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Acquisition Policy Flash! 15-03

What's Changed?

Class Deviation for EO 13658 - Minimum Wage for Contractors

Purpose:  To provide notice that, VA Class Deviation – Implementation of Executive Order 13658, Establishing a Minimum Wage for Contractors (VAIQ 7486549), dated September 9, 2014, implements Executive Order 13658, dated February 12, 2014, and OMB Policy Memorandum M-14-09, Implementation of the President’s Executive Order Establishing a Minimum Wage for Contractors, dated June 12, 2014.

Dated:  November 12, 2014

Federal Acquisition Regulation (FAR) Section Impacted:  FAR part 22, Application of Labor Laws to Government Acquisitions, and FAR part 52, Solicitation Provisions and Contract Clauses.

Effective Date:  Immediately for solicitations and contracts with a performance period on or after January 1, 2015.

Background:  On June 25, 2014, the CAAC issued a memorandum regarding a Class Deviation to implement Executive Order 13658, Establishing a Minimum Wage for Contractors.  Executive Order 13658, signed February 12, 2014, seeks to increase efficiency and cost savings in the work performed by parties who contract with the Federal Government by increasing to $10.10 the hourly minimum wage paid by those contractors.  The Executive Order requires agencies, to the extent permitted by law, to include a clause in new solicitations and resultant contracts, specifying, as a condition of payment, that the minimum wage to be paid to workers, in the performance of the contract or any subcontract there under, shall be at least $10.10 per hour beginning January 1, 2015.

Section 8(c) of Executive Order 13658 further provides that, for all new solicitations and resultant contracts negotiated on or after the date of the Executive Order, but before the effective date of the implementing regulations by the Federal Acquisition Regulatory Council, agencies are strongly encouraged to take all steps that are reasonable and legally permissible to ensure that individuals working pursuant to those contracts are paid an hourly wage of at least $10.10 per hour beginning January 1, 2015.

Action Required:  Effective immediately, contracting officers shall use the attached clause to require payment, beginning January 1, 2015, of an hourly wage of at least $10.10 to contractor employees.  Accordingly, for solicitations and resultant contracts that include FAR clause(s) 52.222-6 and/or 52.222-41, and will be performed, in whole or in part, in the United States (the 50 States and the District of Columbia), contracting officers shall insert the attached clause in:

  • solicitations issued on or after the date this deviation is signed; and
  • to the maximum extent practicable, solicitations issued on or after the date of the Executive Order and before the date of this deviation, if the solicitations is otherwise being amended

Access the class deviation.

Additional Information:  Questions or concerns should be addressed to the Office of Acquisition and Logistics (003A), Procurement Policy and Warrant Management Service (003A2A) at (202) 632-5288 or va.procurement.policy@va.gov.