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Pillar Publishing

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  1. Walsh-Healey Public Contracts Act

    Zag, For additional guidance, see the DOL Wage and Hour Division’s Field Operations Handbook (2016). Chapter 13 addresses WH and 13a01 "coverage of secondary contractors," specifically, 13a01 subsections (a)(1), (4) & (5) which define the circumstances under which products provided by a sub would be covered under the WH prime - they include those components of the product which are customarily produced and assembled directly by a typical provider of the finished product (within the respective industry). If that standard isn’t definitive in your circumstances, note that the requirements under WH (as you stated) are essentially the same as those under the FLSA and OSHA (there are additional restrictions under WH for work on a contract by minors and incarcerated individuals). Note also that if the components you're subbing out do fall under the prime contract coverage, the subcontract value - because the regulations do not articulate a subcontract coverage threshold for outsourced components (as opposed to SBA negotiated contracts, which are essentially prime contracts themselves) - should be considered as included in the prime contract's value.
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