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McNamara-O’Hara Service Contract Act of 1965 – As Amended

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Presentation on theme: "McNamara-O’Hara Service Contract Act of 1965 – As Amended"— Presentation transcript:

1 McNamara-O’Hara Service Contract Act of 1965 – As Amended
FAR Subpart 22.10

2 Purpose Mandatory provisions to provide:
Minimum wages & fringe benefits Safe & sanitary working conditions Notification to employees Minimum allowable compensation Equivalent Federal employee classifications and wage rates

3 Applicability Over $2,500 Performance within the US
Principle purpose is to furnish services Examples of covered contracts (FAR ): (d) Food service & lodging (k) Maintenance & repair of equipment, e.g., engines & electrical motors ( distinguishes between “repair” and “remanufacturing”)

4 Exemptions Construction Walsh-Healey Transportation
Communications act of 1934 Postal contract stations ADP, scientific, medical, or office machine equipment

5 Exemptions Employment contracts with individuals
Administrative limitations, variances, tolerances, and exemptions Positions classified as “bona fide executive, administrative, or professional capacity” Defined in 29 CFR 541 E.G., Doctors, lawyers, accountants

6 Collective Bargaining Agreements (CBA)
Predecessor contracts containing a CBA FAR Follow-on contracts >$2,500 Substantially the same services Performed in the same locality Must pay wages & fringe benefits at least equal to those in CBA under predecessor contract (section 4(c) of the act)

7 Wage Determinations Definition Use to retrieve WDs
FAR : minimum wages or fringe benefits applicable to the employment in a given locality of one or more classes of service employees Use to retrieve WDs Submission of SF98 & 98a to DoL no longer required if WD is available on-line…but…

8 Selecting WDs You will still need most of the same information as was required on the 98 & 98a Place of performance (County & State) Employee classifications FAR , Statement of Equivalent Rates for Federal Hires

9 Place of Performance National Association of Counties web page
FAR : Place of performance unknown

10 Employee Classifications
Service Contract Act Directory of Occupations, 5th Edition Available at: Occupational descriptions – ensure you’ve selected the appropriate classification Federal grade equivalent – what the GS or WG classification would be if the employee were a Federal employee

11 Statement of Equivalent Rates for Federal Hires
FAR must be filled-in Determine Federal grade equivalents: Determine hourly rates for each classification: GS positions Use Step 1 WG positions: Use Step 2 for nonsupervisory; use Step 3 for supervisory

12 Administrative Requirements
FAR , “Notification to Contractors and Employees” DoL Pub WH-1313 (poster) with WD attached provided to contractor at time of award Don’t forget to include & a copy of the WD as part of a PO/contract

13 Requests to DoL If no applicable WD is available on-line, an e98 must be submitted requesting a WD from DoL If the employee classification is not listed on the WD, the classification must be “conformed”

14 Clauses (c)(1) , SCA (dated July 2005) (c)(2) , Equivalent Rates Fill in with classifications and rates Consider , FLSA & SCA Price Adjustment if lengthy performance period

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