mcnamara o hara service contract act of 1965 as amended
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McNamara-O’Hara Service Contract Act of 1965 – As Amended

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McNamara-O’Hara Service Contract Act of 1965 – As Amended. FAR Subpart 22.10. Purpose. Mandatory provisions to provide: Minimum wages & fringe benefits Safe & sanitary working conditions Notification to employees Minimum allowable compensation

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purpose
Purpose

Mandatory provisions to provide:

  • Minimum wages & fringe benefits
  • Safe & sanitary working conditions
  • Notification to employees
    • Minimum allowable compensation
    • Equivalent Federal employee classifications and wage rates
applicability
Applicability
  • Over $2,500
  • Performance within the US
  • Principle purpose is to furnish services
    • Examples of covered contracts (FAR 22.1003-5):
      • (d) Food service & lodging
      • (k) Maintenance & repair of equipment, e.g., engines & electrical motors (22.1003-6 distinguishes between “repair” and “remanufacturing”)
exemptions
Exemptions
  • Construction
  • Walsh-Healey
  • Transportation
  • Communications act of 1934
  • Postal contract stations
  • ADP, scientific, medical, or office machine equipment
exemptions5
Exemptions
  • Employment contracts with individuals
  • Administrative limitations, variances, tolerances, and exemptions
    • Positions classified as “bona fide executive, administrative, or professional capacity”
    • Defined in 29 CFR 541
    • E.G., Doctors, lawyers, accountants
collective bargaining agreements cba
Collective Bargaining Agreements (CBA)
  • Predecessor contracts containing a CBA
  • FAR 22.1008-2
    • Follow-on contracts >$2,500
      • Substantially the same services
      • Performed in the same locality
      • Must pay wages & fringe benefits at least equal to those in CBA under predecessor contract (section 4(c) of the act)
wage determinations
Wage Determinations
  • Definition
    • FAR 22.1001: minimum wages or fringe benefits applicable to the employment in a given locality of one or more classes of service employees
  • Use www.wdol.gov to retrieve WDs
  • Submission of SF98 & 98a to DoL no longer required if WD is available on-line…but…
selecting wds
Selecting WDs
  • You will still need most of the same information as was required on the 98 & 98a
    • Place of performance (County & State)
    • Employee classifications
    • FAR 52.222-42, Statement of Equivalent Rates for Federal Hires
place of performance
Place of Performance
  • National Association of Counties web page
    • http://www.naco.org/Template.cfm?Section=Data_and_Demographics&Template=/cffiles/counties/city_srch.cfm
  • FAR 22.1009: Place of performance unknown
employee classifications
Employee Classifications
  • Service Contract Act Directory of Occupations, 5th Edition
      • Available at: http://www.dol.gov/esa/whd/regs/compliance/wage/SCADirV5/SCADirectVers5.pdf
        • Occupational descriptions – ensure you’ve selected the appropriate classification
        • Federal grade equivalent – what the GS or WG classification would be if the employee were a Federal employee
statement of equivalent rates for federal hires
Statement of Equivalent Rates for Federal Hires
  • FAR 52.222-42 must be filled-in
  • Determine Federal grade equivalents: http://www.dol.gov/esa/whd/regs/compliance/wage/SCADirV5/Vers5ContentsTable.pdf
  • Determine hourly rates for each classification:
    • GS positions
      • http://www.opm.gov/oca/07tables/indexGS.asp
      • Use Step 1
    • WG positions:
      • http://www.cpms.osd.mil/wage/
      • Use Step 2 for nonsupervisory; use Step 3 for supervisory
administrative requirements
Administrative Requirements
  • FAR 22.1018, “Notification to Contractors and Employees”
    • DoL Pub WH-1313 (poster) with WD attached provided to contractor at time of award
    • Don’t forget to include 52.212-5 & a copy of the WD as part of a PO/contract
requests to dol
Requests to DoL
  • If no applicable WD is available on-line, an e98 must be submitted requesting a WD from DoL
  • If the employee classification is not listed on the WD, the classification must be “conformed”
clauses
Clauses
  • 52.212-5 (c)(1)
    • 52.222-41, SCA (dated July 2005)
  • 52.212-5(c)(2)
    • 52.222-42, Equivalent Rates
      • Fill in with classifications and rates
    • Consider 52.222-44, FLSA & SCA Price Adjustment if lengthy performance period
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