When Does the Service Contract Act Not Apply

For main contracts over $2,500, contractors and subcontractors who perform work must pay their employees at least at the rate of pay and with the benefits of private employers at the place where the work is performed. If there was a previous contact person with a collective agreement, the new contractor must pay the rates set out in that collective agreement. (2) The services are provided at the same location. 1. after a hearing, that the salaries and benefits are in significant contradiction with those applicable to services of a similar nature in the place; or for applications containing the CBA of a predecessor contractor, it is extremely important to have access to a copy of that CBA as early as possible in the procurement process, given that under the FCC, a successor contractor – even a non-unionized successor contractor – is likely to be required to compensate its employees for at least part of the contract performance period at wage and benefit rates, which are specified in the ABC of the predecessor contractor. This also applies if the customer does not provide the cost-benefit analysis because these obligations are self-executing. (iii) If the clearly selected seller does not certify the terms of paragraphs (c)(2)(i) to (iii) of this subsection, the contract agent must include the clause of the Service Contracts Act (see 22.1006(a)) and, if the contract exceeds $2,500, the determination of the corresponding salary of the Ministry of Labour (see 22.1007) in the contract. (i) Certain specialized services that require special skills, such as . B design, illustration, graphic design, stenographic reports or cremation. No contractor or subcontractor holding a service contract in a dollar amount may pay any of its employees working on the contract less than the minimum wage set forth in Section 6(a)(1) of the Fair Labor Standards Act (29 U.S.C. 206). The contracting authority should endeavour to identify the specific places or geographical areas where the services could be provided. Possible places of performance may be indicated: This law applies only to contracts for services awarded by the federal government or the government of the District of Columbia.

Some contracts covered by sca also require construction work that is subject to the applicable salary requirements of the Davis-Bacon Act. Employees performing SCA contract work may also be subject to overtime pay requirements under the Contract Hours of Work and Safety Standards Act (which applies to major contracts over $100,000) and/or the Fair Labour Standards Act. Both laws require at least one and a half hours of pay for all hours worked over the age of 40 during a work week. National and local laws on wages and working time may also apply to workers who are simultaneously associated with the FCC`s remuneration requirements. (2) When selecting a predominant salary determination on the WDOL website for use in an application or other contractual act, the customer shall monitor the WDOL website to determine whether the applicable salary determination has been revised. Revisions published on the WDOL website or otherwise notified to the Customer within the time limits prescribed in points 22.1012-1 (b) and (c) will be effective and incorporated into the resulting contract. Monitoring can be done using the “Alert Service” on the WDOL website. (1) The wage of manual workers is the basic hourly rate for each class.

The rate corresponds to the second stage of the Salary Board`s salary plan for non-supervisory employees and the third stage for surveillance employees. If the CAS`s application for applicability is silent, contractors can and should always inquire about the FCC throughout the bidding process if there are doubts about the applicability of the FCC. This issue may be raised through direct written communication with the customer. For example, a review of the applicability of the FCC to a contract can easily be requested during each Q&A session. In addition, a contractor may take the same opportunity to ask questions about the applicability of related clauses, such as . B.dem federal sick leave and the minimum wage of the federal contractor. If the Agency determines in writing that the FCC is not applicable, a contact person may report this fact if the DoL later determines that the FCC should have been applied to a particular contract, or if an attempt is made to “read” the provisions of the FCC later by a court through Christian doctrine (which would probably not apply to this circumstance). This prior communication can save money to contacts and headaches on the street if the SCA is later decided to apply, but the agency did not include them in the tender and the contractors therefore did not indicate a price for it. (2) Terms. The exemption referred to in point (c)(1) of this Subsection shall apply if all of the following conditions are met for a contract (or subcontract): (1) anniversary, if annual funds are made available for the contract; or $2,500 service contracts include mandatory minimum wage and benefits provisions, safe and hygienic working conditions, notice to employees of the authorized minimum wage, and equivalent classifications and rates of pay for federal employees. According to 41 U.S.C. 6707(d), service contracts cannot exceed 5 years.

If a contract is performed at a federal facility where employees may be hired or owned by a subsequent contractor, the incumbent prime contractor must provide the contract agent with a certified list of all service employees on the contractor`s or subcontractor`s payroll no later than 10 days before the contract is entered into, as well as anniversary dates of employment. (See paragraph(s) of clause 52.222-41, Labour Standards in Service Contracts.) At the beginning of the subsequent contract, the contract agent shall provide the successor contractor with a copy of the list to determine whether the employee is entitled to leave or other benefits based on seniority, including the period of service with the predecessor contractors, where such a benefit is required by an applicable salary determination. The McNamara-O`Hara Service Contract Act (SCA) covers contracts entered into by federal and District of Columbia agencies that provide services in the United States as the primary purpose. . . .

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