22.1006 Solicitation provisions and contract clauses
Source: FAR 22.1006 on acquisition.gov
FAR 22.1006 mandates the inclusion of specific labor standards clauses in service contracts over $2,500, with detailed guidance for exemptions and wage adjustments to ensure compliance with the Service Contract Labor Standards statute.
Overview
FAR 22.1006 prescribes the specific solicitation provisions and contract clauses that contracting officers must include in solicitations and contracts subject to the Service Contract Labor Standards (SCLS) statute. It details when to use each clause based on contract value, type, duration, and potential exemptions. The section ensures that contracts for services over $2,500, or of indefinite value, include the appropriate labor standards protections, and provides guidance for exemptions and price adjustment clauses related to wage determinations and collective bargaining agreements.
Key Rules
- Service Contract Labor Standards Clause (52.222-41)
- Required in contracts subject to SCLS over $2,500 or of indefinite value, unless an exemption applies.
- Exemption Clauses and Provisions
- Do not include SCLS clauses if the contract qualifies for exemptions (maintenance, calibration, repair, or certain services) and the contracting officer determines SCLS does not apply.
- Equivalent Rates for Federal Hires (52.222-42)
- Inserted in contracts over $2,500 where SCLS applies, to inform contractors of equivalent federal wage rates.
- Price Adjustment Clauses (52.222-43 & 52.222-44)
- Used in fixed-price, time-and-materials, or labor-hour contracts with SCLS, depending on contract duration and options, to allow for wage and benefit adjustments.
- Exemption Certification and Requirements Clauses (52.222-48, 52.222-51, 52.222-52, 52.222-53)
- Inserted in solicitations and contracts where exemptions may apply, with specific procedures for certification and contract inclusion.
- Place of Performance Unknown (52.222-49)
- Used when the place of performance is not known at the time of solicitation.
Responsibilities
- Contracting Officers: Must determine SCLS applicability, insert correct clauses, manage exemptions, and ensure compliance with wage determination and price adjustment requirements.
- Contractors: Must comply with SCLS requirements, provide certifications for exemptions, and adjust wages/benefits as required by contract clauses.
- Agencies: Oversee compliance, ensure proper clause usage, and maintain documentation for determinations and exemptions.
Practical Implications
This section ensures that service contracts include the necessary labor standards protections and price adjustment mechanisms, or the correct exemptions. Contractors must be vigilant about which clauses apply to their contracts, especially regarding exemptions and wage adjustments. Failure to include or comply with the correct clauses can result in noncompliance, payment disputes, or contract modifications.
(a)
(1) The contracting officer shall insert the clause at 52.222-41, Service Contract Labor Standards, in solicitations and contracts (except as provided in paragraph (a)(2) of this section) if the contract is subject to the Service Contract Labor Standards statute and is-
(i) Over $2,500; or
(ii) For an indefinite dollar amount and the contracting officer does not know in advance that the contract amount will be $2,500 or less.
(2) The contracting officer shall not insert the clause at 52.222-41 (or any of the associated Service Contract Labor Standards statute clauses as prescribed in this section for possible use when 52.222-41 applies) in the resultant contract if-
(i) The solicitation includes the provision at-
(A) 52.222-48, Exemption from Application of the Service Contract Labor Standards statute to Contracts for Maintenance, Calibration, or Repair of Certain Equipment-Certification;
(B) 52.222-52, Exemption from Application of the Service Contract Labor Standards statute to Contracts for Certain Services-Certification; or
(C) Either of the comparable certifications is checked as applicable in the provision at 52.204-8(c)(2) or 52.212-3(k); and
(ii) The contracting officer has made the determination, in accordance with paragraphs (c)(3) or (d)(3) of subsection 22.1003-4, that the Service Contract Labor Standards statute does not apply to the contract. (In such case, insert the clause at 52.222-51, Exemption from Application of the Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain Equipment-Requirements, or 52.222-53, Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services-Requirements, in the contract, in accordance with the prescription at paragraph (e)(2)(ii) or (e)(4)(ii) of this subsection).
(b) The contracting officer shall insert the clause at 52.222-42, Statement of Equivalent Rates for Federal Hires, in solicitations and contracts if the contract amount is expected to be over $2,500 and the Service Contract Labor Standards statute is applicable. (See 22.1016.)
