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WDOL.gov User's Guide (Ver 4.0)
B. SERVICE CONTRACT ACT (SCA) - REGULATIONS AND REQUIREMENTS
- SCA - Statute and Regulations: The WDOL.GOV Library Page contains a link to DOL's website and to a copy of the statute (41 U.S.C. 351-358) and the pertinent SCA regulations (Title 29 CFR Part 4, Labor
Standards for Federal Service Contracts). Other DOL regulations address related requirements, for example: Title 29 CFR Part 541 for the definition of the exemption for "executive, administrative, or professional workers"; Title 29 CFR Part 785 for regulations defining "hours worked"; Title 29 CFR Part 531 for regulations defining "wages"; and Title 29 CFR Part 778 for regulations defining overtime or premium pay for workers working in excess of a standard workweek.
- Federal Acquisition Regulations (FAR) and
Supplements. The WDOL.GOV Library Page contains links to federal acquisition regulations including the supplements issued by each federal contracting agency. WDOL.GOV users are urged to familiarize themselves not only with DOL regulations, but also with the pertinent acquisition regulations pertaining to specific contract actions (including statements of work, modifications to the contract, options, extensions, and similar actions).
- Application of SCA. SCA establishes standards for prevailing compensation and safety and health protections for employees performing work for contractors and subcontractors on service contracts entered into with the federal government and with the District of Columbia. SCA provisions are applicable to contracts the principal purpose of which is to provide services in the United States through the use of service employees.
- SCA Wage and Benefit Requirements
a. For service contracts $2,500 and under, SCA Section 2(b)(1) requires payment of the minimum wage in the Fair Labor Standards Act (reference FAR Section 22.1002-4).
b. For service contracts over $2,500, SCA requires the contracting officer to incorporate into the contract a requirement to pay prevailing wages and benefits issued by DOL in the form of "wage determinations" (reference FAR Section 22.1006).
- Types of SCA WDs The WDOL.GOV database
contains the latest WDs developed by the DOL. The SCA database is updated
each Tuesday (by 1:00 pm ET) with all current revisions. DOL issues
two types of SCA WDs - prevailing wage WDs, and WDs based on collective
bargaining agreements (CBAs) covered by SCA Section 4(c).
(1) Standard WDs are generic WDs listing close to 300 different classifications (from several occupational groups, e.g., Clerical and Administrative, Technical Occupations, Information and Arts, Transportation). Each Standard WD reflects wages and fringe benefits found by DOL to be prevailing in a specific locality. Presently, DOL issues two Standard WDs for each locality. The wage rates are the same on each Standard WD for a locality. However, the health and welfare (H&W;) fringe benefit rate is different1. When selecting a Standard WD, the contracting officer must select the Standard WD with the appropriate health and welfare rate. The guidelines for selection are as follows:-
(a) First Guideline: Were the services previously performed under a contract that incorporated the preexisting, higher H&W; benefit level of $2.56? If so, select the Standard WD containing the same H&W; level of $2.56 per hour for all following contract periods and follow-on contracts for substantially the same services. -
(b) Second Guideline: If the services were not previously performed under contract using the H&W; benefit level of $2.56 per hour, or if the services were not previously performed under an SCA-covered contract, then select the Standard WD containing the current, lower H&W; rate published each June 1st. -
(c) Hawaii. Because Hawaii state law requires the payment of health insurance, SCA H&W; rates are different in Hawaii, but the application of the two levels is the same as noted in the above paragraphs.
(d) If you have any questions regarding the appropriate H&W; level to select for a specific contract action, contact the contracting officer or the designated agency labor advisor for assistance.
a. Prevailing Wage SCA WDs
(2) Non-Standard WDs. Non-Standard WDs are issued by DOL to reflect prevailing wages and benefits in specific service industries in designated localities. Non-Standard WDs may not be used in contracts for services other than those specified in the Non-Standard WD description; conversely, Standard WDs may not be used in contracts designated for Non-Standard WDs. In the WDOL.GOV Program selection process, the user will be asked to determine if the contract services are "non-standard" as designated by DOL. The menu will provide a drop-down listing of such designated Non-Standard services. The WDOL.GOV User's Guide provides a listing of non-standard services at "Appendix A, SCA Non-Standard WDs".
