What Is a Wage Determination?
A wage determination is a Department of Labor schedule of minimum wages and fringe benefits for workers on a federal construction or service contract.
Wage determination in plain English
Construction contracts over $2,000 (Davis-Bacon) and service contracts over $2,500 (Service Contract Act) include one. The rates depend on where the work is done and the type of work.
Wage determinations are published on SAM.gov and usually attached to the solicitation. Check yours before you price, because the minimum rates set the floor for your labor costs.
Related terms
- Period of performance: The period of performance is the time during which a contractor must do the work under a contract, often a base period plus option periods.
- Option year: An option year is an extra year of work the government can add to a contract at its choice. Many service contracts have a base year plus option years.
- Solicitation: A solicitation is an agency's official request for bids, quotes or proposals. It describes the work, the terms, how to respond and how offers are judged.
Put it to work
Looking for another term? Browse the full glossary or the government contracting glossary guide.