Sign In
  • Question

    Does the Davis Bacon Act applies to Puerto Rico as an outlying area of the United States? Therefore, can we use the GPC for minor construction purchases up to $3,500.00 if the Act does not applies to us?


    Answer

    Pursuant to FAR 22.403-1 – Construction Wage Rate Requirements Statute, "40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction), formerly known as the Davis-Bacon Act provides that contracts in excess of $2,000 to which the United States or the District of Columbia is a party for construction, alteration, or repair (including painting and decorating) of public buildings or public works within the United States, shall contain a clause (see 52.222-6) that no laborer or mechanic employed directly upon the site of the work shall receive less than the prevailing wage rates as determined by the Secretary of Labor." 

    "United States" is defined in
    FAR 2.101 as follows: "when used in a geographic sense, means the 50 States and the District of Columbia, except as follows...."  There are several exceptions listed in the definition, but none of them apply to the definition of "United States" as it's used in FAR 22.403-1 to determine the applicability of the Construction Wage Rate Requirements Statute.  Also, the term "outlying areas" is not used in the definition of "United States" for purposes of determining the applicability of the statute.  However, FAR 13.106(d) states "the contracting officer shall issue a written solicitation for construction requirements exceeding $2,000."  There are not any exceptions in the FAR or DFARS to this requirement that I could find. 

    Therefore, based on
    FAR 13.106(d), it would appear the use of the GPC for minor construction purchases is limited to $2000. 
     

    Open full Question Details