National Institute of Standards and Technology | U.S. Department of Commerce 1

Davis-Bacon & Related Acts: Q&A Session 

January 9, 2024
National Institute of Standards and Technology | U.S. Department of Commerce 2

WELCOME

• We look forward to your questions. Click the Q&A button, type 

your question, and click “Post Question” to submit.

• We will answer as many questions as possible today.

• Visit CHIPS.gov

• Get the Notice of Funding Opportunity

• Access additional resources for applicants and 

stakeholders

• Sign up for email updates

• Register for future webinars
National Institute of Standards and Technology | U.S. Department of Commerce 3

Today’s Speakers

Marina

Zhavoronkova

Senior Advisor,

Workforce Strategy

CHIPS Program Office, 

Department of 

Commerce

Natalie

Collins

Senior Advisor

DOL Wage and Hour 

Division, Division of 

Government Contracts 

Enforcement

Meghan

MacLeod

Senior Advisor

DOL Wage and Hour 

Division, Division of 

Wage Determinations
National Institute of Standards and Technology | U.S. Department of Commerce 4

CHIPS for America Vision

Economic 

Security

The CHIPSAct will 

strengthen supply chain 

security and increase 

economic resilience in

critical sectors.

National 

Security

The CHIPSAct will ensure 

that the U.S. can manufacture

advanced technologies,

including secure chips for the

U.S. military.

Future 

Innovation

The CHIPSAct will spur 

innovation, increase 

competitiveness, and 

ensure long-term U.S. 

leadership in the sector.
National Institute of Standards and Technology | U.S. Department of Commerce 5

CHIPS for America Programs

Components:

1. Attract large-scale 

investments in advanced

technologies such as 

leading-edge logic and 

memory

2. Incentivize expansion 

of manufacturing capacity 

for mature and other types 

of semiconductors

$39 billion

for manufacturing

• National Semiconductor 

Technology Center

• National Advanced Packaging 

Manufacturing Program

• Manufacturing USA institute(s)

• National Institute of Standards 

and Technology measurement 

science

$11 billion

for R&D

Workforce development

Together with 

CHIPS 

initiatives from 

other agencies, 

including DOD, 

State, NSF, 

and Treasury
National Institute of Standards and Technology | U.S. Department of Commerce 6

CHIPS for America – Construction Workforce

A skilled construction workforce is critical to the construction, 

expansion and modernization of semiconductor fabrication, 

supplier, and R&D facilities

1. All published NOFOs require applicants to submit a construction 

workforce plan that addresses recruitment, training, and retention 

activities

2. This includes activities that will expand the workforce by reaching 

economically disadvantaged individuals and women

Today’s webinar will cover Davis-Bacon requirements tied to 

construction activities funded by the incentives program
National Institute of Standards and Technology | U.S. Department of Commerce 7

Today’s Webinar

Today’s webinar addresses the following questions:

What are the Davis-Bacon requirements in the CHIPS Act? 

Davis Bacon 101: wage determinations, fringe benefits, certified payroll, protected 

activities, contracting agency responsibilities 

Does prevailing wage application differ if grant funds will cover only the purchase of 

equipment?

What type of construction will CHIPS projects be characterized as?

How will the new prevailing wage rule update Davis-Bacon obligations?

How does one ensure the project owners, GCs and subs are in compliance with DBRA?

Please enter any clarifying questions in the chat, and we will do our best to respond. Questions 

we are not able to respond to today will be addressed in future Q&A documents that will be 

released after this webinar and updated on an ongoing basis.
National Institute of Standards and Technology | U.S. Department of Commerce 8

Frequently Asked Questions

What are the Davis-Bacon requirements in the CHIPS 

Act?

Under the CHIPS and Science Act of 2022, all entities that receive 

CHIPS funding from the Department of Commerce must comply with 

the prevailing wage requirements of Davis-Bacon and Related Acts 

(DBRA). All laborers and mechanics employed by contractors or 

subcontractors on CHIPS projects must be paid wages at rates not 

less than those prevailing on similar construction in the locality.
U.S. Department of Labor | Wage and Hour Division 9

Davis-Bacon and Related Acts 

• Davis-Bacon prevailing wages are key to ensuring that 

construction jobs are good jobs and that workers on 

federally funded construction projects are paid fair wages 

and benefits.

• The Davis-Bacon and Related Acts benefit construction 

workers, their families, their communities, and taxpayers 

by helping employers compete on equal footing.
U.S. Department of Labor | Wage and Hour Division 10

Wage Determinations (WDs)

• Davis-Bacon WDs specify the prevailing wages, including 

fringe benefits, which are determined to be prevailing for 

the described classes of laborers and mechanics 

employed on construction projects of a similar character 

in the localities specified therein.

