22.1003
Applicability
FAR 22.1003 provides the framework for determining when the Service Contract Labor Standards statute applies to federal service contracts, ensuring proper compliance with labor requirements.
Overview
FAR 22.1003 outlines the applicability of the Service Contract Labor Standards (SCLS) statute, formerly known as the Service Contract Act (SCA). This section details when and where the SCLS applies, including general rules, geographical coverage, statutory exemptions, and administrative limitations. It also provides examples of covered contracts, distinguishes between repair and remanufacturing for coverage purposes, and offers guidance on resolving questions about applicability. The section is essential for determining whether a contract for services must comply with SCLS wage, benefit, and labor requirements.
Key Rules
- General Applicability
- Explains the types of contracts and situations where SCLS applies.
- Geographical Coverage
- Specifies the locations (domestic and certain overseas areas) where the Act is enforceable.
- Statutory Exemptions
- Lists contract types and circumstances that are exempt from SCLS requirements.
- Administrative Limitations and Exemptions
- Details any administrative exceptions or variations to the Act’s application.
- Examples of Covered Contracts
- Provides practical examples to clarify which contracts are subject to SCLS.
- Repair vs. Remanufacturing
- Clarifies how to distinguish between repair (covered) and remanufacturing (potentially not covered) for compliance.
- Resolving Applicability Questions
- Outlines procedures for addressing uncertainties regarding SCLS applicability.
Responsibilities
- Contracting Officers: Must determine SCLS applicability, apply correct wage determinations, and document exemptions or exceptions.
- Contractors: Must comply with SCLS requirements if applicable, including wage and benefit standards.
- Agencies: Oversee compliance, provide guidance, and resolve applicability questions as needed.
Practical Implications
- Ensures contractors and agencies correctly identify when SCLS applies to service contracts.
- Prevents misapplication or omission of labor standards, reducing risk of noncompliance.
- Common issues include misclassifying contracts, overlooking exemptions, or misunderstanding geographical coverage.