. TRANSPORTATION. AND MISCELLANEOUS OCCUPATIONS Janitor, Porter, Cleaner Laborer, Grounds Maintenance Tractor Operator Pest Controller Refuse Collector Truckdriver, Refuse Collection Emergency Medical Technician Ambulance Driver Animal Caretaker Housekeeping Aid I Housekeeping Aid II Mess Attendant Cook I Cook II Baker Meat Cutter Embalmerthe blanket worksheets. For these, the blanket WD will not include any prevailing rates. 5. If one or more current, blanket WDs have already been established for the geographic area, the Specialist thoroughly evaluates them to determine if any can be issued as is, or if they need to be revised to respond to the request needed. The Specialist then determines if any are current, cover some or all of the contracts, occupations, and types of services needed, and can be used to cover the agencies contracting needs throughout the upcoming 12-month period during which blanket WDs issued will be in effect. Those so-determined may be issued as current WDs, as outlined below. Current WD Issuance (Blanket Requests) Before officially issuing one or more current blanket WDs, the Specialist conducts a final review by comparing the needs of the SF-98 blanket request to the current applicable blanket WDs to be issued as follows. 1. Review the current blanket WD(s) to be issued for accuracy. 2. Review the blanket WD(s) against the request to ensure that the applicable contracts, types of services, and occupations needed are covered, and the geographic area of WD coverage corresponds to the place(s) of performance listed in the request. 3. Ensure that no new applicable BLS survey data have been or are about to be issued according to the BLS Schedule of Area Wage Survey Dates. 4. Check the Box A response — The attached wage determination(s) listed below applies to the procurements. Mark the number(s) of the current blanket WD(s) to be issued in response in the request worksheets (DOL Response Column provided). Be sure that the appropriate blanket WD number is marked for the contract to which it is to be applied. 5. Fill out the SF-98 Completion Form (see chapter 7, page 239). This information is used by Central Processing to update the WD-ATS data base for SCA requests and determinations. 6. Submit the request, copies of the current blanket WD(s) to be issued, and the SF-98 Completion Form to the Blanket Pilot Program Manager for review and approval. The Blanket Manager will facilitate outprocessing of the request and WD response (See Phase 6: Outprocessing).Assigning Staff For New/Revised WD Development (Blanket Reguests) The East/West Section Chiefs do not make any further staff assignments for blanket WD development. The Specialist assigned for screening also handles the development. Note that data entry for blanket request assignments occurs later during Phase 6 — Outprocessing. WORKFLOW Exhibits 82 and 83. provide workflow diagrams summarizing the Phase 3 procedures for individual and blanket requests respectively. They provide a reference tool for day-to-day staff use as warranted.WORKFLOW DIAGRAM OF PHASE 3 -- SCREENING & ISSUANCE OF CURRENT WDs FOR INDIVIDUAL REQUESTS INPUT \ PRODUCTION INDIVIDUAL REQUESTS ASSIGNED BY BSCWD SECTION CHIEFS TO SPECIALISTS FOR SCREENING. MJ \ SPECIALIST MAKES FINAL CHECK FOR COMPLETENESS , OBTAINS CLARIFICATIONS NEEDED & RETURNS INCOMPLETE REQUESTS TO SECTION CHIEFS. SPECIALIST RESEARCHES WD RECORDBOOK OR SCREENING BOARD FOR PREVIOUSLY-ISSUED WDs ACCORDING TO GEOGRAPHIC AREA OF PLACE OF PERFORMANCE, TYPE OF SERVICES. TYPE OF WD & CLASSES NEEDED. COPIES OF POTENTIALLY-APPLICABLE WDs PULLED BY PULLERS PER SPECIALIST'S REQUEST. SPECIALIST EVALUATES PREVIOUSLY-ISSUED WDs & DETERMINES IF A CURRENT WD CAN BE ISSUED OR IF A NEW/REVISED WD IS NEEDED. WHERE CURRENT WDs CAN BE ISSUED. SPECIALIST REVIEWS CAREFULLY TO ENSURE PROPER RESPONSE. FACILITATES SENIOR SPECIALIST REVIEW & PREPARES FOR ISSUANCE. WHERE NEW/REVISED WDs ARE NEEDED, SPECIALIST SUBMITS REQUESTS & WDs PULLED TO SECTION CHIEF FOR REVIEW & WD DEVELOPMENT ASSIGNMENT. SECTION CHIEF REVIEWS & MAKES WD DEVELOPMENT ASSIGNMENT. OUTPUT 1 INCOMPLETE REQUESTS - - BOX D RESPONSE, NOTING INFORMATION MISSING CURRENT WDs & REQUESTS READY FOR ISSUANCE/OUT PROCESSING. REQUESTS REQUIRING DEVELOPMENT OF NEW/REVISED WDs ASSIGNED TO SPECIALISTS. DISTRIBUTION \ INCOMPLETE REQUESTS REFERRED TO BSCWD SECTION CHIEFS FOR FACILITATING RETURN TO CONTRACTING AGENCIES WITH COVER LETTERS OF EXPLANATION. SECTION CHIEFS REFER THEM TO CENTRAL PROCESSING FOR OUTPROCESSING. CURRENT WDs & REQUESTS REFERRED TO EAST/WEST SECTION PULLERS FOR INITIATING OUTPROCESSING. REQUESTS REQUIRING NEW/REVISED WDs PROVIDED TO ASSIGNED SPECIALISTS FOR PHASE 4.WORKFLOW DIAGRAM OF PHASE 3 -- SCREENING & ISSUANCE OF CURRENT WDs FOR BLANKET REQUESTS INPUTCHAPTER 14s PHASE 4 — DATA SOURCE SELECTION FOR DEVELOPING NEW/REVISED WAGE DETERMINATIONS PURPOSE AND FUNCTIONS This Phase essentially involves determining which primary and supplementary sources (as needed) should be used as the basis of the wage determination. As provided by the SCA and its implementing regulations, the best available sources for wage rate and fringe benefit determinations are to be used. Generally, depending upon whether the new or revised WD called for is an areawide, prevailing or section 4(c) WD, one of two types of data sources are used. For prevailing, areawide WDs, usually survey-based sources or related data are used. The primary exception concerns areawide WDs based on union dominance. For these cases, the CBA of the dominant union in the locality is used. For section 4(c) WDs, the minimum wage rates and fringe benefits are always based on the applicable CBA of the incumbent (predecessor) contractor for the appropriate classes. Data source selection entails the following three (3) key functions. The first function listed concerns both areawide and section 4(c) WDs. The remaining two functions concern only areawide WDs. This is due to the fact that a section 4(c) WD is based on one source only — the applicable CBA. Data source selection for areawide, prevailing WDs is more involved. Once the appropriate combination of sources is selected for use, each source is evaluated and utilized to develop the WD as outlined in the next chapter. • Type of WD Determination: This function entails determining whether a prevailing, areawide WD or a section 4(c) WD is required, or whether both types of WDs are required. Note that this function concerns only individual SF-98 requests because section 4(c) WDs cannot be used for blanket requests, in accordance with Blanket Pilot Program exclusions. • Primary Data Source Selection: This function entails selecting the best primary source data (survey-based or related data) to use as the direct basis of the areawide WD to be developed. In most instances, BLS Area Wage or SCA Area Surveys/Special Studies are used as primary sources. • Supplementary Data Source Selection: This function entails determining which supplementary source(s) are needed to use in conjunction with the primary source data. Supplementary sources are almost always neededbecause primary survey-based or related sources do not usually provide direct data that can be used as the basis for each and every occupational class required by the WD to be issued. The procedures followed and decision-making criteria used are outlined below for each function. While these functions and procedures are essentially the same for both individual and blanket requests, some special considerations concern blanket requests. These are noted, where appropriate. Data source selection procedures and criteria are essentially the same for both new and revised WDs. A revised WD, however, requires updating the prevailing rates previously-issued, and possibly expanding the WD to cover any additional classes needed using the primary sources selected for use. Thus, a revised WD requires careful review of data sources used previously as indicated by the WD Docket File of historical information. PROCEDURES Type of WD Determination Whether the request requires an areawide WD, section 4(c) WD, or both types, development first entails review of the SF-98 request and the WD Docket. Note that only areawide WDs are issued in response to blanket requests. Thus, by definition, the WD to be issued for a blanket request is automatically an areawide, prevailing WD. With regard to individual requests, the Specialist reviews the SF-98, SF-98a, and the WD Docket as follows. 1. Is there an incumbent contractor currently performing the SCA-covered services called for? Are the employees working on the incumbent contract covered by a CBA? If so, a section 4(c) WD is needed. SF-98, Blocks 7 and 8 provide the information needed to make this determination. 2. Review the applicable, attached CBA against the SF-98a to determine if all the classes listed in the request are included in the agreement. If not, both types of WDs may be needed. For revised WDs, also review the WD Docket and previously-issued WD to see what was done in the past. 3. For all the classes requiring the issuance of a section 4(c) WD, the applicable CBA is the only data source needed. For those requiring an areawide WD, additional procedures must be followed to determine the data sources to use. Forcases involving both types, both sets of procedures will need to be followed accordingly. Primary Data Source Selection Areawide wage determinations are based upon data sources considered by the Department of Labor to be the best information available. Source(s) selected for use must provide a sound basis for determining what wage rates and fringe benefits prevail in the locality for the various occupational classes listed in the SF-98 request. Many sources are evaluated for use in developing areawide WDs, including data from contracting agencies, trade associations, contractors, labor organizations, and Federal, State, and local governments. Data sources are classified as either survey-based or nonsurvey-based. Preference is always given to survey-based data, unless union dominance or other special circumstances exist in the given locality. BLS Area Wage and SCA Area Surveys are usually considered to be the best primary sources. Individual requests involving areawide WDs sometimes concern contracts whose place of performance could be anywhere in the U.S. As discussed in chapter 8, contracting agencies use a two-step procurement process to identify all possible places of performance. When more than one place of performance is listed in the SF-98 request, a separate WD must be developed for each of the localities, provided they are in different geographic areas. This necessitates securing appropriate data sources for each geographic area needed as if separate, individual requests had been submitted. Note that blanket WDs are not used for procurements requiring this two-step procedure. These types of contracts are excluded from the Blanket Pilot Program. Section II, chapters 4, 5, and 6 describe in detail the data sources most often used for SCA wage determination development. Knowledge of these sources, combined with a careful review of the SF-98 request, WD Docket File, and previously-issued WDs, as appropriate, is crucial to the selection of the best data source(s). In addition, there are lists and tools described in section II, chapters 4 and 7 that are particularly useful for the data source selection process, including the following. • BLS and SCA Survey Area Lists: Indicate what geographic areas are surveyed by BLS and the respective survey cycle (see pages 67 and 81).• FWS Survey Area Lists: Indicate what geographic areas are surveyed resulting in NAF or Wage Board pay schedules (see page 196). • BLS Schedule of Area Wage Survey Dates: Indicates which BLS Area Wage and SCA Area Surveys will be released during the current fiscal year (see page 196). • Data Source Files: Copies of all surveys and other related data sources are kept in these files (see page 196). Procedures and criteria used to select the most appropriate primary data source follow. 1. Specialist reviews the SF-98 request for information important to the data source selection process. This information is also key to the WD development process discussed in the next chapter. For revised WDs, the WD Docket and the previously-issued WD should also be reviewed carefully. Exhibit 84 lists the types of information to look for in reviewing the SF-98 request, WD Docket File, and the previously-issued WD. 2. Are the wage rates and fringe benefits for some or all of the classes needed predominantly union? To determine this, see exhibit 85 which outlines the conditions that must be met and the verifications needed before a WD can be based on union dominance. Even if the previously-issued WD was based on union dominance, it is important to confirm that this remains the case. For classes governed by union dominance, the applicable CBA is used as the only data source to develop the prevailing wage rates and fringe benefits. In these instances, the data source selection process is complete and development of the areawide WD based on union dominance can begin as described in the next chapter. For requests or classes not governed by union dominance, continue with the procedures below. 3. Which primary survey-based source should be used for wage rate data? Four (4) key criteria are important to this determination. The matrix provided as exhibit 86 illustrates how well each of the major survey-based resources (discussed in section II, chapters 4 and 5) meet; these criteria. For blanket WDs, only BLS Area Wage or SCA Area Surveys for the given MSA are used as primary sources. The Blanket Pilot Program has been structured so that such area-specific surveys will be available. • Class Coverage: Surveys that provide wage rate data for specific occupational classes must be used because prevailing wage rates are issued for each occupational class listed in the request. If the selected survey does not provide data for all the classes needed,SF-98 AND WD DOCKET FILE INFORMATION EVALUATED IN CONJUNCTION WITH THE SOURCE DATA SELECTED FOR DEVELOPING PREVAILING WDs 1. CONTRACT SOLICITATION DATE • Used to determine data source currency • Evaluation may result in statistical data adjustments 2. LOCALITY (CONTRACT'S PLACE OF PERFORMANCE) • Criterion used to select data sources • Two or more places of performance located in different geographic survey areas may require separate WDs • Data limitations may require limiting areawide WD scope of application to specific contract — WD issued cannot be applied to any other contract in the area 3* CONTRACT PERFORMANCE INFORMATION (FEDERAL DISPLACEMENT OR MAJOR SUPPORT CONTRACTS) • Prevailing fringe benefit determinations based on type of contract solicitation • Very close attention must be given to due consideration • WD is always issued, regardless of number of employees 4. TYPE OF SERVICES/OCCUPATIONAL CLASSES • Criterion used to select data sources • Prevailing wage rates developed for each class and/or job level within a classification family needed • BLS data limitations may require use and evaluation of supplementary sources, especially for blue collar classesSF-98 AND WD DOCKET FILE INFORMATION EVALUATED IN CONJUNCTION WITH THE SOURCE DATA SELECTED FOR DEVELOPING PREVAILING WDs (CONTINUED) 5. COMPARABLE FEDERAL RATES AND GRADE LEVELS • May be needed for identifying wage grades/rates of surveyed classes for comparison to equivalent nonsurveyed classes • Used to apply due consideration to prevailing wage rates as indicated by data sources selected for use 6. JOB DESCRIPTIONS • Evaluated if classes not listed in the SCA Directory of Occupations • Evaluation used to establish equivalency between classes not listed and those that are listed for analysis against source data • Evaluation may result in the occupation being SCA-exempt (bona fide professional, executive, administrative employees) 7. SPECIAL HANDLING NEEDS (NOTED BY SUPERVISORS OR RESULTING FROM DEVELOPMENT PROCESS) • Exempt classes — no rates issued • Reconfigurations — may require an areawide and/or Section 4(c) WD • Emergency needs — fast turn-around time 8. WD DOCKET FILE REVIEW • Previously-issued WDs and basis sheets — how developed • Previously-conformed classes — conformance decisions • Reconfigurations — clarifications needed • Review and reconsideration decisions affecting previously-issued WDsKEY CONDITIONS AND VERIFICATIONS FOR DETERMINING UNION DOMINANCE AS THE BASIS FOR A PREVAILING WD 1. Is the locality likely to be heavily unionized? If so, contact appropriate union(s) for information. Although services dominated by unions are limited in number, those that may be dominated by unions include, for example, elevator, janitorial, food, electrical, and moving and storage services. In particular, elevator maintenance services are predominately dominated by unions throughout the U.S. Also, note that unions often inform Wage and Hour of their dominance in a particular area or, the area may already be established as a union dominated locality based on previously-issued WDs. 2. Does the union represent a majority (50+%) of the workers in a given class in the area? Ask the appropriate union(s) in the area and verify information obtained as outlined below. A union dominance determination is to be made on a county basis. 3. If union dominance exists, obtain majority statement in writing, a current copy of the relevant CBA, list of signatory contractors (if not included in the CBA), and information on the number of employees employed by the signatory contractor. 4. Analyze letter to ensure it clearly shows/states majority representation. 5. Call some firms in the area employing workers in the class to verify majority representation by the union. 6. Verify information obtained with the contracting agency.339 EXHIBIT 86 DATA SOURCES USED MOST FREQUENTLY FOR SCA WDs KEY CHARACTERISTICS CLASS COVERAGE INDUSTRY COVERAGE LOCALITY BASIS CURRENCY /? DATA SOURCES (1) $ O' ^ jr / BLS AREA WAGE SURVEY (AWS) • • 46 • • , • YES-FULL BLS SCA AREA SURVEYS • » 46 • • • YES-FULL BLS SCA SPECIAL STUDIES (4) VARIES VARIES VARIES • • • USUALLY BLS OEAM SUMMARY (5) # 0 46 • • • • NO BLSPATC SURVEYS (6) • 29 # • • NO BLS INDUSTRY WAGE SURVEYS (7) VARIES VARIES VARIES • • • • # YES FWS WB SURVEYS/ PAY SCHEDULES (8) • 22 # # • NO FWSNAFSURVEYS/ PAY SCHEDULES (8) • 25 • • • NO (1) As discussed in Chapters 4 and 5. "Employment & Earnings' is not included since it is not an occupational survey and has limited SCA applications. (2) Number of classes surveyed does not count each job level, except for FWS data sources. (3) Usually MSA. PMSA, or Statewide basis. (4) SCA Special Studies are performed for special areas and/or industries. Classes surveyed vary depending on industry studied. (5) OEAM is an annual regional/nationwide 'weighted roll-up' of AWS survey data. There is a one-year lag time, however. (6) PATC is industry-specific in that, starting in 1989, it alternates each year between services-producing and goods-producing industries. For SCA WDs, however, table of combined data for both years is used which represents all industries surveyed. (7) Some are area-specific, some are regional, and some are nationwide in scope. (8) Number of classes refers to required classes only, including a few job levels as appropriate. Other classes may be surveyed as deemed appropriate. EXHIBIT 86supplementary information may be necessary. For example, the preferred BLS Area Wage and SCA Area Surveys provide data for selected white and blue collar classes. However, these sources will need to be supplemented for classes not surveyed by BLS. • Industry Coverage: Surveys that are conducted on a cross-industry basis are the best to use unless such a survey is unavailable or inappropriate due to other criteria listed herein, or special circumstances exist. Service contracts covered by SCA can involve virtually any type of service that may be found in any type of industry. Thus, a survey that is industry-specific may not provide a broad enough wage rate basis for use in determining prevailing wage rates for the WD. • Locality Basis: Prevailing wage rates should reflect local pay rate structures. The survey selected should be as area-specific as possible with regard to the contract's place of performance. Surveys of substate areas such as MSAs, PMSAs, or Statewide surveys are therefore considered the best unless the procurement is definitely regionwide (e.g., some GSA contracts) or nationwide in scope. • Currency: The most up-to-date survey available should be used, where possible. If the best survey is out-of-date, however, statistical methods may be used to adjust the data. How to do this is discussed in the next chapter. 4. Which primary source should be used for fringe benefit data? The matrix in exhibit 86 indicates whether fringe benefits are contained in the major survey sources used. Fringe benefits reported in surveys generally don't vary by occupational class, and are thus reported for all workers in the geographic area of the survey. Note the following caveat s, however. • BLS Area Wage and SCA Area Surveys are usually used as the primary data sources, and always used for blanket WDs, for determining prevailing fringe benefits, except for some geographic areas where State surveys are routinely used. For BLS Area Wage and SCA Area Surveys, fringe benefits are provided in full surveys. Fringe benefits such as vacations and holidays don't vary that much over time so these resources are considered sufficiently current. • With regard to health and welfare benefits, BLS surveys provide data on their prevalence, but not on employer contribution levels which must be included in the WD for those determined to prevail. Therefore, forcontribution levels, data provided as described in the Standard Fringe Basis Sheet (see chapter 7, page 216) are used. 5. If no area-specific survey matches the geographic area of the contract's place of performance, is there an area-specific survey for an adjacent geographic area that could be used? Can its application be extended to the locality needed? To determine this, see the criteria and procedures used for Survey Extensions described in exhibit 87. 6. If an appropriate direct or adjacent area survey as described above is not available as a primary source for some or all the classes needed and special circumstances exist, one of the following may be useful. • BLS Industry Wage Surveys: As outlined in chapter 4, BLS periodically conducts specific Industry Wage Surveys. In selected situations, these may be the best surveys to use, even though they are not cross-industry in scope. Generally, they are used as primary source data for special or unique occupations not routinely surveyed by the BLS area-specific surveys. They may also be used because of the special nature of the services called for by the procurement. Some industries have unique wage structures which require the use of specific surveys as the basis of the WD. • BLS OEAM and PATC Surveys: These two surveys are usually used as supplementary sources for white collar occupations as discussed later on page 349. They may be used as primary sources, if the procurement is regional or nationwide in scope. For such procurements, an area-specific survey would not be appropriate as the basis of the WD. • Incumbent Contractor Wage Rates: These wage rates are used rarely and only for specialty classes on contracts performed in economically unique areas and situations. For example, in some circumstances involving barbershop and beauty shop occupations used for military service contracts on a concession basis, incumbent contractor rates are sometimes used due to the lack of survey-based or related data. However, in order to use such data, the following key criteria should be met. Does the locality of the place of performance have its own wage structure, unaffected by the surrounding area? Does the incumbent contractor's employees in a given class represent a majority of the employees in the area for the same class?SURVEY EXTENSIONS HOW TO USE Surveys usually collect data from establishments existing in a designated geographic area, such as a county or cluster of counties comprising a Metropolitan Statistical Area (MSA). OMB designates MSAs (areas standing alone) and PMSAs (continguous metropolitan areas). In addition, some SCA Area Surveys utilize a geographic scope that extends beyond the MSA. Sometimes the SCA-covered contract's place of performance is not located in the designated survey area. If the place of performance is located in a similar, adjacent area, however, the data from the surveyed area may be the best available information to use as the basis for the WD. Extending a survey's area of application requires that the surveyed area and the adjacent locality are in close proximity to each other. In addition, they must have similar social and economic attributes that serve to link the two geographic areas (e.g., rural vs. urban, similar or interdependent industrial base and labor force, and commuting-to-work/home patterns that serve to link the two areas economically). In most cases, the Federal Wage System Survey Area Lists (see chapter 7, page 196) can be used to determine whether the area of application for any survey can be extended. FWS surveys provide data used as the basis for setting pay schedules. As discussed in chapter 5, surveys are performed in designated survey areas. The resulting pay schedules, however, apply to larger areas which include the survey area. The FWS Survey Area Lists indicate which areas adjacent to the surveyed area are appropriate for extending the survey's application. Although these extended areas of survey data application are developed by FWS for their pay schedule use, they can be used as the basis for extending the area of application for BLS or other surveys. If the above resource does not indicate that a survey extension can be applied, Branch of Service Contract Wage Determinations staff evaluate the appropriateness of a survey extension by comparing social and economic attributes of the area for which the WD is to be developed and an adjacent area survey.SURVEY EXTENSIONS (CONTINUED) Sources of data that can be used to evaluate social and economic similarity of the two areas include, for example, the following. • County Business Patterns • State Labor Market Information Publications • BLS Employment and Earnings EXAMPLE Problem The geographic area of the place of performance for which prevailing rates are needed is the county of San Luis Obispo, California. There are no BLS Area Wage or other area-specific wage surveys of this California county. Therefore, the Specialist determines if a BLS Area Wage survey exists for an adjacent area that could be used for San Luis Obispo. Procedures 1. Using a State map, determine which counties are adjacent to San Luis Obispo. They are Santa Barbara, Kern, and Monterey. 2. Determine whether a current BLS area survey is available for one of the adjacent counties. The survey schedules provided in exhibits 11 and 20. (see pages 67 and 91) can be used to make this determination. In this case, one exists for Santa Barbara.SURVEY EXTENSIONS (CONTINUED) 3. Using the Federal Wage System Survey Area List, find the California survey section and Santa Barbara county survey subsection. See below for an illustration of this page of the FWS Survey Area List. Note that it indicates a Santa Barbara survey application can be extended to San Luis Obispo. 4. Use the BLS Santa Barbara survey as the basis for developing prevailing wage rates and fringe benefits for San Luis Obispo. Note that when a WD is issued that is based on survey extensions as discussed herein, the WD will apply to both the survey area and the adjacent area to _which the survey data were applied._To ascertain the above, numerous phone calls will be needed — contractor, other contractors in the area, contracting agency, and industries in the area, for example. If incumbent contractor rates are determined to be the best available data for selected classes, the Specialist must obtain position descriptions and wage rates directly from the incumbent contractor for further evaluation. • Davis-Bacon Survey-Based Wage Rates: These wage rates are used rarely and only for construction-related classes. Davis-Bacon rates may be used in situations involving emergency clean-up after a natural disaster or where demolition services are needed and replacement is not anticipated. Davis-Bacon rates are provided in prevailing wage determinations issued under the Davis-Bacon and Related Acts. The Branch of Construction Wage Determinations should be consulted to obtain a copy of the appropriate wage determination. In addition, the Davis-Bacon Construction Wage Determinations Manual of Operations should be consulted. • Other Sources: State or local government or private organizations such as labor groups or associations may be contacted for information or to obtain data from wage surveys they may have conducted. Note that for selected areas (e.g., Hawaii and Idaho) a State-conducted survey is routinely used instead of BLS area-specific surveys. • Comparable Federal Wage Rates: These may be used directly as the primary WD basis. FWS pay schedules would be used for blue collar jobs and the GS pay schedule for white collar jobs. Direct Federal wage rates may only be used as the basis when no other data exist. • Wage and Hour Conducted Surveys: A survey conducted by the Wage and Hour Division may be needed. Whenever the major survey-based sources fail to furnish acceptable information, the Specialist discusses the situation with Supervisors in order to determine the most appropriate action to take. 7. Once the primary source needed has been identified, the most recent versions available from the Data Source files are pulled for further evaluation as discussed in the next chapter. 8. For blanket WDs, only current BLS Area Wage or SCA Area Surveys may be used as the primary source data. As noted in chapter 13, during the screening phase, for any contracts listed in the blanket request for which such current BLS area-specific data are not available, anindividual SF-98 may need to be submitted. As with areawide WD development for individual SF-98 requests, these BLS area-specific surveys will be used in conjunction with supplementary sources as discussed below. Supplementary Data Source Selection As mentioned previously, the primary area-specific source data selected as the direct basis of the areawide, prevailing WD will almost always require use of one or more supplementary sources. This is due to the fact that all of the major survey-based resources considered to be the best available data sometimes do not provide information for each class that may be required by a WD. Such resources select a specific set of occupations for survey as noted in chapters 4 and 5. For occupations not surveyed by the primary source a supplementary source is selected which does provide the needed data. These supplementary resources are primarily used to develop wage rate relationships between occupational classes and/or between job levels within a classification family (e.g., secretary I, secretary II, secretary III, secretary IV, secretary V within the secretarial classification family). Such supplementary sources are particularly critical for job level relationships because a WD must include rates for all levels within a classification family even if only some of the job levels are requested by the SF-98. Data provided by the supplementary source are used to develop ratios between classes or job levels within a classification family. These ratios are applied to the primary source data to develop an appropriate prevailing wage rate for the classes not surveyed. How to do this is discussed in the next chapter. The development of such wage rate relationships using primary and supplementary data is a fundamental technique used in the SCA wage determination process. In conjunction with the matrix presented earlier as exhibit 86, the following criteria are used to determine which supplementary sources to use. 1. Blue Collar Classes; The Federal Wage System (FWS) issues area-specific pay schedules which set the wage rates for Federal Wage Board and NAF workers in the area. Chapter 5 describes in detail the surveys used and the resulting pay schedules. These pay schedules are area-specific and are predicated on the "prevailing in the locality" concept that is fundamental to the issuance of SCA areawide WDs. They provide data for blue collar occupations frequently not surveyed by BLS Area Wage or SCA Area Surveys/Special Studies. Thus, they are used most often as supplementaryresources for developing wage rate relationships for blue collar classes. FWS pay schedules provide only wage data. Therefore, they are not used as supplementary resources for fringe benefits. Note the following principles concerning WB versus NAF pay schedule use. • The Wage Board (WB-appropriated funds) pay schedule for the appropriate geographic area is usually used as the supplementary source for blue collar jobs. • The NAF (nonappropriated funds) pay schedule for the appropriate geographic area is usually used only for laundry and dry cleaning, moving and storage, and food and lodging services/occupations. These NAF schedules are used because of the differing wage practices associated with these services/occupations and the potential impact on competition for government contracts in these services. 