• The most current WD for the location and type of project

must be incorporated into the contract.
U.S. Department of Labor | Wage and Hour Division 11

Selecting the Correct WDs – Type

• Selecting and incorporating the appropriate general wage determination for 

the project type. Guidance provided in AAM 130.

• Building

• Residential

• Heavy

• Highway

• Multiple wage determinations may apply where there are separate 

construction types and the different type of construction is at least 20 percent 

of the project cost or exceeds $2.5 million – guidance provided in AAM 131 

and 236
U.S. Department of Labor | Wage and Hour Division 12

Selecting the Correct WDs – Date

Incorporate most current WD:

• Negotiated contracts (“RFPs”) – Time of award. 

• Sealed bid contracts: In effect 10 days or more before opening of 

bids.

• If the contract is not awarded within 90 days of bid opening, any 

modification to the WD must be incorporated unless the federal agency 

requests and obtains an extension of the 90 day period.
U.S. Department of Labor | Wage and Hour Division 13

Updating Wage Determinations

• After contract award, the contracting agency must include 

the most recent applicable wage determination 

modification(s) when:

• a contract or order is changed to include additional and substantial 

work not within the scope of work of the original contract, or to 

require the contractor to perform work for an additional time period.

• an option to extend the term of a contract is exercised.

• where contracts require a general commitment to perform 

necessary construction as the need arises, over a period of time 

that is not tied to the completion of any particular project, annually 

on the anniversary date of the contract’s award.
U.S. Department of Labor | Wage and Hour Division 14

Conformance Requests

Unlisted classifications may be added after award only 

as provided in the labor standards contract clauses 

(29 CFR 5.5(a)(1)(ii)). 
U.S. Department of Labor | Wage and Hour Division 15

Conformance Requirements

• The work to be performed by the proposed classification 

is not performed by a classification already in the wage 

determination (WD);

• The proposed wage rate must bear a reasonable 

relationship to WD rates; and

• The proposed classification is used in the area by the 

construction industry.
U.S. Department of Labor | Wage and Hour Division 16

Wages and Fringe Benefits

Laborers and mechanics must be paid the 

appropriate wage rate and fringe benefits on the 

wage determination for the classification of work 

actually performed on the site of the work, without 

regard to skill.
U.S. Department of Labor | Wage and Hour Division 17

Wages and Fringe Benefits – Pay Frequency

• The laborers and mechanics working on the site of the 

work must be paid weekly, with the exception of fringe 

benefit contributions paid into a bona fide FB plan, which 

must be paid no less often than quarterly.

• Cash wages paid in excess of the basic hourly rate may 

count to offset or satisfy the fringe benefit obligation.
U.S. Department of Labor | Wage and Hour Division 18

Fringe Benefit Plans

• Contractors may take credit (without prior approval from 

DOL) for bona fide FB fund contributions made to thirdparty trustees or insurers that are irrevocably paid and 

made not less often than quarterly.

• With prior approval from DOL, contractors may also take 

credit for their reasonably anticipated costs of providing 

fringe benefits to workers, if all the requirements in 29 

CFR 5.28 are met.
U.S. Department of Labor | Wage and Hour Division 19

Apprentice Requirements

• Apprentices may be paid less than the 

applicable prevailing wage rate when they 

are:

• Individually registered in an approved program; 

• Employed within the allowable ratio specified in 

the program for the number of apprentices to 

journeyworkers.
U.S. Department of Labor | Wage and Hour Division 20

• Two separate contract clause requirements apply

to “certified payrolls” for a project:

• The contractor shall submit weekly for any week in

which any contract work is performed a copy of all

payrolls.

• Each weekly payroll submitted must be

accompanied by a “Statement of Compliance.”

Certified Payrolls
U.S. Department of Labor | Wage and Hour Division 21

Protected Activities

• Workers or job applicants are protected from retaliation 

for the following activities:

• Making a contractor aware of any conduct the worker 

reasonably believes is a violation

• Asserting DBRA rights on behalf of themselves or others, 

such as filing a complaint

• Cooperating in an investigation or other compliance action

• Informing another person of their rights under the DBRA
U.S. Department of Labor | Wage and Hour Division 22

Contracting Agency Responsibilities

• Ensure labor standards clauses and the proper wage 

determination(s) (WD) are identified and incorporated 

into the contract;

• Advise contractors which schedule of rates applies to 

various construction items; and

• After consulting with WHD, advise contractors regarding 

the duties performed by various crafts in the WD.
U.S. Department of Labor | Wage and Hour Division 23

Contracting Agency Oversight

• Contracting agencies have day-to-day enforcement responsibility 

for:

• Ensuring that the applicable wage determinations and WH1321 Poster are posted onsite

• Reviewing certified payrolls

• Conducting worker interviews and investigations

• Forwarding refusal-to-pay and/or debarment consideration 

cases to WHD for appropriate action; and 

• Providing data for enforcement reports
National Institute of Standards and Technology | U.S. Department of Commerce 24

Frequently Asked Questions

Does prevailing wage application differ if grant funds will 

cover only the purchase of equipment?

