Labor Has Initiated, but Not Completed, Efforts to Improve the Wage Determination Process

In response to the conference report directive, Labor is currently testing a number of efforts under two tracks that it believes will improve the wage determination process. It expects that wage determinations would more accurately reflect prevailing wages if the wage survey process was improved through efforts that would, for example, increase survey participation and the timeliness of data collection and analysis. The earliest of these efforts began in 1996, with most scheduled for completion in fiscal year 2000. Efforts under the redesign track seek to (1) improve survey data collection by, for example, redesigning the WD-10 survey form, making the form more accessible through a specially designated Internet web site, and using alternative methods to identify contractors and distribute surveys; and (2) enhance data analysis through such means as verifying wage data and developing technology to help identify inaccuracies in the data. Although the conference report did not set a deadline for Labor to complete these efforts, Labor officials said they will decide which track—or combination of efforts under both tracks—to select in fiscal year 2001. Labor’s Efforts Have Potential to Improve Accuracy and Timeliness of Wage Determinations

On the basis of our review of Labor’s efforts and our past work on the Davis-Bacon Act, we believe that a number of Labor’s efforts under both tracks, if successfully implemented, have the potential to improve the accuracy and timeliness of wage determinations. To achieve more accurate and timely wage determinations under either track, Labor officials said the process must promote greater survey participation, improve the accuracy of data submissions and Labor’s ability to verify them, and increase the efficiency of data collection and analysis. However, Labor officials said they will need to address a number of unresolved issues in both tracks that could limit the potential of these efforts to achieve the desired results. Labor officials also said that they need to develop clear plans about how to ensure that the track or efforts they choose are the best options to improve the timeliness and accuracy of wage determinations. Accordingly, they have established general performance measures that the officials said will be used to gauge Labor’s process improvements and guide the final decision about which track to select. Also, given that WHD has little useful information on the time needed to issue a wage determination, the accuracy of wage determinations, or survey participation rates, it is not clear how this information will allow WHD to assess the extent to which the tracks improve the process. Finally, Labor has begun to identify other key factors, such as cost, that will need to be addressed as part of its decision-making process, but it has not yet set priorities or assigned weights to these factors.
Why GAO Did This Study

Pursuant to a legislative requirement, GAO provided information on: (1) the status of the Department of Labor's efforts to improve the Davis-Bacon Act wage determination process; and (2) whether the changes Labor is making are likely to address the timeliness and accuracy of wage determinations.

What GAO Found

GAO noted that: (1) in response to the conference report directive, Labor is testing a number of efforts that are aimed at improving the process for determining prevailing wage rates; (2) the alternatives being tested fall under two tracks: (a) redesigning Labor's Wage and Hour Division's (WHD) existing survey process, including revising survey forms to obtain data more efficiently and using technology to more quickly and accurately analyze the survey data obtained; and (b) using data from surveys conducted by the Bureau of Labor Statistics (BLS) to determine prevailing wage rates; (3) the earliest efforts began in 1996 and most efforts under both tracks are scheduled for completion by fiscal year (FY) 2000; (4) given these timeframes and the need to analyze the results, Labor officials said they will decide in FY 2001 which track best promotes a wage determination process that will result in accurate, timely wage determinations; (5) efforts under either track, if successfully implemented, have the potential to improve the timeliness and accuracy of wage determinations; (6) redesigning the survey form and making it more accessible and understandable to survey participants could increase survey participation and improve the timeliness of data submitted, potentially leading to more accurate and timely wage determinations; (7) however, Labor officials identified several key issues that they will need to address for efforts under either track to achieve the intended results; (8) these issues include concerns about: (a) WHD's ability to deal with potentially significant increases in the volume of survey data collected under a revised process; and (b) limitations of BLS data as a tool in setting prevailing wage rates; (9) Labor officials also acknowledged that they need to develop a clear plan to make an informed decision about which track, or combination of efforts under both tracks, to implement; (10) Labor has established general performance measures that officials say will guide Labor's efforts; (11) additionally, it has started to collect limited baseline data to assess progress made under both tracks but such data may be of limited use; and (12) Labor has also recognized that other factors, such as cost, will need to be considered when officials decide which efforts would most improve the accuracy and timeliness of wage determinations, but officials have not yet specified how these other factors will be analyzed.