2. White Collar Classes: Two BLS surveys are most often used as supplementary sources to develop wage rate relationships for white collar classes: Occupational Earnings in All Metropolitan Areas (OEAM) and the National Survey of Professional, Administrative, Technical, and Clerical Pay (PATC). Principles concerning their use include the following. • Neither survey provides area-specific data that can be used. The OEAM provides nationwide and regional wage data. The PATC provides nationwide data only. However, for use as supplementary resources to develop wage rate relationships when needed for white collar classes, they may constitute the best available data source. • OEAM is usually preferred over the PATC because it provides regional data that are more area-specific than nationwide data. Also, the OEAM is a "weighted roll-up" of AWS area-specific survey data. Given that the AWS is one of the key primary sources used, the OEAM ' constitutes the preferred supplementary source as it is based on the exact same concepts as the AWS in terms of occupational and industry scope. • In general, the PATC would be used instead of the OEAM, if the OEAM did not provide data for one or more of the white collar classes for which supplementary data are needed. As described in chapter 4, the PATC will alternate year to year between surveying services-producing and goods-producing industries. Note that the combined data table based on results of both surveys is therefore used. • The OEAM as a supplementary source is particularly critical to the development of prevailing wage ratesbecause of the large number of white collar classes always included in every blanket WD issued. WDs issued in response to blanket requests always include a standard set of occupations grouped according to eight standard groupings. If a request requires any additional classes, these are added to the WD according to its appropriate categorization. Exhibit 81, presented previously on page 319, lists these standard classes by category. A comparison of this standard list of occupations included in blanket WDs against the occupations surveyed by BLS for the Area Wage and SCA Area Surveys (see exhibit 13 on page 75) illustrates why supplementary sources are so important to the development process. In addition to using supplementary data sources for developing wage rate relationships, sometimes supplementary sources are needed for adjusting (updating) data considered to be insufficiently current. How to do this will be discussed in the next chapter. WORKFLOW Exhibit 88 presents a workflow diagram of the key procedures/criteria pertaining to the data source selection phase for both individual and blanket requests.WORKFLOW DIAGRAM OF PHASE 4 — DATA SOURCE SELECTION FOR NEW/REVISED WDs (INDIVIDUAL & BLANKET WDs} INPUT REQUESTS REQUIRING NEW/REVISED WDs AS ASSIGNED TO SPECIALISTS BY BSCWD SECTION CHIEFS (INDIVIDUAL REQUESTS) 1 REQUESTS RE NEW/REVISEC KEPT BY ASSI SPECIALISTS SCREENING PF (BLANKETREC QUIRING WDs AS GNED 3ER ?OCESS 3UESTS). PRODUCTION 1 SPECIALIST REVIEWS REQUEST & WD DOCKET (FOR REVISIONS) & DETERMINES TYPE OF WD REQUIRED. AREAWIDE; SECTION 4(c); OR BOTH 1 FOR SECTION 4(c) WDs. APPLICABLE CBA IS ONLY DATA SOURCE NEEDED. THUS DEVELOPMENT BEGINS. FOR AREAWIDE WDs, SPECIALIST DETERMINES IF UNION DOMINANCE EXISTS IF SO APPLICABLE CBA IS ONLY DATA SOURCE NEEDED, THUS DEVELOPMENT BEGINS. r FOR REST OF AREAWIDE WDs, SPECIALIST DETERMINES BEST PRIMARY SURVEY TO USE FOR WAGE DATA CONSIDERING OCCUPATIONAL CLASSES NEEDED, LOCALITY BASIS OF SURVEY & SURVEY CURRENCY (USUALLY BLS AREA-SPECIFIC SURVEYS; FOR A FEW AREAS, STATE- CONDUCTED SURVEYS ). ~- IF NO AREA-SPECIFIC SURVEY MATCHES PLACE OF PERFORMANCE, SPECIALIST DETERMINES IF ADJACENT AREA SURVEY IS AVAILABLE/USABLE FOR WAGE DATA AS PRIMARY SOURCE. IF NO AREA-SPECIFIC SURVEY OR ADJACENT AREA SURVEY EXISTS FOR USE AS PRIMARY SOURCE. SPECIALIST DETERMINES WHICH OF THESE MAY BE APPROPRIATE FOR USE: BLS INDUSTRY WAGE SURVEY,-BLS OEAM;BLS PATC SURVEY; INCUMBENT CONTRACTOR WAGE RATES,‘DAVIS BACON WAGE RATES;COMPARABLE FEDERAL WAGE RATES;RESEARCH OTHER SURVEYS; OR CONDUCT A SURVEY. SPECIALIST DETERMINES WHICH SUPPLEMENTARY SOURCES TO USE WITH PRIMARY SOURCE FOR BLUE COLLAR & WHITE COLLAR CLASSES CONSIDERING CLASSES NEEDED, LOCALITY BASIS OF SOURCE & CURRENCY OF SOURCE (USUALLY FWS WB OR NAF PAY SCHEDULES FOR BLUE COLLARJBLS OEAM OR PATC SURVEY FOR WHITE COLLAR). SPECIALIST DETERMINES WHICH SOURCE TO USE FOR FRINGE BENEFITS PREVALENCE DATA CONSIDERING LOCALITY BASIS AND RELATIVE CURRENCY. SPECIALIST PULLS LATEST VERSIONS OF SURVEYS/DATA SOURCES SELECTED (PRIMARY & SUPPLEMENTARY) FROM DATA SOURCE FILES. OUTPUT -X- FOR BLANKET WDs. ONLY BLS AREA-SPECIFIC SURVEYS ARE USED AS PRIMARY SOURCES GIVEN STRUCTURE OF PILOT PROGRAM. BLS OEAM OR PATC DATA ARE CRUCIAL AS SUPPLEMENTARY SOURCES DUE TO NUMBER OF CLASSES REQUIRED BY BLANKET WDs. \ DISTRIBUTION REQUEST & APPLICABLE CBA READY FOR SECTION 4(c)WD DEVELOPMENT—PHASE 5. (INDIVIDUAL WDs) REQUEST & APPLICABLE CBA READY FOR AREAWIDE UNION DOMINANCE WD DEVELOPMENT—PHASE 5. (INDIVIDUAL WDs) REQUEST & APPLICABLE PRIMARY & SUPPLEMENTARY DATA SOURCES READY FOR WD DEVELOPMENT—PHASE 5. (INDIVIDUAL & BLANKET WDs)CHAPTER 15 s PHASE 5 — DEVELOPMENT AND ISSUANCE OF NEW/REVISED WAGE DETERMINATIONS INTRODUCTION This chapter discusses the principles, purpose and functions, and procedures followed to develop and issue a new or revised wage determination. Phase 5 of the wage determination process utilizes the concepts, tools, and data sources presented in section II, chapters 3, 4, 5, 6, and 7, and the results of previous reviews and analyses conducted during Phases 1, 2, 3, and 4. As outlined in chapter 3, there are two types of WDs — the areawide, prevailing WD; and the section 4(c) WD. They differ in terms of the functions, principles, and procedures followed by staff for developing and issuing a new or revised WD. This is essentially a result of the difference in the respective data sources used as their basis and their respective legislative intent and prescribed application. The areawide WD is based on data sources (usually survey-based) used to determine what wage rates and fringe benefits prevail in the locality. The section 4(c) WD is based on the applicable incumbent or predecessor contractor's collective bargaining agreement (CBA) under the conditions of successorship prescribed by the SCA. A key variation concerns areawide WDs based on union dominated wage rates. These are areawide WDs in terms of their purpose and scope of application. With regard to their source data basis and analysis, however, they are similar to section 4(c) WDs in that the wage rates and fringe benefits issued are based on an applicable CBA. Each of the two types of WDs is discussed separately according to these three topics. • PRINCIPLES • PURPOSE AND FUNCTIONS • PROCEDURES Areawide WDs will be discussed first, followed by section 4(c) WDs. The analysis and development of areawide WDs based on union dominance is similar to section 4(c) WDs, and will therefore be discussed in the section 4(c) segment of the chapter. Note that only areawide WDs are used in response to blanket requests. A section 4(c) WD cannot be issued inresponse to a blanket request due to the Blanket Pilot Program exclusions as described in chapter 12, page 305. PRINCIPLES (PREVAILING WDs) The development of an areawide WD depends upon determining what wage rates and fringe benefits prevail in a locality. Within the statutory framework, legislative purpose, and general implementing policy and guidelines, the final resolution of what is prevailing must combine: • knowledge of job classifications, duties, and how they interrelate with each other; • wage and salary administration classification and pay rate schemes; • survey techniques and methods; • the Federal Government's procurement process; and • resourcefulness and good judgement in selecting and applying specific statistical and data evaluation methods to adjust for data limitations. The principles listed below serve to guide the areawide WD development process and the resolution of what is prevailing. They are grouped according to wage and fringe benefit determination principles. Prevailing Wage Rate Determination Principles Wage rate determination principles concern: what the survey data indicate as prevailing; and what the occupational and wage rate relationships should be according to standard wage and salary administration practices. Key principles include the following. • The wage determination issued should reflect and not interfere with the wage rates found to prevail in the locality of the contract's place of performance. The best available data are used as the basis for making this determination. Area-specific, survey-based data sources such as BLS Area Wage or SCA Area Surveys usually provide the primary source data used as the basis for determining what prevails. Supplementary sources are used as needed. These data sources provide statistical indicators of what wage rates prevail in the locality.• The areawide wage determination issued should maintain accceptable wage rate structures and occupational relationships according to standard salary and wage administration practices. Such practices include the following. Equivalent or similar jobs in terms of skills, duties, and knowledge should be paid comparable or similar wage rates. For example: An automotive glass installer and a motor vehicle wrecker are both graded a WG-8 under the Federal Wage System's occupational classification scheme for Federal blue collar, Wage Board workers. A WD should therefore provide an equivalent or similar minimum wage rate for them. The more responsible and complicated the occupation in terms of skills, duties, and knowledge, the higher the wage rate generally. For example: A secretary I is considered the first job level (entry level) position within the secretarial classification family. A secretary II should not receive a lower wage rate than the secretary I. A systems analyst is considered a more highly skilled and difficult job than a programmer and should be paid accordingly. • The analysis and development of the areawide wage determination (based on survey and related wage rate data and maintenance of acceptable wage rate and -occupational relationships) should be structured according to five (5) key occupational groupings which have similar wage structures. - White Collar Technician Jobs (e.g., drafters, electronics technicians). White Collar ADP Jobs (e.g., computer systems analysts, computer programmers). Other White Collar Jobs (e.g., office and clerical jobs such as secretaries, typists, clerks). Blue Collar High Skilled Jobs (e.g., general maintenance trades jobs, such as maintenance carpenters, maintenance electricians). Blue Collar Low Skilled Jobs (e.g., support services occupations, such as janitors and mess attendants). The development of the SCA areawide WD involves the establishment of an acceptable wage rate structure for two reasons. First, the direct use of the statistical indicators provided by survey and related wage rate data as the prevailing rates may serve to distort acceptable wage rate/occupationalrelationships (e.g., salary and wage administration practices listed above). The best available survey data for determining what prevails may show statistical inconsistencies and abnormalities that, if used directly, and without adjustment would serve to interfere with or disrupt the acceptable wage rate structure. Secondly, primary survey and related data selected for use as the best available sources do not always provide direct data for all the occupational classes needed. Thus, supplementary data must often be used in combination with primary data in order to develop a prevailing wage rate. The principles of establishing an acceptable wage rate structure and statistical methodology guide the procedures followed to develop a prevailing rate for classes not surveyed by the primary source. The analysis and development of the areawide wage determination should be structured according to the five (5) white/blue collar groupings for several reasons. The surveyed wage rates of white collar classes usually show considerable inconsistency compared to blue collar classes. White collar wages paid in an area as indicated by survey data will generally change more over time making relationships between similar occupations less stable. In addition, the three groupings of similar white-collar occupations listed above have similar wage rate structures and occupational relationships, and generally exhibit similar wage rate patterns of change over time. These should therefore be analyzed as separate groups of white collar classes. Within these groups, job classification families are analyzed separately as wage rate changes tend to exhibit similar patterns within job families. Blue collar classes have more formal wage rate structures and survey data will therefore show more consistency in wage rates and corresponding occupational relationships. The higher skilled blue collar jobs (generally jobs rated at Federal grade levels of WG or NA grades 5 through 10) are considered general maintenance grades with a greater wage structure stability than the lesser skilled blue collar jobs (generally jobs rated at Federal grade levels of WG and NA grades 1 through 5). These jobs are usually in the support services industries such as janitors, mess attendants, or housekeeping aides. Their wage structure is different from, and less stable than the general maintenance grades (e.g., maintenance carpenter, plumber, painter). Thus, analysis of blue collar wage rates should take into account these differences. Thus, the SCA areawide WD is, in effect, a wage and salary schedule based on private sector prevailing wage rates that sets out the minimum wage rates and fringe benefits that must be provided to SCA-covered service workers on SCA-covered contracts. Reasonable and acceptable pay and classification relationships between and among jobs and within jobclassification families according to the five (5) occupational groupings as outlined above must be maintained by the WD issued, unless unusual circumstances prevail. Prevailing Fringe Benefit Determination Principles Principles concerning prevailing fringe benefit determinations are similar and include the following. • The wage determination issued should reflect and not interfere with the fringe benefits found to prevail in the locality. The best available data are used as the basis for determining what fringe benefits prevail. Usually, area-specific surveys such as the BLS Area Wage or SCA Area Surveys are used as the primary source. Nationwide data are used, however, for determining employer contribution levels for health and welfare benefits. • The fringe benefits provided to workers in a given area (e.g., health and welfare, vacations, and holidays) do not usually vary by occupational class. A WD will therefore reflect the same fringe benefits for all classes listed, unless unusual circumstances prevail. PURPOSE AND FUNCTIONS I PREVAILING WDsl Development and issuance of a new or revised areawide WD in response to either an individual or blanket request involves the following six (6) functions. • Preliminary Data Analysis: This function entails conducting a preliminary evaluation of the primary and supplementary source data selected for use against the needs of the SF-98 request. This preliminary evaluation includes an analysis of data currency, occupational classes, previously-issued WDs and any post-determination actions taken, and may include an evaluation of job descriptions of non-standard (special or unique) classes. • Survey Wage Rate Analysis: This function entails analysis of the primary survey and/or related data to determine which statistical indicators of prevailing wage rates are most relevant and reliable. • Wage Rate Structure Establishment: This function builds on the results of the two functions above by analyzing the prevailing rates indicated by the survey and relat#6 data against the principles of maintaining appropriatewage rate structures based on acceptable occupational relationships. It also entails making adjustments as needed to address data abnormalities or inconsistencies, and the development of prevailing wage rates for classes not surveyed by the primary source. • Survey Fringe Benefits Analysis: This function involves determining what fringe benefits prevail in the locality. For health and welfare benefits, the appropriate employer contribution levels (amount) must be determined as well. • Application of Due Consideration: This function entails providing due consideration of Federal wage rates and fringe benefits to the rates to be issued by the SCA WD according to section 2(a)(5) of the Act and its legislative intent. • Prepare New/Revised WD Issuance: This function involves final steps taken to issue the WD and prepare it for Phase 6 — Outprocessing. Note that the procedures followed are essentially the same for both areawide and section 4(c) WDs and are thus discussed at the end of this chapter. For areawide WDs, the functions and procedures are the same for both individual and blanket requests. The primary difference, however, generally revolves around the degree of complexity in the development associated with establishing or revising prevailing wage rates for the extensive list of occupational classes required by blanket WDs. Under the Blanket Pilot Program, blanket WDs are developed to provide a variety of SCA-covered contract services and occupations anticipated as needed by participating agencies for the upcoming 12-month period. A blanket areawide WD is thus developed to address a standard set of classes across eight (8) occupational groupings (see exhibit 81. page 319 for a complete list), in addition to any other classes needed as listed in the SF-98 blanket request. The individual areawide WD is developed to address only the classes listed in the individual SF-98 request which pertain to a specific procurement action. In addition, whether the development and issuance process is for a new or revised WD makes little difference with regard to functions and procedures. However, note that a revised WD will involve updating or expanding the previously-issued WD. A new WD involves procurements, services, occupations, and/or localities for which no previously-issued WD has been established, or where a previously-issued WD must be replaced (i.e., updates and revisions are extensive). For example: Given the breadth and scope of the blanket WD coverage for a given locality, all those previously-issued individual WDs for the standard classes of the 8 occupational groupings in thearea are removed from active status (withdrawn). They are then replaced with the newly established blanket WD(s). Procedures outlined below are organized according to five (5) of the six (6) functions listed above. PROCEDURES (PREVAILING WDs) For the majority of areawide WDs, a BLS area-specific survey (either AWS or SCA) will be available for the geographic area needed (locality of the place of performance) and will be used as the primary source and basis for the WD. FWS pay schedules for the same geographic area (either Wage Board or NAF) will be available and needed to supplement the BLS area-specific data for blue collar classes. The BLS nationwide compilation, Occupational Earnings in All Metropolitan Areas (OEAM) will be available and needed to supplement the BLS area-specific data on white collar workers. The development procedures, evaluation criteria, and examples outlined below are thus based on use of these resources. Preliminary Data Analysis The SF-98 request and relevant attachments, the WD Docket (if a previously-issued WD exists), the BLS survey selected as the primary source data, and the supplementary sources are analyzed carefully to address several items: currency of the data source; occupational classes; the basis of previously-issued WDs and post-determination actions (if any); and job descriptions of non-standard classes, if needed. General procedures and criteria for these analyses are presented below. Exhibit 84, page 335, lists the key types of SF-98 and related information to be analyzed against the survey data. 1. Currency of Data Source: Is the most recent primary and supplementary data sources selected for use sufficiently current? The decision depends upon the type of surveys or related data sources selected (e.g., BLS Area Wage Surveys or SCA Area Surveys, Federal Wage System survey-based pay schedules, and the OEAM), their respective collection cycles, and an evaluation of how wage rates in the area have changed over time. The time span between the data collection period and the SF-98 referenced contract commencement date is evaluated. The BLS area-specific surveys conducted and FWS area-specific pay schedules developed are usually conducted on an annual or biennial basis. Survey data are collected during a payroll period in a designated calendar month. The BLS Schedule of AreaWage Survey Dates provides information on data collection periods for BLS area-specific surveys. In general, if the time span between the collection period and the contract commencement date exceeds the survey cycle (e.g., one or two years for annual or biennial surveys respectively), wage rate changes over time are analyzed to determine if the sources remain sufficiently current to be used as the WD basis for the SF-98 referenced procurement. If the sources are determined as not sufficiently current and no other sources will adequately address the needs of the SF-98 request, a dated survey adjustment may be warranted. Exhibit 89 illustrates an approach that can be used to determine if significant wage rate changes over time exist and how to make statistical adjustments to the data if, as a result, they are considered to be insufficiently current. 3. Occupational Classes: For which classes does the primary survey source provide direct data; and which ones will require use of supplementary data? The classes listed in the SF-98 request are compared to those listed in the primary survey source (e.g., BLS area-specific survey) to determine which ones will require use of supplementary sources and occupational/wage rate structure principles to develop a prevailing rate for issuance. 4. Previously-Issued Wage Rates: Which classes called for by the SF-98 request were included in the previously-issued WD, and which classes are new? For revised WDs, those classes that require updating and those that are new and require development should be noted. The WD Docket is consulted to obtain information on the basis used to develop prevailing wage rates for previously-issued classes. Any post-determination actions taken and their basis should be noted as well. 5. Job Description Evaluations of Non-Standard Classes: Are the classes for which prevailing rates are needed standard or non-standard classes, or both? Standard classes are those which are frequently used for SCA-covered contracts for which job descriptions are provided by the SCA Directory of Occupations. Non-standard classes are special or unique classes for which job descriptions are attached to the SF-98 request for evaluation by wage determination staff. They are evaluated carefully so that these special or unique jobs can be properly equated with similar occupations surveyed by BLS. Equivalency is established by evaluating the job description and equating the non-standard job to a surveyed job through use of the comparable Federal grade levels associated with each. Exhibit 90 outlines general considerations and approaches to job description evaluations.DATED SURVEY ADMUSTMENTS HOW TO USE Wage survey data are collected during a payroll period in a designated calendar month. In general, if the time span between the data collection period and the contract commencement date exceeds the applicable survey's cycle (e.g., annual or biennial), wage rate changes over time are analyzed to determine if sources remain sufficiently current to be used as the basis of the WD for the SF-98 referenced procurement. If analysis indicates that wage rate patterns over time are significant, and no other data sources can be used, a dated survey adjustment may be needed. To determine whether a dated survey adjustment is thereby needed, several sources are analyzed for wage rate patterns over time (several years) in order to answer the following key question. The sources analyzed include the following. • Previous and Current Years' Surveys: The survey selected for use is compared to previous years' surveys. • Previous and Current Years' Federal Pav Schedules: For blue collar classes, the FWS Wage Board or NAF pay schedules for the geographic area are compared depending upon the type of services/occupations being examined for wage rate changes over time. For white collar classes, the GS pay schedules (nationwide data) can be examined. • BLS Employment and Earnings Survey Establishment Series: Table C-l: Average Hours and Earnings of Production or Nonsupervisory Workers on Private Nonagricultural Payrolls. This table provides nationwide, monthly wage data illustrating wage changes over time. • BLS Area Wage Survey Indexes: Table A-7: Indexes of Earnings and Percent Increases For Selected Occupational Groups provide annual percent changes in wage rates in the area. If, for example, the historical change in wage rate patterns over time (several years) evidenced by several sources listed above show a steady upward or downward ch "Over the last few years, have there been significant wage movements (up or down) in the given geographic area for the occupational classes and services needed by the procurement?"DATED SURVEY ADJUSTMENTS (CONTINUED) this is a good indication of a pattern that will likely repeat itself when the next wage survey for the area becomes available. If a significant upward or downward pattern is apparent, then the wage rates reported in the most recently available survey may need to be adjusted statistically to account for the probable new wage rates that will be in effect in the geographic area at the time when the SF-98 referenced procurement will start. Such adjustments are usually needed so that the WD issued will properly reflect the prevailing wages that will exist once the contract is underway. If a significant pattern (up or down) is not evidenced, no dated survey adjustment is needed, and the most recently available survey can be used as is for developing the WD needed. If a dated survey adjustment is warranted, an appropriate percent change factor must be applied to the most recently available survey data for use in developing the WD. The survey to survey change can be calculated and applied, or the change evidenced by one of the other sources listed above can be used, or an average of all the changes observed, depending upon which source or combination of sources provides the best basis. The change in wage rates between years for each class needed is calculated as a percentage. The wage change between each of several years must be calculated and compared to determine which percent change factor is most appropriate for use in adjusting the data of the most recently available survey. EXAMPLE Problem Based on an analysis of wage rate patterns over time using all the sources listed above, the BLS survey data selected for use are determined to be insufficiently current. A dated survey adjustment must therefore be applied. Several of the previous years' surveys for the same area are used to calculate the percent change for the occupational classes needed. The median or mean wage rates (whichever have been determined to be the best indicators of prevailing wages) are adjusted by applying an annual percent change. For a given class (e.g., maintenance carpenters), the following procedures illustrate how to calculate the percent change and apply it to the most recent survey median rate.DATED SURVEY ADJUSTMENTS (CONTINUED) Procedures 1. Find the median rate for maintenance carpenters on both surveys. In this case, the most recent survey provides a median rate of $11.99. The previous year's survey provides a median of $11.00. 2. Subtract last year's rate from the most current rate. Note that in one year, this rate has increased by $.99 as illustrated below. The difference could have indicated a decrease. $11.99 - $11.00 = $.99 3. Divide the difference by the previous year's rate and multiply the result by 100 to obtain the % difference. In this case, the percentage reflects a median pay rate increase of 9% between the two years. Again, the result could have reflected a decrease. 4. Repeat the procedures above for several previous years' surveys and utilizing other sources such as Wage Board pay schedules for the area. If a consistent pattern of -historical increases (or decreases) is observed, apply the most relevant percent change to the current survey data to adjust them for use as the WD basis. For this example, assume that calculations made for several previous years' surveys result in annual increases of 9%, and other sources such as Wage Baord pay schedules also show a consistent pattern of 9% annual increases. An annual change of 9% is therefore the most relevant adjustment to be applied. 5. To make the adjustment, apply the most relevant annual percent change obtained (i.e., 9%) to the median rate of the most recent survey (i.e., $11.99). The result is then added to the $11.99 median rate to increase it by 9%. .09 x $11.99 = $1.08 $11.99 + $1.08 = $13.07 6. Use the updated survey median rate of $13.07 as the prevailing rate for the maintenance carpenters class. 