(3) Contract-Specific or Special SCA WDs. There are a few, unique service contracts where DOL will issue contract-specific wage and benefit rates under SCA. An example of a contract-specific WD is a sole-source contract with a county, state or municipality where wages and benefits are already established. The SCA WD applicable to such a contract will be the rates established by the sole-source contractor. (Not all sole-source contract actions are subject to a Contract-Specific WD; only those contracts awarded to contractors similar to government organizations.) If a contracting officer has determined that neither a Standard WD nor a Non-Standard WD is appropriate for a particular contract action, the contracting officer should request an appropriate contract specific or special WD from DOL using the e98 system. DOL has sole authority to determine the appropriate wage and benefit rates for each contract action and will issue a WD reflecting such rates.
- b. SCA WDs Based on CBAs
(1) If the CBA has been timely received by the contracting officer, the contracting officer must prepare a CBA WD that references the CBA (by employer, union, contract number and effective dates) and incorporate into the successor contract action the CBA (complete copy of the CBA and all addenda) along with the CBA WD as a cover page. It is not necessary to send a copy of the CBA to DOL. The WDOL.gov database will not contain a copy of the CBA itself; it will only retain copies of the cover CBA WDs. Contractors and other WDOL.gov users must review specific solicitations or contracts (or contact the contracting officer) in order to determine if a particular CBA is applicable under SCA to that action.
(2) The WDOL.gov Program menu includes a form for the contracting officer to complete in order to prepare the cover CBA WD for each specific contract action, as required by SCA. The contracting officer must prepare a separate CBA WD for each SCA-covered CBA applicable to a contract action (including separate CBA WDs for prime contractor and for subcontractor(s)).
- Monitoring the WDOL Program for SCA WD Revisions.
a. Effective SCA WD revisions are those WDs considered received timely by the contracting agency.
b. Effective SCA WDs are required to be incorporated into contracts or contract actions.
c. Under the WDOL.GOV Program, "receipt" date of a new or revised SCA WD is the first date at which that WD appears on the WDOL.GOV Program SCA Database.
d. Under the WDOL Program, DOL will publish all SCA WD revisions for a given week on the WDOL.GOV Program database each Tuesday.
e. The contracting officer must monitor the WDOL.GOV Program SCA Database regularly to determine if a selected WD has been revised and may be applicable (timely) to the contract action.- (1) At the Alert Service menu, the user will be asked to provide an email address for the WDOL.gov to use in providing notification of a revision to a WD. The user may also provide an "alert identifier" which will appear in the WDOL.gov notification and will assist the user in relating the newly revised WD to a specific contract or solicitation, or other area of interest.
- (2) Users requesting the Alert Service will receive an email notice each time the selected SCA WD is revised until the Alert Service request expires. CAUTION: The Alert Service does not relieve the contracting officer of the obligation under SCA and its regulations to use timely received new or revised SCA WDs in contract actions.
f. WDOL.GOV ALERT SYSTEM. To ensure that the contracting officer (or other interested party) is aware of revisions made by DOL to SCA WDs (Standard WDs and Non-Standard WDs) selected for a specific contract action, the WDOL.GOV user may register for automatic email notification of such revisions. Upon selection of an appropriate SCA Standard or Non-Standard WD, the user will be offered the opportunity to request email notice of future revisions for a specific period of time, or until a specific date. Contracting officers are encouraged to request this automatic notification process in order to be aware of timely revisions applicable to contract actions.
g. Archived SCA WDs. Once DOL revises an SCA WD, the most current revision will be published on the WDOL.GOV database. Prior revisions, no longer current, will be maintained in the "Archived SCA WD" database for information purposes only. Contracting officers should not use an archived WD in a contract action without prior approval of DOL. Contact DOL at [link to "Wage and Hour Inquiry" site, to be developed]
- Timely Receipt of New or Revised SCA WDs (Title 29 CFR Part 4, Section 4.5 and FAR Section 22.1012).
(1) A revised SCA WD shall be effective if it is received by the contracting agency before date of award (or date of modification for an option or extension).
(2) If a revised WD is received after award, it shall NOT be effective if contract performance starts less than 30 days from date of award or modification.
(3) If a revised WD is received after award and performance starts more than 30 days from award or modification date, the WD (or CBA) will be effective if received no later than 10 days prior to start of performance.