(c)
(1) The contracting officer shall insert the clause at 52.222-43, Fair Labor Standards Act and Service Contract Labor Standards-Price Adjustment (Multiple Year and Option Contracts), or another clause which accomplishes the same purpose, in solicitations and contracts if the contract is expected to be a fixed-price, time-and-materials, or labor-hour service contract containing the clause at 52.222-41, Service Contract Labor Standards, and is a multiple year contract or is a contract with options to renew which exceeds the simplified acquisition threshold. The clause may be used in contracts that do not exceed the simplified acquisition threshold. The clause at 52.222-43, Fair Labor Standards Act and Service Contract Labor Standards-Price Adjustment (Multiple Year and Option Contracts), applies to both contracts subject to area prevailing wage determinations and contracts subject to the incumbent contractor’s collective bargaining agreement in effect during this contract’s preceding contract period (see 22.1002-2 and 22.1002-3). Contracting officers shall ensure that contract prices or contract unit price labor rates are adjusted only to the extent that a contractor’s increases or decreases in applicable wages and fringe benefits are made to comply with the requirements set forth in the clauses at 52.222-43 (subparagraphs(d)(1), (2) and (3)), or 52.222-44 (subparagraphs(b)(1) and (2)). (For example, the prior year wage determination required a minimum wage rate of $4.00 per hour. The contractor actually paid $4.10. The new wage determination increases the minimum rate to $4.50. The contractor increases the rate actually paid to $4.75 per hour. The allowable price adjustment is $.40 per hour.)
(2) The contracting officer shall insert the clause at 52.222-44, Fair Labor Standards Act and Service Contract Labor Standards-Price Adjustment, in solicitations and contracts if the contract is expected to be a fixed-price, time-and-materials, or labor-hour service contract containing the clause at 52.222-41, Service Contract Labor Standards, exceeds the simplified acquisition threshold, and is not a multiple year contract or is not a contract with options to renew. The clause may be used in contracts that do not exceed the simplified acquisition threshold. The clause at 52.222-44, Fair Labor Standards Act and Service Contract Labor Standards-Price Adjustment, applies to both contracts subject to area prevailing wage determinations and contracts subject to contractor collective bargaining agreements (see 22.1002-2 and 22.1002-3).
(3) The clauses prescribed in paragraph 22.1006(c)(1) cover situations in which revised minimum wage rates are applied to contracts by operation of law, or by revision of a wage determination in connection with (i) exercise of a contract option or (ii) extension of a multiple year contract into a new program year. If a clause prescribed in 16.203-4(d) is used, it must not conflict with, or duplicate payment under, the clauses prescribed in this paragraph 22.1006(c).
(d) [Reserved]
(e)
(1) The contracting officer shall insert the provision at 52.222-48, Exemption from Application of the Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain Equipment-Certification, in solicitations that-
(i) Include the clause at 52.222-41, Service Contract Labor Standards; and
(ii) The contract may be exempt from the Service Contract Labor Standards statute in accordance with 22.1003-4(c).
(2) The contracting officer shall insert the clause at 52.222-51, Exemption from Application of the Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain Equipment-Requirements-
(i) In solicitations that include the provision at 52.222-48, or the comparable provision is checked as applicable in the clause at 52.204-8(c)(2)(iii) or 52.212-3(k)(1); and
(ii) In resulting contracts in which the contracting officer has determined, in accordance with 22.1003-4(c)(3), that the Service Contract Labor Standards statute does not apply.
(3)
(i) Except as provided in paragraph (e)(3)(ii) of this section, the contracting officer shall insert the provision at 52.222-52, Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services--Certification, in solicitations that-
(A) Include the clause at 52.222-41, Service Contract Labor Standards, and
(B) The contract may be exempt from the Service Contract Labor Standards statute in accordance with 22.1003-4(d).
(ii) When resoliciting in accordance with 22.1003-4(d)(3)(iii), amend the solicitation by removing the provision at 52.222-52 from the solicitation.
(4) The contracting officer shall insert the clause at 52.222-53, Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services-Requirements-
(i) In solicitations that include the provision at 52.222-52, or the comparable provision is checked as applicable in 52.204-8(c)(2) or 52.212-3(k)(2); and
(ii) In resulting contracts in which the contracting officer has determined, in accordance with 22.1003-4(d)(3), that the Service Contract Labor Standards statute does not apply.
(f) The contracting officer shall insert the clause at 52.222-49, Service Contract Labor Standards-Place of Performance Unknown, if using the procedures prescribed in 22.1009-4.