7. The procedures above are repeated for all classes needed by the WD based on the survey that has been determined insufficiently current.JOB DESCRIPTION EVALUATIONS HOW TO USB Job descriptions are key to the development of occupational classification schemes. They describe the duties, skills, and knowledge required by a given job, which help govern the respective pay rate, and the pay relationships between and among various jobs. The development of occupational classification schemes is based on comparing and evaluating job duties, skills, and knowledge requirements of an organization's staffing. Each job is classified or rated, and assigned a standard pay rate or pay rate range. Personnel departments in public and private sector establishments develop and utilize such occupational classification schemes. The Federal government, for example, uses three types of occupational classification schemes and corresponding pay schedules — the GS (General Schedule) classes and pay rates, and the FWS (Federal Wage System) Wage Board and NAF (Non-Appropriated Funds) classes and pay rates. Occupational classification is also crucial to the conduct of wage surveys by BLS, and other entities. Given that various private sector establishments use different titles and pay structures, any survey of wage rates must develop and use standard job descriptions for categorizing classes surveyed. In developing a WD, it is important that the classes needed can be equated with comparable classes surveyed so that prevailing rates can be developed. Wage surveys do not provide data on every conceivable job classification. For SCA wage determination purposes, the SCA Directory of Occupations is the primary reference tool used to describe standard service occupations frequently utilized in the performance of SCA-covered contracts. It covers all the classes usually surveyed by BLS in addition to others. These job descriptions are used to equate classes needed with those that are surveyed. For classes not listed in the Directory, contracting agencies must provide a job description for staff evaluation. For SCA WD development purposes, any occupation not found in the SCA Directory is considered a non-standard job (i.e., an unusual or unique occupation not often utilized in the conduct of SCA-covered service contracts). In addition, contracting agencies are required to provide the comparable Federal grade level or pay rate for each class listed on the SF-98a or blanket worksheet. This information is also used by staff to determine a job's comparability to surveyed jobs and corresponding pay rates. Identical Federal pay grades assigned to two different occupations generally_JOB DESCRIPTION EVALUATIONS (CONTINUED) indicates they are comparable in terms of duties, skills, and knowledge requirements. Federal pay grades assigned also involve step designations. For SCA purposes, step 2 (WG or NA grades) is used for nonsupervisory blue collar classes and step 3 (WS or NS grades) is used for supervisory blue collar classes (i.e., working supervisors not exempt from the SCA). For white collar classes, step 1 (GS grades) is used. In developing a wage determination, it is important that the job duties, skills, and knowledge required (job description) are properly equated with the appropriate occupational class and the comparable Federal pay grade or rate assigned. Consequently, such equivalency to a standard job must be made so that the non-standard class can be compared to a standard class whose wage rates have been surveyed or for which the survey provides a comparable class. EXAMPLE Problem A non-standard job is listed in the SF-98 with a job description attached. It is not listed in the SCA Directory and is not a BLS-surveyed job. General procedures followed for evaluating the job description are listed below. They address, in particular, the determination of equivalency for the non-standard job with regard to a surveyed job. Procedures 1. Identify all occupational classifications in the SCA Directory of Occupations that may match the job in question. The match is based on a finding of equivalency or significant similarity between jobs. To do so, use ths Job Grading System for Trades and Labor Occupations (see Chapter 7, page 221) to find all occupations listed in the SCA Directory of Occupations that have the same Federal pay grade or rate as that assigned to the unlisted job by the contracting agency. 2. Evaluate the job description of the non-standard job against all possible matches identified in the SCA Directory by assessing their degree of equivalency or similarity with regard to the following illustrative considerations sJOB DESCRIPTION EVALUATIONS (CONTINUED) • knowledge required as measured by educational background needed and degree of difficulty or length of time associated with acquiring the knowledge base required; • skills required as measured by their degree of difficulty (i.e., unskilled, low skilled, high-skilled jobs), extent of on-the-job experience required, and how long it generally takes to attain expert status; • duties performed as measured by the level of responsibility associated with the job, extent to which the job requires independent decision-making or direct, continuous supervision, and whether the job involves any supervisory responsibilities. 3. Determine which job listed in the SCA Directory most clearly matches the non-standard job according to the above criteria and the comparable Federal grade levels. 4. Once a reasonably equivalent match is made in terms of skills, duties, knowledge, and Federal grade level, the occupational class can be equated with a surveyed class with the same Federal grade level for developing the areawide WD. Note: Occasionally, a particular job is so unusual or unique that it cannot be adequately classified for SCA wage determination purposes. This usually occurs when no BLS or FWS survey data, SCA Directory, and/or comparable Federal-level occupation exists for use in determining equivalency between the job being evaluated and an occupational class for which wage rate and fringe benefit data exist. In these instances, the job in question would probably not be included in the wage determination.This function entails analyzing the primary survey data to determine which measures of central tendency are the most relevant and reliable for use as indicators of prevailing wage rates in the locality for the various occupational classes listed in the SF-98 request. BLS Area Wage and SCA Area Surveys, as well as other wage surveys that may be used on occasion, typically report the following measures of central tendency and additional useful information for each occupation. • Mean • Median • Frequency Distributions (by wage rate intervals) • Number of Workers Exhibit 91 defines these terms as they relate to the BLS area-specific wage surveys and SCA WD development. These data are analyzed to determine which measure of central tendency (mean or median) best represents the prevailing rate for a given occupation as so-defined in the regulations. This analysis is not subject to a precise formula. "All things being equal," the median rate is the preferred indicator of the prevailing wage rate because the SCA regulations define prevailing as the median — a single rate paid to a majority (50%+) of the employees in a given .• occupational class. The survey median rate is not automatically chosen, however, as the prevailing rate indicator. Survey data must be analyzed according to the following three statistical areas of inquiry to determine if the median is affected by any inconsistencies or abnormalities that would indicate the mean as the better indicator of prevailing. • Adequacy of the Number of Workers Reported. • Frequency Distribution Patterns. • Occupational Wage Rate Relationships/Patterns. All of these areas of inquiry are performed for the five occupational groupings that have similar wage structures: White Collar Technician Jobs: White Collar ADP Jobs; Other White Collar Jobs; Blue Collar High Skilled Jobs; and Blue Collar Low Skilled Jobs. Mean and median wage rates are thus analyzed and compared accordingly. This will result in a decision as to which is the better statisical indicator of prevailing wage rates for each of the groups as a whole, and, where appropriate, for a job classification family as a whole.The procedures and statistical evaluation criteria for each of the three areas of inquiry follow. The application of each area is illustrated, as appropriate. 1. Number of Workers Reported: The number of workers reported is important to determining whether the mean or median is a better indicator because it affects how many workers are represented by the survey data. For example: If the number of reported workers is relatively small, the median wage rate is being paid to few of the workers in the class and the mean may be a better indicator of what more of the reported workers are being paid. What constitutes a small (or large) number of workers reported is relative to a number of factors as listed below. • Number of reported workers for the classification family as a whole. • Number of reported workers for the occupational grouping as a whole (the five groups listed above). • Number of workers in the area likely to be employed in that type of occupation and/or total population of the area. Illustration: The illustration below shows data for the secretarial job classification family provided by a BLS Oakland area-specific survey. Table A-1. Weekly earnings of office workers In Oakland, CA, February 1987 Number ol workers Average weekly hours1 (stand- ard) Weekly earnings (in dollars)’ Number ol workers Occupation and industry division Mean’ Median’ Middle range’ Under 220 220 and under 240 240 260 260 280 280 300 300 320 320 340 340 360 Secretarial and keyboarding occupations 1,409 39.5 432.00 423.00 364.00- 490.00 22 _ _ 6 19 55 83 107 443 40.0 439.00 438.50 369.50- 509.00 21 _ . _ 2 2 19 27 966 39.5 429.00 411.50 363.50- 484.00 1 _ _ 6 17 53 64 80 Transportation and utilities...... 161 39.5 445.50 426.00 334.50- 527.50 - - - - 2 16 23 4 85 40.0 321.50 342.00 216.00- 356.00 . 22 _ . 1 9 1 8 24 392 39.5 387.50 391.00 349.50- 426.00 5 8 44 26 27 95 40.0 397.50 397.00 369.50- 427.00 _ . _ _ 2 2 6 5 297 39.5 384.00 387.50 341.50- 422.50 _ _ . 5 6 42 20 22 544 39.5 422.50 415.50 363.50- 480.00 2 10 49 50 166 40.0 433.00 436.00 367.00- 480.00 8 7 378 39.5 418.00 397.50 358.00- 461.00 _ . „ . 2 10 41 43 Transportation and utilities...... 85 39.5 483.50 501.00 369.50- 537.50 2 8 - 313 39.5 499.50 509.00 445.50- 552.00 6 117 40.0 520.00 519.50 497.00- 546.00 196 39.5 487.50 474.00 423.00- 559.00 6 Transportation and utilities...... 39 39.0 448.50 426.00 384.00- 548.00 - 4 75 39.0 580.00 577.00 484.50- 664.50 . 54 39.0 594.00 600.00 496.00- 672.50 MEASURES OF CENTRAL TENDENCY AND RELATED DATA CONCEPTS AND DEFINITIONS FREQUENCY DISTRIBUTION A frequency distribution of wage rates shows a tallying of the number of times each wage rate occurs in a group of wage rates. For SCA purposes, a wage rate frequency distribution shows the number of workers who "receive" a given wage rate in a locality according to the survey conducted that is based on a statistically drawn sample considered representative of the locality as a whole. BLS area-specific surveys provide frequency distributions of the number of workers who "receive" a wage rate that falls within a given wage rate interval. A frequency distribution could be constructed to show the number of workers who "receive" a specific wage rate, rather than using a wage rate interval. CENTRAL TENDENCY Central tendency is a characteristic of a frequency distribution that is analyzed to discern wage rate distribution patterns. The central tendency of a wage rate distribution is a typical or representative wage rate. Specific definitions or numerical representations of central tendency include the mean, median, and mode. For SCA purposes, the key measures of this representative wage rate for use in determining what prevails are the mean and median. MEAN For most statistical analysis purposes, the mean is the most common measure of central tendency. With regard to BLS area-specific wage surveys, the measure is calculated for each occupation by totaling the earnings of all workers in a class and dividing by the number of workers reported. MEDIAN The median is a measure of central tendency that indicates the point in a wage rate frequency distribution that divides the distribution into two parts such that half of the workers receive the same as, or more than, this wage rate and half receive the same as, or less than, this wage rate.MEASURES OF CENTRAL TENDENCY AND RELATED DATA CONCEPTS AND DEFINITIONS (CONTINUED) MODE The mode is the most frequently occurring wage rate. Frequency distributions may have one or more modes. For example: If the distribution is (3,4,4,5,5,5,6,8), the mode is 5. If the distribution is (3,4,4,4,5,6,6,7,7,7,8), there are two modes — 4 and 7. MEAN/MEDIAN DIFFERENCES The essential difference between the mean and median wage rate is that the mean reflects the values of each studied worker's wage rate in the distribution; whereas, the median is based largely on where the midpoint of the distribution falls without regard for the particular value of any of the reported workers' wage rates. Thus, the mean, as a measure of central tendency, is more sensitive to extreme values than the median as illustrated below. NUMBER OF WORKERS REPORTED Depending upon how a survey is conducted, the number of workers could have slightly different meanings. For the BLS area-specific surveys used for SCA purposes, a random sample of establishments is drawn. Their workers' pay rates are surveyed to be representative of the locality as a whole. The number of workers reported for each class listed by the survey constitutes the number of workers represented by the survey sample, and not the specific number of workers surveyed. Wage Rate Values Mean Median 1, 2, 3, 4, 5 1, 2, 3, 4, 50 1, 2, 3, 4, 100 3 12 22 3 3 3Note that the secretary I (85 workers reported) and the secretary V (75 workers reported) have relatively low numbers compared to the total number of secretaries reported (1409) and the other three secretarial job levels. Compared to the Oakland population and likely number of secretaries working in the area, the number of reported workers for the secretary I and secretary V is relatively small. This suggests that the mean may be a better indicator for these two job levels; however, for the job family as a whole the number of workers is sufficiently large enough to use the median. 2. Frequency Distribution Patterns: The patterns observed in the wage rate frequency distribution provided by the BLS area-specific survey are key to evaluating whether the mean or median is a better indicator of the prevailing wage rate. Depending upon the type of pattern observed (skewed or symmetrical), the mean or median wage rate may be the better indicator of prevailing. Exhibit 92 defines and illustrates these concepts generally and shows four patterns and their respective preferences for the mean or median accordingly. Illustration: The illustration below provides an example of a frequency distribution pattern analysis for the secretarial classification family using the BLS area-specific survey for Oakland. Tabla A-1. Weekly earnings of office workers In Oakland, CA, February 1987 Secretarial and keyboarding occupations Secreiaries....................................... Manufacturing............................ Nonmanufacturing..................... Transportation and utilities.. Secretaries I................................. Secretaries II................................ Manufacturing............................ Nonmanufacturing..................... Secretanes Ml............................... Manufacturing............................ Nonmanufacturing..................... Transportation and utilities.. Secretaries IV.............................. Manufacturing............................ Nonmanufacturing..................... Transportation and utilities... Secretanes V............................... Nonmanufacturing..................... 1.409 443 966 Average weekly hours1 (stand- ard) 395 40.0 39.5 39.5 39.5 40.0 395 39.5 40.0 39.5 39.5 39.5 40.0 39.5 39.0 Weekly earnings (in dollars)* 432.00 439.00 429.00 445.50 321.50 387.50 397.50 384.00 422.50 433.00 418.00 483.50 499.50 520.00 487.50 446 50 423.00 438.50 411.50 42600 342.00 391.00 397.00 387.50 415.50 436 00 397.50 501 00 509.00 519.50 474.00 426.00 364.0C- 490.00 369 50- 509 00 363.50- 484.00 334.50- 527 50 216.00- 356.00 349.50- 426.00 1*69.50- 427.00 341.50- 42?.50 363.50- 480.00 367.00- 480.00 358.00- 461.00 369.50- 537 50 445.50- 552.00 497.00- 546.00 423.00- 559 00 384.00- 548.00 Number of workers receiving straight-time weekly earnings (in dollars) of — 220 and under 240For the secretary I distribution, note the larger numbers of workers ("22" and "24") at the "Under $220" and "$340-$360" wage rate intervals respectively compared to the number of reported workers listed for other wage rate intervals. This distribution shows a large number of workers being paid a relatively low wage rate and a large number of workers being paid a relatively high wage rate. This is a bimodal distribution. Due to the sensitivity of the mean by comparison to the median, this indicates that the mean is the better indicator of the prevailing wage rate. Note that if the reverse were true (i.e., small number of workers paid a very high or low wage rate, with most being paid moderate wage rates), the distribution would be skewed and the median would be the preferred indicator. For the other secretarial job levels and the secretarial classification family as a whole, the distributions show some skewness, but generally the wage rates are bunched around the central tendency with a relatively balanced trailing off toward either end. These distribution patterns are close to symmetrical. In general, the mean or median could therefore be used. 3. Occupational Wage Rate Relationship/Patterns: This evaluation analyzes the current survey mean and median rates for occupational wage rate relationship inconsistencies. Also, the analysis looks at the previous survey means and medians with regard to occupational wage rate relationship patterns over time. The prevailing rate indicator chosen should not distort acceptable wage rate relationships with regard to the following. • Job levels should be in line (e.g., secretary I is paid less than a secretary II, and so forth). • Non-equivalent classes within each of the five groups should be in line relative to each other (e.g., systems analyst should receive a higher wage than a programmer). • Equivalent classes within the five occupational groups should receive the same or similar wages (e.g., secretary I is Federally graded as a GS-4 as is the accounting clerk III and switchboard operator-receptionist — these white collar occupations have similar job duties, skills, and knowledge requirements and should therefore be paid accordingly). Choosing the mean or median wage rate as the prevailing wage rate indicator depends upon what the analysis of the above indicates with regard to which measure of central tendency will not serve to distort wage relationships.WAGE RATE FREQUENCY DISTRIBUTION PATTERNS CONCEPTS AND DEFINITIONS SKEWNESS This refers to the pattern of workers' wage rates being concentrated on one side of the central tendency or to the trailing out of workers' wage rates in one direction from the central tendency. The various forms of skewness reflect a lack of symmetry in the distribution. Depending upon the skewness patterns observed, the mean or median wage rate may be the better indicator of prevailing. SYMMETRY Frequency distributions that are not skewed in one direction or another are considered symmetrical. Such a distribution may be unimodal (one mode) or bimodal (two modes). DISTRIBUTION PATTERNS TO LOOK FOR For SCA survey evaluation purposes, the following skewness patterns indicate preferences for the mean or median as warranted by statistical analysis. Key to this evaluation is the sensitivity of the mean as described in Exhibit 91. Illustrations below show the relationship of the mean and median to each other depending upon the skewness pattern. • For skewed distributions where the largest number of workers have moderate wage rates, but a few have very high (left diagram below), or very low (right diagram below) wage rates, the mean will be somewhat larger (or smaller) than the median. The mean is sensitive to extreme values based on a few workers' wage rates which makes the median a better indicator of the prevailing rates in an area. The two diagrams below illustrate skewness in two different directions and the relative positions of the three measures of central tendency.WAGE RATE FREQUENCY DISTRIBUTION PATTERNS CONCEPTS AND DEFINITIONS (CONTINUED) • For bimodal distributions where many workers have very high and many workers have very low wage rates, with a few having moderate wage rates, the mean will be a better representation of the prevailing wage rate. The mean's sensitivity to the extremes of a large number of workers makes it a better indicator of prevailing. The diagram below shows the relative positions of the three measures of central tendency for this type of distribution pattern. Mode Mean Mode Median • For unimodal distributions^ the mean, median, and mode are the same number. Distributions that are symmetrical or nearly symmetrical indicate a clustering of a large number of workers on either side of the central tendency of the distribution and a tapering off as either end is approached. Such wage rates are more equally distributed on both sides of the central tendency. Either the mean or median in these cases could be used as the indicator of the prevailing rate. Mean Median ModeIllustration: Using selected portions of the Oakland survey presented previously and the previous year's survey (not shown), this type of analysis is illustrated below for the secretary job family. The means and medians of the current survey and previous year's survey are compared as follows. Median Mean Class Previous Current Change Previous Current Change Sec. I $340.00 $342.00 + .59% $319.50 $321.50 + .63% Sec. II $350.00 $391.00 +11.70% #346.00 $387.50 +12.00% Sec. III $375.00 $415.50 +10.80% $400.00 $422.50 + 5.60% Sec. IV $460.00 $509.00 +10.70% $450.00 $499.50 +11.00% Sec. V $535.00 $577.00 + 7.90% $500.00 $580.00 +16.00% Wage rate change is determined by calculating the percentage difference between the rates as illustrated below using the secretary I median rates. $342 (current) - $340 (previous) = $2 (difference) $2 (difference) = .0059 X 100 = .59% (% change) $340 (previous) The job levels for both the mean and median in this example are in line (i.e., level I is paid less than level II, level II is paid less than level III, and so forth). With regard to wage rate change over time, the level I and level V both show a much smaller change in the median between the previous and current surveys compared to the other job levels in this family. The same is true for the means for the level I and the level III. A comparison such as the one illustrated above would also be conducted for the secretary job levels in relationship to other equivalent office and clerical classes to observe the patterns shown by the survey means and medians,. In general, if the patterns evidenced by the above types of analyses do not show the median to distort wage rate occupational relationships and show relatively consistent patterns over time, it would be selected as the preferred indicator over the mean. 4. Decision About Using the Mean or Median: Based on the evaluation results above (#1, #2, and #3) for each class listed in the SF-98 for which the BLS survey provides data, a preliminary decision can be made about whether the medians or means are better indicators of prevailing wages for jobs within the five occupational groupings. The results of this analysis is then incorporated into the results of the analyses described below for Establishing aWage Rate Structure in order to determine which rates to issue in the prevailing areawide WD. This is because establishing wage structures requires further analysis and use of supplementary data for classes not surveyed by the primary source which may result in making various data adjustments. Wage Rate Structure Establishment The establishment of the wage structure involves the use of primary survey data and the results of the analysis of means and medians discussed above combined with the application of supplementary source data (usually FWS, WG or NAF pay schedules for blue collar classes and BLS OEAM or PATC surveys for white collar classes). Supplementary data are used to develop appropriate prevailing wage rates for classes not published in the primary source. The surveys and related data and their analyses are used as tools to establish the wage schedule of minimum rates for SCA-covered contracts and workers provided by the WD. The approach taken varies according to whether white or blue collar classes are involved. This is due to the differences in supplementary data used and the differences in wage structures found to prevail among various white collar and blue collar occupational groupings. Statistical methods may be utilized to adjust and/or extrapolate data in order to establish an appropriate wage structure. The analysis results in establishing the wage rate and occupational structure for the 5 broad categories: ADP white collar jobs; technician white collar jobs; and other white collar jobs; higher skilled maintenance trades blue collar jobs; and lesser-skilled blue collar jobs usually in the supportive services area. White Collar Occupations For the three white collar groupings, the OEAM or PATC data are used to develop prevailing wage rates for the occupational classes not published in the BLS area-specific survey. These supplementary data are used to develop ratios between job levels within a classification family and/or between similar white-collar occupations within the three white collar groupings which are applied to the primary survey data to develop a wage structure that includes both published and non-published classes needed for the WD. General procedures followed are listed below. 1. Converting Salaries Into Hourly Rates: For any of the classes needed for the WD, are the wage rates in the survey reported as hourly or weekly? Rates issued as prevailingin a WD are in most cases provided in hourly wage rate terms. For various white collar occupational classes reported in a given survey, the wages are often listed as weekly earnings, however. The corresponding average weekly hours (i.e., standard workweek for the given occupation in the locality of the survey) are usually provided. Therefore, convert the median or mean for each class needed for use in subsequent evaluations as follows. Weekly Earnings_ = Hourly Rate Average Weekly Hours 2. Classes Not Published Within a Classification Family: For job levels needed within a classification family that are not published, what is the ratio between level 1 and level 2, level 2 and level 3, level 3 and level 4, etc. according to the supplementary data (e.g., OEAM or PATC survey data)? Using the mean or median (depending upon the analysis discussed previously), compare and apply this ratio to the primary survey data for these levels to develop a rate for the level or levels not published as follows. OEAM Level 1 = Area Survey Level 1 (X - not published^ OEAM Level 2 Area Survey Level 2 (published) Illustration: The ratio above for secretaries and sample data (already converted to hourly rates) would be calculated as follows. $5.50 = X $5.50 ($6.75) = $6.00 (X) $6.00 $6.75 X = $37.13 X = $6.19 $ 6.00 3. Eguivalent Classes Not Published Within Occupational Groupings: For equivalent classes needed within the occupational grouping of similar jobs (ADP, technician, or other white collar) that are not published, what is the ratio of equivalent classes according to the supplementary data (e.g., OEAM or PATC survey data)? Using the mean or median (depending upon the results of the previous analysis), compare and apply this ratio to the primary survey data for equivalent classes to develop a rate for the equivalent classes not published as follows. OEAM Eguivalent Class A = Area Survey Class A (not published^ OEAM Equivalent Class B Area Survey Class B (published) Illustration: The ratio above for an accounting clerk IV (GS-5) not surveyed by the BLS Area Survey using the equivalent class of the secretary II which was published and wherein OEAM provides data on both is as follows.OEAM Accounting Clerk IV = Area Survey Accounting Clerk IV (X) OEAM Secretary II Area Survey Secretary II (published) .$5.75 $6.00 $6.75 X $5.75 ($6.75) = $6.00 (X) X = $38.81 $ 6.00 X $6.47 4. Develop White Collar Wage Structure; Based on prevailing mean or median rates determined as outlined previously and the results of applying ratios for classes or job levels not surveyed, array the rates determined to prevail for the classes needed for the WD according to the three white collar groupings of similar occupations (ADP, technician, and other white collar classes). Before preparing to issue wage rates for the classes needed, ensure that the following does not exist, unless warranted by the wage rate patterns exhibited over time by the surveys analyzed. • Significant variations between the rates to be issued for equivalent classes. • Inverse relationships in wage rates between higher- and lower-graded classes or job levels within classification families. • Rates to be issued are unreasonable with regard to wage rate patterns over time. If any of the above situations has resulted based on the analyses performed thus far, ensure that the results obtained are reasonable. An occupational adjustment may be needed if the results of the analyses pinpoint any problems. Blue Collar Classes For the two blue collar groupings, the appropriate FWS wage schedule for the area is used to develop prevailing wage rates for occupational classes not published by the BLS area-specific survey. These supplementary data are used to develop ratios for these classes through a technique called "slotting." Slotting is applied to develop a wage structure for blue collar classes based on primary BLS survey data and supplementary FWS pay schedule data.In most cases, slotting can be accomplished by comparing Federal pay grades of non-published classes to published classes. It is generally assumed that equivalent Federal pay grades indicate that classes are equivalent or similar with regard to skills, duties, and knowledge requirements. For examples A wage rate determined to prevail for the janitorial class may be adopted for the mess attendant class if the skill and duties attributed to each class are known to be rated similarly under pay classification schemes. Both classes are assigned the same wage grade under the Federal Wage System and are paid at the Wage Board grade 2 rate when hired directly by a Federal agency. For some classes, Federal pay grades may not be established for either the class to be slotted or the published class to which it is to be compared. Job descriptions must then be evaluated to determine equivalency between the published class and the class to be slotted (see exhibit 90, page 365). 1. Develop A Weighted Average Wage Rate For Equivalent Classes Graded as a WG-10: Within the general maintenance trades classes published, are there several classes Federally graded as a WG-10 which show different wage rates? Using the mean, an average of these wage rates is calculated so that there is one wage rate for use in building the rate structure for this grouping of blue collar classes. (The mean must be used because a weighted average cannot be developed using the median.) The WG-10 is usually used because it is the highest Wage Board pay grade class surveyed by BLS area surveys. It is used for the journeyman classes. Given that general maintenance trades blue collar classes have a relatively stable wage structure, a survey may show varying rates which can be averaged to obtain a single rate for use in developing the WD. This approach is usually not appropriate for white collar classes or for lesser-skilled blue collar classes because of their less stable wage structures.Illustration: The BLS Oakland Survey illustrated below provides the wage rates for the general maintenance trades occupations. Table A-4. Hourly earnings of maintenance, toolroom, and powerplant workers in Oakland, CA, February 1987 Occupation and industry division Number Ot workers Hourly earnings (in dollars)* Middle range* Number of workers receivir Under 6.50 6.50 and under 7.00 7.00 7.50 7.50 8.00 8.00 8.50 8.50 9.00 9.00 9.50 9.50 10.00 10.00 10.50 10.50 11.00 Maintenance carpenters.' Manufacturing..... “t W£*/0 Maintenance painters W ^ T. .^ Maintenance electricians Manufacturing....... Nonmanufacturing Maintenance machinists Manufacturing Wr-iO Manufacturing. Maintenance pipefitters Manufacturing.......... Motor vehicle mechanics-™....... Manufacturing......// Nonmanufacturing ITn.Sr....... Transportation and utilities Maintenance workers (general)...