(4) With reference to SCA-covered CBAs, the contracting officer must provide written notification to unions and contractors (in accordance with Title 29, CFR Part 4, Section 4.1b(b)(3), and FAR Section 22.1010) of the pending contract action and estimated date. A sample letter for notification is provided at WDOL.GOV User's Guide, Appendix B, FAR 22.1010 Notification".
a. For contract actions resulting from other than sealed bidding:
(1) A revised SCA WD shall NOT be effective if received by the contracting agency less than 10 days prior to opening of bids, unless there is sufficient time to amend the solicitation and incorporate the revised WD.
b. For contract actions resulting from sealed bidding: - Timely receipt of CBAs (Title 29 CFR Part 4, Section 4.1(b) and FAR Section 22.1012).
a. The obligation of a successor contractor to pay its employees no less than the wages and fringe benefits required under the predecessor contractor's CBA is a statutory requirement of SCA Section 4(c). DOL has applied a limitation on the self-executing aspects of Section 4(c) (reference Title 29 CFR Part 4, Section 4.1(b)). This limitation only applies, however, if the contracting officer has given both the incumbent (predecessor) contractor and the employees' collective bargaining representative written notification at least 30 days in advance of all estimated procurement dates. A sample letter for notification is provided at Appendix B, "FAR Section 22.1010 Notification".- b. For contract actions resulting from other than sealed bidding:
(1) A revised CBA shall apply to the successor contract if it is received by the contracting agency before the date of award (or date of modification for an option or extension).
(2) If a CBA is received after award, it shall NOT apply to the successor contract if contract performance starts less than 30 days from date of award or modification.
(3) If a CBA is received after award and performance starts more than 30 days from award or modification date, the CBA shall apply to the successor contract if received no later than 10 days prior to start of performance.
- c. For contract actions resulting from sealed bidding:
(1) A revised CBA shall NOT apply to the successor contract if received by the contracting agency less than 10 days prior to opening of bids, unless there is sufficient time to amend the solicitation and incorporate the revised WD.
- Conformances (Requesting Authorization of Additional Classification and Rate). DOL issues WDs under SCA using available statistical data on prevailing wages and benefits in a locality. On occasion, the WD does not provide a rate for a particular occupation needed in the performance of the contract. Because of this, SCA provisions contain a conformance procedure for the purpose of establishing a SCA-enforceable wage and benefit rate for missing occupational classifications.
a. Contractors are responsible for determining that the employees performing work on a contract are in fact performing duties that fall within one or more of the occupational classifications listed on the applicable SCA WD. If a classification considered necessary for performance of the work is missing from the WD applicable to the contract, the awarded contractor must initiate a request for approval of a proposed wage and benefit rate. Generally, the contractor initiates the request by preparing an SF-1444, Request for Authorization of Additional Classification and Rate, at the time of employment of the unlisted classification. (Reference Title 29 CFR Part 4, Section 4.6(b) and FAR 22.1019) The contractor completes blocks 2 through 15 on the form. Requests may be submitted without the form, but must contain the required information.
b. Contractors must request employees, if present, or their designated representative, to sign block 16 noting the employee's concurrence or disagreement with the contractor's proposed wage and benefit rate. A statement supporting a recommendation for different rates must accompany any indication of disagreement. The "designated representative" is generally a union representative; it cannot be the contractor's representative or personnel officer.
c. The contractor submits the completed SF-1444 to the contracting officer. The contracting officer reviews the form for completeness, and signs the agency's concurrence or disagreement with the contractor's proposal. A statement supporting a recommendation for different rates must accompany any indication of disagreement.
d. The contracting officer then submits the request to DOL for approval. The contractor must pay the proposed wage and benefit rate pending response from DOL. When DOL responds to the contracting officer, the contracting officer provides a copy of the response to the contractor with instructions to provide each employee a copy or to post it in the work Standard (with the applicable WD). If DOL responds with an approved rate that is higher than the rate proposed by the contractor, the contractor must pay such rate retroactive to the start of performance of that classification. The contracting officer should request written confirmation from the contractor that this liability has been paid in full.
e. DOL's Service Contract Act Conformance Guide provides further guidance on the process.
Top 1SCA Health and Welfare (H&W;) Rates. On June 1, 1997, DOL initiated a new methodology to determine an appropriate, single SCA H&W; benefit rate for SCA Standard WDs. The new, lower rate was originally established at $1.91 per hour, to be revised in stages over several years (each increase to be published annually on June 1st). Effective June 1, 2003, DOL publishes SCA Standard WDs with a lower H&W;
rate of $2.36 per hour. However, DOL will continue to publish SCA Standard
WDs listing the preexisting, higher H&W rate of $2.56 per hour, along
with the Standard WDs listing the new, lower rate, until the new rate reaches
or exceeds the old rate of $2.56. Until then, the old rate of $2.56 will
continue to be applicable to certain contract actions in accordance with
DOL’s “All Agency Memorandum #188” published in the Federal
Register on December 30, 1996 (page 68647).
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A: WDOL Overview
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