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

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

Applicability Over $2,500 Performance within the US Principle purpose is to furnish services Examples of covered contracts (FAR 22.1003-5): (d) Food service & lodging (k) Maintenance & repair of equipment, e.g., engines & electrical motors (22.1003-6 distinguishes between “repair” and “remanufacturing”)

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

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

Collective Bargaining Agreements (CBA) Predecessor contracts containing a CBA FAR 22.1008-2 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)

Wage Determinations Definition Use www.wdol.gov to retrieve WDs FAR 22.1001: minimum wages or fringe benefits applicable to the employment in a given locality of one or more classes of service employees Use www.wdol.gov to retrieve WDs Submission of SF98 & 98a to DoL no longer required if WD is available on-line…but…

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 52.222-42, Statement of Equivalent Rates for Federal Hires

Place of Performance National Association of Counties web page http://www.naco.org/Template.cfm?Section=Data_and_Demographics&Template=/cffiles/counties/city_srch.cfm FAR 22.1009: Place of performance unknown

Employee Classifications Service Contract Act Directory of Occupations, 5th Edition Available at: http://www.dol.gov/esa/whd/regs/compliance/wage/SCADirV5/SCADirectVers5.pdf 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

Statement of Equivalent Rates for Federal Hires FAR 52.222-42 must be filled-in Determine Federal grade equivalents: http://www.dol.gov/esa/whd/regs/compliance/wage/SCADirV5/Vers5ContentsTable.pdf Determine hourly rates for each classification: GS positions http://www.opm.gov/oca/07tables/indexGS.asp Use Step 1 WG positions: http://www.cpms.osd.mil/wage/ Use Step 2 for nonsupervisory; use Step 3 for supervisory

Administrative Requirements FAR 22.1018, “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 52.212-5 & a copy of the WD as part of a PO/contract

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”

Clauses 52.212-5 (c)(1) 52.222-41, SCA (dated July 2005) 52.212-5(c)(2) 52.222-42, Equivalent Rates Fill in with classifications and rates Consider 52.222-44, FLSA & SCA Price Adjustment if lengthy performance period