Service Contract Act

[Guest hooter17]

FAR 22.1003-2 Geographical Coverage or the Service Contract Act states that the Act does not apply to contracts performed outside of the United States. If I have some of the work in my contract beng performed outside the U.S. and I have some work that is done in the U.S then would my contract be exempt form the Service Contract Act?

[Guest carl r culham]

The SCA would apply to that part of the contract performed in the US. A helpful reference is the Air Force Labor Advisors Office (SAF/AQCK) "The Service Contract Act Desktop Guide" dated May 2007 which can be found here - ww3.safaq.hq.af.mil/shared/media/document/AFD-080711-078.doc

This excerpt is from the guide - "Only services to be performed ?in the United States? require SCA coverage. For SCA purposes, the term ?United States? includes the 50 states, the District of Columbia, Puerto Rico, the Virgin Islands, Outer Continental Shelf Lands, American Samoa, Guam, Wake Island, the Northern Mariana Islands, and Johnston Island. On contracts performed both inside the U.S. and outside the U.S., the SCA applies only to the portion of the contract performed inside the U.S."

[Guest Vern Edwards]

FAR 22.1003-2 Geographical Coverage or the Service Contract Act states that the Act does not apply to contracts performed outside of the United States. If I have some of the work in my contract beng performed outside the U.S. and I have some work that is done in the U.S then would my contract be exempt form the Service Contract Act?

See the Department of Labor's regulations about the Service Contract Act:

29 C.F.R. ? 4.112 Contracts to furnish services ?in the United States.?

(a) The Act and the provisions of this part apply to contract services furnished ?in the United States,? including any State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, Outer Continental Shelf lands as defined in the Outer Continental Shelf Lands Act, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, Wake Island, and Johnston Island. The definition expressly excludes any other territory under the jurisdiction of the United States and any United States base or possession within a foreign country. Services to be performed exclusively on a vessel operating in international waters outside the geographic areas named in this paragraph would not be services furnished ?in the United States? within the meaning of the Act.

( A service contract to be performed in its entirety outside the geographical limits of the United States as thus defined is not covered and is not subject to the labor standards of the Act. However, if a service contract is to be performed in part within and in part outside these geographic limits, the stipulations required by ? 4.6 or ? 4.7, as appropriate, must be included in the invitation for bids or negotiation documents and in the contract, and the labor standards must be observed with respect to that part of the contract services that is performed within these geographic limits. In such a case the requirements of the Act and of the contract clauses will not be applicable to the services furnished outside the United States.

Section 4.7 includes the rules about minimum wages and fringe benefits. Section 4.7 is reserved.