The Davis-Bacon Act: Suspension (CRS Report for Congress)
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| Release Date |
Revised Feb. 8, 2006 |
| Report Number |
RL33100 |
| Report Type |
Report |
| Authors |
William G. Whittaker, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
The Davis-Bacon Act is one of several statutes that deals with federal government procurement.
(See also the Walsh-Healey Act of 1936 and the McNamara-O'Hara Service Contract Act of 1965.)
Enacted in 1931, Davis-Bacon requires, inter alia , that not less than the
locally prevailing wage be
paid to workers engaged in federal contract construction. The act does not deal directly with
non-federal construction. In addition to the act per se , the prevailing wage principle has
been
incorporated within a series of federal program statutes through the years. And, many states have
enacted "little Davis-Bacon" acts of their own.
The act of 1931, as amended, provides that the President "may suspend the provisions of this
subchapter during a national emergency." With slight variation, that provision has been a part of the
statute since it was enacted.
The act has been suspended explicitly on four separate occasions: (a) In 1934, President
Franklin Roosevelt suspended the act in what appears to have been for administrative convenience
associated with New Deal legislation. It was restored to full strength in less than 30 days with few
people, seemingly, aware of the suspension. (b) In 1971, President Richard Nixon suspended the
act as part of a campaign intended to quell inflationary pressures that affected the construction
industry. In just over four weeks, the act was reinstated, the President moving on to different
approaches to the problem. (c) In 1992, in the wake of Hurricanes Andrew and Iniki, President
George H. W. Bush suspended the act in order to render reconstruction and clean-up in Florida and
the Gulf Coast and in Hawaii more efficient. The impact of the suspension is unclear for the act was
suspended on October 14, 1992, just days prior to the 1992 election. President William Clinton
restored the act on March 6, 1993. And, (d) on September 8, 2005, President George W. Bush
suspended the act in order to render more efficient reconstruction and clean-up of Florida and the
Gulf Coast in the wake of Hurricane Katrina. The act was reinstated on November 8, 2005.
In the suspensions of 1934 and 1971, the suspension applied to the entire country -- possibly
with the understanding that it would be restored once the immediate emergency was
over. In 1992
and in 2005, only portions of the country were involved. In 1992, it remains unclear how long the
suspension might have lasted -- if George H. W. Bush had been re-elected. Similarly, the suspension
under George W. Bush was intended to be open-ended -- i.e., "until otherwise provided." But in fact,
it lasted for about two months. The suspensions are also separated by the definition of "national
emergency" used to invoke them: administrative convenience in 1934, inflationary pressures in the
construction industry in 1971, and issues associated with hurricane damages in 1992 and in 2005.
This report reviews the several cases during which the Davis-Bacon Act was suspended and will
likely be updated as developments make necessary.
