Trade Bid Desk

How the Service Contract Act wage determination affects a cleaning bid

On a federal cleaning or grounds contract, you don't choose the minimum pay. The Service Contract Act requires contractors and subcontractors on service contracts over $2,500 to pay at least the wages and fringe benefits the Department of Labor finds prevailing in the area (DOL: Service Contract Act). Those amounts are set out in a wage determination attached to the solicitation. Labor is most of the cost of cleaning, so this one document sets the floor under your price. This page explains how to find it, read it and carry it into a bid. For the overall bidding steps, see how to bid on federal janitorial contracts.

It explains how the rules work. It is not legal or payroll advice; the Labor Department's Wage and Hour Division and your state's free APEX Accelerator can answer questions about your situation.

1. Find the wage determination for this contract

The Labor Department issues wage determinations for agencies to put into covered contracts, along with the required clauses (DOL Fact Sheet #67). For a covered contract over $2,500, the contracting officer includes the clause and the matching wage determination (FAR 22.1003-4). In practice:

2. Read the parts that matter for cleaning

A worked example: wage determination 2015-4043, revision 34 (last revised May 13, 2026), covers Chester, Derry, Londonderry and Windham in Rockingham County, New Hampshire, and was attached to a VA custodial solicitation in 2026. The figures below are from that document; yours will differ by area and revision.

The fringe benefits are in addition to the hourly wage, not part of it (DOL Fact Sheet #67). You can meet them with equivalent bona fide benefits or with equivalent cash payments (FAR 52.222-41(d)); the Labor Department lists poor records of such cash payments as a common violation.

3. How it enters your price

The determination gives a minimum per hour; your price is per month or per year. The arithmetic that connects them, using the example above:

How you set each of those is your own business decision. What the rules fix is the floor: a price built on less than the determination's wage and fringe for the hours the work needs either loses money or underpays the crew, and solicitations that include a price realism review are checking for exactly that.

4. When the incumbent's crew has a union contract

If the previous contractor had a collective bargaining agreement, the new contractor may not pay less than the wages and fringe benefits in that agreement, including accrued amounts and any increases it provides for (FAR 52.222-41(f)). Read the solicitation's attachments for it before you price: the agreement's rates can be above the area rates for the same county.

5. Option years and rate changes

Most cleaning contracts run a base year plus option years. Under FAR 52.222-43, the wage determination in effect at each anniversary or option start applies, and the contract price is adjusted for the actual increase in wages and fringe benefits the new determination requires, along with the related social security, unemployment tax and workers' compensation. Three things to know when bidding:

6. After award

You must tell each employee what they are owed or post the wage determination, and display the Labor Department poster WH-1313 where the work is done (FAR 52.222-41(g)). Keep separate records of hours on the contract and other work for employees who do both; DOL lists this as a common problem (Fact Sheet #67).

Where we fit

Every open cleaning notice comes with its own wage determination, and the numbers differ from county to county. The free weekly list sends you the open janitorial and grounds solicitations plus upcoming rebids, your state first. The bid desk ($149 a month, 14-day trial) adds a go/no-go note on each one, and we can draft the response when you decide to bid.

Checked October 20, 2026 against the linked pages and wage determination 2015-4043 rev. 34. Wage determinations are revised often; the one attached to the solicitation you are bidding is the authority.

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