22.1003-3
Statutory exemptions
FAR 22.1003-3 clearly lists contract types that are exempt from Service Contract Labor Standards, helping contracting professionals avoid unnecessary compliance requirements.
Overview
FAR 22.1003-3 outlines specific statutory exemptions to the Service Contract Labor Standards (SCLS) statute, clarifying which types of contracts are not subject to its requirements. The section lists seven categories of contracts—including construction, transportation, communications, public utilities, certain employment contracts, and postal contract stations—that are excluded from SCLS coverage. This guidance helps contracting professionals determine when SCLS does not apply, ensuring proper compliance and avoiding unnecessary labor provisions in exempt contracts.
Key Rules
- Construction, Alteration, or Repair Contracts
- Contracts for construction, alteration, or repair of public buildings or works (including painting and decorating) are exempt from SCLS.
- Contracts under 41 U.S.C. Chapter 65
- Work governed by 41 U.S.C. chapter 65 (Walsh-Healey Public Contracts Act) is not covered by SCLS.
- Transportation Contracts with Published Tariffs
- Contracts for transporting freight or personnel by common carriers with published tariff rates are exempt.
- Communications Services Contracts
- Contracts with radio, telephone, or cable companies regulated by the Communications Act of 1934 are excluded.
- Public Utility Services Contracts
- Contracts for public utility services are not subject to SCLS.
- Direct Employment Contracts
- Employment contracts for direct services to a federal agency by individuals are exempt.
- Postal Contract Stations
- Contracts for operating postal contract stations for the U.S. Postal Service are excluded.
Responsibilities
- Contracting Officers: Must identify and document when a contract falls under one of these exemptions and ensure SCLS clauses are not included in exempt contracts.
- Contractors: Should verify whether their contract is exempt from SCLS and confirm with the contracting officer if uncertain.
- Agencies: Should provide guidance and oversight to ensure proper application of exemptions.
Practical Implications
- This section prevents the misapplication of SCLS to contracts that are statutorily exempt, reducing administrative burden and compliance risks.
- Contractors and contracting officers must carefully review contract type and scope to determine SCLS applicability.
- Common pitfalls include mistakenly applying SCLS to exempt contracts or failing to recognize an exemption, leading to unnecessary compliance efforts or disputes.