DATE:          October 21, 2014

TO:               Procurement Directors

FROM:         Director,

                    Contract and Financial Assistance Policy Division

                    Office of Policy

                    Office of Acquisition and Project Management

SUBJECT:  Class Deviation for Use of Clause 52.222-99, Establishing a Minimum Wage for Contractors (DEVIATION), to Implement Executive Order 13658 and OMB Policy Memorandum M-14-09 (FAR Part 22)

SUMMARY: Attached for your information is the class deviation in accordance with FAR 1.404, authorizing contracting officers to use Clause 52.222-99, Establishing a Minimum Wage for Contractors (DEVIATION). This clause implements Executive Order 13658, Establishing a Minimum Wage for Contractors, signed 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. Clause 52.222-99 requires payment, beginning January 1, 2015, of an hourly wage of at least $10.10 to contractor employees performing on contracts subject to construction wage rate requirements and/or the Service Contract Labor Standards statute.

Use of Clause 52.222-99 will increase efficiency and cost savings in the work performed by parties who contract with the Federal Government.

For further information concerning labor standards for construction, please refer to Acquisition Guide Chapter 22.

Questions concerning this policy flash should be directed to Sharon Archer of the Contract and Financial Assistance Policy Division, Office of Policy, Office of Acquisition and Project Management at (202) 287-1739 or at sharon.archer@hq.doe.gov

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