[Material transmitted]{.underline}

Instruction 532-7, Establishment of Temporary or Seasonal Construction
Pay Rates ( pages 1 -2)

[Material superseded]{.underline}

None

[Background]{.underline}

This new Instruction is published to state Department policy and
procedures for establishing the rates of pay for employees who perform
temporary or seasonal construction work on Federally sponsored projects
under P.L. 86-121. This Instruction does not contain new policy. It
formalizes existing policy. Construction-type schedules generally are
established as needed by Federal agencies for construction projects and
cover the category of employees generally known as \"force account
employees.\" Rates for such schedules are generally based on prevailing
rates for comparable construction work in the local area as determined
by the Department of Labor under the Davis-Bacon Act of 1931. In the
absence of Davis-Bacon rates for a locality, rates for a construction
schedule may be based on prevailing construction industry rates for
comparable jobs as determined by a survey in the local area. The
Department has the authority for establishing temporary or seasonal
construction rates.

This issuance is effective immediately. However, you are reminded of the
obligation to implement the changes required by this issuance consistent
with labor relations responsibilities (5 U.S. Code Chapter 71 and
provisions of negotiated agreements).

[Filing instructions]{.underline}

File new material in the proper sequence. Change Table of Contents
(Instruction 002-1 ) for the Personnel Manual to reflect new material.
Post receipt of this transmittal to the HHS Check List of Transmittals
and file this transmittal in sequential order after the check list.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Thomas S. McFee

Assistant Secretary for

Personnel Administration

Distribution: MS(PERS): HRFC-001

Subject: ESTABLISHMENT OF TEMPORARY OR SEASONAL CONSTRUCTION\
PAY RATES

532-7-00 Purpose and Authority

10 Coverage

20 References

30 Policy

40 How Rates are Determined

50 Adjustment of Rates

[532-7-00]{.underline} PURPOSE AND AUTHORITY

This Instruction states the Department\'s policy and procedures for
establishing the rates of pay for employees who perform construction
work on Public Law (P.L.) 86-121 projects. The provisions of this
Instruction have been developed under the authority provided to
departments by FPM Supplement 532-1, Appendix V, for P.L. 86-121
projects to construct sanitary facilities for Native Americans.

[532-7-10]{.underline} COVERAGE

This Instruction covers temporary or seasonally-hired employees who

perform craft, trade, and labor work on P.L. 86-121 projects which
provide

for the construction, repair, and maintenance of sanitary facilities for

American Indians and Alaskan natives.

[532-7-20]{.underline} REFERENCES

A.  Public Law 86-121 (law authorizing construction, repair and
    maintenance of sanitary facilities for Native Americans)

    Davis-Bacon Act (40 U.S.C. 276a, wage rates for laborers, craftsmen,
    and mechanics involved in construction on which Federal funds are
    expended)

    FPM Supplement 532-1, Appendix V, paragraph H (construction
    schedules)

[532-7-30]{.underline} POLICY

It is the policy of this Department to set temporary or seasonal
construction rates consistent with published Davis-Bacon Act rates of
pay for labor, trades, and crafts employees and any restrictions imposed
on pay by the President, the Congress, or the Office of Personnel
Management.[^1]

532-7-40 HOW RATES ARE DETERMINED

Rates for temporary or seasonal construction employees are determined in
accordance with Davis-Bacon pay rates issued by the Department of Labor
(DOL). These rates are issued by DOL for use by the private sector and
other Federal agencies. They are used in arriving at comparable pay
rates for employees working on Federally funded construction projects in
specific geographic areas within the United States. These rates reflect
the minimum wage payable for blue collar employees working for
contractors on Federally sponsored highway, residential, and highrise
construction. Whenever available, residential construction rates are
used. If residential rates are unavailable, highway construction rates
will be used. If Davis-Bacon rates are unavailable, the Department may
use survey rates from any other available source. As stated in 532-7-30,
all pay rates must comply with any restriction imposed by the President,
Congress, or the Office of Personnel Management.

[532-7-50]{.underline} ADJUSTMENT OF RATES

Temporary or seasonal construction wages will be reviewed and
appropriate adjustments made annually by the Division of Pay and
Performance Programs. The adjustments will normally be made in the first
quarter of the calendar year so as to be available for the construction
season. The Division will specify effective dates and forward adjusted
rates to affected servicing personnel offices for implementation.

[^1]: ^.^ Responsible office: Division of Pay and Performance Programs,
    Office of the Assistant Secretary for Personnel Administration, HHS
    (FTS 475-0087)