GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (GSAM)

## Part 522—Application of Labor Laws to Government Acquisitions

#### 522.001 Definition. “Agency labor advisor,” as used in this part, means the Director of the GSA Acquisition Policy Division, Office of Acquisition Policy.

### Subpart 522.1—Basic Labor Policies #### 522.101 Labor relations. #### 522.101-1 General. (a) GSA personnel performing official duties must maintain GSA’s impartiality in disputes between labor and contractor management by refraining from involvement in or expressing a position on: (1) Labor negotiations between contractors and unions. (2) The merits of any dispute between labor and a contractor’s management.
(b) The Office of General Counsel (OGC) and the agency labor advisor: (1) Serve as focal points on contractor labor relations. (2) Initiate contact on contractor labor relations matters with national offices of labor organizations, Government departments, agencies or other governmental organizations. (3) Serve as a clearinghouse for information on labor laws applicable to Government acquisitions. (4) Respond to questions involving FAR Part 22, this part, or other contractor labor relations matters concerning GSA acquisition programs. OGC determines the agency’s legal position.

#### 522.101-3 Reporting labor disputes.

Submit reports to the agency labor advisor.

#### 522.103 Overtime.

#### 522.103-4 Approvals.

You are the “agency approving official.”

#### 522.103-5 Contract clauses. Insert FAR 52.222-1, Notice to the Government of Labor Disputes, in solicitations and contracts for items on the DoD Master Urgency List.

### Subpart 522.3—Contract Work Hours and Safety Standards Act

#### 522.302 Liquidated damages and overtime pay.

(a) Your responsibilities.

(1) Provide instructions to the appropriate Finance Office whether or not to withhold funds from contract payments pending your final administrative determination.

(2) Notify the Finance Office of your final decision to assess liquidated damages.

(3) After your final decision, provide instructions to either immediately release to the contractor any funds in excess of the amount specified in your decision or initiate the collection of additional funds (see paragraph (c) of this section).

(b) Procedures for the collection of liquidated damages.

(1) Initiate collection action by either:

(i) Withholding funds from payments due on the contract.

(ii) Issuing a demand for payment, if no funds were withheld or the amount withheld was less than the liquidated damages.

(2) Indicate in your demand letter your intent to offset from the contractor’s other Government contracts if payment is not made.

(3) Provide the Finance Office with a:

(i) Copy of the demand letter.

(ii) Request that it initiate collection action under 41 CFR Part 105-55, Collection of Claims Owed the United States, if payment is not made in accordance with the demand letter.

### Subpart 522.4—Labor Standards for Contracts Involving Construction

#### 522.404 Davis-Bacon Act wage determinations.

#### 522.404-6 Modifications of wage determinations.

The contracting director may request extensions under FAR 22.404-6(b)(6).

#### 522.406 Administration and enforcement. #### 522.406-6 Payrolls and statements. ##### Statements from Prime Contractors or Subcontractors that Personally Perform Work (a) Weekly payrolls and statements of compliance with respect to payment of wages are not required from a prime contractor or a subcontractor that personally performs work.
(b) Instead, a prime contractor or a subcontractor that personally performs work must submit weekly certified statements clearly showing the following information: (1) The individual’s contractual relationship. (2) The scope and date(s) the individual performed the work. (3) The individual received no wages for the labor performed. (4) No mechanics or laborers were employed in the prosecution of the work.
(c) Use GSA Form 618-D, Statement to be Submitted When Work is Performed Personally, to furnish this information.

#### 522.406-7 Compliance checking.

At a minimum, you must assure that a compliance check is made before making final payment.

#### 522.406-8 Investigations.

If a compliance check uncovers information warranting a labor standards investigation, submit a request to the Regional Inspector General for Investigations.

#### 522.406-9 Withholding from or suspension of contract payments.

If you decide to assess liquidated damages, follow the procedures in 522.302.

#### 522.406-11 Contract terminations.

If you terminate a contract or subcontract for labor standards violations, submit the report required by FAR 22.406-11.

#### 522.406-13 Semiannual enforcement reports.

Contracting activities must submit semiannual enforcement reports to the agency labor advisor. Submit reports within 15 calendar days after the end of the reporting period.

### Subpart 522.6—Walsh-Healey Public Contracts Act

#### 522.608 Procedures.

Before notifying or furnishing information to DOL under FAR 22.608(b), coordinate with legal counsel.

### Subpart 522.8—Equal Employment Opportunity #### 522.803 Responsibilities. Submit questions on the applicability of EO 11246 and implementing regulations to assigned legal counsel.

#### 522.804 Affirmative action programs. #### 522.804-1 Nonconstruction. (a) The requirements of FAR 22.804 also apply to each contractor and subcontractor with 50 or more employees who either: (1) Serves as a depository of Government funds. (2) Is a financial institution serving as an issuing and paying agent for U.S. savings bonds and savings notes. (b) Contractors, subcontractors, and financial institutions must develop a written affirmative action compliance program for each of its establishments even if the amount held is less than $50,000.

#### 522.805 Procedures. (a) To determine whether the contract meets the threshold in FAR 22.805(a), include the value of the basic contract plus priced options. A contract modification exercising a priced option is not a contract award under FAR 22.805(a)(1)(ii) and does not require a preaward clearance. (b) Submit preaward review requests directly. ##### Furnishing information to contractors (c) In addition to the poster required by FAR 22.805(b), provide each nonexempt contractor a copy of SF 100.

#### 522.807 Exemptions. The agency labor advisor submits a request for exemption.

### Subpart 522.10—Service Contract Act of 1965, As Amended

#### 522.1003 Applicability.

#### 522.1003-3 Statutory exemptions.

The Service Contract Act of 1965, as amended, applies to local office relocation moves if transportation costs are incidental to the principal purpose of the contract. Such contracts do not meet the statutory exemption cited in FAR 22.1003-3(c). (See Federal Property Management Regulation 101-40.109-2(b)(2).)

#### 522.1003-4 Administrative limitations, variations, tolerances, and exemptions.

Coordinate with assigned legal counsel before submitting a request under FAR 22.1003-4 to the agency labor advisor.

#### 522.1003-7 Questions concerning applicability of the Act.

You may submit a question regarding the applicability of the Act to assigned legal counsel. If the question cannot be answered, the agency labor advisor will forward it to the Administrator, Wage and Hour Division.

#### 522.1007 Requirement to submit Notice (SF98/98a).

Authorized GSA personnel may access wage determinations on-line. See your Regional or Service, Service Contract Act (SCA) Wage Rate Liaison for information on using the on-line capability.

#### 522.1011 Response to notice by Department of Labor.

#### 522.1011-2 Requests for status or expediting of response.

You may request an expedited wage determination or check on the status of a request by contacting the Administrator, Wage and Hour Division, directly.

#### 522.1021 Requests for hearing.

If you are considering requesting a substantial variance, you should coordinate with assigned legal counsel and the agency labor advisor. The agency labor advisor submits any request.

### Subpart 522.13—Disabled Veterans and Veterans of the Vietnam Era

#### 522.1303 Waivers.

Submit each waiver request to the agency labor advisor. The agency labor advisor forwards the request to the appropriate office for concurrence and approval.

### Subpart 522.14—Employment of Workers With Disabilities

#### 522.1403 Waivers.

Submit each waiver request to the agency labor advisor. The agency labor advisor forwards the request to the appropriate office for concurrence and approval.