Prevailing wage on federal jobs
Most federal trade jobs come with a minimum pay rate for each worker, set by the Department of Labor for that county and job title. Miss it when you price the job and you'll pay the difference out of your own pocket.
Which law applies
| Law | Applies to | What it sets |
|---|---|---|
| Davis-Bacon Act | Construction, alteration and repair of federal buildings and works, over $2,000 | Prevailing wage plus fringe benefits per trade classification (electrician, plumber, laborer...) for the county. Weekly certified payroll. |
| Service Contract Act | Service contracts over $2,500 (maintenance, janitorial, grounds, guard...) | Minimum wage per occupation for the area, plus a health and welfare fringe and vacation and holiday rules. |
| Neither | Most supply orders (you just ship products) | No prevailing wage from these two laws. |
Whether a job is "construction" or "service" matters: replacing an HVAC unit is usually construction (Davis-Bacon), while maintaining it on a schedule is usually a service (SCA). The solicitation tells you which by the clauses and wage determination it includes.
Where to find the rates
The bid includes the wage determination as an attachment or a link. You can also look them up for free on SAM.gov under Wage Determinations, by state and county. Use the one attached to the bid: it's the one that applies to that contract.
How to use it in your price
Find the classification that matches each worker you'll send (for example "Electrician" or "Laborer"), take the hourly rate plus the fringe, and price labor at no less than that. If you pay benefits like health insurance, they can count toward the fringe. Keep records: on Davis-Bacon jobs you'll submit certified payroll every week.
Not sure which classification fits? Ask the contracting officer during the questions period. It's a normal question, and the answer often goes out to every bidder.
General information for trade contractors, checked against the Federal Acquisition Regulation (FAR), the Department of Labor and SBA.gov in October 2026. Rules and dollar limits change, and the bid itself always wins: follow the clauses in the solicitation you're quoting. Not legal advice.
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