Which act mandates prevailing wage rates on federal contracts?

The Davis-Bacon Act is the correct answer as it specifically mandates the payment of prevailing wage rates on federal construction contracts. Enacted in 1931, this law requires that workers on federal construction projects receive no less than the locally prevailing wages and benefits. The prevailing wage rates are determined based on the wages paid to the majority of workers in similar positions in the locality.

The law was established to ensure that federal contractors do not undercut local wage standards when bidding on government projects, thereby protecting local economies and ensuring fair labor practices. The Davis-Bacon Act applies specifically to construction, alteration, and repair projects funded by the federal government, making its provisions distinct and focused on that sector.