^ Manufacturing....... Nonmanufacturing.! Maintenance trades Jielgerj Manufacturing Stationary engineers..! Nonmanufacturing helpers........am 1 Wfr-5 WG--/Q 99 50 472 357 115 593 432 775 748 WHO S 393 100 293 150 261 158 103 163 94 180 104 15.17 14.62 15.59 15.05 17.28 15.50 14.99 14.84 14.76 14.74 14.53 16.80 16.15 17.02 16.00 9.97 10.53 9.11 13.48 13.21 17.32 17.86 15.08 15.08 15.21 15.08 18.18 15.08 14.84 14.90 14.90 14.84 14.84 16.83 15.12 18.18 15.65 9.49 10.95 8.38 13.85 14.00 17.79 17.79 13.43-17.05 13.43-15.08 14.84-16.68 14.84-15.41 17.58-18.18 14.84-15.98 14.84-15.18 13.43-15.26 13.43-15.26 14.01-15.08 14.01-15.08 15.12-19.50 14.56-19.39 15.65-19.50 14.50-18.18 7.75-12.15 9.49-12.15 8.02-11.66 13.35-14.00 12.88-14.06 16.99-17.79 17.79-18.13 • Workers were distributed as follows: 6 at $5.50 to $6.00; and 29 at $6.00 to $6.50. • • All workers were at $20.00 to $21.00. Also see footnotes at end of tables.Note that there are several WG-lOs for use in developing a weighted mean (average) for use in building the wage structure. WG-10 Classes Mean Rate No. of Workers Total Wages Maintenance Electrician $15.59 472 $ 7,358.48 Maintenance Machinist $15.50 593 $ 9,191.50 Maintenance Mechanic $14.84 775 $11,501.00 Maintenance Pipefitter $14.74 84 $ 1,238.16 Motor Vehicle Mechanic $16.80 393 $6,602.40 Stationary Engineer_$17.32_180_$ 3.117.60 Total N/A 2,497 $39,009.14 (Total WG-10 Wages) $39.009.14 = $15.62 (WG-10 weighted avg.) (Total # WG-10 Workers) 2,497 2. Use the Weighted Average Wage Rate of the Classes Graded as a WG-10 to Build the Wage Rate Structure: Using the FWS wage schedule data, develop ratios to use in building the wage structure based on the average wage rates of the WG-10 calculated above. The FWS wage schedule based on a survey of private sector rates in the area indicates what the usual relationships between these blue collar classes should be. Building this wage structure will allow for slotting in of wage rates for classes not published, and will also be used to slot in wage rates for classes published which are graded between the WG-10 and WG-5. Because of the general lack of blue collar data in area-specific surveys and the stability in the wage structure for these classes, the direct survey data for the WG-10 are used as the basis for building a wage structure based on FWS wage relationships, rather than using direct data for some of the classes that may be published and using ratios for others, as is done for white collar classes.Illustration: To structure the wage rates based on the weighted 10 calculated previously and the FWS ratios, the following approach is used. FWS WG-9 Rate = X (Slotted Rate for a WG-9) FWS WG-10 Rate Area Survey Weighted 10 Rate FWS WG-8 Rate = X (Slotted Rate for a WG-8) FWS WG-10 Rate Area Survey Weighted 10 Rate FWS WG-7 Rate = X (Slotted Rate for a WG-7) FWS WG-10 Rate Area Survey Weighted 10 Rate FWS WG-6 Rate = X (Slotted Rate for A WG-6) FWS WG-10 Rate Area Survey Weighted 10 Rate FWS WG-5 Rate = X (Slotted Rate for a WG-5) FWS WG-10 Rate Area Survey Weighted 10 Rate 3. Compare Wage Structure Established Using WG-10 As the Basis to the Rates For Classes Published: Which classes needed by the WD do the wage rates as developed above differ significantly from those provided directly by the area survey? If significant differences exist, the same approach using the lowest graded job (up to grade 5) for which the area survey provides data may need to be used. Using the same process as described above, develop a weighted average for the WG-5, for example, and work the wage structure development process upward to the WG-10. Compare the results to the published rates available. 4. Select the Best Wage Structure Established: Based on the above analysis, select the wage structure that best maintains occupational relationships between equivalent classes, between higher- and lower-graded classes, and that best represents the survey data as indicators of prevailing wage rates. 5. Build a Wage Structure for Lesser-Skilled Classes Needed: Using the slotting process described above, a wage structure is built for the classes graded between WG-1 and WG-5. Given that wage structures for these types of classes will usually show greater variablity in the survey data reported, they need to be analyzed and developed as a group separate from the general maintenance trades jobs. Survey Fringe Benefits Analysis A wage determination will include fringe benefits if they are found to be prevailing in the locality. Fringe benefits usually provided in a wage determination include sick leave, health insurance, retirement plans, paid vacations, and paid holidays. Other benefits that may prevail in the locality suchas jury duty or personal leave, may also be included, depending upon the results of the analysis of the relevant survey data. Any benefit required by Federal, State, or local law is not considered a bona fide fringe benefit for SCA purposes. Also, only benefits that are at least partially paid by the employer are considered fringe benefits. Unpaid leave, for example, is not a fringe benefit. A particular fringe benefit is considered to prevail if it is furnished to 50 percent or more of all the surveyed workers. For areawide WDs, prevailing fringe benefits like prevailing wage rates are determined using area-specific survey data (usually BLS Area Wage or SCA Area Surveys). When area-specific data are not available, fringe benefit data for an adjacent metropolitan area or a larger geographic unit (i.e., State, region, or nationwide data) may be used. In making fringe benefit determinations, at a minimum, data on health and welfare, holidays, and vacations are usually analyzed to determine: • which benefits prevail; and • if prevailing, what level of each benefit prevails (e.g., employer expenditures or contribution levels for health and welfare; x days vacation per length of service, x number of paid holidays). Prevailing fringe benefit determinations are discussed below for each type of fringe benefit analyzed for inclusion in the WD. 1. Prevailing Health and Welfare Benefits: Health and welfare (H&W) fringe benefits generally include life, accident, and health insurance. These types of benefits require a determination that addresses whether they prevail (i.e., furnished to 50% or more of the surveyed workers) and the employer contribution levels (i.e., the amount or cost to employer calculated as a per hour rate that the employer contributes toward benefits). For health and welfare benefits, BLS area-specific surveys provide the primary source data on the prevalence of these benefits. Illustration: The BLS Survey for Oakland shows the following for health and welfare benefits.In reviewing the data, determine whether 50%+ of the workers (both production and office workers for all-industries) are offered life insurance, accidental death and dismemberment insurance, sickness and accident insurance, hospitalization insurance, surgical insurance, medical insurance, and/or major medical insurance. In the example above, over 50% of the workers in both categories are offered all these benefits. If an H&W benefit is offered to 50%+ of the production (all industries) workers, but not to the office (all industries) workers, or vice versa, consider the benefit as prevailing for all workers. 2. Health and Welfare Benefits Employer Contribution Levels; Nationwide source data are available and used to determine employer contribution levels for H&W benefits. As described in chapter 7, page 216, the BLS, nationwide, Biennial Survey of Employee Compensation in the Private Nonfarm Economy was a primary source for the nationwide cost data on H&W benefits until it was discontinued in 1977. Subsequently, Wage and Hour has used the BLS Employment Cost Index (ECI) to update previously-issued H&Wfringe benefit contribution levels. Given that these H&W fringe benefit contribution levels are based on nationwide data, they are issued for all wage determinations where such benefits are determined to prevail. Staff use the BLS area surveys to determine what H&W benefits prevail and the Standard Fringe Basis Sheet to obtain the appropriate contribution level(s) to use. There are two contribution levels: one used for Federal displacements and major support contracts; the other for all other areawide WD situations. For the former situation, a broader definition of H&W is used which includes life, accident, and health insurance plans, and sick leave, pension plans, civic and personal leave, severance pay, and savings and thrift plans (Total Benefits Not Legally Required). For all other situations, H&W includes life, accident, and health insurance plans (Insurance). Currently, these two H&W benefit levels are $.59 an hour for Insurance and $1.84 average per hour for Total Benefits Not Legally Required (Federal displacements and major support contracts). Both levels are expressed in the SCA WD as a footnote under the title "Health and Welfare" (see, for example, exhibit 95, page 4, footnote 1). 3. Paid Holidays: The number of paid holidays furnished to more than 50 percent of the surveyed workers is adopted for all occupational classes set forth in the wage determination. In arriving at a whole number of paid holidays, two (2) half-days are counted as one (1) day. For example, six (6) holidays and two (2) half-days are considered to total seven (7) paid holidays. The holidays must also be named in the wage determination using the following order. Order Desianation Date Implied First Christmas Day December 25 Second Labor Day September Third Thanksgiving Day November 22-28 Fourth New Year's Day January 1 Fifth Independence Day July 4 Sixth Memorial Day May Seventh Washington's Birthday February Eighth Veteran's Day November Ninth Columbus Day October Tenth Martin Luther King's Birthday January Eleventh Good Friday March 21-April 17 Twelfth December 24 December 24Illustration: Using the same Oakland Survey, review the data as illustrated below for paid holidays. Table B-4. Annual paid holidays for full-time workers In Oakland, CA, February 1987 Production and related workers Office w Item All industries Manu- facturing Nonmanu- facturing Transportation and utilities All industries Manu- facturing All full-time workers (in percent).......................................................... 100 100 100 100 100 100 In establishments not providing paid holidays............................................................. 4 - 6 20 O’) _ In establishments providing paid holidays............................................................. 96 100 94 80 99 100 Number of holidays: 1 or more half days................................................ 2 3 2 holidays................................................................ 2 - 3 - . _ 3 holidays................................................................ 1 - 2 - - _ 4 holidays................................................................ 2 - 3 4 O’) „ 5 holidays................................................................ 1 3 - - 1 O’) 6 holidays................................................................ 1 - 2 3 3 Plus 2 half days................................................. - - - - O’) _ 7 holidays................................................................ 5 3 6 2 4 8 Plus 1 half day................................................... O’) 0’) - - O’) 3 8 holidays................................................................ 11 5 14 - 3 8 Plus 2 half days................................................. 1 1 1 - 3 1 9 holidays................................................................ 12 11 13 - 6 12 Plus 1 half day................................................... 1 1 (*’) - 8 1 10 holidays.............................................................. 27 27 28 42 42 29 Plus 1 half day................................................... 1 1 - - 1 1 11 holidays.............................................................. 14 21 11 6 9 22 Plus 1 or more half days.................................. - - - - O’) 12 holidays............................................................. 10 12 8 22 16 7 Plus 2 half days................................................. O’) - O’) O’) 1 13 holidays.............................................................. 3 7 O’) 1 6 14 holidays............................................................. 2 6 1 1 To determine what number of holidays prevails, add together the percentages from the bottom up until the 50%+ point is found (i.e., point where over 50% of the workers receive the benefit. This is performed for both office (all-industries) and production (all-industries) workers. The survey data above show that 10 paid holidays are provided to 50% of the workers in both categories. Thus, all but the eleventh and twelfth holidays listed above would be named in the WD. If the benefit level varies between office and production workers, use the higher level as prevailing for all workers. 4. Paid Vacations: The amount of vacation pay furnished to more than 50% of the surveyed workers in a designated length of service standard are adopted for all occupational classes set forth in the determination. For example: If the survey in a particular locality indicates that 63 percent of the workers are provided one (1) week of paid vacation after one (1) year of service and 57 percent receive two (2) weeks of paid vacation after two (2) years of service, these amounts are considered to prevail. Contract support services at the various localities are typically ongoing requirements subject to periodic competition. Because successive contractors frequently retain the same work force, it is common for service employees to work a number of years at the same job without ever becoming eligible for vacation pay under thetraditional length of service with a single employer standard. To resolve this unique contracting situation, a length of service with a contractor or successor standard has been adopted. This is expressed in the WD, for example, as "1 week paid vacation after 1 year of service with a contractor or successor." Illustration: Using the same Oakland Survey, review the data for paid vacations. Adding percentages from the bottom up, determine the vacation levels provided to 50%+ of the all-industries workers for both categories of workers. Note that in this case, the 6 month service level shows a difference in the prevalence between the two categories of workers. For the one (1) year service level, the percentage of workers is somewhat less than 50% for production workers, butconsiderably greater for office workers. If the benefit level varies between the office and production workers, use whichever level is provided to 50%+ as prevailing for all workers. Thus, the WD would include the following for vacations. • Two weeks after 1 year of service. • Two weeks after 2 years of service. • Two weeks after 3 years of service. • Two weeks after 4 years of service. 5. Other Benefits; Depending upon analysis of the survey, other fringe benefits may be determined to prevail such as jury duty or personal leave. If such benefits are furnished to 50% or more of the surveyed workers, they are also included in the WD. Illustration; Using the Oakland Survey, review the Other Benefits Table of data, to determine if any other benefits prevail in the locality. As illustrated below, only jury duty and funeral leave are provided to 50%+ of the workers in both categories. Although the number of days is not provided, the WD would include a statement that paid leave for jury duty and funerals is prevailing.In making wage rate and fringe benefit determinations, section 2(a)(5) of the SCA requires that due consideration be given to the wage rates that would be paid by a Federal agency to the various classes of service employees if they were direct-hires. The application of due consideration is based on implementing the legislative intent of section 2(a)(5) of the Act — to provide for the narrowing of the wage gap between service workers and their Federal direct-hire counterparts. The implementation of this legislative intent, however, cannot operate to overturn the primary basis upon which a wage determination is issued — the wage rates and fringe benefits that prevail in the locality. Consequently, applying due consideration and statistical determinations about what is prevailing in a locality must be performed in conjunction with each other. This requires the exercise of considerable judgment as no precise formula exists. The application of due consideration requires a case-by-case approach whereby the Federal wage rates and fringe benefits are compared to the surveyed wage rate and fringe benefit data selected as the basis for the areawide WD. Federal blue collar workers are subject to the Federal Wage System schedules and pay rates, i.e., WG pay grades as found on the Wage Board schedule for appropriated funds, or NA pay grades as found on the NAF schedule for non-appropriated funds. Note that WG and NA refer to the wage grade non-supervisory grade levels as found on the AF and NAF wage schedules respectively (see Chapter 5). Federal white collar workers are subject to the General Schedule pay system (i.e., GS schedule and pay grades). The contracting agency is required to provide comparable Federal wage rates by listing them on the SF-98a or SF-98 blanket worksheet. An effective and appropriate application of these Federal rates varies depending on the circumstances. The wage rates and fringe benefits determined to prevail per the analyses described previously are compared to the appropriate Federal data. Adjustments may be warranted to account for due consideration if a significant difference is found to exist. Exhibit 93 illustrates some approaches to appylying due consideration adjustments to wage data. Note that the process used to establish a wage structure for blue collar workers utilizes Federal Wage System pay schedules as supplementary data to slot wage rates. In so doing, due consideration is automatically given to the wage rates to be issued in the WD.The section 4(c) WD is based exclusively on the applicable collective bargaining agreement of the incumbent (i.e., predecessor) contractor. In addition to using CBAs for section 4(c) WDs, there is one areawide, prevailing WD situation which requires the use of a CBA as the basis of the wage rates issued for some or all of the classes needed. This involves an areawide WD based on union dominance. Although both types utilize CBAs as their data sources, it is important to note that section 4(c) WDs and prevailing WDs based on union dominance are treated differently in several ways as described in the following pages. The differences stem from the statutory requirements and rationale supporting the issuance of these WDs as follows. • Section 4(c) WD: Issued when the wage rates and fringe benefits of an incumbent contractor's employees working on the SCA-covered contract are governed by a CBA. According to SCA sections 2(a) and 4(c), these CBA wage rates and fringe benefits (including accrued and prospective rates and benefits) are to be used as the basis of the WD issued to govern the minimum compensation that the successor contractor must pay employees working on the subsequent SCA-covered contract for the same or substantially the same services in the same locality. A section 4(c) WD applies only to the specific SCA-covered contract, or portion thereof, for which it was developed. • Areawide WD (Union Dominance): This type of areawide WD is issued for occupational classes in a given geographic area wherein compensation for a majority (50%+) of the employees in the class is governed by a CBA. Such a situation results in a single rate being paid a majority of the workers in the class. This constitutes the prevailing rate. The applicable CBA's fringe benefits would also be considered prevailing. These wage rates and benefits are those existing at the current time and exclude prospective (future) rates and benefits. The wage rates and fringe benefits in the CBA of the dominant union are thus used as the sole basis for the WD. It applies to the classes whose wage rates are dominated by union agreements in the area and is thus applicable to any SCA-covered procurement action in the area utilizing the same classes. Section 4(c) WD Principles Section 4(c) WDs are to be issued for a successor contract whenever the incumbent (i.e., predecessor) contractor's service workers are covered by an applicable CBA and all the conditions of successorhsip exist (see chapter 3, page 51). Section 4(c)DUE CONSIDERATION ADJUSTMENTS HOW TO USE An effective and appropriate application of due consideration of Federal wage rates varies depending on the circumstances. Once a determination is made about which wage rates prevail for the occupational classes listed in the SF-98a or blanket worksheet, these are compared to the appropriate Federal rates for each class. Depending upon the results of the comparison, an adjustment for one or more classes may or may not be needed. No adjustment is needed when the prevailing rates determined using the best available data are similar to the comparable Federal rates. An adjustment may be needed if a significant disparity between the Federal rates and the survey mean and/or median rates for the various classes is observed. This disparity occurs most often with blue collar classes. This may be due to the fact that Federal rates are based on FWS pay schedules which are based on prevailing rates determined from FWS surveys of private sector wages in several types of industries excluding, however, services and related industries. These services and related industries are typically "low wage" and their exclusion from FWS surveys may generate an upward wage rate bias in the resulting pay schedule. On the other hand, BLS area-specific surveys collect data from a broa.der cross-section of industries, including services and related industries. If a significant disparity is determined to exist, there are several approaches that can be used to make adjustments as follows. • Select the statistical measure (e.g., mean or median) closest to the comparable Federal rate, and issue it as prevailing. • Adjust the survey data by applying an appropriate wage movement factor (amount of change over time expressed as a percent increase or decrease in the wage rate) to develop the prevailing rate for issuance. This is used when the wage rate trends over time show significant disparity between Federal and surveyed rates. • Adjust the survey data by statistically co-mingling the Federal survey wage rates through the application of a weighted average technique. This technique combines the Federal and survey wage rates in a statistically valid way to develop the prevailing wage rate. It is only used for janitor, mess attendant, and laborer grounds maintenance services.DUE CONSIDERATION ADJUSTMENTS (CONTINUED) Note that the following two circumstances automatically apply due consideration. • Slotting wage rates using FWS or GS data automatically takes Federal wage rates into account. For classes that have been slotted in order to develop appropriate prevailing rates, further adjustments for due consideration will not usually be needed. • Circumstances wherein Federal rates are used as the primary data source for developing prevailing rates directly applies due consideration. In selecting and applying one of the approaches noted above, the following four principles are followed. • Avoid any arbitrary movement of wage levels. Any adjustments made to survey rates as a result of applying due consideration must be based on a sound analysis of available information. • Use the appropriate pay schedule (GS, Wage Board, or NAF) and grade level for each occupational class to which due consideration is being applied. The Federal and surveyed class compared must be equivalent grade levels. • Use the appropriate grade level step of the pay schedule selected for use. For Wage Board and NAF classes, use the Federal step 2 (WG or NA) rate for non-supervisory classes, and the Step 3 (WS or NS) rate for supervisory classes (working supervisors not exempt from the SCA). For all Federal General Schedule (GS) classes, use the Step 1 rate. • For Federal displacement contracts, particular attention is given to the application of due consideration.DUE CONSIDERATION ADJUSTMENTS (CONTINUED) EXAMPLE The following provides an example for each of the two adjustment techniques described above. The selection of the survey mean or median, whichever is closer to the comparable Federal rate is straight-forward and involves no mathematical calculations. Each example illustrates the application of due consideration using the mathematical calculations required. Both are based on the same problem described below. Problem The current BLS survey mean rate for a given class is $5.25. Due consideration is applied before a prevailing rate is issued. In this example, assume that the evaluation of the BLS survey data indicates that the mean rate is the best indicator of prevailing. Procedures For Adjustments Based on Wage Movements Over Time Between Federal and Surveyed Rates 1. Compare the current BLS survey to the same survey conducted one year ago. In this case, the comparison shows the mean rates of $5.50 (previous year) and $5.25 (current year). The mean has therefore dropped over time. 2. Compare the current appropriate Federal pay schedule with that of one year ago. In this case, the comparison shows that the Federal pay rate for the given occupational class has increased by 8% (wage rate change over the year). 3. Apply the wage rate change observed for Federal rates (i.e., 8%) to the survey mean of the previous year to develop a prevailing rate for the current year for which due consideration has been taken into account. For example, the adjustment is made as follows. Note that applying an 8% increase results in adding $.44 to the previous year's survey mean. .08 x $5.50 = $.44 $5.50 + $.44 = $5.94 4. The result, i.e., $5.94, is adopted for issuance as the prevailing rate. It is based on survey data adjusted for due consideration.DUE CONSIDERATION ADJUSTMENTS (CONTINUED) Procedures for Adjustments Based on Statistical Co-Minqlinq of Federal and Survey Rates 1. To apply due consideration through statistical co-mingling, obtain information from OPM on the actual number of employees directly hired under the FWS by occupational job series, WB or NAF grade level, and geographic area. A sample OPM compilation of actual Federal workers and their respective wage rate for the given occupational class and locality is shown below (a WG-2 graded job, in this example). A total of 100 workers are employed in the WG-2 graded job in the geographic area by the Federal government. # Federal Workers Whose Wage Rate Is $6.87 fWG-2) County X 2 County Y 98 County Z _0 Total 100 2. Co-mingle the actual wages paid the 100 Federal workers with the BLS surveyed wage rates by calculating the weighted average of all the wage rates. The BLS reported mean is used rather than the median because a weighted average is needed herein in order to combine wage rates. Data Sources Co-Mingled # Workers Mean Hourly Rates Total Wages BLS (WG-2) 500 $5.50 $2,750.00 OPM (WG-2) 100 6.87 687.00 Total 600 N/A $3,437.00 (Total Wages All Sources) $3,437.00 = $5.63 (weighted average) (Total # Workers All Sources) 600 3. Adopt the end result, i.e., $5.63, as the prevailing rate, thus accounting for due consideration of Federal rates.WDs are thus always based on the compensation provisions contained in the applicable CBA. Additional principles apply as follows. • All wage and fringe benefit provisions contained in the applicable CBA are to be included in the section 4(c) WD. • Noneconomic provisions of the CBA such as seniority, work rules, and grievance procedures are not included in section 4(c) WDs. • Wage rates provided by the CBA for all the classes needed for contract performance are included in the section 4(c) WD. Areawide WDs Based on Union Dominance Principles Areawide WDs based on union dominance are issued when the wage rates and fringe benefits paid to classes of workers in the geographic area are dominated by collectively bargained compensation agreements. As outlined in exhibit 84, page 334, union-dominated rates are issued when majority representation can be established. CBA wage rates and fringe benefits of the dominant union in the area are issued only for those classes of workers listed in the SF-98 for which union dominance applies. Noneconomic provisions as noted above are not to be included. Prevailing wage rates and fringe benefits for other classes listed would be developed using survey and related data as previously described for areawide WDs. PURPOSE AND FUNCTIONS (SECTION 4(c^ AND UNION DOMINANCE WDs) Functions pertaining to the development and issuance of these two types of WDs based on CBAs include the following. • Analyze CBA: This function entails ensuring the current CBA corresponds to the contract period of performance, and analyzing the CBA to identify all relevant wage and fringe benefits data for use in preparing the WD. • Prepare New/Revised WD Issuance: This function entails final steps taken to issue the WD and prepare it for Phase 6 — Outprocessing. This function is essentially the same as for areawide, prevailing WDs, and will be discussed at the end of this chapter.The following describes the procedures for the first function listed above. Differences between section 4(c) WDs and areawide WDs based on union dominance are noted where appropriate. The second function is covered for all WDs, starting on page 403. PROCEDURES (SECTION 4(c) AND UNION DOMINANCE WDs\ Analyze CBA <■ CBA analysis entails a careful reading of the applicable agreement. These agreements vary in size from a few pages to over 100 pages of a pocket-sized book. Most are complex due to the diversity of employment situations among various industries and companies, and the resulting complicated issues a CBA is negotiated to address. The degree of analysis, evaluation, and interpretation will necessarily vary from CBA to CBA. The procedures below illustrate the utilization of this information to develop the section 4(c) WD or areawide WD based on union dominance. 1. Compare the CBA to SF-98 Needs: Exhibit 94 lists key information to look for in analyzing a CBA and caveats associated with its evaluation. These must be reviewed against the SF-98. 2. Currency of CBA: Is the CBA provided (attached to the SF-98) the most current CBA? (Does it contain the most recently-negotiated monetary provisions applicable to the current predecessor's contract period?) If not, obtain the current, signed version or addendum from the involved parties — contracting agency, the predecessor contractor, or the union. 3. Prospective Changes (Applies to Section 4(c) WDs OnlvW Is there an additional effective date (i.e., in addition to the effective date for current wage rates and fringe benefits), indicating that prospective increases (or decreases) will become effective during the contract period of performance? If so, both current and prospective wage rates and fringe benefits must be included in the WD with their corresponding effective dates. 