22.1003-4
Administrative limitations, variations, tolerances, and exemptions
FAR 22.1003-4 allows for specific exemptions from Service Contract Labor Standards, but contractors and contracting officers must strictly follow certification, documentation, and determination procedures to maintain compliance.
Overview
FAR 22.1003-4 outlines the administrative authority and procedures for granting limitations, variations, tolerances, and exemptions from the Service Contract Labor Standards (SCLS) statute. It details the Secretary of Labor’s ability to provide such exceptions in special circumstances, the types of contracts that may be exempt, and the specific conditions under which exemptions for maintenance, calibration, repair, and certain service contracts apply. The section also describes the process for requesting exemptions, the certification and determination requirements for contracting officers and offerors, and the consequences if the Department of Labor later finds that exemption conditions were not met.
Key Rules
- Administrative Authority
- The Secretary of Labor can grant reasonable limitations, variations, tolerances, and exemptions from SCLS requirements in special cases, provided they serve the public interest and protect prevailing labor standards.
- Exempted Contract Types
- Certain contracts, such as those for mail carriage by common carriers, specific Postal Service contracts, and contracts subject to Interstate Commerce Act rates, are categorically exempt from SCLS.
- Equipment Maintenance/Repair Exemptions
- Contracts for maintenance, calibration, or repair of specified equipment may be exempt if the equipment is commercially available, services are at established prices, compensation plans are consistent, and offerors certify compliance.
- Service Contract Exemptions
- Contracts for certain services (e.g., vehicle maintenance, financial services, hotel services, real estate, relocation) may be exempt if awarded competitively or sole source, services are commercially available, and offerors certify compliance.
- Certification and Determination
- Offerors must certify to meeting exemption conditions; contracting officers must affirmatively determine applicability before award and include or exclude SCLS clauses accordingly.
- Loss of Exemption
- If the Department of Labor finds post-award that exemption conditions were not met, the contract becomes subject to SCLS retroactively.
Responsibilities
- Contracting Officers: Must process exemption requests, verify certifications, make written determinations, and ensure proper contract clauses are included or omitted based on exemption status.
- Contractors: Must certify compliance with exemption conditions, use consistent compensation plans, and ensure subcontractors also comply.
- Agencies: Must route exemption requests through proper channels and monitor compliance; may be responsible for ensuring subcontractor compliance if exemptions are lost.
Practical Implications
- This section provides flexibility for contracts that do not fit standard SCLS application, but requires strict adherence to certification and documentation procedures. Contractors and contracting officers must be vigilant in verifying eligibility for exemptions and maintaining compliance, as loss of exemption can result in retroactive application of SCLS requirements, including wage determinations and contract modifications. Common pitfalls include failure to properly certify, misunderstanding commerciality requirements, or not monitoring subcontractor compliance.