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(Notice of Intention of Make a Service Contract and Response to Notice)
GENERAL EXPLANATION
The Service Contract Act (SCA), as amended, requires the Secretary of Labor to issue wage determinations (WD) applicable to employees engaged in the performance of service contracts in excess of $2,500. Standard Form (SF) 98, Notice of Intention to Make a Service Contract, with Attachment 98a , provides the procedure for a contracting agency to request a WD. Any questions as to whether a notice is required in a particular procurement situation should be submitted to the Administrator, U.S. Department of Labor (the Department), Washington, D. C. 20210, Attention: Government Contracts Team.
Explanation of section 4(c) of the SCA:
Section 4(c) applies when the wage rates and fringe benefits of an incumbent contractor’s employees working on an SCA-covered contract are governed by a collective bargaining agreement (CBA).
Successor contractors may not pay less than collectively bargained wage rates and fringe benefits, including any prospective increases applicable to employees of the predecessor contractor except where, upon a hearing, it is determined that wage rates and fringe benefits are substantially at variance with those that prevail in the locality. In no case may an employee be paid less than the minimum wage under section 6(a)(1) of the Fair Labor Standards Act.
In any case where section 4(c) of the SCA is applicable and the agency desires to request a hearing on whether the wages and fringe benefits are substantially at variance with those prevailing in the locality, the request should be submitted in accordance with the provisions of 29 CFR 4.10.
The notice must be completed in its entirety except for the Response to Notice section which will be completed by the DOL.
INSTRUCTIONS—AGENCY PORTION OF NOTICE
(Entries on Basic Form)
Item 1 - Notice Number. The Notice Number is preprinted on SF 98s ordered from the General Services Administration Supply Depots. However, for agencies replicating the SF 98 and 98a, the Notice Number is to be input by the agency using their own numbering system that has been approved by the Department, Branch of Service Contract Wage Determinations.
Item 2 - Estimated solicitation date (use numerals). Enter estimated solicitation date.
If the purpose of the SF 98 request is to obtain a WD for the exercise of an option, an extension to an existing contract, a change in scope, or the anniversary date of a multiple year contract, complete Item 2 as follows: (a) In the ‘Estimated solicitation date" subbox, indicate, as appropriate: "Mod-Exercise of Option"; Mod-Extension"; Mod-Change in Scope"; Annual Anniversary"; or Biennial Anniversary"; and (b) In the "month/day/year" subbox, indicate the date the WD is needed.
Item 3 - Estimated date bids or proposals to be opened or negotiations begun (use numerals). Enter the date the bids or proposals are expected to be opened or the negotiations started.
Item 4 - Date contract performance to begin (use numerals). Enter the date contract performance is expected to begin.
Item 5 - Place(s) of performance. The entry as to place of performance depends on a variety of factors. If the place of performance is known, as with a contract for janitorial services at a particular installation, enter the appropriate city, county and state. If performance is to be at several known places, attach a list with each appropriate county and state.
Where the place(s) of performance is unknown, a "two-step" procurement procedure for issuing separate WDs for each of the various localities where the particular contract work might be performed in instances when the place of contract performance cannot be determined at the time of bid solicitation. In the first step, the contracting agency will issue an initial solicitation with no WDs. The initial solicitation identifies the locations of all interested bidders and their possible places of performance and this information is transmitted to the DOL with the SF-98. In the second step, the DOL will issue WDs for the locations of the bidders identified in the first step. If additional locations are determined before the submission of final bids, the DOL should be contacted immediately for WDs for the additional locations. These WDs must be incorporated in the solicitation prior to the submission of final bids. The appropriate WD applicable to the geographic location of the successful bidder shall be incorporated in the resultant contract and shall be observed, regardless of whether the contractor subsequently changes the place(s) of contract performance.
Item 6 – Services to be performed. Describe the services to be performed in such a manner that it will be clear what type or types of services are called for by the contract.
In many instances simple entries will suffice: "Janitorial services at Headquarters Building, Fort Sill," "Food service and Mess Attendant services, Wright Patterson, AFB," and "Garbage Collection, Goddard Space Flight Center, NASA." Unusual types of services must be described in more detail.
Item 7 - Information about performance. Mark the appropriate box. A, B or C.
