What Does the Service Contract Act Apply to

(c) (1) The contract agent shall include clause 52.222-43, Fair Labour Standards Act and Labour Standards of Service Contracts – Price Adjustment (Multi-Year and Optional Contracts), or any other clause that serves the same purpose, in calls for tenders and contracts if the contract is intended to be a fixed price, time and equipment or an hourly service contract; which contains the clause under 52.222-41. Service Contract Labor Standards and is a multi-year contract or is a contract with renewal options that exceeds the simplified acquisition threshold. The clause can be used in contracts that do not exceed the simplified acquisition threshold. The clause in section 52.222-43, Fair Labor Standards Act and Service Contract Labor Standards – Price Adjustment (Multiple Year and Option Contracts), applies to both contracts subject to applicable wage provisions and contracts subject to the incumbent contractor`s collective agreement that was in effect during the term of the previous contract of this contract (see 22.1002-2 and 22.1002-3). Contract agents shall ensure that contract prices or unit wage prices are adjusted only to the extent that the increases or decreases in a contractor`s applicable wages and benefits are made to meet the requirements set out in clauses 52.222-43 (clauses (d) (1), (2) and (3)) or 52.222-44 (clauses (b) (1) and (2) ). (For example, last year`s wage calculation required a minimum wage rate of $4.00 per hour. The contractor actually paid $4.10. The new wage package increases the minimum rate to $4.50. The contractor increases the actual payment paid to $4.75 per hour.

The allowed price adjustment is $0.40 per hour.) (b) Any amendment to the contract that increases the contract by $2,500 and – (1) The services to be provided under the proposed contract are substantially equivalent to the services provided by an established contractor whose proposed contract will succeed. The Service Contracts Act guarantees a minimum wage and overtime for those working on government contracts valued at more than $2,500. There are exceptions to the FCC as defined in 29 CFR § 541.300. These exceptions include “senior managers, administrators, professionals, field staff and information technology specialists”. (iii) The Contractor shall use for all service employees performing work under the Agreement the same compensation plan (salaries and benefits) that the Contractor uses for such employees and equivalent employees who maintain the same equipment as commercial customers. A “service employee” means an employee, other than an exempt management, administrative or professional employee as defined in Part 541 of 29 CFR, who is actively engaged in providing a service under the contract covered by the FCC. When developing prices under a contract covered by the FCC, contractors should consider the following: (2) The services are provided in the same location. If a determination of wages has been obtained under the e98 procedure and the opening of the tender or the commencement of work under a negotiated contract has been delayed for any reason by more than 60 days from the date indicated on the previously submitted e98, the procuring entity shall submit a new e98. Any revision of a salary determination received by the principal under this notice will replace the previous response as a determination of the salary applicable to the relevant acquisition, subject to the time limits set out in paragraphs 22.1012-1(b) and (c). (c) In the case of contractual measures that are not sealed offers, a revised salary fixation in force received by the customer after the award of a new contract or modification in accordance with article 22.1007 (b) will not be effective if the commencement of performance takes place within 30 days of the specified award or modification. If the contract does not stipulate a start of performance that is within 30 days of the specified award or modification, and the execution of the contract does not begin within 30 days of the specified award or modification, any modification received by the customer at least 10 days before the start of the work will be effective.

Note that the SCA contains certain exceptions and exceptions that may apply in certain circumstances. If an exception applies, a contract otherwise covered by the FCC may not require compliance with the FCC (or compliance may not be required for certain employees outside the scope of the SCA). A common exception is that all or substantially all employees who make the necessary efforts are considered to be bona fide workers in management, administration or professionals within the meaning of the Fair Labour Standards Act because of their salary and the nature of their professional duties. .

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