4. Identify Wage Rate and Fringe Benefit Data: CBAs often provide attachments that list the data needed (see exhibits 44 and 45. presented in chapter 6, pages 181 and 183, for examples of such attachments). However, the text of the agreement must be reviewed carefully for any qualifications or requirements that pertain to and affect the application of wage rates or fringe benefit levels contained in such attachments.KEY CBA INFORMATION EVALUATED FOR SECTION 4(c) WDS OR PREVAILING WDs BASED ON UNION DOMINANCE 1. CBA EFFECTIVE DATES • CBA used must contain the most recently-negotiated provisions applicable to the current, predecessor's contract period 2. WAGE RATE INFORMATION • All CBA provisions relating to wage rates such as the following Straight time hourly and/or salary pay rates Cost-of-living allowances Shift, hazardous pay, and other similar pay rate differentials Other wage rate provisions as found • Effective prospective changes (increases/decreases) are also to be included in Section 4(c) WDs • CBA wage rates may be expressed as follows Single rate Wage rate range (i.e., minimum/maximum based on longevity, performance, or other similar wage differential standards) • Wage rate provisions may differ for each class needed 3. FRINGE BENEFITS • All provisions relating to bona fide fringe benefits such as the following Holidays Vacations Sick leave Other leave benefits such as funeral, jury duty, military leave - Insurance plans such as life, accident, health, disability, and dental Retirement plans Severance pay • Effective prospective changes (increases/decreases) are also to be included in Section 4(c) WDsKEY CBA INFORMATION EVALUATED FOR SECTION 4(c) WDS OR PREVAILING WDs BASED ON UNION DOMINANCE (CONTINUED) • Benefits such as insurance or retirement must be expressed in the WD as a cents-per-hour benefit or as a percentage of wages; CBA provisions may need to be converted requiring clarification by the union and the contractor • Benefits such as vacations and holidays are provided on an accrued or set basis, i.e., number days per length of service or number and named days • Fringe benefit limitations and requirements and/or qualifications to be eligible must be evaluated 4. NONECONOMIC PROVISIONS • WD based only on bona fide wage rates and fringe benefits as outlined above • Noneconomic items such as seniority, grievance procedures, and work rules are not directly related to the WD, but may indirectly impact on compensation provisions which are to be included in the WD5. Salary Conversions to Hourly Rates; Are any of the wage data needed expressed in other than hourly terms? If so, they may need to be converted to hourly wage rates using the following formula. If the number of hours in the workweek, workmonth, or workyear is not provided in the CBA, obtain this information from the involved union and/or contractor. Weekly Salary_ = hourly wage rate # Hours in Workweek Monthly or Annual Salary_ = hourly wage rate # Hours in Workmonth or Workyear If the wages paid to a class are a "true salary" (i.e., a standard/fixed salary that does not change by the number of hours worked in the workweek, workmonth, or workyear), data cannot be converted to an hourly rate. 6. Calculation of Prospective Increases or Decreases (Section 4(c) WDs only): Percent changes (increases or decreases) may need to be applied if: • the CBA's current rates are expressed in the effective CBA as a percent increase (or decrease) over stated base rates and/or • if prospective increases (or decreases) will become effective during the period of performance of the successor SCA-covered contract. For each class where a percent change is called for by the CBA, the percentage stated is applied to the base wage rate as follows. Assume the base rate is $5.00/hr. Six month's into the successor contract's period of performance, an increase of 8% becomes effective. The wage rate would then be raised by 8% to $5.40 as follows. 8% x $5.00 = .08 x $5.00 = $.40 $5.00 + $.40 = $5.40 7. List Wage Rates: Make a list of all the classes to be included in the WD with their corresponding CBA wage rates expressed in hourly wage rate or salaried terms. If the CBA requires that the employee be compensated according to a range of rates, list both the minimum and maximum amounts and all the conditions required for qualification for the minimum-maximum amounts (the range). For these instances, the WD may require the following explanatory footnote. "Any employee of the predecessor contractor employed by the successor contractor shall be entitled to at least the same level of compensation achieved within thespecified rate range while employed by the predecessor contractor." 8. List Fringe Benefits: List the fringe benefits for each occupational class as described below. All benefits are to be expressed as they appear in the CBA. If the CBA is unclear, the involved union and contractor are contacted for clarification. • Insurance and retirement plans: The CBA may provide for group insurance covering many benefits such as life insurance, disability, medical, and so forth. Consequently, only one statistic may be needed for such similar benefits, or each may need to be expressed separately. Note that the format for the footnote expressing such benefits is: "Contractor shall furnish Named Benefit(s) in accordance with those established under the above named collective bargaining agreement. The contractor's contribution toward the plan currently averages $_an hour,_week,_ month computed on the basis of all employees (hours worked or paid for depending on how the CBA is written) in the bargaining unit." • Vacations, holidays, sick leave, and other similar benefits: These are expressed as they appear (i.e., days accrued per length of service; number and specific holidays). Do not issue any unpaid holidays or other similar benefits that may be discussed in the CBA, but not really provided as an employer-paid benefit. Note that the format for the footnote expressing vacation benefits is: "Name Bene fit. Length of service includes the whole span of continuous service with the present (successor) contractor wherever employed, and with predecessor contractors in the performance of similar work at the Federal facility". 9. Determine Method of Issuance for Section 4fc) WDs: In almost all cases, the "long" WD format is used. However, a short form may be utilized wherein specific wage rates and fringe benefits do not need to be listed in the section 4(c) WD issued. The WD issued simply states the successor contractor's obligations as follows. "In accordance with Section 2(a) and 4(c) of the Service Contract Act, as amended, employees employed by the contractor in performing (type of services) services and covered by the collective bargaining agreement(s) between (contractor) and (union), are to be paid thewage rates and fringe benefits set forth in the bargaining agreement(s) (effective dates)." The short form as expressed by the note above is only used when the option year (successor) contractor and the incumbent (predecessor) contractor are the same. In these situations, the contractor has not changed from one year to another. The contractor is therefore knowledgeable about the provisions in the applicable CBA. PROCEDURES TO PREPARE NEW/REVISED WD ISSnAMfTK (AT.T. wn«) Once a revised or new WD is ready to be issued, the Specialist performs the following processing procedures. 1. Withdraw any previously-issued WDs that are superseded by the WD about to be issued. Withdrawing a WD takes place when a new or revised WD has been developed that totally replaces an already existing previously-issued WD. This is particularly crucial for blanket WDs, which once established, replace many of the previously-issued individual WDs, for a given MSA. 2. Prepare new or revised Register of Wage Determinations listing all the occupations and corresponding wage rates, fringe benefits, locality of application, WD number(s), issuance date, and all necessary footnotes. Prepare or update this information as follows. Exhibit 95 shows a completed areawide blanket WD. Exhibit 96 shows a completed areawide WD based on union dominance. They are grouped at the end of this chapter. For an example of a sectiion 4(c) WD, see Exhibit 8, page 47). • Wages — hourly rates. • Fringe benefits — expressed in appropriate footnotes. - Health and welfare — cents-per-hour or percent of wages. - Vacations — total days or weeks per length of service and qualifications per 29 CFR 4.173 or the applicable CBA. Holidays — total number and named. - Other — expressed as warranted.• Locality — State and substate area, including all counties of application and respective FIPS county codes. • WD number — if new WD, use next available number in the current year's sequence; if revised, keep the same number, but add revision number (see chapter 7, page 192). Note that for blanket WDs, WD numbers are recorded on the blanket request worksheets grouped by classifications associated with continuous/multiyear contracts, and recurring and one-time contracts. The WD to be applied to each contract (continuous) and industry group (recurring and one-time) is specified and listed on the appropriate worksheet. Should substantial additional data be required before prevailing wage rates or fringe benefits may be issued for one or more classifications, DOL will identify the classifications and provide specific guidance on how and when the blanket wage determinations may be used. For example, DOL may specify that the blanket wage determination may not be used for a particular contract or category of contracts. On the other hand, the contracting agency may be advised to proceed with the contract and utilize the conformance procedure, in accordance with 29 CFR 4.6(b)(2). • Issuance date — month, day, year. • Attached explanatory notes — always include the standard notes for areawide and section 4(c) WDs as outlined in chapter 7, page 228; include others as necessary, e.g., any classes that may qualify for exemptions or special conditions that may apply. 3. Prepare Basis Sheet describing the analytical reasons supporting the issuance of the wage rates and fringe benefits contained in the applicable WD. (See chapter 7, page 228). 4. Fill out SF-98 Completion Form for each SF-98 documenting WD tracking information to be entered into the WD-ATS data base (see chapter 7, page 239). 5. Assemble all background materials in the WD Docket File, including all source data used, Basis Sheet, and correspondence. 6. Send WD and WD Docket File to production staff for typing, receive back for proofing, and facilitate any final typing needed. 7. Send new or revised WD for quality control and WD Docket File to Section Chief for review and approval. Blanket WDs are sent to the Blanket Manager for review.8. The Section Chief or Blanket Manager reviews and approves the WD. For individual requests, the Section Chief passes packet on to the Salary and Wage Assistant who initiates the Outprocessing procedures of Phase 6. For blanket requests, the Blanket Manager initiates such outprocessing. Once blanket WDs are approved, the Specialist ensures copies and supporting materials are filed with the WD docket and in the WD files as appropriate. WORKFLOW A workflow diagram of Phase 5 for areawide WDs is presented as exhibit 97. A workflow diagram of Phase 5 for section 4(c) and union dominance WDs is presented as exhibit 98. They provide reference guides for the general procedures followed.407 SAMPLE BLANKET PREVAILING WD (Page 1 of 7) U.S. DEPARTMENT OF LABOR EMPLOYMENT STANDAROS ADMINISTRATION WAGE ANO HOUR DIVISION WASHINGTON, D.C. 20210 REGISTER OF WAGE DE TERMINATIONS UNDER THE SERVICE CONTRACT ACT By direction ol the Secretary of Labor Page 1 of 5 <@ii lan lT Mo'ss Director Division of Wage Determinations LOCALITY State: Area. Calif orn i a Imperial (025) and San Diego (073) Counties Waije determination number: 88-213 CA DiteJUL 1 1 1988 Minimum I rmye benefit payments Cla%v ol iervice employee hourly w*je Meal III & Welfare Vacation Holiday Other Furniture Maintenance and Repair, Machine Tool Operation and Repair Occupations, Material Handling and Packing Occupations, Mechanics and Maintenance and Repair Occupations, Trdiisportation and Mobile Equipment Operation Occupations and Plant and System Operation Occupations: 1. Electrician, maintenance S14.38 2. Machinist, maintenance 14.38 3. Mechanic, maintenance (machinery) 14.38 4! P i pef i t ter, mai ntenance 14.38 5. Mi llwright 14.38 6. Stationary engineer 14.38 7. Heating/relrigeralion/air condi tioning mechanic 14.38 8. Sheet-metal worker, maintenance 14.38 9. Welder, maintenance 14.38 10. Heavy equipment mechanic 14.38 11. Mason, maintenance 14.38 12. Carpenter, maintenance 13.95 13. Painter, maintenance 13.95 14. Plumber, maintenance 13.95 15. Appliance medianic 13.52 16. Helper, maintenance trades 11.95 17. Laborer 6.22 EXHIBIT 95408 I I SAMPLE BLANKET PREVAILING WD (Page 2 of 7) U.S. DEPARTMENT OF LABOR EMPLOYMENT STANOAROS ADMINISTRATION WAGE ANO HOUR OIVISION WASHINGTON, D.C. 20210 REGISTER OF WAGE DETERMINATIONS UNDER THE SERVICE CONTRACT ACT By direction ol the Secretary ot Labor Page 2 of 5 Mos: Diroctor Division of Wjl jle: Aiuj California Imperial (U25) and San Diego (U73) Counties Way The terms of the Government contract, by the employer, by state or local law, etc.), the cost of furnishing such uniforms and maintaining (by laundering or dry cleaning) such uniforms is an expense that may not be borne by an enployee where such cost reduces the hourly rate below that required by the wage determination. The Department of Labor will accept payment in accordance with the following standards as compliance: The contractor or subcontractor is required to furnish all enployees with an adequate number of uniforms without cost or to reimburse employees for the actual cost of the uniforms. In addition, where uniform cleaning and maintenance is made the responsibility of the employee, all contractors and subcontractors subject to this wage determination shall (in the absence of a bona fide collective bargaining agreement providing for a different amount, or the furnishing of contrary affirmative proof as to actual cost), rvimtmrv .ill imp I nyi*es for such cleaning and maintenance at a rate of S3.3b a week (or 67 cm I.*', .i * l-i y). However, in those instances where the uniforms furnished are made of "wash .util w.-.n " umI.t ia Is, may be routinely washed and dried with other personal garments, and do mil i-.*<|uiiv ciny special treatment such as dry cleaning, daily washing, or commercial I .in mil'r i im| in order to meet the cleanliness or appearance standards set by the terms of tin? Government contract, by the contractor, by law, or by the nature of the work, there is no requirement that employees be reimbursed fc-r uniform maintenance costs. NOTE: The contracting officer shall require that any class of service employee which is not TTsted herein and which is to be employed under the contract (i.e., the work to be performed is not performed by any classification listed in the wage determination), be classified by the contractor so as to provide a reasonable relationship (i.e., appropriate level of skill comparison) between such unlisted cl assifications and the classifications listed in the wage determination. Such conformed cl do not reflect the actual services provided at Fort Campbell. DOD Waee Survey Data, based on prevailing rates ror similar services and covering the Nashville area retlect a truer picture of the tvpe services provided and pay rates to ep.olo^ccS at Somewhere, KY. Enclosed find sample DOL Certification of Wage Rates and DOD Wage Survey Data. It is readily apparent that there is a disparity which places the contractor at a clear advantage over government employees while underpaying contractor employees. P.O. Box xxx Somewhere, KY xxx-xxxx xxx-xxxx April 18, 1986 To Do For AH, That Which Non# Can Do For On***lfSAMPLE REVIEW AND RECONSIDERATION REQUEST (Page 2 of 2) Administrator April 18, 1986 Page 2 For example, minimum for a welder WG-8-9 is S9.37 or S9.81 per hour as opposed to $8.42 per hour on the DOL Certification. DOD Step 5 is $10.45 or $10.93 per hour. By checking the difference between fringe benefits of contractor vs. government emplovees, generally there is an approximate 30% difference in the total disparity in favor of the contractor. Your consideration and a timely decision will be deeply appreciated. Sincerely, Bob Doe 'Chairman Contracting Out Committee JLK:ssturn delivers them to the BSCWD Branch Chief. The Branch Chief assigns requests to Salary and Wage Specialists for their determination of actions needed to address the issues outlined therein. Review for Proper Completion The assigned Specialist conducts the required research for the review and reconsideration to be made by the Administrator. If the request provides no supporting evidence or is untimely, the wage determination or conformance stands as is, and a written reply is sent to the interested party so-stating. Where the request is submitted in a timely manner and supporting evidence is provided as required by the regulations, a data review and evaluation is conducted. Analysis of Request and Evidence 1. In addition to the supporting evidence provided by the interested party, the Specialist obtains the following. • Data originally used by BSCWD to develop and issue the WD or conformance decision (obtained from the WD Docket File for the affected WD). • Any additional, relevant data that have since become available (obtained from Data Source Files). 2. Data submitted as evidence supporting a change in the WD or conformance decision and additional data as described above are evaluated according to the following criteria. • Is the survey or information provided current? • Who performed the survey and/or information analysis? Were acceptable survey, statistical, and analytical techniques used? • Does the survey or information provided cover the appropriate geographic locality of the place of performance? • Is the survey or information provided based on a proper sample of the population or universe that can be used to represent what is prevailing in the locality? • Does the survey or information provided cover the appropriate occupational classes, i.e., those addressed by the WD or conformance in question? The survey or information provided as evidence must be specifically pertinent to the classes in question.• What does the survey or information provided indicate with regard to wage rate relationships within classification families and between comparable classes? • Does the request rely on use of a single rate paid to 50%+ of the service employees in a given class? Or, is the mean or median used to determine what the wage rates should be? Are they calculated correctly? If the median is not used, is there an appropriate justification? • If fringe benefits are at issue, does the survey or information provided treat them in the same manner as survey data used by BSCWD? • How do the data used by BSCWD to issue the wage determination or conformance decision compare to the data submitted by the interested party? Which data result in more relevant and reliable indicators of what is prevailing? • If any additional data have since become available, how do they compare to the data submitted by the interested party and the data used to issue the WD or conformance decision? • Where major differences exist between data submitted as evidence and data used by BSCWD to issue the WD or conformance decision, are there additional data sources that can be used to determine why? 3. Review and reconsideration can result in either an affirmed, revised, or new wage determination or conformance decision. If the data submitted as evidence in conjunction with those originally used, and any other relevant data that have since been released suggest that the WD or conformance was incorrectly developed, the wage determination or conformance decision is revised utilizing these resources as the basis for re-issuing the decision. The application of criteria and statistical techniques used to perform review and reconsideration are the same as those used to develop a WD or conformance decision (see section IV, chapters 15 and 17). Issuing and Outprocessing the Review and Reconsideration Decision The following steps are taken to issue and facilitate outprocessing of the decision. 1. The Specialist drafts a written reply outlining the decision and its basis. The new or revised WD is attached, as appropriate.2. The reply, its basis, and supporting evidence are submitted for review to the appropriate East or West Section Chief, the Branch Chief, and the Director, Division of Wage Determinations, in that order. If a new or revised WD is called for, it is also reviewed. 3. The Administrator, Wage and Hour Division, reviews the decision letter. It may be approved and signed or questions may be raised to be resolved at the staff level. 4. After approval, the response letter is date-stamped and mailed out by the Administrator's office with a copy of the date-stamped new or revised WD, as appropriate. 5. A copy of the Administrator's response letter is provided to BSCWD. It is filed, with the original request attached, all supporting documentation, and the new or revised WD as appropriate, in the WD Docket File by the assigned Specialist. Exhibit 104 shows a sample response letter. 6. If a new or revised WD is issued, the WD replaced is withdrawn as appropriate and logbooks are updated as required. HIGHER APPEALS The Administrator's resulting review and reconsideration decision can be appealed to the Board of Service Contract Appeals utilizing procedures described in the regulations at 29 CFR Part 8: Practice Before the Board of Service Contract Appeals. Currently, authority to carry out the responsibilities of the Board is vested in the Deputy Secretary of Labor. An appeal must be submitted within 20 days of the issuance of the Administrator's review and reconsideration decision denying a request to make changes in the wage determination or conformance decision. The petition must be in writing and contain all necessary information as outlined in the regulations. The Board may not request any administering agency to postpone any contract action because of the filing of a petition. However, the Board will not review a wage determination after award, exercise of an option, or extension of a contract unless the following conditions prescribed by the regulations at 29 CFR Part 8, section 8.6 are in effect. • A section 4(c) WD may be reviewed after award, exercise of option, or extension of a contract if it has been issued as a result of an Administrative Law Judgefinding that substantial variance exists, or that arm's length negotiations did not take place. • Where a petition for review of a wage determination is filed prior to award, exercise of option, or extension of contract, the Board may review it after such award, exercise of option, or extension of a contract if the issue is a significant issue of general applicability. In this case, the Board's decision will not affect the contract after such award, exercise of option, or extension. The wage determination and/or conformance records are filed with the Board by the Associate Solicitor for Fair Labor Standards. The BSCWD staff work closely with the Associate Solicitor by providing all WD Docket File documentation including SF-98 requests, job descriptions, and background material for decisions issued, and all related correspondence pertaining to the historical development of the wage determination or conformance decision, the most recent wage determination or conformance decision, and actions taken by the Administrator under review and reconsideration procedures. The Board may decline review of a case, remand it to the Administrator with instructions for obtaining additional evidence or making new or modified findings, or choose to hear the case. There is no deadline for action by the Board, only that it acts expeditiously taking into consideration procurement deadlines. If remanded, the Branch of Service Contract Wage Determinations conducts another review and reconsideration following any special instructions ordered by the Board. Note that Administrative Law Judge hearings are not involved with appeals concerning review and reconsideration of any WD or conformance decision. These procedures are used for section 4(c) wage determination appeals concerning issues of substantial variance and/or arm's length negotiations as discussed subsequently in chapter 19.SAMPLE REVIEW AND RECONSIDERATION RESPONSE (Page 1 of 2) MAY 0 7 1986 Mr. Bob Doe Chairman Contracting Out Committee United States Association of Doe Family Workers Local xxxx, AFL-CIO P.O. Box xxx Somewhere, KY xxxxx Dear Mr . Doe : This is in response to your letter of April 1G, requesting review and reconsideration of the wage rates contained in Service Contract Act (SCA) Wage Determination (WD) 83-41 (Rev. 4). Tnis WD is applicable to a CJ.S. Army service contract at Bianchfiela Array Community Hospital ror ambulance services, commissary shelf stocking, and maintenance supply; ana for railroac services at Somewhere, KY. The Department of Laoor is required under the SCA to issue determinations of prevailing wage rates and fringe benefits reft a specific locality which must be paid oy the contractor to the various classes of employees engaged in the performance of service contracts. Surveys of wage rates and fringe benefits conducueu oy tne Bureau of Labor Statistics (CLS) for selected job classifications in various localities throughout: tne country are generally relied upon as the Dasis for making such exterminations . Wage Determination 83-41 (Rev. 4) was based primarily upon daca collected by the BLS in a March 1985 cross industry survey of manufacturing and non-manufacturing establishments situated in the Clarksviile-Hopkinsville Standard Metropolitan Statistical Area which consists of Montgomery County, Tennessee and Christian County, Kentucky. The BLS surveys are statistically designed to represent a representation of all firms ir. a particular locality and have been traditionally reiiea upon in the administration of the SCA as the primary data source for the issuance of wage determinations. Surveys conducted to establish wage rates for direct hire Federal employees, on the other hand, are limited to industries of manufacturing, wholesale trace, selected transportation industries and utilities.SAMPLE REVIEW AND RECONSIDERATION RESPONSE (Page 2 of 2) Tne iniiorr.tation wnich you enclosed in your letter, while mu creative, only provides tne wage grade equivalent compensation levels quo not any basis on which to equate the conpensation levels to occupational classifications. Accordingly, we must reaiiirr. tne appropriateness or wage rates contained in WD 83-41 (Rev. 4 ) . You may wisii,# however, to provide specific survey data which is equated to particular occupational classifications. Upon receipt ol sucii uata, we would review the information with a view towards possiole revision or WD 83-41 (Rev. 4) issued Decenoer 19, 1S85. Sincerely, Paula Smith Administrator Wage and Hour DivisionCHAPTER 19s SECTION 4(c) SUBSTANTIAL VARIANCE AND ARM'S LENGTH ADMINISTRATIVE HEARINGS INTRODUCTION There are two types of hearing appeals that can be made concerning section 4(c) wage determinations: an appeal based on substantial variance issues; or an appeal based on issues concerning arm's length negotiations. According to section 4(c) of the Act and its implementing regulations, whenever a section 4(c) WD is issued, the successor contractor is required to pay at minimum the wage rates and fringe benefits contained therein as based on the predecessor's collective bargaining agreement. These rates are to be paid unless: • as a result of a 4(c) substantial variance hearing, such wage rates and/or fringe benefits are found to vary substantially from those which would otherwise prevail for services of a similar character in the locality; and/or • as a result of a 4(c) arm's-length hearing, investigation, or otherwise pursuant to the Secretary's authority, it is found that the CBA itself and/or any/all of the wage rates or fringe benefits contained therein were not established through arm's length negotiations. Both types of appeals involve the use of administrative hearings conducted by Administrative Law Judges (ALJ) in accordance with the regulations at 29 CFR Part 6, and may involve the Board of Service Contract Appeals in accordance with the regulations at 29 CFR Part 8. For substantial variance issues, the request concerns the direct initiation of a hearing. For arm's length negotiation issues, however, a two-step process may be nefeded. The Administrator must first issue his/her findings in response to a request before a hearing can be initiated. Such findings may result in a direct referral of the case to the ALJ or the Board by the Administrator. In these cases, a subsequent request for a hearing is not needed. If the Administrator's findings do not include a direct referral of the case, an interested party must then request the hearing through a subsequent letter. If substantial variance or lack of arm's length negotiations is found to exist, a new WD must be issued which reflects areawide, prevailing rates for the locality rather than those found in the predecessor contractor's CBA.This chapter on section 4(c) appeals discusses the following topics with regard to the use of the Administrative Law Judge (ALJ) and Board of Service Contract Appeals hearing process to adjudicate substantial variance or arm's length negotiations issues. • REQUEST AND RELEVANT TIME FRAMES • PROCESSING PROCEDURES AND DECISION-MAKING CRITERIA • PROVISION OF TECHNICAL EXPERTISE TO SOL • APPEALS TO THE BOARD OF SERVICE CONTRACT APPEALS REQUEST AND RELEVANT TIME FRAMES This segment consists of three subsections as a result of the 2-step process that may be needed for arm's length issues to reach the ALJ or Board hearing stage, and time frames and general information concerning ALJ hearings granted. Substantial Variance Hearing and Arm's Length Determination Requests Either type of request can be submitted by any affected and/or interested party, including, but not limited to, contracting agencies, contractors, or prospective contractors, contractor or employer associations, employees or their representatives/labor unions, or other interested government agencies. The interested/affected party submits a written request for the substantial variance hearing or arm's length determination to the Administrator, Wage and Hour Division. The request must contain information as specified in the regulations at 29 CFR Part 4, section 4.10(b)(1)(i) (A), (B), (C), and (D) for substantial variance proceedings and section 4.11(b)(l)(i), (ii), and (iii) for arm's length determinations as follows. Exhibit 105 illustrates a sample request letter. • Number of any wage determination at issue, name of the contracting agency involved, and a brief description of services to be performed under the contract (substantial variance request only). • Statement regarding the status of the procurement and any estimated procurement dates, such as bid opening, contract award, or commencement date of the contract or its follow-up option period.SAMPLE SUBSTANTIAL VARIANCE HEARING REQUEST DEPARTMENT OF THE AIR FORCE HEADQUARTERS UNITED STATES AIR FORCE WASHINGTON, D.C. Request for Service Contract Act (SCA) 4(c) Hearing, Blue AFB, VA, Custodial Service Contract Paula V. Smith, Administrator Wage and Hour Division Employment Standards Administration U.S. Department of Labor Washington, D.C. 20210 Wage Determination 85-1189 R1 was issued 17 Dec 86 and applies to subject contract. This determination provides wage rates and fringe benefits for custodial services at Blue AFB, Hampton, VA. The determination is based on the Collective Bargaining Agreement (CBA) between Helpful Janitor Service and the Janitor Workers Union ^America ; The U.S. Department of Labor (DOL), Bureau of Labor Statistics (BLS) Area Wage Survey (Bulletin 3035-18, May 1986) of the adjacent cities of Norfolk, Virginia Beach and Portsmouth, VA reflects the prevailing wages for the Metropolitan Statistical Area (MSA). Previously, BLS Area Wage Surveys indicated Hampton, VA ( Blue AFB) with the above cities as metropolitan areas (BLS Bulletin 3020-23). Currently BLS includes Hampton, VA as part of the above MSA. The BLS Area Wage Survey and the Employment Standards Administration Area Wage Determination 80-908, R18, 6 Jan 87 apparently reflect the prevailing wages for Hampton, VA ( Blue AFB) and other contiguous jurisdictions. The wage rates for janitors, porters and cleaners in WD 85-1189 Rl, 17 Dec 86 are 38% higher than the rates found by the Department of Labor to prevail in the area. On the basis of the above, this office is of the opinion that a prima facie case exists that the wages and fringe benefits in Wage Determination 85-1189 Rl are substantially at variance with those which prevail for services of a character similar in the locality. Accordingly, a hearing is requested pursuant to section 4(c) of the Service Contract Act. Alice Doe 4 Atch Special