Item 8 - If box A in item 7 is marked, complete item 8 as applicable. It is very important under the SCA that appropriate entries are made in Item 8 if Box A of Item 7 has been marked.
- Name and address of incumbent contractor. Enter the name and address of the incumbent contractor.
- Number(s) of any WD(s) in incumbent’s contract. Enter the number(s) of any WD(s) part of the incumbent’s contract. For example: 71-69 (Rev. 3) and 69-43 (Rev. 4).
- Name(s) of union(s) if services are being performed under CBA(s). Important: Attach copy of current applicable CBA. Enter the names of the union if services are being performed by the incumbent contractor under the CBA. If an entry is required in c., a copy of the current applicable CBA must be furnished with the notice. The notice will be returned without action if the CBA is not included.
Item 9 - Official submitting notice. It is often necessary
for the DOL to get in touch with the contracting official who submitted
the notice in order to clarify particular points. The name of this official
should be printed or typed in the space provided and he/she should sign
his/her name above. Enter the date the notice is submitted. The telephone
number, including area code, should be entered.
Item 10 -Type or print name and title of person to whom response is to be sent and name and address of department or agency, bureau, division, etc. Type or print this entry in the space provided within the brackets. This is used by the DOL to identify the contracting agency and for mailing purposes.
ENTRIES ON ATTACHMENT A
Item 11 - Notice Number. Enter the notice number entered in Item 1 of the basic form.
Item 12 - Classes of service employees to be performed on
contract. Enter the classes of service employees to be employed in performing
the contract. A simple entry may suffice: "Janitor", "Window Cleaner", "Motor
Vehicle Mechanic", "Guard I", "Stenographer II", "Warehouseman". Refer to
the SCA Directory of Occupations (the
Directory) when determining classifications and read the job description
rather than rely on position title. Where more complex jobs are involved,
it will expedite handling to submit a detailed job description that describes
the work the employee will perform. The entries in Item 12 are crucial as
they enable the DOL to "match" the job to be performed against existing
WDs or available wage data.
Item 13 - Number of employees in each class. Enter the number of employees to be employed in each class listed in Item 12. Do not omit this figure even though it may be necessary to use an estimate.
Item 14 - Hourly wage rate that would be paid if Federally employed. The hourly wage rate, or Federal Grade Equivalent (FGE), that would be paid if workers were Federal direct-hires must be listed. Wage rates for "white collar" classes are established by the Federal General Schedule. Wage rates for "blue collar" classes are established by the Federal Wage System Schedules (Wage Board or Non-appropriated Fund wage rates and FGEs). These comparable pay rates or FGEs are used to apply the principles of "due consideration" required by section 2(a)(5) of the SCA. The agency’s personnel office may be of help in determining the appropriate hourly wage rate entries.
It is not necessary to furnish fringe benefit information as part of the SF 98a. All employees, regardless of occupational class, receive the level of benefits so provided in 29 CFR ,Part 4, section 4.52.
INSTRUCTIONS---RESPONSE TO NOTICE
(Completed by Department of Labor)
- The attached WD(s) listed below apply to procurement. If this box is marked, the WD(s) applicable will be listed by WD number and revision, and will be enclosed with the SF 98. The wage rates and fringe benefits reflected in the WD are applicable to the procurement and must be made part of the contract. (If wage rates and fringe benefits are not provided in the WD for particular classes of service employees to be employed on the contract, conforming action must be taken as provided in 29 CFR, Part 4, section 4.6(b)(2).
- As of this date, no WD applicable to the specified locality and classes of employees is in effect. If this box is marked, no WD applicable to the specified locality and classes of employees is in effect. In no case may an employee be paid less than the minimum wage under section 6(a)(1) of the Fair Labor Standards Act.
- From information supplied, the SCA does not apply (see attached explanation). From time to time the DOL receives a notice with respect to a proposed contract which, on the basis of the information supplied by the contracting agency, is not subject to the SCA. If box C is marked, the returned SF 98 will usually be returned with an explanation letter.
- Notice returned for additional information (see attached explanation). This box will be marked if the notice must be returned for additional information.
An explanation will be noted on the request so that the contracting agency will know what action to take.
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