The Davis-Bacon Act (DBA) requires minimum prevailing wages and benefits paid to all hourly employees charging time directly to a federal construction contract. These amounts are subject to certified payroll and audit by the Department of Labor, Defense Contract Audit Agency, and other agency audit procedures. Failure to prove compliance may subject the contractor to fines or even debarment from all future government contracts for up to three years.
The Davis-Bacon Act requires annualization of benefits to fully capture cost against the fringe. This complicates the Davis Bacon fringe benefits dollar management, administration, and accounting for most contractors and therefore many contractors look for an easier and less cost effective route for compliance. By using the AssuredPartners Government Contracting Solutions team as your company’s employee benefits advisor, you will gain access to full-service benefits administrators that provides your employees with the most cost effective and comprehensive employee benefits package available in the industry.
AssuredPartners Government Contracting Solutions provides total compensation management, planning, integration, and oversight as your expert independent representative. Our decades of experience in the multifaceted world of government contracting offer invaluable guidance as your business partner protecting your interests. Whether you work under Service Contract Act or Davis-Bacon Act Regulations, or are even looking at your first contract, it pays to be compliant with your fringe benefit obligations.
Service Contract Act and Davis-Bacon Act contracts require “fringe dollars” to provide employee benefits. These fringe dollars are defined by prevailing wage determinations and the benefits costs are charged directly to the contract. By using the AssuredPartners Government Contractor Solutions partnership network as your company’s employee benefits administrator, you will gain access to a full-service benefits administrator that provides your employees with the most cost effective and comprehensive employee benefits package available in the industry. Our team provides a single-source solution for all of your government contract fringe benefits product administration, we will provide fringe dollar compliance using extensive services and comprehensive employee benefits packages while providing your company and its employees with fringe accounting reports defining how the fringe dollars were allocated and spent.
- All costs associated with the program charge directly back to the contract fringe dollars.
- Our philosophy is to provide maximum flexibility desired for each unique situation.
- Our clients are not restricted to a single product or only offering one service, but rather allow the client’s situation dictate what methods and options are best for their opportunity.
- Our partners’ insurance products custom designs comprehensive benefits package when you choose to implement new employee benefit plans.
- Our partners’ administrative solutions may segregate service-contract employees to meet compliance standards by using existing corporate employee benefits plans, policies, and procedures as much as possible to minimize disruption of current practices.