DoD Creates Confusion Related to Commercial Subcontracts

In November of 2023, DoD issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to partially implement a section of the 2017 National Defense Authorization Act (NDAA) addressing the Federal Acquisition Regulations (FAR) and DFARS contract clauses impacting prime or higher-tier contractors issuing commercial subcontracts for commercial products, including commercially available off-the-shelf items, and commercial services.

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Topics: Contracts & Subcontracts Administration, Government Regulations, Federal Acquisition Regulation (FAR), Service Contract Act, Commercial Item Determination

Understanding Health and Welfare Under the Service Contract Act (SCA)

The McNamara-O’Hara Service Contract Act (SCA), aka Service Contract Labor Standards (SCLS), requires contractors and subcontractors on covered contracts to provide specified wages and fringe benefits to covered employees (i.e., “service employees”). While that may sound fairly straightforward, there are many nuances and complexities that can cause great concern and angst when working toward compliance with the SCA. At the top of the list of these administrative burdens is the appropriate distribution of Health and Welfare (H&W).

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Topics: Employee & Contractor Compensation, Small Business Compliance, Human Resources, HR Huddle, Service Contract Act

Service Contract Act: Cheers to 2020 and Getting it Right!

Lately, we seem to be constantly reminded of the necessity of accurately identifying contracts which are (or should be) covered by the Service Contract Act (SCA) (aka Service Labor Contract Standards (SCLS)) and the subsequent labor category mapping.  Unfortunately, these reminders tend to come at quite a cost, not only financially but also as an extreme burden on your staff.  With this in mind, we decided to share some common issues and suggestions, in hopes of encouraging you to kick off the New Year with a resolution to be proactive in your compliance efforts.

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Topics: Contracts & Subcontracts Administration, Service Contract Act

Does the Service Contract Act Apply to Your Company and Are You Compliant?

Updated 9-27-2022

What is the Service Contract Labor Standards (SCLS)?

The McNamara-O’Hara Service Contract Act (41 U.S.C. §§ 351-358) (SCA) requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to provide service employees certain minimum wage and fringe benefits when performing work on those awarded federal service contracts. The Department of Labor is responsible for enforcing SCLS.

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Topics: Contracts & Subcontracts Administration, Service Contract Act