Prevailing wage, DBE goals and FAR clauses in US bid packages
Public bids carry compliance terms that change your price and can make a bid non-responsive. Federal work brings Davis-Bacon wage rates, FAR 52 clauses and SAM.gov registration. Texas public work adds Government Code Chapter 2258 prevailing wages and Chapter 2253 bonds. As of October 2026, USDOT DBE contract goals are paused while states reevaluate certified firms.
This guide is general information, not legal advice. Rules are cited as checked on 2026-10-21; confirm the current requirements in the solicitation and with the awarding agency.
Is prevailing wage the same as Davis-Bacon?
Davis-Bacon is the federal prevailing wage law. State laws set their own rates for state and local public work. When both apply, each sets a floor, so you pay the higher rate for each classification.
- Davis-Bacon (40 U.S.C. 3141 to 3148) applies to federal contracts over $2,000 for construction, alteration or repair of public buildings and works (40 U.S.C. 3142), and to many federally assisted projects through related acts. The wage determination is in the solicitation; the contract clause is FAR 52.222-6.
- Certified payroll is submitted weekly under FAR 52.222-8. Optional Form WH-347 can be used; the prime submits payrolls for all subs.
- Texas (Government Code Chapter 2258): workers on a public work for the state or a political subdivision must be paid at least the general prevailing rate. A local public body sets the rates by its own survey or by adopting the US Department of Labor Davis-Bacon rates (2258.022). Underpaying costs $60 per worker per day (2258.023).
What is a DBE goal, and are DBE goals suspended?
A Disadvantaged Business Enterprise (DBE) contract goal is a share of contract value to be performed by certified DBEs on USDOT-assisted contracts under 49 CFR Part 26. Bidders meet the goal or document good-faith efforts.
State and local programs, such as the Texas HUB program for state agencies (Government Code Chapter 2161) or city MBE/WBE programs, are separate and follow their own rules. Read the participation section of each solicitation.
Which FAR 52 clauses matter at bid time?
Federal solicitations list clauses by number. These change price, staffing or responsiveness on construction:
| Clause | What it requires |
|---|---|
| FAR 52.204-7 | System for Award Management registration |
| FAR 52.222-6 and 52.222-8 | Davis-Bacon wage rates; weekly payrolls |
| FAR 52.222-26 | Equal Opportunity |
| FAR 52.225-9 | Buy American, construction materials |
| 52.228-1 and FAR 52.228-15 | Bid guarantee; performance and payment bonds. Bonds are required on construction contracts over $150,000 (FAR 28.102-1) |
| FAR 52.211-12 | Liquidated damages per calendar day |
| FAR 52.232-27 | Prompt payment, including paying subs within 7 days of being paid |
How do federal and Texas public bid requirements compare?
| Requirement | Federal | Texas state and local |
|---|---|---|
| Prevailing wage | Davis-Bacon, DOL wage determination in the solicitation | Gov. Code Ch. 2258, rates set by the public body |
| Bonds | Performance and payment bonds over $150,000 (Miller Act, FAR 28.102-1) | Performance bond over $100,000; payment bond over $25,000, or over $50,000 for municipalities (Gov. Code 2253.021) |
| Registration | SAM.gov (FAR 52.204-7) | Agency vendor registration |
| Participation | USDOT DBE goals paused during reevaluation; SBA programs on direct federal work | HUB program for state agencies (Gov. Code Ch. 2161); local programs vary |
| Payroll records | Weekly certified payroll (FAR 52.222-8) | As the contract requires |
Clara, BAU AI's bids and RFPs agent, lists every compliance requirement in a solicitation, including FAR clauses incorporated by number, the attached wage determination and the participation section, each cited to its page. She does not compute wages or certify firms.
Frequently asked questions
When does Davis-Bacon apply?
To federal contracts over $2,000 for construction, alteration or repair of public buildings or public works, and to many federally assisted projects through related acts. The wage determination is attached to the solicitation.
Are DBE goals suspended?
As of October 2026, recipients of USDOT funds may not set DBE contract goals or count DBE participation until their state's Unified Certification Program completes the reevaluation required by the October 2025 interim final rule, which the September 2026 final rule largely adopts.
Do Texas cities set their own prevailing wage rates?
Yes. Under Government Code 2258.022, a political subdivision sets rates for its public works by surveying local wages or by adopting the US Department of Labor Davis-Bacon rates.
What is the federal bond threshold for construction?
FAR 28.102-1 requires performance and payment bonds on construction contracts over $150,000. Between $35,000 and $150,000, the contracting officer selects alternative payment protections.