§6703 Required Contract Terms

Summary

Require contracts and bid specs covered by this chapter to include terms that set the minimum pay, benefits, safe working conditions, employee notice, and a statement of comparable federal pay rates. The contract must say the minimum wage for each class of service worker, as set by the Secretary or the Secretary’s representative using local prevailing rates or the rates in a collective-bargaining agreement (including future increases from arm’s-length negotiations), and it cannot be below the minimum in section 6704. The contract must list the fringe benefits for each class, as the Secretary finds are prevailing locally or as in a bargaining agreement (including future increases), covering things like medical care, pensions, workers’ compensation or insurance, unemployment, life/disability/accident insurance, vacation and holiday pay, apprenticeship costs, and other bona fide fringe items; the contractor may meet this duty with equivalent benefits or equivalent cash payments under rules set by the Secretary. The contract must forbid doing the work in unsanitary, hazardous, or otherwise dangerous buildings or conditions under the contractor’s control. It must require that on the worker’s first day the contractor or subcontractor give the employee the notice of required pay and benefits on the agency form or post that notice at the worksite. The contract must also state the rates the agency would pay under 5 U.S.C. 5332 or 5341 for each class, and the Secretary will consider those rates when deciding wages and benefits.