Solicitation provisions and contract clauses
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.