Assistant for Labor Affairs 1- BLS Bulletin 3035-18, Cover and Directorate, Contracting & Manufacturing Policy pg. 8 2. WD 85-1189 Rl 3. WD 80-908 R18 4. BLS Bulletin 3020-23 Cover only (reference)• Statement of the reasons why the interested party believes a substantial variance exists with respect to some or all of the wages and/or fringe benefits, and/or that the applicable CBA and/or wage rates/fringe benefits contained therein were not reached as a result of arm's length negotiations. (Note: Supporting evidence such as data concerning wages and/or fringe benefits prevailing in the locality or information concerning arm's length negotiations should be included/attached. If the only information submitted concerning a substantial variance of fringe benefits is a DOL wage determination, it is insufficient, and the party requesting the hearing will be so advised. A DOL wage determination is a sufficient basis to grant a substantial variance hearing on wages only, however.) • Names and addresses (to the extent known) of any interested parties. For either type of request, information must be submitted (unless the Administrator deems otherwise) as follows according to 29 CFR 4.10(b)(3) (i) and (ii) for substantial variance hearing requests and section 4.11(b)(2) (i) and (ii) for arm's length determinations. • prior to 10 days before contract award, if an advertised contract; or • prior to the contract or option period start date, if a negotiated contract, or existing contract with an option or extension period. The Administrator can grant or deny the substantial variance hearing request. A request is granted only if the review results in a determination that there may exist a substantial variance. Wage and Hour must respond to the request within 30 days of receipt. Although the above time frames are the extent of the timing requirements called for by the regulations for such requests, the reader should also consider section 4.5 of Subpart A of the regulations concerning wage determination effective dates. In effect, section 4.5 stipulates that a WD should be issued at least 10 days before the opening of bids for competitive contracts or the contract start date for negotiated contracts. Given that Wage and Hour has 30 days to act on a request, such a request should, in effect, be submitted at least 40 days prior to the bid opening or contract start date. This will ensure that the decision can be made effective in time to comply with the WD effective dates prescribed by section 4.5.For arm's length determination requests, the Administrator issues findings as to whether arm's length negotiations did or did not take place, or findings that insufficient evidence warrants a hearing thereby referring the case directly to the ALJ or Board. The regulations do not state a required response time frame for the Administrator's decision. Arm's Length Hearing Requests For those cases not submitted directly to a hearing by the Administrator in response to the initial arms' length determination request, any interested party (as defined previously) may subsequently request a hearing as follows. • Submit a written request for a hearing to the Administrator within 20 days of the Administrator's ruling. • Include in the request a detailed statement of the following. Reasons why the Administrator's findings are incorrect. Facts alleged to be in dispute, if any. If no hearing is requested within the time limit, the Administrator's ruling stands. If an arm's length hearing is requested, the Administrator refers it to the: • Administrative Law Judge where material facts are in dispute; or • Board of Service Contract Appeals where no material facts are in dispute. ALJ Hearings Granted Once a hearing is granted, an Order of Reference, complete with various supporting documentation attached is submitted by the Administrator to the Chief Administrative Law Judge (ALJ) and mailed, with a Certificate of Service, to all interested parties. Hearings are conducted by a designated ALJ in accordance with procedures outlined in 29 CFR Part 6. Within 20 days of the Order of Reference mailing date as indicated by the Certificate of Service, interested parties wishing to participate in the hearing must submit a written response to the Chief ALJ. The Chief ALJ appoints an ALJ to hear the case who will then notify all interested parties of the time and place for the prehearing conference andsubsequent hearing. These must be scheduled within 60 days from the mailing date of the Order of Reference. The ALJ "closes the record" on the hearing within 10 days after the start of the prehearing conference and must issue a decision within 15 days of receipt of the prehearing conference and hearing transcripts. PROCESSING PROCEDURES AND DECISION-MAKING CRITERIA For processing section 4(c) substantial variance hearing requests, and arm's length negotiations determination and hearing requests, Wage and Hour performs six (6) functions as follows. • Initial Request Processing: This entails intake and assignment of requests. • Initial Reguest Review: Review of 4(c) substantial variance hearing or arm's length determination request to ensure that regulations have been followed with regard to timing and required information. • Issue Analysis: Analysis of the request and all relevant data to determine whether substantial variance may exist or that there may not have been arm's length negotiations. • DOL Response: Preparation of a reply that for: a variance hearing request, grants or denies the request, or notifies the applicant that more time is needed to review/analyze the request before a determination to grant or deny can be made; or an arm's length determination request, provides the Administrator's findings and whether the case has been directly referred to the ALJ or Board. • Review 4(c) Arm's Length Hearing Reguest: Review of a hearing request submitted in response to the Administrator's findings where such findings did not automatically refer the case to the hearing process. • Initiating the Hearing — Order of Reference Preparation: Working closely with SOL, preparation and proper distribution of the Order of Reference, including all applicable attachments such as the Certificate of Service, needed to initiate the hearing process.These functions have been assigned to the Branch of Service Contract Wage Determinations by the Administrator, Wage and Hour Division. The Administrator makes the decision to grant or deny a substantial variance hearing, issues findings, and grants or denies hearings with regard to arm's length negotiations. Procedures followed and criteria used for each of these functions are outlined below. Initial Request Processing Requests are received by the Mail and File Room staff where they are date-stamped in the same manner as SF-98 requests. The Mail and File Room staff forward the requests to the Central Processing Unit, who in turn delivers them to the BSCWD Branch Chief. The Branch Chief assigns requests to Salary and Wage Specialists for their determination of actions needed to address the issues outlined therein. Initial Request Review As specified by the regulations, Wage and Hour must respond to requests for 4(c) substantial variance hearings within 30 days of receipt. If a substantive response granting or denying a hearing cannot be provided within this time, then a letter advising that additional time is necessary must be sent to the party requesting the hearing within the 30 days. The regulations do not specify response time for arm's length determination requests. 1. The request is first reviewed to ensure that it contains all required information as listed on page 458. If any information is missing, the Specialist contacts the interested party (by telephone or in writing) and asks that it be provided. 2. The Specialist also reviews the request for timeliness according to the time frames discussed on page 461. If not timely, the request must be denied unless the Administrator determines that extraordinary circumstances exist. Issue Analysis 1. The Specialist evaluates the issues and evidence presented in the request. Analyzing a 4(c) substantial variance hearing request and a 4(c) arm's length determination request varies somewhat as follows. • Substantial Variance Issue Analysis: The request, reasons, and supporting data submitted by the applicant,in addition to any other reliable, available data are analyzed to answer the question below. "Does the information show that there mav be a substantial variance between some or all of the wage rates and/or fringe benefits provided for in the applicable CBA and those which prevail for services of a similar character in the locality?" To be considered at variance, the analysis should reveal a variance of at least 8-10% between prevailing rates and those contained in the collective bargaining agreement used as the basis for the WD. Procedures and statistical application techniques for evaluating the data are the same as those used to develop and issue a WD (see section IV, chapter 15), and include the following key considerations. The analysis is conducted only for those classes of service workers requested by the interested party. - The analysis is conducted only for wages or fringe benefits, or both, as specified in the request. The analysis takes into account survey methods used to obtain the data submitted as evidence by the interested party. • Arm's Length Negotiations Issue Analysis: The request is analyzed for the Administrator to make a determination (ruling or finding) on the issue of arm's length negotiations. The request and supporting reasons/evidence are studied to determine the following. "Was the CBA and/or some/all of the wage rates and/or fringe benefits contained therein reached as a result of arm's length negotiations?" DOL Response 1. The Specialist determines what type of DOL response is required and drafts a letter accordingly. For a 4(c) substantial variance hearing reguest, one of 3 types of replies can be issued as follows. All letters should reference the appropriate regulatory sections. • Letter notifying the applicant that more time is needed. • Letter denying the request for a hearing, including specific reasons why. • Letter granting the request for a hearing, including general reasons why and indicating that Wage and Hour isproceeding with the required steps to refer the case to the ALJ. Exhibit 106 provides a sample response letter. For 4(c) arm's length determination requests, there are two types of replies. • Letter stating a finding of "yes" or "no" on the arm's length negotiations issue. The reply must include: reasons for the "yes" or "no" decision; and information pertaining to the opportunity for an interested party to request a hearing be held to further decide the issue. • Letter stating a finding that there is insufficient evidence upon which to make a decision, and that the issue has been submitted directly to the ALJ or Board. 2. Draft letters for variance hearing denials, notices that more time is needed, and those providing findings on arm's length issues are then submitted for appropriate supervisory review (e.g., Section Chief, Branch Chief, Director, Division of Wage Determinations). 3. When ready, they are submitted to the Office of the Administator for review and approval, signature, and mailing. They are not sent to the Office of the Solicitor of Labor (SOL) for review as is done for letters granting a hearing. Procedures followed for responses granting a hearing are discussed below under the subsection Initiating a Hearing — Order of Reference Preparation. Review 4(c) Arm's Length Hearing Request For situations where an arm's length negotiations determination (Administrator's ruling) does not refer the case directly to the ALJ or Board hearing process, an interested party may submit a subsequent request to do so. Specialists review these requests for timeliness and required information as described on page 462. If the request is untimely or does not include reasons why the Administrator's findings are incorrect, the request is denied and a response letter is prepared and mailed to the interested party so-indicating. If the request is completed and submitted properly, it is processed as discussed below under the subsection Initiating the Hearing -- Order of Reference Preparation.SAMPLE SUBSTANTIAL VARIANCE HEARING RESPONSE Mr®. A1ice Doe Special Assistant for Labor Affair* Directorate, Contracting k Manufacturing policy Headquarter® United State* Air Force Department of the Air Force Washington, D.C. 20330 D«ar Mrs• Doe: This is in response to your request for a substantial variance hearing under section 4(o) of the Service Contract Act. At issue are the wage rate and fringe benefits contained in the collective bargaining agreement between Helpful Janitor Service, Inc. and Guided Missile 525, Janitor Workers Union of America, and set forth in Wage Determination(WD) 85-1189 (Rev. 1) applicable to custodial services at Blue Air Force Base, Hampton, Virginia. lou cite for comparison purposes the janitor, porter, cleaner wage data contained in the Bureau of Labor Statistics Area Wage Survey for Norfolk, Virginia Beach, Portsmouth, Virginia - North Carolina Metropolitan Area of May 1986 and in WD 80-908 (Rev. 18) for service of a similar character in the locality. A. review of the wage rate contained in the collective bargaining agreement between Helpful Janitor Service, Inc. and Guided Kissile 525, Janitor Workers Onion of America, compared with other available data, does support a conclusion chat a substantial variance say erist. In reference to your request for a hearing on the collectively bargained fringe benefits, you did not, however, provide information indicating that a substantial variance exists between the collectively bargained fringe benefits and those prevailing in the locality. The fringe benefits comparison between those set forth in the subject collective bargaining agreement and those contained in the area wage determination is insufficient to on such a CFR the Sincerely, Paul* V. £*it_h Administrator warrant a hearing. Therefore, your request for a hearing fringe benefits is denied. We are proceeding with the necessary action to accomplish hearing in accordance with the provisions set forth in 29 4.10 and all interested parties will be advised regarding scope and other pertinent details as soon ae possible.Initiating the Hearing — Order of Reference Preparation The Order of Reference is a legal document by which the Administrator officially refers a case to the Chief Administrative Law Judge. The response letter granting the hearing and the Order of Reference are prepared/processed as follows. 1. If considerable time has lapsed since the hearing request was received (i.e., in cases where a notice of additional time needed has been sent), before preparing the draft Order of Reference: • check current procurement status as indicated by the contract date on file in the WD Docket (contracts/option periods usually run year-to-year) — if data on file and dates supplied in the request letter are contradictory, check with the contracting agency to obtain clarification; and • check with the applicant to be sure a hearing is still desired. 2. Prepare the Draft response letter granting the hearing. See exhibit 106. 3. Prepare the Order of Reference by including the following information. Exhibit 107 provides a sample copy. • Use appropriate format, language, and regulatory references to refer the matter to the ALJ and give notice to all interested parties of their rights and responsibilities concerning participation in the hearing process. • Discuss rights and responsibilities of interested parties concerning their written submissions to the Chief Administrative Law Judge, which are to include the following information. - Statement of the interested party's case. List of witnesses the interested party will present and a summary of the testimony each is expected to give. - Copies of all exhibits proposed to be proffered. List of persons for whom subpoenas are requested with a brief statement of the purpose of their testimony. • Include a statement indicating that such submissions to the Chief Administrative Law Judge must also be mailedor delivered to each interested party listed in the Order of Reference. • List name, address, and contact person for all interested parties — at minimum, the list must always include the following and may include others as deemed necessary. Contracting agency involved. Contractor involved. Employee respresentative (e.g., union involved). - AFL-CIO. - The interested party requesting the hearing, if different from the above. Others as named in the hearing request. - Appropriate DOL officials including the Director, Division of Wage Determinations and the appropriate SOL/FLS counsel. • Attach the prepared, but unsigned Certificate of Service. This is a legal notice by which the Order of Reference is "served to all interested parties" indicating date and method of service, either personal delivery or certified mail. Exhibit 108 illustrates a sample Certificate of Service. 4. If the information submitted only addresses wages, and not fringe benefits, make sure the Order of Reference and letter in response from Wage and Hour indicate that the hearing will only involve wages, or vice versa. If the hearing will concern both substantial variance and arm's length issues, be sure the Order of Reference and response letter so indicate. Check all information contained in the response letter and Order of Reference to be sure that: • all dates and document numbers referenced are accurate (e.g., SF-98, WDs, contract dates); • WD references are the same in all documentation; • appropriate CBA at issue is referenced; and • only those legal issues to be submitted to the hearing process are clearly spelled out. 5. Submit the draft response letter and Order of Reference to the appropriate East or West Section Chief for review/approval. The Section Chief then submits the package to the Branch Chief, who in-turn submits it to the Division Director for review and approval. 6. Once approved, the package is forwarded to SOL, Fair Labor Standards Division (FLS) along with:SAMPLE ORDER OF REFERENCE FOR SUBSTANTIAL VARIANCE HEARING (Page 1 of 4) ONITED STATES DEPARTMENT OF LABOR EMPLOYMENT STANDARDS ADMINISTRATION WASHINGTON, D.C. ******************** IN THE MATTER OF APPLICABILITY OF WAGE RATES COLLECTIVELY BARGAINED BY NAMEIT SERVICES , INC. AND THE HELPFUL WORKERS UNION TO EMPLOYMENT OF SERVICE EMPLOYEES UNDER A CONTRACT FOR MESS ATTENDANT SERVICES AT SOMEWHERE AIR FORCE BASE, STATE OF SOMEPLACE ******************** IT APPEARING THAT the wage rates required to be paid to service employees employed on the work performed by the contractor and any subcontractors under the contract identified in the caption are, pursuant to section 4(c) of the Service Contract Act of 1965, as amended (41 U. S. C. 351 et seq.) and Wage Determination 80-158 (Rev. 5), issued October 21, 1986, thereunder, required to be not less than the wages provided for in a collective bargaining agreement between Namelt ' Services, Inc. and the Helpful Workers Onion, unless it is found after a hearing as provided in 29 CFR 4.10 that such collectively bargained wages are substantially at variance with those which prevail for services of a character similar in the locality; and NO. SCA-CBV-ORDER OF REFERENCESAMPLE ORDER OF REFERENCE FOR SUBSTANTIAL VARIANCE HEARING (Page 2 of 4) IT FURTHER APPEARING from information submitted with a request for a hearing under Section 4(c) of the Act and 29 CFR 4.10(b) of the Regulations by Alice, Do* ♦- Special Assistant for Labor Affairs on behalf of the Department of the Air Force, that there is evidence warranting submission to a hearing officer of the issue of whether such a substantial variance exists between such collectively bargained wages and those prevailing for services of a character similar in the locality; NOW THEREFORE, IT IS ORDERED that this matter be submitted for determination of such issue of substantial variance as provided in 29 CFR 4.10(c), and for such purpose the matter is hereby referred to the Chief Administrative Law Judge for assignment to an administrative law judge who will afford persons who may be affected by determination of the issues an opportunity to be heard as provided in CFR Part 6, Subpart E; and NOTICE IS HEREBY GIVEN to such interested persons as named below that each of them and any other interested person shall, within 20 days from the date of service of this order submit in writing to the Chief Administrative Law Judge, D.S. Department of Labor, Suite 700, Vanguard Building, Washington, D.C. 20036 for the attention of the administrative law judge assigned to this matter, a statement of the interested party’sSAMPLE ORDER OF REFERENCE FOR SUBSTANTIAL VARIANCE HEARING (Page 3 of 4) case, a list of witnesses the interested parties will present, a summary of the testimony each is expected to give, copies of all exhibits proposed to be proffered, and a list of persons for whom subpoenas are requested with a brief statement of the purpose of their testimony. Each person making such submission shall at the same time mail or deliver a true copy thereof to each of the others listed below. Thereafter, the hearing officer shall proceed as provided in 29 CFR Part 6, Subpart E to afford the parties further opportunity to be heard and to make a determination of the issues. The persons to whom this notice is addressed are the following: Alice Doe U. S. Air Force Contractor Industrial Relations Air Force CMD/PDC Somewhere AFB , state of Someplace John Doe * President Namelt Services, Inc. xxx South Adams Street Somewhere, State of Someplace Bob Doe President l»lpful Workers Union xxx West 17th Street Somewhere, State of Someplace Richard Doe AF Building 855 - 2nd Floor Somewhere, State of Someplace Peter Doe Economist - AFL-CIO xxx _ i6th Street Somewhere, State of SomeplaceSAMPLE ORDER OF REFERENCE FOR SUBSTANTIAL VARIANCE HEARING (Page 4 of 4) Dr. Alan L. Moss, Director Division of Wage Determinations Wage & Hour Division U.S. Department of Labor Washington, D.C. 20210 Mr. Douglas J. Davidson Counsel for Trial Litigation, FLS Office of the Solicitor U.S. Department of Labor Washington, D.C. 20210 Signed at Washington, D.C. this 1987. Paula V. Smith Administrator Attachments: 1) Letter from Mrs. Alice Doe requesting a hearing. 2) Letter from Paula V. Smith granting a hearing. 3) Wage Determination 86-529 (Rev. 2). 4) Bureau of Labor Statistics Area Wage Survey of Memphis, Tennessee, November 1986 day cSAMPLE CERTIFICATE OF SERVICE FOR SUBSTANTIAL VARIANCE HEARING - 5 - CERTIFICATE OF SERVICE I hereby certify that a true copy of the foregoing Order of Reference was served this \\& day of ^,^2^ 1987 upon each of the following persons in the manner set forth below. Personal Pel iyeiy Certified _Mail_ Mrs. A1ice Doe ( ) (X) Mr.Joh» Do® ( ) (X) Mr.. Bolb i&oe ( ) (X) Lt. Ri^Staard Doe. ( ) (X) Mr. PeS: «r Doe ( ) (X) Dr. Alan L. Moss (X) ( ) Mr. Douglas Davidson (X) ( ) IK: Rq#efct V. Setera, Chief Branch of Service Contract Wage Determinations• hearing request; • any attachments providing supporting documentation (e.g., supporting evidence submitted by the applicant, other WDs and survey data used by staff to analyze variance, and documentation of any written/verbal correspondence concerning the request); • relevant files; • transmittal memo to SOL/FLS indicating when the 30 days expires (for variance requests only), the procurement status of the time of the request, and the current procurement status; and • copy of the letter from Wage-Hour advising that more time was needed, if the 30 days has expired (for variance requests only). (Note: If the hearing request is more than 6 months old, whether a hearing has already been granted or not, a determination should be made as to whether a substantial variance or an arm's length issue still exists. The Specialist handling the request will review materials as appropriate and research whether more current data have become available. If the review results in a determination that the possibility of substantial variance or the arm's length issue no longer exists, submit results, rationale, and draft response along with all other materials to the SOL/FLS. If the procurement status of the contract in such older cases is unclear, it should be verified and the party requesting the hearing asked if a hearing is still desired. Submit results of this verification along with all other materials as described above to the SOL/FLS.) 7. SOL/FLS reviews the Draft Order of Reference and draft response letter and requests any corrections needed which are facilitated by the assigned Specialist. 8. After SOL/FLS review and approval, the Specialist sends the Order of Reference with attachments to the Director, Division of Wage Determinations for final review, who will then submit the packet to the Administrator for review/signature. Attachments include the letter from the Administrator granting the hearing or providing the arm's length findings, applicable wage determination, applicable survey or other data used by the applicant to support the existence of substantial variance or arm's length issues of concern, prepared, unsigned Certificate of Service, and any other pertinent documentation. 9. On the same day that the Order of Reference is signed by the Administrator:• have the Certificate of Service signed and dated by the Branch Chief; • hand-carry to the FLS attorney assigned to the case the signed original of the Order of Reference, who will then forward it to the ALJ's office advising the clerk of the Chief Administrative Law Judge that the case is being referred; • prepare and hand-deliver or use certified mail to send copies of the Order of Reference including the Certificate of Service and all attachments to all interested parties listed therein; • file copy of materials sent in the WD Docket File; • file certified mail and related receipts as appropriate; and • ensure that all materials pertaining to the WD in question are properly filed in the WD Docket File and the Log of 4(c) Hearing Actions is maintained. PROVISION OF TECHNICAL EXPERTISE TO SOL SOL/FLS handles all legal proceedings concerning SCA disputes. The Salary and Wage Specialists in the Branch of Service Contract Wage Determinations work closely with the assigned attorney providing technical information concerning the wage determination process, and data evaluation and statistical techniques used to make determinations. SOL/FLS, in turn, provides the Branch with legal advice and statutory or regulatory interpretations when requested. In addition, Specialists will attend hearings as a neutral party and technical advisor to the court. Provision of such technical assistance to the court is value-neutral and strictly factual with regard to procedural policy and operational processes and techniques. The Specialist is never a witness for either side of the case, but can provide expert testimony to the court. APPEALS TO THE BOARD OF SERVICE CONTRACT APPEALS Two types of appeals concerning these ALJ hearings may be submitted to the Board of Service Contract Appeals utilizing procedures described in 29 CFR Part 8: Practice Before the Board of Service Contract Appeals.• For substantial variance or arm's length hearing requests denied by the Administrator, a petition for review of the decision can be submitted to the Board of Service Contract Appeals within 60 days of the decision date. The record of decision is then submitted by the Associate Solicitor of Labor to the Board. • For arm's length determination requests which the Administrator refers directly to the hearing process or subsequent arm's length hearing requests granted where the two-step process is used. These cases go directly to the Board if no material facts are in dispute. • For appealing an ALJ decision, appeals must be made by submitting a petition for review to the Board of Service Contract Appeals within 40 days of ALJ issuance of its decision. If a petition for review is submitted to the Board, the Chief ALJ forwards the proceeding record to the Board. Currently, authority to carry out the responsibilities of the Board is vested in the Deputy Secretary of Labor. The Board may decline review of the case, remand it to the Administrator with instructions for obtaining additional evidence or making new or modified findings, or choose to hear the case. There is no deadline for action by the Board, only that it acts expeditiously, taking into consideration procurement deadlines. If no appeal is made, the Administrator must promptly issue any wage determination required by the ALJ decision. If the ALJ issues a decision that substantial variance exists or if the ALJ decision is appealed, and the Board issues such a decision, a new areawide WD will need to be issued by the Branch per the court's instructions. This WD will replace the WD based on CBA wage rates and fringe benefits. The same is true if the decision states that arm's length negotiations did not take place. Such a decision may result in the areawide, prevailing rates of the new WD being higher or lower than those contained in the previously-applicable WD based on the predecessor CBA.APPENDIX As CONTACTS FOR SCA INFORMATIONPlease refer questions to the appropriate contact listed below. QUESTIONS CONCERNING SCA WAGE DETERMINATION CONTENT AND REQUIREMENTS: Branch of Service Contract Wage Determinations Division of Wage Determinations Wage and Hour Division/U.S. Department of Labor Frances Perkins Building — Mail Stop S3504 200 Constitution Avenue, N.W. Washington, D.C. 20210 Contact the East or West Section for questions concerning determinations in the States, territories, and possessions as listed below. East Section West Section 202 - 523-7574 FTS - 523-7574 202 - 523-7587 FTS - 523-7587 Alabama Connecticut Delaware District of Columbia Florida Georgia Illinois Indiana Kentucky Maine Maryland Massachusetts Michigan Mississippi New Hampshire New Jersey New York North Carolina Ohio Outer Continental Shelf Lands (Atlantic Ocean) Pennsylvania Puerto Rico Rhode Island South Carolina Tennessee Vermont Virginia Virgin Islands West Virginia Wisconsin Alaska American Samoa Arizona Arkansas California Colorado Eniwetok Atoll Guam Hawaii Idaho Iowa Johnston Island Kansas Kwajalein Atoll Louisiana Minnesota Missouri Montana Nebraska Nevada New Mexico North Dakota Oklahoma Outer Continental Shelf Lands (Pacific Ocean) Oregon South Dakota Texas Utah Wake Island Washington WyomingCONTACTS FOR SCA INFORMATION CONTINUED QUESTIONS CONCERNING OTHER WAGE DETERMINATION ISSUES! Division of Wage Determinations Wage and Hour Division/U.S. Department of Labor Frances Perkins Building — Mail Stop S3504 200 Constitution Avenue, N.W. Washington, D.C. 20210 202 - 523-7531 FTS - 523-7531 QUESTIONS CONCERNING STATUS OF SF-98 AND SCA WAGE DETERMINATION PROCESSING: Central Processing Unit Division of Wage Determinations Wage and Hour Division/U.S. Department of Labor Frances Perkins Building 200 Constitution Avenue, N.W. Washington, D.C. 20210 202 - 523-7096 FTS - 523-7096 QUESTIONS CONCERNING SCA COVERAGE, COMPLIANCE, AND ENFORCEMENT: Branch of Service Contract Operations Division of Contract Standards Operation Wage and Hour Division/U.S. Department of Labor Frances Perkins Building — Mail Stop S3518 200 Constitution Avenue, N.W. Washington, D.C. 20210 202 - 523-7541 FTS - 523-7541APPENDIX Bs SERVICE CONTRACT ACTSERVICE CONTRACT ACT OF 1965, AS AMENDED ' <41 U.S.C. 351, rl «?.) (Revised text1 showing in italics new or amended language provided by Public Law 92-473, as enacted October 9, 1972, and in bold face new or amended language provided by Public Law 94-489, as enacted October 13, 1976.) AN ACT To provide labor standards for certain persons employed by Federal contractors to furnish services to Federal agencies, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the “Service Contract Act of 1965”. Sec. 2. (a) Every contract (and any bid specification therefor) entered into by the United States or the District of Columbia in excess of $2,500, except as provided in section 7 of this Act, whether negotiated or advertised, the principal purpose of which is to furnish services in the United States through the use of service employees shall contain the following: (1) A provision specifying the minimum monetary wages to be paid the various classes of service employees in the performance of the contract or any subcontract thereunder, as determined by the Secretary, or his authorized representative, in accordance with prevailing rates for such employees in the locality, or, where a collective bargaining agreement covers any such service employees, in accordance with the rates for such employees provided for in such agreement, including prospective wage increases provided for in such agreement as a result of arm’s-length negotiations. In no case shall such wages be lower than the minimum specified in subsection (6). (2) A provision specifying the fringe benefits to be furnished the various classes of service employees, engaged in the performance of the contract or any subcontract thereunder, as determined by the Secretary or his authorized representative to be prevailing for such employees in the locality, or, where a collective-bargaining agreement 1 Public Law 89-286. 