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Does the Service Contract Act Relate to Labor Category Descriptions?

gsaA lot goes into the process of creating and/or adding labor category descriptions for a GSA Schedule proposal or a modification. One important detail to keep in mind is, how do you know if your company’s labor categories are Service Contract Act (SCA) applicable?

I recently had a client with a labor category title that appeared to be an SCA applicable category. The title was similar to an Administrative Assistant. Definitely an SCA applicable category, right? Not always. This particular labor category had an extensive and varied job description (what SCA terms ‘functional responsibilities’), that did not match any of the descriptions in the SCA directory of occupations. Therefore, despite a title that clearly seemed to be SCA applicable, the labor category was not.

What is the SCA? The McNamara-O’Hara Service Contract Act (SCA) applies to every contract entered into by the United States or the District of Columbia. The SCA requires contractors and subcontractors performing services on federal contracts in excess of $2,500 to pay service employees no less than the monetary wage rates that pertain to the particular locality, typically determined by county.

How do you know if your company’s labor categories are SCA applicable? To answer this, companies need to reference the SCA Directory of Occupations, and match their labor category description with the labor category descriptions (not necessarily the titles) in the directory.

What if a contractor violates the SCA? The SCA can have contract funds withheld to reimburse underpaid employees, terminate the contract, hold the contractor liable for associated costs to the government, and debar the contractor from future government contracts for a period of three years for violating the SCA.

How can you make sure that your company never violates the SCA? By employing a knowledgeable government consultant who understands how to determine SCA applicability, and properly documenting the labor categories. For more information contact us for help!

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