FAR 22.404-5 Wage Determinations: Expiration Myths vs Facts
When bidding federal work, trade subcontractors and estimators track project wage determinations to price labor correctly. Confusion frequently surfaces when a project wage determination approaches its expiration date during an active procurement. Federal rules require contracting officers to make every effort to award contracts before an incorporated project wage determination expires. When expiration conflicts with bid opening or award timelines, FAR 22.404-5 specifies precise steps for sealed bidding and negotiated acquisitions. Understanding these procedural realities helps trade contractors protect bid numbers and avoid labor pricing surprises.
Myth One: An Expiring Determination Automatically Voids the Solicitation
Many bidders assume that if a project wage determination expires while a job is out for bid, the solicitation is canceled and the procurement starts over from scratch. In reality, the contracting officer must take proactive steps to replace the expiring rates while keeping the procurement moving forward.
Under sealed bidding rules, if a project wage determination for the primary site of the work expires before bid opening, or if it appears before bid opening that the determination may expire prior to award, the contracting officer must request a new determination early enough to ensure receipt before bid opening. When necessary, the contracting officer postpones the bid opening date to provide a reasonable amount of time to receive the new determination, amend the solicitation, and permit bidders to submit amended bids. If the newly issued determination does not change any wage rates, the contracting officer simply amends the solicitation to reflect the number and date of the new determination without requiring bidders to revise their figures. You can explore how project determinations differ from general schedules in our guide to FAR 22.404-1 wage determinations.
Myth Two: Agencies Cannot Extend a Wage Determination After Bid Opening
Another common belief is that once bid opening occurs, an expiring wage rate cannot be preserved under any circumstance. That is incorrect. Contracting officers have a formal mechanism to seek an extension rather than halting the award process.
According to FAR 22.404-5, if a project wage determination for the primary site of the work expires after bid opening but prior to award, the contracting officer must request an extension of the expiration date directly from the Administrator of the Wage and Hour Division. This request cannot be informal. It requires a written finding with factual support showing that an extension is necessary and proper in the public interest to prevent injustice, prevent undue hardship, or avoid serious impairment in the conduct of government business. If needed, the contracting officer delays award until the extension request or a new determination is processed. When the extension is granted, the contract is awarded and modified to apply the extended expiration date under 43.103(b)(1).
Myth Three: Contractors Must Absorb Wage Increases If an Extension Is Denied
Subcontractors often fear that if an extension is rejected and higher rates are issued after bid opening, their original bid prices will be locked in while paying higher wages. Federal procurement regulations explicitly prevent this scenario.
If the Administrator denies the extension request, the Wage and Hour Division proceeds to issue a new project wage determination. When this occurs, the contracting officer handles the outcome depending on whether wage rates change:
- When wage rates change: If the replacement determination alters wage rates for classifications used on the contract, the agency cannot simply scrap the bids on a whim. The contracting officer may cancel the solicitation only in accordance with FAR 14.404-1 (reviewed in our breakdown of FAR 14.404-1 sealed bid cancellation). Otherwise, the agency awards the contract and incorporates the new determination effective on the award date. The contracting officer must equitably adjust the contract price for any increased or decreased cost of performance resulting from the changed rates.
- When wage rates remain unchanged: The contracting officer proceeds with contract award and modifies the contract to reflect the number and date of the replacement determination under 43.103(b)(1).
Myth Four: Negotiated Procurements Freeze Proposal Reviews During Expiration Delays
In negotiated procurements, contractors often believe that all evaluation work stops while the government waits for an updated wage determination from the Department of Labor. Federal rules allow the procurement evaluation process to proceed concurrently.
If a project wage determination will or does expire before contract award in contracting by negotiation, the contracting officer requests a new determination and delays award if necessary. However, the contracting officer does not need to delay opening proposals, reviewing proposals, or conducting discussions with offerors while the new determination for the primary site is obtained. Offerors are requested to extend their acceptance periods if they might expire before processing finishes. If the replacement determination changes rates, the solicitation is amended, wage rate details are provided to offerors who have not been eliminated, and offerors receive a reasonable opportunity to amend their proposals. If rates do not change, the solicitation is amended to include the number and date, and the award is made.
Estimator Takeaways for Project Wage Determinations
Drywall, framing, and interior subcontractors can protect their estimates by monitoring procurement timelines closely:
- Verify whether your federal project solicitation incorporates a project wage determination rather than a standard general wage schedule.
- Track the bid opening date against any stated determination expiration dates on the primary job site.
- Look for formal solicitation amendments postponing bid opening if an agency must replace an expiring project determination before bids open.
- Confirm with the prime contractor whether an equitable adjustment is being processed if post-opening wage rate increases take effect upon award.
Sources
Published November 9, 2026. No affiliate links on this page. Facts come from the sources linked above; check them for updates.