79 Stat. 1034. as amended by Public Law 92-473. 86 Stat. 789; by Public Law 93-67. 87 Stat. 140; and by Public Law 94-4M. 90 Stat. 23S8. U.S. DEPARTMENT OF LABOR Employment Standards Administration Wage and Hour Division WH Publication 1146 (Revised July 1978) covers any such service employees, to be provided for in such agreement, including prospective fringe benefit increases provided for in such agreement, as a result of arm's-length negotiations. Such fringe benefits shall include medical or hospital care, pensions on retirement or death, compensation for injuries or illness resulting from occupational activity, or insurance to provide any of the foregoing, unemployment benefits, life insurance, disability and sickness insurance, accident insurance, vacation and holiday pay. costs of apprenticeship or other similar programs and other bona fide fringe benefits not otherwise required by Federal, State, or local law to be provided by the contractor or subcontractor. The obligation under this sub-paragraph may be discharged by furnishing any equivalent combinations of fringe benefits or by making equivalent or differential payments in cash under rules and regulations established by the Secretary. (3) A provision that no part of the services covered by this Act will be performed in buildings or surroundings or under working conditions, provided by or under the control or supervision of the contractor or any subcontractor, which are unsanitary or hazardous or dangerous to the health or safety of service employees engaged to furnish the services. (4) A provision that on the date a service employee commences work on a contract to which this Act applies, the contractor or subcontractor will deliver to the employee a notice of the compensation required under paragraphs (1) and (2) of this subsection, on a form prepared by the Federal agency.or will post a notice of the required compensation in a prominent place at the worksite. (5) A statement of the rates that would be paid by the Federal agency to the various classes of service employees if section 5341 or section 5332 of title 5, United States Code, were applicable to them. The Secretary shall give due consideration to such rates in making the wage and fringe benefit determinations specified in this section. (b)(1) No contractor who enters into any contract with the Federal Government the principal purpose of which is to furnish services through the use of service employees and no subcontractor thereunder shall pay any of his employees engaged in performing work on such contracts less than the minimum wage specified under section 6(a)(1) of the Fair Labor Standards Act of 1938, as amended (52 Stat. 1060; 29 U.S.C. 201, et seq.). (2) The provisions of sections 3, 4, and 5 of this Act shall be applicable to viojations of this subsection. Sec. 3. (a) Any violation of any of the contract stipulations required by section 2(a) (1) or (2) or of section 2(b) of this Act shall render the party responsible therefor liable for a sum equal to the amount of any deductions, rebates, refunds, or underpayment of compensation due to any employee engaged in the performance of such contract. So much of the accrued payment due on the contract or any other contract between the same contractor and the Federal Government may be withheld as is necessary to pay such employees. Such withheld sums shall be held in a deposit fund. On order of the Secretary, any compensation which the head of the Federal agency or the Secretary has found to be due pursuant to this Act shall be paid directly to the underpaid employees from any accrued payments withheld under this Act. (b) In accordance with regulations prescribed pursuant to section 4 of this Act, the Federal agency head or the Secretary is hereby authorized to carry out the provisions of this section. (c) In addition, when a violation is found of any contract stipulation, the contract is subject upon written notice to cancellation by the contracting agency. Whereupon, the United States may enter into other contracts or arrangements for the completion of the original contract, charging any additional cost to the original contractor. Sec. 4. (a) Sections 4 and 5 of the Act of June 30, 1936 (49 Stat. 2036), as amended, shall govern the Secretary's authority to enforce this Act, make rules, regulations, issue orders, hold hearings, and make decisions based upon findings of fact, and take other appropriate action hereunder. (b) The Secretary may provide such reasonable limitations and may make such rules and regulations allowing reasonable variations, tolerances, and exemptions to and from any or all provisions of this Act (other than section 10), but o?ily in special circiimstances where he determines that such limitation, variation, tolerance, or exemption is necessary and proper in the public interest or to avoid the serious impairment of gover~n?nent business, and is in accord with the remedial purpose of this Act to protect prevailing labor standards. (c) No contractor or subcontractor under a contract, which succeeds a contract subject to this Act and under which substantially the same services are furnished, shall pay any service employee under such contract less than the wages and fringe benefits, including accrued wages and fringe benefits, and any prospective increases in wages and fringe benefits provided for in a collective-bargainuig agreement as a result of arm’s-length negotiations, to which such service employees would have been entitled if they were employed under the predecessor contract: Provided, That in any of the foregoing circumstances such obligations shall not apply if the Secretary finds after a hearing in accordance with regulations adopted by the Secretary that such wages and fringe benefits are substantially at variance with those which prevail for services of a character similar in the locality. (d) Subject to limitations in annual appropriation Acts but notwithstanding any other provision of law, contracts to which this Act applies may, if authorized by the Secretary,be for any term of years not exceeding five, if each such contract provides for the periodic adjustment of wages and fringe benefits pursuant to future determinations, issued in the manner 'prescribed in section 2 of this Act no less often than once every two years during the term of the contract, covering the various classes of service employees. Sec. 5. (a) The Comptroller General is directed to distribute a list to all agencies of the Government giving the names of persons or firms that the Federal agencies or the Secretary have found to have violated this Act. Unless the Secretary otherwise recommends because of unusual circumstances, no contract of the United States shall be awarded to the persons or firms appearing on this list or to any firm, corporation, partnership, or association in which such persons or firms have a substantial interest until three years have elapsed from the date of publication of the list containing the name of such persons or firms. Where the Secretary does not otherwise recommend because of U7iusual circumstances, he shall, not lalr.r than ninety days after a hearing exam-inr.r has made a finding of a violation of this Act, forward to the Comptroller General the name, of the individual or firm found to have violated the provisions of this Act. (b) If the accrued payments withheld under the terms of the contract are insufficient to reimburse ali service employees with respect to whom there has been a failure to pay the compensation required pursuant to this Act, the United States may bring action against the contractor, subcontractor, or any sureties in any court of competent jurisdiction to recover the remaining amount of underpayments. Any sums thus recovered by the United States shall be held in the deposit fund and shall be paid, on order of the Secretary, directly to the underpaid employee or employees. Any sum not paid to an employee because of inability to do so within three years shall be covered into the Treasury of the United States as miscellaneous receipts. SEC. 6. In determining any overtime pay to which such service employees are entitled under any Federal law, the Regular or basic hourly rate of pay of such an employee shall not include any fringe benefit payments computed hereunder which are excluded from the regular rate under the Fair Labor Standards Act by provisions of section 7(d) thereof. Sec. 7. This Act shall not apply to— (1) any contract of the United States or District of Columbia for construction, alteration and or repair, including painting and decorating of public buildings or public works; (2) any work required to be done in accordance with the provisions of the Walsh-Healey Public Contracts Act (49 Stat. 2036) ; (3) any contract for the carriage of freight or personnel by vessel, airplane, bus, truck, express, railway line or oil or gas pipeline where published tariff rates are in effect; (4) any contract for the furnishing of services by radio, telephone, telegraph, or cable companies, subject to the Communications Act of 1934; (5) any contract for public utility services. including electric light and power, water, steam, and gas; (6) any employment contract providing for direct services to a Federal agency by an individual or individuals; and (7) any contract with the Post Office Department, the principal purpose of which is the operation of postal contract stations. Sec. 8. For the purposes of this Act— (a) “Secretary” means Secretary of Labor. (b) The term “service employee” means any person engaged in the performance of a contract entered into by the United States and not exempted under section 7, whether negotiated or advertised, the principal purpose of which is to furnish services in the United States (other than any person employed in a bona fide executive, administrative, or professional capacity, as those terms are defined in part 541 of title 29, Code of Federal Regulations, as of July 30, 1976, and any subsequent revision of those regulations); and shall include all such personsregardless of any contractual relationship that may be alleged to exist between a contractor or subcontractor and such persons. (c) The term “compensation” means any of the payments or fringe benefits described in section 2 of this Act. (d) The term “United States” when used in a geographical sense shall include any State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, Outer Continental Shelf lands as defined in the Outer Continental Shelf Lands Act, American Samoa, Guam, Wake Island, Eniwetok Atoll, Kwaja-lein Atoll, Johnston Island, and Canton Island,-but shall not include any other territory under the jurisdiction of the United States or any United States base or possession within a foreign country. Sec. 9. This Act shall apply to all contracts entered into pursuant to negotiations concluded or invitations for bids issued on or after ninety days from the date of enactment of this Act. Sec. 10. It is the intent of the Congress that determinations of minimum, monetary wages and fringe benefits for the various classes of service employees under the provisions of paragraphs (1) and (2) of section -J should be made irith respect to all contracts subject to this Act, as soon as it is administratively feasible to do so. In any event, the Secretary shall make such determinations ivith respect to at least the following contracts subject to this Act which are entered into during the applicable fiscal year: (1) For the fiscal year ending June 30, 1973, all contracts under which more than twenty - five service employees arc to be employed. (2) For the fiscal year ending June 30, 1974, all contracts, under ivhich more than twenty service employees arc to be employed. (3) For the fiscal year ending June 30, 1975, all contracts under which more than fifteen service employees are to be employed. (4) For the fiscal year ending June 30, 1976, all contracts under which more than ten service employees are to be employed. (••>) For the fiscal year ending June 30, 1977. and for each fiscal year thereafter, all contracts under which more than rivi service employees are to be employed. Approved October 22. 1965 (Public Law 89-286). Approved October 9. 1972 (Amendments, Public Law 92-473). Approved October 13. 1976 (Amendments. Public La w 94-489). - Ciint»*n Islam! ndfloH bv Legislative History (Public Law 89-286) : House Report No. 948 (Comm, on Education & Labor). Senate Report No. 798 (Comm, on Labor & Public Welfare). Congressional Record, Vol. Ill (1965) : Sept. 20, Considered and passed House. Oct. 1, Considered and passed Senate, amended. Oct. 6, House concurred in Senate amendment. Legislative History (Public Law 92-473) : House Report No. 92-1251 (Comm, on Education and Labor). Senate Report No. 92-1131 (Comm, on Labor and Public Welfare) Congressional Record, Vol. 118 (1972) : Aug. 7, considered and passed House. Sept. 19, considered and passed Senate, amended. Sept. 27, House concurred in Senate amendments. Legislative History (Public Law 94-489) : House Report No. 94-1571 (Comm.on Education and Labor). Congressional Record, Vol. 122 (1976) : Sept. 21, considered and passed House. Sept. 30, considered and passed Senate. BAPPENDIX Cs ALL-AGENCY MEMOS #138 AND #136 — 1984 SCA REGULATORY REVISIONSU.S. Department of Labor FEB 2 3 1984 Employment Standards Administration Wage and Hour Division Washington. D.C. 20210 MEMORANDUM NO. 138 TO: FROM: SUBJECT: ALL CONTRACTING AGENCIES OF THE FEDERAL GOVERNMENT AND THE DISTRICT OF COLUMBIA WILLIAM M. OTTER __^ (QtXi Administrator Revision of the Service Contract Act (SCA) Regulations, 29 CFR Part 4 -Reference: All Agency Memoranda Nos. 136 (November 18, 1983) and 137 (December 20, 1983) On January 27, 1984, the U.S. District Court for the District of Columbia issued a ruling upholding the Department's revised SCA regulations which had been challenged in American Federation of Labor and Congress of Industrial Organizations, et al. v. Raymond J. Donovan, et al., Civil Action No. 83-3608. These regulations, which were published in the Federal Register on October 27, 1983 (48 FR 49736) with an originally scheduled effective date of December 27, were deferred until January'27, 1984, in order to facilitate a prompt resolution of the litigation (see 48 FR 56577; December 22, 1983). Accordingly, implementation of the instructions contained in All Agency Memorandum No. 136, dated November 18, 1983, should begin as soon as is administratively feasible. Because existing contracts contain SCA provisions and wage determinations issued according to the regulations and policies in existence when the contracts were awarded, the substantive changes affecting such matters are prospective only. Therefore, the new contract clauses set forth in revised 29 CFR 4.6, as published in the Federal Register on October 27, 1983, should be included in all contracts entered into pursuant to invitations for bids issued or negotiations concluded on or after January 27, 1984. In addition, for the reasons stated above, the revisions to the following sections are also applicable only to contracts entered into pursuant to invitations for bids issued or negotiations concluded on or after January 27, 1984: sections 4.1b, 4.4, and 4.5 of Subpart A; sections 4.116, 4.117, 4.123 (e) , 4.132, and 4.133 of Subpart C; and sections 4.163(g), 4.163 (i), and 4.168(b) of Subpart D. None of the revisionsto the specific sections noted above are applicable to any contract entered into prior to January 27, 1984. The remaining portions of the regulations, which do not affect contractual provisions, are effective as of January 27, 1984. It is essential to the Administration's regulatory reform effort that these revised SCA regulations be implemented as soon as possible. It is, therefore, expected that every contracting agency will take immediate action to prepare and disseminate to its procurement offices the necessary changes required in its contract documents and procurement regulations in accordance with the instructions provided herein and in Memorandum No. 136. Your cooperation is appreciated.U.S. Department Of Labor Employment Standards Administration Wage and Hour Division Washington, D.C. 20210 NOV 18 1983 MEMORANDUM NO. 136 TO: FROM: SUBJECT: On October 27, 1983, the Department of Labor published revised final regulations on Labor Standards for Federal Service Contracts, 29 CFR Part 4, issued under the Service Contract Act (SCA). A copy of the revised regulations, which includes a discussion in the preamble outlining the major changes, is attached. The purpose of this memorandum Is to highlight these major changes and to supplement the information contained in the regulatory text and preamble sections, in order to assure that contracting agencies will be aware of their responsibilities and DOL operating policies under the SCA. In this regard, agencies are reminded of the need to make appropriate changes in their procurement regulations and contract documents to reflect in full the revised contract clauses contained in these regulations. For convenience, we have noted below the effective dates of applicability of the revisions and summarized the major regulatory changes in sequential order, with explanatory information where necessary. Dates of Applicability Many of the provisions contained in these regulations reflect existing policies and interpretations of the Act or are procedural in nature. However, significant changes have been made with respect to contract clauses, contract coverage, exemptions from coverage, and provisions relating to wage determinations, including those issued pursuant to section 4(c) of the Act. Because existing contracts contain SCA provisions and wage determinations issued under the regulations and policies in existence when the contracts were awarded, the substantive revisions relating to the above-mentioned matters are prospective only. Accordingly, the revisions to sections ALL CONTRACTING AGENCIES OF THE FEDERAL GOVERNMENT AND THE DISTRICT OF COLUMBIA WILLIAM M. OTTER Ca Administrator [A V/ o 'Mu....... H- Revision of Service Contract Act Regulations, 29 CFR Part 44.1b (Payment of minimum compensation based on collectively bargained wage rates and fringe benefits applicable to employment under predecessor contract), 4.4 (Notice of intention to make a service contract), 4.5 (Contract specification of determined minimum wages and fringe benefits), and 4.6 (Labor standards clauses for Federal service contracts exceeding $2,500) of Subpart A; sections 4.116 (Contracts for construction activity), 4.117 (Work subject to requirements of Walsh-Healey Act), 4.123(e) (Administrative limitations, variations, tolerances, and exemptions), 4.132 (Services and other items to be furnished under a single contract), and 4.133 (Beneficiary of contract services) of Subpart C; and sections 4.163(g) and (i) (Section 4(c) of the Act), and 4.168(b) (Cost of maintaining and furnishing uniforms) of Subpart D of Part 4 are applicable only to contracts entered into pursuant to invitations for bids issued or negotiations concluded on or after December 27, 1983. None of the revisions noted above shall be applicable to any contract entered into prior to that date. The remaining provisions of Subparts A, B, C, D, and E are effective on December 27, 1983. It should also be noted that these regulations incorporate some of the regulatory changes which were to have been codified in the final rules previously published in January 1981 and subsequently .deferred, as well as other changes resulting from the Department's reexamination of the deferred rules. In addition, the attached document incorporates corrections which appeared in the Federal Register of November 2, 1983, as well as other minor typographical corrections. Section 4.1b(b) - Limitation on Section 4(c) of the Act This section has been revised to provide that the rates contained in new or changed collective bargaining agreements (CBAs) consummated during the period of performance of the predecessor contract will not be effective for purposes of the successorship requirements of section 4(c) of the Act, if notification of the terms of the new CBA is received by the contracting agency (1) in the case of a competitively advertised procurement, less than 10 days before the date of bid opening, provided the agency makes an affirmative finding that there is not a reasonable time still available to notify bidders; or (2) in the case of a negotiated procurement or execution of a renewal option or extension, after award, provided contract start of performance is within 30 days after the award, option, or extension — otherwise, the former "10 days before commencement" rule would apply. See also the discussion in section 4.163 below.Sections 4.3, 4.4, and 4.53 - Locality Basis of Wage Determinations When Place of Contract Performance is Unknown at Time of Bid Solicitation These sections have been revised to establish a new "two-step" procurement procedure for issuing separate wage determinations, to the extent feasible, for each of the various localities where the particular contract work might be performed in instances when the place of contract performance cannot be determined at the time of bid solicitation. In the first step, the contracting agency will issue an initial solicitation with no wage determination, from which it identifies all interested bidders and their possible places of performance and then transmits this information to DOL with the SF-98, Notice of Intention to Make a Service Contract and Response to Notice. In the second step, DOL will issue separate wage determinations for the various localities identified in the first step, to be incorporated in the solicitation prior to the submission of final bids. The appropriate wage determination applicable to the geographic location of the successful bidder shall be incorporated in the resultant contract and shall be observed, regardless of whether the contractor subsequently changes the place(s) of contract performance. In unusual situations where this "two-step" procedure is deemed impracticable by DOL in consultation with the contracting agency, DOL may use a modified procedure which may result in the issuance of wage determinations for one or more composite localities. Section 4.4(a) - Notice of Intention to Make a Service Contract (SF-98) This revised section provides that contracting agencies must file SF-98s not less than 60 days (nor more than 120 days without approval) prior to invitations for bids, requests for proposals, commencement of negotiations, exercise of options or extensions, etc., in the case of recurring, known procurements, and not later than 30 days prior to such contracting actions for unplanned and/or emergency procurement actions. As provided in section 4.4(g), the contracting agency must recontact DOL if a solicitation is delayed more than 60 days beyond the date indicated on the submitted SF-98 to determine whether the wage determination initially issued is still current. Section 4.5(a)(2) - Incorporation of Revised Wage Determinations This section provides that revisions of a wage determination received by the contracting agency later than 10 days priorto the date of bid opening (in the case of competitively advertised procurements) are not effective if the agency makes an affirmative finding that there is not reasonable time still available to notify bidders of the revision. In the case of negotiated procurements (or options or extensions of the initial contract term), revisions received after award (or execution, as appropriate) are not effective provided that contract start of performance is within 30 days of the award (or option or extension); if the contract does not specify a start of performance within 30 days and/or performance does not commence within the 30-day period, DOL is to be notified by the agency and any subsequent notice of a revision received by the agency not less than 10 days before commencement of the contract will be effective. Section 4.5(c)(2) - Erroneous Contracting Agency Determinations of Noncoverage This new subsection requires that when DOL finds that the contracting agency made an erroneous determination that the SCA did not apply and/or failed to include an appropriate wage determination in a covered contract, the agency must include the SCA contract stipulations and any applicable wage determination in such contract within 30 days of notification by DOL. Section 4.6(b)(2) - Conformance of Wage Rates for Classifications of Employees Not Listed in a Wage Determination Revisions in the conformance procedures in this contract clause provide for an "indexing" procedure which allows a contractor to apply a specified mathematical formula to a previously conformed rate in establishing a new conformed rate, without requiring DOL approval. The "indexed" conformance is based upon the average percentage change between the rates listed in the current wage determination for all classifications to be used on the contract and those rates specified for the corresponding classifications in the previously applicable wage determination. In addition, the revised procedures require that a contractor initiate the conformance action before an unlisted class of employees performs any contract work, so that the contractor can complete its part of the ccnformance and submit a report of the proposed action to the contracting agency no later than 30 days thereafter. Furthermore, except where the indexing procedure is utilized, the revised regulations require that the contractor submit information regarding the agreement or disagreement of the affected employees to the conformed rate and also require the contracting officer to promptly submitall conformance actions to DOL for review and approval. Conformed wage rates and/or fringe benefits must be paid to all employees in the conformed classification retroactive to the date such class of employees commenced any contract work. Section 4.6(1)(2) - Seniority List In cases of a contract performed at a Federal facility where employees may be hired/retained by a succeeding contractor, this new subsection requires the incumbent prime contractor to furnish a certified list of all service employees on the contractor's or subcontractor's payroll during the last month of the contract, together with anniversary dates of employment, to the contracting officer no later than 10 days before contract completion. A copy of the list is to be provided to the successor contractor for determining employee eligibility for vacation fringe benefits which are based on length of service with predecessor contractors (where such benefit is required by an applicable wage determination). Section 4.6(n) Certification of Eligibility This section provides a new requirement that the contractor certify it is not a debarred person or firm and thus not ineligible to be awarded the contract, and also prohibits subcontracting to debarred persons. Sections 4.6 (r) and 4.187 - Disputes Concerning Labor S tandards For clarification, a new paragraph (r) has been added to the contract clauses in section 4.6 specifying that disputes involving the labor standards provisions of the contract are resolved by DOL under its regulations (29 CFR Parts 4, 6, and 8) and are not subject to the general disputes clause of the contract. Section 4.8 - Notice of Awards DOL is now receiving data identifying contract awards subject to the SCA directly from the Federal Procurement Data System (FPDS), and, as a result, plans to discontinue the use of Standard Form 99, Notice of Award of Contract. Section 4.8 therefore provides that a Standard Form 99 need not be submitted to DOL for contract awards subject to the SCA if the contracting agency submits Standard Form 279, FPDS Individual Contract Action Report (or its equivalent) to the FPDS, or if the contracting agency makes other arrangementswith the Wage and Hour Division for notification of such contract awards. In order to reduce Government paperwork and reporting burdens further, revised section 4.8 requires the submission of Standard Form 99 under the conditions described only for contracts exceeding $10,000. However, this action does not alter the statutory requirement that contracting agencies incorporate the proper stipulations in all contracts exceeding $2,500. Agencies which do not submit contract award data to FPDS are encouraged to contact the Wage and Hour Division for making such other notification arrangements so that the use of Standard Form 99 may ultimately be discontinued in its entirety. Section 4.10 - Substantial Variance Proceedings Under Section 4(c) of the Act This section provides revised procedures relative to requests for hearings under section 4(c) of the Act to determine whether the collectively bargained wages and/or fringe benefits otherwise required to be paid are "substantially at variance" with those which prevail for similar services in the locality. Rules of practice, including time limitations regarding such hearings, are provided in revised 29 CFR Part 6 and new 29 CFR Part 18 (48 FR 32538, Julv 15, 1983) . Section 4.11 - Arm's Length Proceedings This section, in conjunction with revised 2S CFR Part 6, provides new hearing procedures relative to questions as to whether the wages and fringe benefits contained in a predecessor contractor's collective bargaining agreement were reached as a result of "arm's length negotiations" in accordance with the provisions of section 4(c) of the Act. Section 4.12 - Substantial Interest Proceedings This section, in conjunction with revised 29 CFR Part 6, provides new hearing procedures relative to determinations of whether persons or firms whose names appear on the ineligible bidders list pursuant to section 5 of the Act have a "substantial interest" in any firm, corporation, partnership, or association other than those appearing on the ineligible list. Policies and interpretations concerning substantial interest in and affiliation with debarred persons or firms are provided in revised section 4.188 of the regulations.This new Subpart explains DOL's overall policies and procedures concerning the issuance and review of wage determinations. Former Subpart B, which dealt with computations of cash equivalent payments in lieu of providing fringe benefits, has been revised and placed in various sections in new Subpart D, entitled "Compensation Standards." Section 4.55 - Review and Reconsideration of Wage Determinations This section provides that interested parties affected by a wage determination may obtain review and reconsideration by the Wage and Hour Administrator of the wage determination upon request. Such request must be supported by evidence that the wage determination issued is inaccurate. Requests are deemed untimely and will not be considered after bid opening for competitively advertised procurements, or later than 10 days before commencement of a negotiated procurement, exercise of a contract option or extension. The Administrator's decision upon