Responsibility in Federal Contracting Act

Responsibility in Federal Contracting Act
H.R. 8518, sponsored by Rep. Paul Gosar (R-AZ)

The Responsibility in Federal Contracting Act would require the locally prevailing wage utilized for purposes of the Davis-Bacon Act be determined by the Department of Labor’s Bureau of Labor Statistics (BLS) surveys using random statistical sampling techniques.

The 1930’s-era Davis-Bacon Act requires workers to be paid the local “prevailing wage” for federally-funded construction contracts worth more than $2,000. A prevailing wage is the hourly rate for laborers and mechanics in a specific region, as set by the Department of Labor’s Wage and Hour Division. Critics of WHD’s methodology for determining local prevailing wages – including the Government Accountability Office and DOL’s Office of Inspector General – argue the process has timeliness, representativeness, and accuracy issues.

Rep. Gosar’s legislation would replace WHD’s criticized wage-setting determinations with those of BLS utilizing “random statistical sampling techniques” like in its monthly jobs report and employment-related data.  The FY 2025 budget prepared by the Republican Study Committee argues BLS would determine more accurate local prevailing wage rates.

In a statement upon introducing this legislation in a previous Congress, Rep. Gosar said, “We owe it to the American taxpayer to spend federal dollars in a more efficient manner, allowing for more jobs and worthwhile projects in the process.”

Bill Status: Prior to its current introduction, the Responsibility in Federal Contracting Act was introduced in the 113 – 115^th Congresses. It was offered as an amendment to the National Defense Authorization Act of 2018 and failed on a vote of 183-242.

Additional Resources:

I4AW Policy Backgrounder: Davis-Bacon Repeal Act

Heritage Foundation: Why Congress Must “Cancel” the Davis-Bacon Act