If construction work is involved in the installation of purchased 

equipment, the requirement for DBRA compliance applies to the 

entirety of the project. The requirements of the Davis-Bacon Act apply 

to construction, alteration, and/or repair (including painting or 

decorating) of public buildings or public works. 
National Institute of Standards and Technology | U.S. Department of Commerce 25

Frequently Asked Questions

Continued: Does prevailing wage apply in these 

equipment purchase scenarios?

Example 1: Company A is awarded funding to construct a new fabrication 

facility on a greenfield site. Company A will hire Contractor 1 serve as the 

prime contractor to substantially oversee all or substantially all of the 

construction. Contractor 1 will engage with Subcontractor 1 to perform 

excavation and site clearing, Subcontractor 2 for constructing the building, 

and Subcontractor 3 to install new equipment. Do prevailing wage laws 

regulations apply?

Example 2: Company C is awarded funding to purchase equipment to 

modernize the production process of a fabrication facility. The installation of 

equipment does not involve construction work but, instead required IT 

support. Do prevailing wage laws regulations apply?
National Institute of Standards and Technology | U.S. Department of Commerce 26

Frequently Asked Questions

Continued: Does prevailing wage apply in these 

equipment purchase scenarios?

Example 3: Company B is awarded funding to purchase equipment to 

modernize the production process of a fabrication facility. Do prevailing 

wage laws and regulations apply to the purchase and delivery of equipment 

to the site of work?

The new equipment arrives at the fabrication facility, and there is 

construction work to install the new equipment. Do prevailing wage laws 

regulations apply?
National Institute of Standards and Technology | U.S. Department of Commerce 27

Frequently Asked Questions

What construction type are CHIPS projects characterized 

as?

While each characterization will depend on the specific scope of any 

proposed project, many CHIPS projects are likely to be characterized as 

Building Construction, and some work may be characterized as Heavy 

Construction or Highway Construction. More than one characterization may 

be applicable to a single project. For assistance in determining the type of 

characterization applicable to your project, please email 

dgceinquiries@dol.gov or collins.natalie@dol.gov of the United States 

Department of Labor’s Wage and Hour Division’s Government Contracts 

Enforcement Team.
National Institute of Standards and Technology | U.S. Department of Commerce 28

Frequently Asked Questions

How will the new prevailing wage rule update Davis-Bacon 

obligations for a project owner or construction contractor?

The recent DBRA final rule updates and modernizes the DBRA 

implementing regulations. Several of these changes help the Department 

publish more current and accurate wage determinations, while other 

changes provide clarification as to the scope of coverage and the 

application of the prevailing wage requirements. The final rule also includes 

new requirements for contractors, including new anti-retaliation provisions 

and updated recordkeeping requirements. More information about the final 

rule changes can be found in AAM 244, the Final Rule FAQs, and the 

comparison charts between the prior regulations and the current 

regulations.
National Institute of Standards and Technology | U.S. Department of Commerce 29

Frequently Asked Questions

How do I ensure the project owners, GCs and subs are in 

compliance with DBRA?

Make sure that project owners are aware of and performing their obligations 

during the contract award process, including:

• Including the contract clauses from 29 CFR 5.5 and the applicable wage 

determinations in all construction projects for the funded projects.

• Ensuring that the contract clauses and applicable wage determinations 

are flowed down into all subcontracts.

• Advising contractors regarding the application of wage determinations 

and the scope of worker classifications contained in the wage 

determination(s).
National Institute of Standards and Technology | U.S. Department of Commerce 30

Frequently Asked Questions

Continued: How do I ensure the project owners, GCs and 

subs are in compliance with DBRA?

Perform, or ensure that project owners perform, day-to-day oversight, 

including:

• Ensuring that the contractor(s) have posted the Davis-Bacon Employee 

Rights poster (WH-1321), the applicable wage determination(s), and any 

approved conformances on the site of work.

• Reviewing certified payroll and related records.

• Interviewing workers to confirm compliance in accordance with any 

enforcement procedures established by the federal funding agency.
National Institute of Standards and Technology | U.S. Department of Commerce 31

Points of contact at CPO

• askchips@chips.gov – general inquiries

• apply@chips.gov – application-related inquiries

• Active applicants may reach out to Relationship Directors 

for further inquiries

Points of contact at WHD

• Points of contact at WHD, including regional points of 

contact regarding either wage determinations or 

enforcement, will be sent in follow-up to this webinar.