reconsideration is appealable within 20 days to the Board of Service Contract Appeals in accordance with the provisions of new 29 CFR Part 8. Sections 4.110 through 4.113 - Interpretation of Statutory "Principal Purpose" Test for SCA Coverage These sections provide continuation of the single principal purpose test contained in the previous regulations under which the provisions of the Act are applied to every contract principally for services (as distinguished from construction or manufacturing or some other purpose) if it is performed through the use of a significant or substantial number of service employees. (However, see the discussion concerning the related issue of coverage of separate specifications at section 4.132.) Thus, as explained in section 4.113,(a) (3) , contracts which are principally for services but which involve only a minor or incidental use of service employees would not be covered. Similarly, regarding the geographic scope of the Act's coverage, section 4.112(b)(2) provides that contracts under which only a minor or incidental portion of the contract services are performed within the United States as defined in section 8(d) of the Act would not be covered. In close cases involving a decision as to whether a contract will involve a significant use of service employees, or whether a significant portion of a contract will be performed within the United States, DOL should be consulted for guidance.Section 4.114(b) - Liability of Prime Contractor for Violations by Subcontractors 1 This section provides that the prime contractor is liablfe in the event its subcontractors violate the Act by failing to pay the wages and fringe benefits required under the provisions of the prime contract. When appropriate in a particular case, enforcement sanctions may be invoked against both the prime contractor and the subcontractor for violations of the Act. Sections 4.116(b) and 4.131(f) - Coverage of Contracts For Property Demolition, Dismantling, and Removal As provided in these revised sections, where the facts show the principal purpose of a demolition contract is the furnishing of dismantling and removal services, and no further construction is contemplated (in which case the contract would be subject to the Davis-Bacon Act), such a contract is covered by the SCA even though the contractor receives salvaged materials. However, if the principal purpose of a demolition contract is the sale of material and the services provided thereunder are only incidental to the sale, then the contract would not be subject to the SCA. Section 4.117 - Work Subject to the Walsh-Healey Act: Overhaul and Modification of Equipment This new section provides detailed guidelines for delineating when contracts for major overhaul of equipment would be considered "remanufacturingn subject to the Walsh-Healey Public Contracts Act (PCA) rather than the SCA. Complete teardown and overhaul of heavy construction equipment, aircraft, engines, etc., where the Government receives a totally rebuilt end item with a new (or nearly new) life expectancy resulting from processes similar to original manufacturing will be considered "remanufacturing" subject to the PCA. Contracts for routine maintenance or repair, inspection, etc., continue to be subject to SCA. Contracting agencies are required to initially determine whether work to be performed under a proposed contract would involve principally "remanufacturing" work based on the guidelines, and incorporate the appropriate labor standards clauses (SCA or PCA) into the contract prior to soliciting bids. Application of SCA or PCA to any type of contract not discussed in the regulations will be decided on a case-by-case basis by the Wage and Hour Administrator.Section 4.118 - Contracts for Carriage Subject to Published Tariff Rates This section discusses application of the statutory exemption in section 7(3) of the SCA for contracts for carriage of freight or personnel subject to published tariff rates, as well as the administrative exemption provided for certain contracts where such carriage is subject to and in accordance with applicable regulations governing rates covered by section 10721 of the Interstate Commerce Act (see revised section 4.123(d)(3) of the regulations). Only contracts principally for the carriage of "freight or personnel" are exempt. Thus, the exemption does not apply where the principal purpose of the contract is packing, crating, handling, loading, and/or storage of goods prior to or following line-haul transportation to the ultimate destination. Section 4.123(e) - Exemptions from Coverage for Contracts for Maintenance and Repair of Certain ADP, Scientific and Medical, and Office/Business Equipment An administrative exemption from the provisions of the Act has been granted for certain contracts for the maintenance, calibration and/or repair of: (1) automated data processing equipment and office information/word processing systems, (2) scientific equipment and medical apparatus or equipment where the application of microelectronic circuitry or similar technology is an essential element, and (3) office/business machines where the work is performed by the manufacturer or supplier of the equipment. The exemptions are limited to the servicing of only those items of equipment furnished to the government which are also furnished commercially, the contract services must be furnished at established catalog or market prices, and the contractor must utilize the same compensation plan for employees performing on both government and commercial work. The contractor must certify to these conditions in the contract. The contracting officer initially must make an affirmative determination that all of the conditions of the exemption have been met prior to contract award. If, after contract award, it is determined that the exemption is inapplicable, the corrective procedures in section 4.5(c)(2) of the regulations shall be followed for inserting the required contract clauses and any wage determination issued into the contract.Section 4.123(e)(4) - Research and Development (R&D) Contracts An exemption from coverage was proposed for most contracts for R&D, which was defined to include systematic studies of all types, but did not include contracts for the operation and maintenance of government testing and other similar research facilities. It was concluded that the record did not contain sufficient evidence to find that the tests in section 4(b) of the statute necessary to grant an exemption were satisfied. Accordingly, the proposed R&D exemption is not being adopted at this time. Section 4.130(a) and 4.131(f) - Coverage of Contracts for the Sale of Timber The Department has reexamined the issue of the applicability of the SCA to timber sales contracts and has concluded that " ordinarily the services provided under such contracts are only incidental to the principal purpose of these contracts, which is the sale of timber. However, certain contracts which in fact are principally for some purpose other than the sale of timber, such as clearing land or removal of diseased or dead timber, will continue to be subject to the SCA. Section 4.132 - Coverage of Separate Contract Specifications Section 4.132 (and other appropriate sections) has been modified to eliminate coverage of separate bid specifications (i.e., line items for specific work in a contract) principally for services when the principal purpose of the entire contract is not for services. The Act, which states that "Every contract (and any bid specification therefor)..." meeting the coverage tests must contain a wage determination, has traditionally been interpreted to extend coverage to individual specifications which are principally for services regardless of the principal purpose of any other specifications or of the contract as a whole. Upon reconsideration the Department has concluded that the Act should apply only where a contract as a whole is principally for the furnishing of services, and that the Act's reference to "bid specification" refers to the advertised specifications in a solicitation for bids rather than a separate line item or work requirement within a contract. Section 4.133 - Beneficiary of Contract Services This revised section provides that where the principal purpose of a government contract is to provide services through the use of service employees, the contract is covered by the Act, regard-less of the direct beneficiary of the services. However, an exemption is provided for certain kinds of concession contracts, such as those entered into by the National Park Service principally for the furnishing of food, lodging, automobile fuel, souvenirs, newspaper stands, and recreational equipment to the general public. As a result of the decision in District Lodge No. 166, IAMAW v. TWA Services, Inc., et al., 25 WH Cases 208 (M.D. Fla. 1981), appeal pending on other issues, 11th Cir., No. 82-3159, visitor information center services have been deleted from the terms of the exemption. Section 4.145 - Extended Term Contracts This section, which contains provisions for applying updated wage determinations to extended term contracts exceeding one year, has been revised to clarify that for purposes of the SCA, where such contracts are subject to annual appropriations, they are deemed newly entered into upon the contract anniversary date which occurs in each new fiscal year, rather than at the beginning of each fiscal year, if those two dates are different. Section 4.152(c) - Trainee Classifications This section emphasizes that conformance procedures (section 4.6(b)(2)) may not be used to artificially subdivide classifications listed in the wage determination. Where the wage determination lists a series of classes within a job classification family (e.g., Technician Classes A, B, and C), the lowest level listed is considered to be the entry level and establishment of lower (or intermediate) levels through conformance is not permissible. Further, this section provides that trainee classifications cannot be conformed. In other words, conformance procedures may only be used if the work which an employee is to perform under the contract is not within the scope of any classification listed in the wage . determination. Subpart D - Compensation Standards (Sections 4.159 through 4.185) These sections incorporate additional, updated policies regarding a contractor's compliance with the Act's minimum monetary wage and fringe benefit requirements including a definition of bona fide fringe benefits; standards for vacation, holiday, and health and welfare fringe benefit payments; payment of benefits to temporary and part-time employees; discharging fringe benefit obligations by equivalent means; overtime pay; notification to employees of the compensation required; and recordkeeping requirements.Section 4(c) of the Act provides that a successor contractor furnishing substantially the same services as were furnished under a predecessor contract must pay its service employees no less than the wages and fringe benefits to which they would have been entitled under the predecessor contractor’s collective bargaining agreement (CBA), unless it is found after a DOL hearing that such wages and fringe benefits vary substantially from those prevailing in the locality for similar services. As set forth in revised section 4.163 (i), this successorship provision applies only to successor contracts which are performed in the same locality as the predecessor contract. However, wage determinations issued pursuant to section 4(c) and included in a contract will continue to apply if the successor prime contractor subsequently changes the place(s) of contract performance or subcontracts any part of the contract work to a firm in a different locality. As provided in revised section 4.163(g), where two or more previous contracts involving the same or similar work functions performed by substantially the same job classifications are combined into a single "reconfigured" contract, only the (one) predecessor contract which covers the greater portion of those work functions would be deemed applicable for purposes of section 4(c). Where different services are combined, all applicable predecessor collectively bargained rates would follow identifiable work requirements into the new contract. Subpart E - Enforcement (Sections 4.187 through 4.191) These sections provide additional information and guidance regarding enforcement procedures for the recovery of underpayments, including rules on the withholding of contract funds and the priority given to such action, determining the "party responsible" for violations, and criteria for establishing "unusual circumstances" and "substantial interest" in debarment cases. AttachmentAPPENDIX Ds ANNOTATED LIST OF SCA-RELATED ALL-AGENCY MEMOSWAGE AND HOUR DIVISION ANNOTATED LIST OF SCA ALL-AGENCY MEMORANDA AS OF 3/14/88 Copies of these memos may be obtained by writing to: Administrator, Wage and Hour Division, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210. MEMO #108: Amendment of the Service Contract Act of 1965 (October 12, 1972). Explains changes in the Act resulting from the 197 2 legislative amendment (Public Law 9 2-47 3 approved October 9, 1972) and discusses future regulatory changes as a result thereof. MEMO #109: Amendment of the Service Contract Act of 19 65 (October 30, 1972). Clarifies Section 10 of the Act not detailed in Memo #108 which was added by the 197 2 legislative amendment. MEMO #110: Amendment of the Service Contract Act of 1965, Interim Regulations, 29 CFR, Part 4 and Part 6 (December 1, 1972). Provides a copy of proposed regulations, and information pertaining to the comment period and conference meeting therefore. MEMO #111: Amendment of the Service Contract Act of 1965 — Section 2(a)(5) (February 1, 1973). Clarifies the provisions of Section 2(a)(5) which concerns wage rates and fringe benefits that would be paid if service employees were Federal direct-hires. Explains contracting agency obligations for indicating Federal wage rates for occupational classes listed in the SF-98 and the application of due consideration of blue collar wage rates and fringe benefits in making wage determinations. MEMO #122: Alignment of Contracts to Correspond to FY7 7 and SF-98 Submissions Under the Service Contract Act (January 28, 1976 ) . Explains effect of the change in the Federal fiscal year from a July 1 - June 30 cycle to an October 1 - September 30 cycle on SCA contracting time periods and corresponding submission of the SF-98.WAGE AND HOUR DIVISION ANNOTATED LIST OF SCA ALL-AGENCY MEMORANDA AS OF 3/14/88 (CONTINUED) MEMO #127? Service Contract Act Amendments of 1976 — PL 94-489 (November 30, 1976). Announces the 197 6 legislative amendment to the Act and explains clarifications resulting therefrom concerning the definition of service employee and application of due consideration (Section 2(a)(5) of the Act) of "white collar" (GS) wage rates and fringe benefits in making wage determinations. MEMO #136: Revision of Service Contract Act Regulations, 29 CFR Part 4 (November 18, 1983). Explains major changes provided for by the revised regulations at 29 CFR Part 4 published on October 27, 1983, to become effective on December 27, 1983. MEMO #137: Revision of the Service Contract Act (SCA) Regulations, 29 CFR Part 4, Referencing All-Agency Memorandum #136 (December 20, 1983). Announces deferral of effective date of the revised regulations from December 27, 1983 to January 27, 1984 due to pending litigation. MEMO #138: Revision of the Service Contract Act (SCA) Regulations, 29 CFR Part 4, Referencing All-Agency Memoranda #136 and #137 (February 23, 1984). Announces results of litigation discussed in Memo #137 wherein regulations explained in Memo #136 were upheld by the court in its January 27, 1984 ruling and implemented on that date. MEMO #139: Processing of Contract Work Hours and Safety Standards Act Violation Cases on Contracts Subject to the Service Contract Act (July 9, 1984). Discusses regulatory changes affecting procedures to be followed in processing and investigating CWHSSA violation cases involving the SCA.WAGE AND HOUR DIVISION ANNOTATED LIST OF SCA ALL-AGENCY MEMORANDA AS OF 3/14/88 (CONTINUED) MEMO #145: Publication of the Second Edition of the SCA Directory of Occupations (September 12, 1986). Announces the expansion of the SCA Directory of Occupations to include more occupational classes. MEMO #146: Annual Updating of Service Contract Act Health and Welfare Benefit Levels (December 1, 1986). Explains immediate changes to be made with regard to health and welfare fringe benefit contribution requirements provided for in prevailing wage determinations, and annual updates to be made in the future.APPENDIX Es SELECTED BUREAU OF LABOR STATISTICS SURVEY FORMSBLS FORM 2751ABureau of Labor Statistics Wage Survey General Establishment Information U.S. Department of Labor The information collected on this form by the Bureau of Labor Statistics will be held in confidence and will be used for statistical purposes only. This report is authorized by law, 29 U.S.C 2. Your voluntary cooperation is needed to make the results of this survey comprehensive, accurate, and timely. Form Approval O.M.B. No. 1220-0007 1. Establishment Identification A. Survey Payroll Period Payroll Period 19 19 Establishment Name Street Address County City. State and Zip Code Area Code - Telephone Name and Title of Authorizing Official Name and Title of Official Supplying Data 19 _ 19 _ Address of Office from which data was obtained, if different from above B. Central office (Complete if clearance and/or data obtained from this source) Area Code - Telephone Name of Company Name of Authorizing Official Street Address City. State and Zip Code Title 2. Currant Products or Service* and Processes A. Product or Service 19_ Approximate % Annual Value Product or Service 19_ Approximate % Annual Value B. Scope of Operations 3. Office Use Only Year Schedule Number Ident. Area Region State City Size SIC Code Est. Size Union Weight Special Characteristics (1-6) (6-8) (9-11) (12) (13-14) (15) (16 19) (20) (21) (22-24) 1 (26-27) 2 (28-30) 19 _ 19_ For PATC Um Establishment Employment (Approximate) Year Total Employment (33-38) Production (39-43) Technical and Clerical (54-58) Professional and Administrative (69-73) 19_ 19_ 4. Data Collection Record Year Field Economist Date(s) of Visit(s) 19_ 19_ Bureau of Labor Statistics General Establishment Information—Continued U.S. Department of Labor The information collected on this form by the Bureau of Labor ^[s reP°rt is authorized by law, 29 U.S.C. 2. Your Form Approved . . , voluntary cooperation is needed to make the n lul R Wn 199 Statistics will be held in confidence and will be used for statistical results of this survey comprehensive, accu- v.ivi.o. nu. i cc purposes only. rate, and timely. Establishment Name Survey Ident. Area Schedule No. 1-3 4-7 8-12 5. ESTABLISHMENT EMPLOYMENT Year Grand Total Plant Total (a) (b) Office Total (a) (b) Other Total (a) (b) I S1 13-14 15-20 21-26 27-32 33-38 39-44 45-50 51-56 57-62 63-68 69-74 79-80 1 S1 Remarks 6. SHIFT INFORMATION - Plant Workers A. Is the establishment currently operating an extra shift and does it have formal provisions for extra shift work? Code 1 - Yes (answer B and C) 2 - No, but has formal shift provisions (skip B, answer C) 9 - No, and has no formal shift provision (skip B and C) N - Data not available (skip B and C) Year 2 Shift 2nd 3rd Other 13 14 15 B. How many workers are currently employed on each shift? Code N - Data not available 1st Shift 2nd Shift 3rd Shift Other Shift 16-21 22-27 28-33 34-39 What is the pay differential for extra shift work? (Report to two decimals, e.g., 25% C =25.75; 12Vi 20C = 20; 10% = 10.) Code 1 • Cents per hour addition to 1st shift rate 2 - Percent addition to 1st shift rate 3 - Full days pay for reduced hours 4 - Full days pay for reduced hours plus cents per hour addition to 1st shift rate (specify in Remarks) 5 - Full days pay for reduced hours plus percent addition to 1st shift rate (specify in Remarks) Y< 6 - Other differential (specify in Remarks) 9 - No pay differential N - Data not available Yl = 12.25. Do not report trailing decimal zeros, e.g.. 2nd S Code lift Cents or Percent 3rd Sh Code ift Cents or Percent Other Code Shift Cents or Percent 40 41-46 47 48-53 54 55-60 Remarks BLS 2751A—Continued (Rev. January 1988)How many hours per week and days per week are a majority of employees scheduled to work? (Report hours to Plant Year 1 Year 2 Office Year 1 Year 2 two decimals, days to one decimal, but do not report trailing decimal zeros.) Hours Per Week 61-65 69-73 Code N - Data not available Days Per Week 66-68 74-76 S2 79-80 S2 8. WAGE PAYMENT PLANS Approximately how many employees are paid according to the following types of pay plans? Code N - Data not available Plant Year 1 Time Rates Individual determination 13-17 Range of Rates: Length of service 18-22 Merit review 23-27 Combination 28-32 Single Rates 33-37 Incentive Rates Individual piece rate 38-42 Group piece rate 43-47 Individual bonus 48-52 Group bonus 53-57 Commission 58-62 S3 79-80 S3 Remarks Year 1 Year 2 13-17 18-22 23-27 28-32 33-37 38-42 43-47 48-52 53-57 58-62 S4 79-80 S4What is the formal minimum hourly or weekly entrance (first job) rate and standard work week for inexperienced workers? Code—Method of Wage Payment (MWP) T - Time IN - Incentive W - Weekly BW - Bi-weekly SM - Semi-Monthly M • Monthly A - Annually CW - Convert to weekly X - No formal minimum Y - None hired N - Data not available Reporting Instructions: • For Area Wage Surveys: For Occupation A, report inexperienced typists For Occupation B, report other inexperienced clerical workers. • Report hourly rates to three decimals, salary rates (except annual) to two decimals, annual rates to the nearest whole dollar, and work week to two decimals. Do not report trailing decimal zeros. • If method of pay code X, Y, or N is reported, leave "Rate” and "Work Week" blank. • For Industry Wage Surveys: If hourly rates are reported, leave "Work Week" blank. Occupation Year 1 A Rate 13-20 MWP Code 21-22 Work Week 23-28 B Rate 29-36 MWP Week 37-38 Work Week 39-44 C Rate 45-52 MWP Code 53-54 Work Week 55-60 D Rate 61-68 MWP Code 69-70 Work Week 71-76 S5 79-80 Year 2 13-20 21-22 23-38 29-38 37-38 39-44 45-52 53-54 55-60 61-68 69-70 71-76 S5 79-80 RemarksA. Do a majority of employees receive paid vacation? Code 1 - Yes, payment made on the basis of time 2 - Yes, payment made as a percentage of earnings 3 - Yes, payment made as a flat sum (convert to time equivalent) 4 - Yes, payment other than above (specify, convert to time equivalent) 9 - No N - Data not available Plant Office 1 Yr. 2 1 Yr. 2 13 13 B. How much vacation pay do employees receive at the following length of service periods? Reporting Instructions: • For time payments, enter weeks and days, e.g., 2/3 for 2 weeks, 3 days. Do not report leading zeros. • For % payments, enter to one decimal, e.g., 5/5 for 5Vi%. Do not report leading zeros. • If days or decimal % equals zero, leave the reporting field blank. Remarks Plant Year 1 Year 2 Office Year 1 Years of Service Weeks or Whole % Day or Decimal % Weeks or Whole % Day or Decimal % 1/2 14-15 16 14-15 16 1 17-18 19 17-18 19 2 20-21 22 20-21 22 3 23-24 25 23-24 25 4 26-27 28 26-27 28 5 29-30 31 29-30 31 8 32-33 34 32-33 34 10 35-36 37 35-36 37 12 38-39 40 38-39 40 15 41-42 43 41-42 43 20 44-45 46 44-45 46 25 47-48 49 47-48 49 30 * 50-51 52 50-51 52 Max 53-54 55 53-54 55 Weeks or Whole % Day or Decimal % Weeks or Whole % Day or Decimal H 14-15 16 14-15 16 17-18 19 17-18 19 20-21 22 20-21 22 23-24 25 23-24 25 26-27 28 26-27 28 29-30 31 29-30 31 32-33 34 32-33 34 35-36 37 35-36 37 38-39 40 38-39 40 41-42 43 41-42 43 44-45 46 44-45 46 47-48 49 47-48 49 50-51 52 50-51 52 53-54 55 53-54 55A. Are paid holidays—either full or half days— provided to a majority of employees? Code 1 - Yes (Enter the number of full and half day paid holidays. If only full days are provided, leave the half-days field blank.) 9 - No N - Data not available Plant 1 Code Full days Half days Office 1 Yr. 56 57-58 59-60 56 57-58 59-60 B. Which holidays are provided? (Enter ‘‘X" where appropriate) Holiday Plant Yet Full Day r 1 Half Day Ye: Full Day r 2 Half Day Office Yea Full Day 1 Half Day Yes Full Day r 2 Half Day New Year's Day Martin Luther King’s Birthday Washington's Birthday Good Friday Memorial Day 4th of July Labor Day Columbus Day Veteran’s Day Thanksgiving Day Day after Thanksgiving Christmas Eve Christmas Day Day after Christmas New Year’s Eve Other (list) Does the establishment have a formal policy granting paid sick leave to a majority of employees? Code 1 - Yes, full pay. no waiting period 2 - Yes, other than ‘full pay, no waiting period" 9 - No N - Data not available 1 Yr. 2 1 Yr. 2 Remarks 13. PAID PERSONAL LEAVE_ A. Does the establishment have a formal policy granting paid "personal leave” (not Plant Office reportable as paid vacation, holiday, or sick leave) to a majority of employees? Code 1 - Yes (complete B) 9 - No (skip B) N - Data not available (skip B) B. If "yes," enter the code that describes the type of paid personal leave plan; also enter the number of full and half-days of paid leave provided annually by the plan. Code 1 - Uniform number of days specified 2 - Other type, e g Variable number of days; no specific limit; combination type (describe in Remarks) N - Data not available Reporting Instructions • If more than 1 half-day is provided, combine the half-days to equivalent full days. e.g.. report 5 half-days as 2 full days and 1 half-day. • If only full days are reported, leave the half-days field blank. Plant 1 Yr. Office 1 Yr. Code Full days Half days 63 64-65 66 63 64-65 66 Remarks 14. INSURANCE BENEFITS Does the establishment offer the indicated insurance benefits to a majority of employees? Code 1 - Yes, wholly financed by establishment 2 - Yes, jointly financed with employees 9 - No N - Data not available Insurance Plans Plant 1 Yr. 2 Life 67 Accidental death and dismemberment 68 Sickness and accident 69 Long-term disability 70 Other 71 S6 79-60 S6 Office 1 Yr. 2 67 68 69 70 71 S7 79-80 S7Does the establishment offer the listed health plans or benefits to its employees? Code Yes, offered to a majority of employees: 1 - Wholly financed by establishment 2 - Jointly financed by establishment Yes, offered to a minority of employees: 3 - Wholly financed by establishment 4 - Jointly financed by establishment 9 - No N - Data not available *May be part of a health plan or may be an independent health benefit. Plant Health Plans 1 Yr. 2 Hospitalization, Surgical, and Medical Insurance (HSM) 13 Health Maintenance Organization (HMO) 14 1 Yr. 2 13 14 Selected Health Benefits * Dental Care 15 Vision Care 16 Hearing Care 17 Alcohol and Drug Abuse Treatment 18 Other Health Benefit 19 15 16 17 18 19 Remarks 16. HEALTH CARE BENEFITS PARTICIPATION Office in the health care plans or benefits listed? Consider only plans paid for fully or partially by the employer. Health Plans 1 Yr. 2 1 Yr. 2 Reporting Instructions: Hospitalization, Surgical, and Medical Insurance (HSM) 20-25 20-25 • For AWS, report Full Time workers only; for IWS, consult technical memorandum. Health Maintenance Organization (HMO) 26-31 26-31 If workers participate and data are available, enter the approximate number of participating workers. If workers participate, but data are not available, enter 999999. The number of plant and office workers participating in the health plans (HSM plus HMO) cannot be greater than the number of plant and office workers reported in Section 5 (Employment). If there are no workers in an occupational category, leave blank. If there are workers but no plan or no participation, enter “0.” If more than one plan provides the same benefit (e.g., vision care is provided through one insurance plan and three HMO plans) add the participation figures for all plans that provide the benefit and enter the sum. Selected Health Benefits Dental Care 32-37 Vision Care 38-43 Hearing Care 44-49 Alcohol and Drug Abuse Treatment 50-55 Other Health Benefits 56-61 32-37 38-43 44-49 50-55 56-61 RemarksDoes the establishment provide the indicated benefits to a majority of employees? Code 1 - Yes 9 - No N • Data not available Remarks Office Benefits 1 Yr. 2 Paid Jury Duty Leave 62 Paid Funeral Leave 63 Paid Military Leave 64 Severance Pay 65 Supplemental Unemployment Benefits (SUB) 66 Cost-of-Living Allowance 67 Other Benefit 68 62 63 64 65 66 67 68 18. RETIREMENT BENEFITS Does the establishment offer the indicated retirement benefits to a majority of employees? Code 1 - Yes, wholly financed by establishment 2 - Yes, jointly financed with employees 9 - No N - Data not available Remarks Retirement Benefits 1 Yr. 2 Pension 69 Lump Sum 70 Other Benefit 71 Office 1 Yr. 2 69 70 71 19. UNION CONTRACT COVERAGE Are a majority of employees covered by collective bargaining agreements? Code 1 - Yes 9 - No N ■ Data not available Plant 1 Yr. 1 72 S8 79-80 S8 1 Yr. 2 72 S9 79-80 S9 RemarksBLS FORM 2752ABureau of Labor Statistics Wage Survey Wage-Rate Information U.S. Department of Labor The information collected on this form by the Bureau of Labor Statistics will be held in confidence and will be used for statistical purposes only. This report is authorized by law, 29 U.S.C. 2. Your voluntary cooperation is needed to make the results of this survey comprehensive, accurate, and timely. Form Approved O.M.B. No. 1220-0007 1. Establishment Name Telephone 2. Survey 3. Area 4. Payroll Period 5. Are any general wage changes expected before_for: Production workers? NoD YesD Office workers? No □ YesD 6. Do the wage rates recorded require adjustment for general wage changes in effect but not included in the data for: Production workers? No CD YesO Office workers? No D YesD 7. If "yes " in either items 5 or 6 for either group of workers, complete columns A or B below for each pending or non-recorded wage change: Item a. Is the change pending or already in effect? A. Production Workers Pending □ In effect □ B. Office Workers Pending □ In effect □ b. What is the (expected) effective date? Month and Year Month and Year c. What kind of wage change or adjustment is this? (describe formula for cost-of-living adjustment— COLA or nature of other changes.) Cola □ Deferred increase □ New contract D Other (describe) □ Cola □ Deferred increase □ New contract D Other (describe) □ -• d. What is the amount of the general wage change or adjustment? Which workers are affected? (specify ior %, + or Occupational Class i or % Occupational Class ior % 8. If pending box is "X" in 7a a. Date of checkback and caller , record: Date Name Date Name b. Enter an "X" in the appropriate box(es) Change made □ Change not made □ Change made □ Change not made □ Schedule No. (1-5) Ident. (6-8) Area <9-11) Region (12) State (13-14) City Size (15) SIC Cqde (16-19) Est. Size (20) Union (21) Weight (22-24) S.C. 1 (25-27) S.C. 2 (28-30) Number of workers for whom wage rates are reported-► N (37-42) Men (43-48) Women (49-54) Total (55-60) Remarks 10. Source of Wage Data Name and Title of Official Supplying Wage Data □ Company prepared □ Data Collector prepared 11. Data Collection Record Data Collector Date(s) of Visit(s) * U.S. GOVERNMENT PRINTING OFFICE : 1985 O - 491-529 (45762)BLS FORM 2753GBureau of Labor Statistics Occupational Rates U.S. Department of Labor The information collected on this form by the Bureau of Labor Statistics will be held in confidence and will be used for statistical purposes only. This report is authorized by law. 29 U.S.C. 2. Your voluntary cooperation is needed to make the results of this survey comprehensive, accurate, and timely. Form Approved O.M.B. No. 1220-0007 Schedule Number Payroll Period ' Establishment Name Page OCCUPATION AND GRADE Occupational Code (1) Sex (2) Method of Pay (3) Number of Workers (4) Hours (5) Salary, Rate, or Earnings (6) Line No. (7) (8) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 OFF.ce N mm worn.* USE ONLY BLS FORM 2753FB.LS. 275 3f (Rev. April 1975) data Schedule No. OCCUPATIONAL RATES Payroll Period_ Data requested. Page U. S. OOVEStMNT PRINTING OFFICE 1988/241-207/94977WORK AREA