U.S. DEPARTMENT OF LABOR AMERICAN RECOVERY & 

PREVAILING WAGE RESOURCE BOOK 2010 REINVESTMENT ACT OF 2009 

AMERICAN RECOVERY 

 & 

 REINVESTMENT ACT OF 2009 

(ARRA) 

(Pub. L. No. 111-5) 
U.S. DEPARTMENT OF LABOR AMERICAN RECOVERY & 

PREVAILING WAGE RESOURCE BOOK 2010 REINVESTMENT ACT OF 2009 

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OVERVIEW OF LABOR STANDARDS 

COVERAGE UNDER ARRA 

ARRA Division A appropriates substantial funding for construction, alteration and repair of 

federal buildings and for infrastructure projects, such as roads, bridges, public transit, water 

systems, and housing. 

◊ In accordance with existing DBA requirements, Federal agencies directly 

contracting for construction work using ARRA funds must ensure that bid 

solicitations and resulting contracts contain Davis-Bacon labor standards and 

wage determinations in accordance with the Federal Acquisition Regulations 

(FAR). See FAR 48 C.F.R. Subpart 22.4. 

◊ Also, generally, under ARRA, Federal agencies must ensure that recipients of 

assistance funded by ARRA appropriations require contractors and 

subcontractors to pay laborers and mechanics who are employed on ARRAassisted construction projects at least the Davis-Bacon prevailing wages. 

◊ The Copeland “Anti-Kickback” Act and overtime pay requirements under the 

Contract Work Hours and Safety Standards Act (CWHSSA) also apply to ARRA 

funded construction. 

◊ Under Reorganization Plan Number 14 of 1950, federal contracting or assistanceadministering agencies have primary responsibility for Davis-Bacon enforcement 

to ensure that laborers and mechanics are paid at least the prevailing wage rates 

required by covered contracts. To ensure consistent and effective enforcement of 

worker protections, the Secretary of Labor has coordination and oversight 

responsibilities, including the authority to establish regulations and to investigate 

labor standards compliance as warranted.. The applicable regulations are found 

in 29 C.F.R. Parts 1, 3, 5, 6, and 7. 

◊ Also, ARRA appropriations can be used to fund federal service contracts subject 

to the Service Contract Act (SCA), and federal contracts subject to coverage 

under the Walsh-Healey Public Contracts Act (PCA). 

◊ The DBA with Reorganization Plan No. 14 of 1950, Copeland Act, CWHSSA, 

SCA, and PCA are available at: http://www.dol.gov/whd/reg-library.htm. 

AAM No. 207, dated May 29, 2009, provides guidance on “Applicability of Davis-Bacon 

labor standards to federal and federally assisted construction work funded in whole or in part 

under provisions of the American Recovery and Reinvestment Act of 2009.” 
U.S. DEPARTMENT OF LABOR AMERICAN RECOVERY & 

PREVAILING WAGE RESOURCE BOOK 2010 REINVESTMENT ACT OF 2009 

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ARRA Division B requires application of Davis-Bacon prevailing wage requirements to 

projects financed with certain tax-favored bonds: The law specifies that DBA requirements 

shall apply to projects financed with the proceeds of — 

 (1) any new clean renewable energy bond (as defined in section 54C of the Internal 

Revenue Code of 1986) issued after the date of the enactment of this Act, 

 (2) any qualified energy conservation bond (as defined in section 54D of the Internal 

Revenue Code of 1986) issued after the date of the enactment of this Act, 

 (3) any qualified zone academy bond (as defined in section 54E of the Internal 

Revenue Code of 1986) issued after the date of the enactment of this Act, 

 (4) any qualified school construction bond (as defined in section 54F of the Internal 

Revenue Code of 1986), and 

 (5) any recovery zone economic development bond (as defined in section 1400U–2 

of the Internal Revenue Code of 1986). 

AAM No. 208, dated May 5, 2010, provides guidance on “Applicability of Davis-Bacon 

labor standards to construction financed with the proceeds of certain tax-favored bonds under 

section 1601of Division B of the American Recovery and Reinvestment Act of 2009.” 

The Wage and Hour Division has established a special ARRA website at ARRA 

http://www.dol.gov/whd/recovery/, where AAM Nos. 207 and 208, important links, and 

other information that may be particularly valuable to the Federal agencies, recipients of 

ARRA assistance, contractors, employees, and others who have an interest in the application 

of Davis-Bacon labor standards under ARRA are posted.