Davis-Bacon Act (for BEAD)

The Davis-Bacon Act is a federal law that requires contractors and subcontractors on federally funded or assisted construction projects to pay laborers and mechanics no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area.

For the Broadband Equity, Access and Deployment Act (BEAD), a broadband grants program directed towards states and territories, compliance with the Davis-Bacon is requires for projects that have a total expected project cost of more than $5,000,000.

“A subgrantee may provide a certification that, for the relevant project, all laborers and mechanics employed by contractors and subcontractors in the performance of such Project are paid wages at rates not less than those prevailing, as determined by the U.S. Secretary of Labor…. If such certification is not provided, a Recipient must provide a project employment and local impact report detailing:

1. The number of contractors and sub-contractors working on the Project; 
2. The number of workers on the Project hired directly and hired through a third party; 
3. The wages and benefits of workers on the Project by classification; and 
4. Whether those wages are at rates less than those prevailing.”

NTIA Notice of Funding Opportunity, Section VII (E)(2)(12), PDF page 91