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All, I would like to request your view/comments on why acquisition professionals seem to ignore (completely or partially) the guidance located at FAR 7.4. The following link was a report on a few agencies concerning the purchase of heavy equipment as oppose to leasing it: https://www.gao.gov/products/GAO-18-295 What I would like to see is why you think this simple business/acquisition analysis is being overlooked by many of fellow professionals. Not just heavy equipment, but everything from real property to medical equipment?
Guidance on SCA/DOL Applicability The agency I work for has a general rule of thumb when assigning acquisition packages received that contain both supplies (SUP) and services (SVC) elements. The way they decide which team it gets assigned too is by looking if SVC component is more than $2,500.00 (SCA applicability threshold). If it is higher then it goes to the SVC team and if less, then it goes to the SUP team. I done some research and provided it below: Thoughts? Am I close or way of the mark? Resource for Determination: The Department of Labor (DOL) provides many resources to make these decisions. The best one I have found is located at the link below: https://www.dol.gov/whd/foh/ This is the Field Operations Handbook (FOH), which was updates in 2016, to help when making these decisions in accordance with federal law and DOL guidance. The link below is for chapter 14 that provides this guidance for the SCA: https://www.dol.gov/whd/FOH/FOH_Ch14.pdf At section 14a01 it states: “The SCA (41 USC 351, et seq.) applies to every contract entered into by the U.S. or the District of Columbia (DC), the principal purpose of which is to furnish services in the U.S. through the use of service employees. Contractors performing on such federal service contracts in excess of $2,500.00 must observe minimum monetary wage and safety and health standards and maintain certain records. Service employees on covered contracts in excess of $2,500.00 must be paid not less than the monetary wages and fringe benefits contained in wage determinations issued by the DOL for the contract work. Such wage and fringe benefit determinations may reflect what has been determined to be prevailing in the locality or may reflect the wage rates and fringe benefits contained in the predecessor contractor’s collective bargaining agreement (CBA), if any, pursuant to section 4(c) of the SCA. See 29 CFR 4.” (Emphasis Added) The definition of Principal is below (Marriam-Webster): most important, consequential, or influential The definition of Purpose is below (Marriam-Webster): something set up as an object or end to be attained From these definitions we can reasonably assume that “the principal purpose” means “the most important end to be obtained.” At section 14d13 the FOH speaks to the applicability of the SCA when services and other items are to be obtained under a single contract: “The SCA applies only where a contract as a whole is principally for the furnishing of services, as opposed to line items for specific work in a contract. The SCA reference to bid specification refers to the advertised specifications in a solicitation for bids rather than a separate line item or work requirement within a contract. See 29 CFR 4.132.” (Emphasis Added) The CFR reference is below: § 4.132 Services and other items to be furnished under a single contract. If the principal purpose of a contract is to furnish services through the use of service employees within the meaning of the Act, the contract to furnish such services is not removed from the Act's coverage merely because, as a matter of convenience in procurement, the service specifications are combined in a single contract document with specifications for the procurement of different or unrelated items. In such case, the Act would apply to service specifications but would not apply to any specifications subject to the Walsh-Healey Act or to the Davis-Bacon Act. With respect to contracts which contain separate specifications for the furnishing of services and construction activity, see § 4.116(c). Section 14d13 and 29 CFR 4.132 clearly state that the SCA’s applicability for a contract that contains both services and supplies is based on the “principal purpose” or “the most important end to be obtained.” Dollar value is not consulted for applicability.