22.1003-2
Geographical coverage of the Act
The Service Contract Labor Standards statute applies only to service contracts performed within the United States, not to those performed overseas.
Overview
FAR 22.1003-2 clarifies the geographical scope of the Service Contract Labor Standards (SCLS) statute, stating that it applies only to service contracts performed within the United States. Contracts executed outside the United States are explicitly excluded from coverage under this statute. This distinction is crucial for determining whether SCLS requirements, such as wage determinations and labor standards, must be incorporated into a contract. Contracting professionals must carefully assess the location of contract performance to ensure proper application of labor standards and avoid unnecessary compliance obligations for contracts performed abroad.
Key Rules
- Domestic Application
- The SCLS statute applies to service contracts performed in the United States.
- Exclusion of Overseas Contracts
- Contracts performed outside the United States are not subject to the SCLS statute.
Responsibilities
- Contracting Officers: Must determine the location of contract performance and apply SCLS requirements only to contracts performed in the United States.
- Contractors: Should confirm whether their contract is subject to SCLS based on performance location and comply accordingly.
- Agencies: Ensure oversight and correct application of labor standards based on geographical coverage.
Practical Implications
- This section exists to prevent misapplication of labor standards to contracts outside U.S. jurisdiction.
- It impacts daily contracting by requiring careful review of performance locations during solicitation and award.
- Common pitfalls include mistakenly applying SCLS to overseas contracts or failing to apply it to domestic contracts.