The FAR clause language just changed. Did your template library?
Two core SCA clauses were updated on May 28. If your templates reference them verbatim, they're already stale.
Welcome to Part 31, the prevailing wage newsletter that helps federal SCA contractors protect their margins and stay compliant on post-award operations.
This week: the FAR overhaul touched two core SCA clauses. The obligations didn’t change; the language did, and your template library needs to catch up.
TL;DR:
FAR 52.222-41 and 52.222-43 updated May 28: Both core SCA clauses changed in the FAR overhaul. The obligations didn’t move; the language did. Check your templates now.
WHD enforcement confirmed structural by CRS: Investigations down 57% since FY2013, back wages up 90% in one year. Congress asked; the answer was not reassuring.
H&W rate update due July 7: The $5.55/hr floor has held since July 2025. Build a $0.20-0.25/hr buffer into any option year pricing now.
DFARS “loser pays” rule drops June 16: NDAA §875 lets DoD withhold 5% of payments from incumbents filing meritless protests. Changes the math on DoD recompete decisions.
LEAD STORY
FAR 52.222-41 and 52.222-43 were updated on May 28. Most contractors are still running stale boilerplates.
FAR 52.222-41 (Service Contract Labor Standards) and FAR 52.222-43 (Price Adjustment) were both updated May 28 as part of the ongoing FAR overhaul; the SCA obligations themselves didn’t change, but clause structure and language did. The version of record is whatever is at acquisition.gov on the date your solicitation closes, not what’s in your compliance matrix or template library from three months ago. If your boilerplate references either clause verbatim and hasn’t been updated since May 28, your next submission may cite language that’s no longer current.
What to do about it
Pull both clauses from acquisition.gov today. Go to acquisition.gov/far/52.222-41 and acquisition.gov/far/52.222-43 and download the May 28 versions. That is the version of record.
Audit every template that cites either clause verbatim. Compliance matrices, subcontract templates, proposal boilerplate, flowdown checklists, etc. If the language is hardcoded and predates May 28, it needs updating before your next solicitation closes. The CO won’t flag it at submission. A protest attorney will.
Update subcontracts that incorporate FAR 52.222-41 by text. If you’re flowing down clause language verbatim to lower-tier subs rather than by reference, those agreements now cite outdated text. That’s a flowdown gap.
Review any pending modifications involving FAR 52.222-43. If you’re mid-negotiation on a price adjustment modification that references the clause, confirm the version in your draft matches what’s currently at acquisition.gov. Discrepancies give the CO grounds to push back on the modification structure.
Build a standing check into your template maintenance process. The habit of downloading and caching FAR clause language is exactly how this exposure happens. The version of record is always live at acquisition.gov. Set a calendar reminder to verify both clauses at the start of each option period or major recompete.
In Brief
WHD is running 57% fewer SCA audits. Back wages rose 90% anyway.
By the numbers
$26.75M: SCA back wages recovered, FY2025 (DOL WHD)
$14.1M: SCA back wages recovered, FY2024 (prior year baseline)
90%: Year-over-year increase in SCA back-wage recoveries
387: SCA compliance actions, FY2025 (down from 916 in FY2013)
~$2,750: Average back pay per employee in violations (GAO analysis)
The annual H&W rate update lands around July 7. Your option year pricing should already reflect it.
The current $5.55/hr H&W floor has been in place since July 2025; a new All-Agency Memorandum is due around July 7, 2026, and with historical increases running $0.15-0.25/hr, build that buffer into any option year pricing with a July-or-later performance start now.
“Loser Pays” DFARS rule due June 16. DoD recompete protest decisions change this month.
NDAA §875 lets DoD withhold up to 5% of payments from incumbents who file meritless GAO protests; DFARS implementing rules are due June 16, and if you’re tracking a DoD recompete where protest is on the table, review your strategy against the new withholding risk before you file. (Federal News Network)
Know the Reg
29 CFR § 4.171
Bona Fide Fringe Benefit
Under 29 CFR § 4.171, a contractor can only satisfy the H&W fringe obligation with a benefit that is “bona fide,” meaning it provides genuine, ongoing value to the employee; the WHD’s test is what the employee received, not what the employer paid. A plan that returns forfeitures to the employer, layers excessive fees, or provides coverage that never actually insures the worker fails the standard, as does any plan structured primarily to capture the fringe as margin. Ask your plan administrator for a written bona fide determination; if they can’t provide one, that’s the answer.
Dates to remember
Jun 18: Foundation for Fair Contracting Prevailing Wage/Labor Compliance Workshop. Live. California prevailing wage focus.
Jun 24-25: Public Contracting Institute: Incurred Cost Submission Deep Dive. Virtual. $395/person.
Jun 28: DOL WHD Prevailing Wage Compliance Assistance Seminar. Free virtual. SCA and DBA.
Sep 23-24: DOL WHD Free Prevailing Wage Virtual Seminar. Free. Registration required.
P31 takes its name from FAR Part 31, the Cost Principles, the part of the FAR that governs every dollar on every federal contract.
This newsletter is for informational purposes only and is not legal, compliance, or financial advice. For contract-specific guidance, consult qualified labor counsel.
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