Attention A T users. To access the menus on this page please perform the following steps. 1. Please switch auto forms mode to off. 2. Hit enter to expand a main menu option (Health, Benefits, etc). 3. To enter and activate the submenu links, hit the down arrow. You will now be able to tab or arrow up or down through the submenu options to access/activate the submenu links.
Attention A T users. To access the combo box on this page please perform the following steps. 1. Press the alt key and then the down arrow. 2. Use the up and down arrows to navigate this combo box. 3. Press enter on the item you wish to view. This will take you to the page listed.
Menu
Menu
Veterans Crisis Line Badge
My healthevet badge
 

Acquisition Policy Flash! 24-02

What's Changed?

Class deviation from the Federal Acquisition Regulation regarding legal challenges to Executive Order 14026, Increasing the minimum wage for federal contractors

Purpose: To inform the VA acquisition workforce that in accordance with FAR 1.404 and as authorized by the Civilian Agency Acquisition Council letter 2024-01 (PDF, 6 pages), dated October 10, 2023, a class deviation is issued regarding a September 26, 2023 court order in litigation challenging Executive Order (E.O.) 14026, Increasing the Minimum Wage for Federal Contractors. The deviation is issued in advance of a FAR final rule as authorized by CAAC letter 2024-01 and establishes deviations from FAR 52.222-55.

FAR parts referenced: FAR part 52.

Effective Date: October 16, 2023.

Background: On April 27, 2021, President Biden signed E.O. 14026, Increasing the Minimum Wage for Federal Contractors (see 86 FR 22835, Apr. 30, 2021). This E.O. directed federal agencies to enter into or renew covered contracts only with entities paying their employees at or above a specified minimum wage. On January 1, 2023, that wage was increased from $15 to $16.20 through an inflation adjustment (see 87 FR 59464, Sept. 30, 2022). On November 24, 2021, the Department of Labor (DOL) Wage and Hour Division published a final rule implementing E.O. 14026, which added a new 29 CFR part 23 (see 86 FR 67126, Nov. 24, 2021). On January 26, 2022, DoD, GSA, and NASA published an interim rule amending the Federal Acquisition Regulation (FAR) to implement E.O. 14026 and the DOL implementing regulations through FAR clause 52.222-55, Minimum Wages for Contractor Workers Under Executive Order 14026 (see 87 FR 4117, Jan. 26, 2022).

On September 26, 2023, the U.S. District Court for the Southern District of Texas issued an injunction to President Biden and the DOL from enforcing E.O. 14026 or the DOL Final Rule against the States of Texas, Louisiana, and Mississippi and their agencies. The injunction does not apply geographically to all contractors or contracts within those three states; rather, it applies only to these three states and their agencies as parties to federal contracts, regardless of the place of performance. The injunction became effective on October 4, 2023.

Applicability: This deviation applies to all contracts where VA—

  • Has contracts with the States of Texas, Louisiana, or Mississippi, including their agencies;
  • Has contracts where the prime contractor subcontracts with one of the applicable States or their agencies; or
  • Anticipates entering into such contracts or subcontracts.

Action Required: Contracting officers shall comply with the attached class deviation (PDF, 5 pages) to implement the required changes.

Additional Information: Direct any questions to the Office of Acquisition and Logistics (003A), Procurement Procurement Policy and Warrant Management Service (003A2A) at va.procurement.policy@va.gov.

return to top go