How to Read a Service Contract Act Wage Determination

Short answer: Federal service contracts over $2,500 carry a Service Contract Act wage determination (WD), a Department of Labor document attached to the solicitation. It lists the minimum hourly wage for each occupation in that county, plus fringe benefits: health and welfare, paid holidays and vacation. You must pay at least those amounts. For janitorial and grounds work, labor is most of the price, so the WD sets the floor under your bid.

Where is the wage determination?

In the solicitation's attachments or Section J, usually as a PDF titled "Wage Determination No. 2015-XXXX, Revision NN." Every WD is also searchable on SAM.gov by state and county. Use the revision attached to the solicitation, not the newest one online; the contracting officer updates it when an option is exercised.

Which line applies to you?

Find your occupations by code and title:

Supervisors who are bona fide executives are usually exempt. Working leads often are not.

Rates vary widely by county. The same Janitor line can differ by several dollars an hour between two counties in one state, so never reuse a rate from another bid.

What fringe benefits do you owe?

• Health and welfare (H&W): $5.92 per hour on wage determinations issued from August 10, 2026, up from $5.55. On contracts covered by Executive Order 13706, it is $5.42, because the paid sick leave below is owed separately. Pay it as benefits or as cash; it is owed on every hour paid, up to 40 hours a week. Use the rate printed on your contract's WD.
• Holidays: usually the 11 federal holidays, listed on the WD.
• Vacation: usually two weeks after one year of service with the contractor or its predecessor, with more weeks at longer tenure. Read the exact steps on your WD; the predecessor's service counts.
• Paid sick leave (EO 13706): one hour for every 30 hours worked, up to 56 hours a year, on contracts that include the clause.

What about the federal contractor minimum wage?

Executive Order 14026, which set a $17.75 contractor minimum wage, was revoked in March 2025. New contracts rely on the WD rates. The older Executive Order 13658 minimum, $13.65 an hour from May 2026, still applies to contracts entered before January 30, 2022 (DOL).

How do you turn the WD into a price?

1. Multiply the hours the scope needs by the WD wage for each occupation.
2. Add H&W on every paid hour, plus holidays and vacation.
3. Add payroll taxes, workers' comp, supplies, equipment, supervision and overhead.
4. Add profit.

If the result beats the incumbent's award value (how to find it) by a wide margin, check your hours first. Then check for a union contract: when the incumbent's workers are covered by one, a successor generally owes its wages and benefits instead of the WD rates (FAR 22.1002-3).

Lanes this applies to: SDVOSB janitorial, SDVOSB grounds.