1. McNamara-O’Hara Service Contract Act of 1965 – As Amended
FAR Subpart 22.10

2. 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

3. Applicability Over $2,500 Performance within the US
Principle purpose is to furnish services
Examples of covered contracts (FAR ):
(d) Food service & lodging
(k) Maintenance & repair of equipment, e.g., engines & electrical motors ( distinguishes between “repair” and “remanufacturing”)

4. Exemptions Construction Walsh-Healey Transportation
Communications act of 1934
Postal contract stations
ADP, scientific, medical, or office machine equipment

5. 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

6. Collective Bargaining Agreements (CBA)
Predecessor contracts containing a CBA
FAR
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)

7. Wage Determinations Definition Use www.wdol.gov to retrieve WDs
FAR : minimum wages or fringe benefits applicable to the employment in a given locality of one or more classes of service employees
Use to retrieve WDs
Submission of SF98 & 98a to DoL no longer required if WD is available on-line…but…

8. 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 , Statement of Equivalent Rates for Federal Hires

9. Place of Performance National Association of Counties web page
FAR : Place of performance unknown

10. Employee Classifications
Service Contract Act Directory of Occupations, 5th Edition
Available at:
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

11. Statement of Equivalent Rates for Federal Hires
FAR must be filled-in
Determine Federal grade equivalents:
Determine hourly rates for each classification:
GS positions
Use Step 1
WG positions:
Use Step 2 for nonsupervisory; use Step 3 for supervisory

12. Administrative Requirements
FAR , “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 & a copy of the WD as part of a PO/contract

13. 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”

14. Clauses
(c)(1)
, SCA (dated July 2005)
(c)(2)
, Equivalent Rates
Fill in with classifications and rates
Consider , FLSA & SCA Price Adjustment if lengthy performance period