Walsh-Healey Public Contracts Act (PCA)

PCA Purpose and Requirements

  • The PCA provides labor standards for employees working on federal contracts over $15,000 for the manufacturing or furnishing of goods, supplies, articles, or equipment. 41 C.F.R. Part 50-201.
  • The PCA requires covered contracts to contain minimum wage, overtime, and safety and health standards, and prohibits the employment of children under 16 years of age and convict labor. 41 U.S.C. § 50-201.3.
  • The minimum wage requirement under PCA is the FLSA minimum wage and the PCA overtime requirements are also the same as the FLSA. 41 C.F.R. §§ 50-201.102 and 50-202.2.
  • The PCA requires the posting of the "Notice to Employees Working on Government Contracts" (WH Publication 1313) at the site of the contract work and the maintenance of employment records. 41 C.F.R. §§ 50-201.3(f), 50-201.501 - 50-201.502.
  • The WHD has sole PCA enforcement responsibility, except that the Occupational Safety and Health Administration (OSHA) enforces the safety and health provisions of the Act. 41 C.F.R. § 50-201.2.

PCA Coverage

  • The PCA applies to manufacturing and supply contracts exceeding $15,000 (including indefinite-delivery contracts, basic ordering agreements, and blanket purchase agreements) and to subcontracts under section 8(a) of the Small Business Act. 41 C.F.R. § 50-201.1. (See also FAR 48 C.F.R. § 22.603.) (The threshold for PCA coverage was increased from $10,000 to $15,000 pursuant to provisions in Title VII of the Defense Authorization Act for Fiscal Year 2005, effective October 1, 2010, and is reflected in the FAR 48 C.F.R. § 22.602.)
  • The PCA applies to employees engaged in or connected with the manufacture, fabrication, assembling, handling, supervision, or shipment of materials, supplies, articles, or equipment required under the contract. 41 C.F.R. § 50-201.101.
    1. The PCA does not apply to employees performing only office or custodial work.
    2. The PCA does not apply to any employee employed in a bona fide executive, administrative, professional, or outside salesman capacity, as those terms are defined by the FLSA regulations. 29 C.F.R. Part 541.
  • The PCA applies to covered contracts or work performed in the 50 States, the District of Columbia, Puerto Rico, and the Virgin Islands. 41 C.F.R. § 50-201.603(b).
  • Section 7201(a) of the Federal Acquisition Streamlining Act (FASA) of 1994 repealed the PCA requirement that every contractor be "a manufacturer of or a regular dealer . . . in the performance of the contract." 41 U.S.C. § 35(a). Since this amendment became effective on October 1, 1995, PCA includes "a manufacturer, regular dealer," or any supplier/distributor of the materials, supplies, articles, or equipment to be manufactured or supplied under the contract as eligible contractors. All Agency Memorandum No. 180.

PCA Statutory Exclusions 41 U.S.C. § 6505.

  • Section 9 of the PCA exempts contracts for:
    1. Open market purchases or purchases made without advertising for bids under circumstances where immediate delivery is required by the public exigency. 41 C.F.R. § 50-201.4(a).
    2. Perishables, including dairy, livestock, and nursery products. 41 C.F.R. § 50-201.4(b).
    3. Agricultural or farm products processed for first sale by the original producers. 41 C.F.R. § 50-201.4(c).
    4. Purchase of agricultural commodities or the products thereof by the Secretary of Agriculture. 41 C.F.R. § 50-201.4(d).
    5. Common carrier carriage of freight or personnel by vessel, airplane, bus, truck, express, or railway line, where published tariff rates are in effect. 41 C.F.R. § 50-201.4(e).
    6. Furnishing of service by radio, telephone, telegraph, or cable companies, subject to the Federal Communications Act of 1934 (48 Stat. 1064 as amended; 47 U.S.C. Chapter 5). 41 C.F.R. § 50-201.4(f).

PCA Administrative Exemptions

  • The following contracts have been exempted from the PCA pursuant to the procedures required under section 6 of the PCA. 41 C.F.R. §§ 50-201.601 - 50-201.603.
    1. Contracts for public utility services including electric light and power, water, steam, and gas. 41 C.F.R. § 50-201.603(a).
    2. Contracts for materials, supplies, articles, or equipment no part of which will be manufactured or furnished within the geographic limits of the 50 States, the District of Columbia, Puerto Rico, and the Virgin Islands.
    3. 41 C.F.R. § 50-201.603(b).
    4. Contracts covering purchases against the account of a defaulting contractor where the PCA stipulations were not included in the defaulted contract.
    5. 41 C.F.R. § 50-201.603(c).
    6. Contracts awarded to sales agents or publisher representatives, for the delivery of newspapers, magazines or periodicals by the publishers thereof. 41 C.F.R. § 50-201.603(d).

Consulting Services We Provide

  • Review public works preconstruction contracts
  • Monitor DIR contractor/subcontractor certified payrolls
  • Audit labor classification for each worker employed
  • Review DIR pre-DAS 140/142 submissions
  • Review CAC training fund contributions form CAC-2
  • Review DIR Fringe Benefits Statement PW-26
  • Monitor DIR wage determinations
  • Audit fringe benefits allowances
  • Review DIR holiday payment requirements
  • Audit DIR travel & subsistence requirements
  • Caltrans Labor Compliance
  • County of Sacramento Labor Compliance
  • City of Los Angeles Labor Compliance
  • Los Angeles Unified School District Labor Compliance
  • Federal Davis-Bacon Project Monitoring
  • Federal DBE Implementation & Review
  • Federal FAA AIP Goal Setting
  • DIR & Davis-Bacon Training
  • DIR Civil Wage Penalty Review
  • Local-Hire Review (e.g., San Francisco)
  • Skilled and Trained Workforce

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