52.222-48 Exemption from Application of the Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain Equipment-Certification
Source: FAR 52.222-48 on acquisition.gov
Contractors can be exempt from Service Contract Labor Standards for certain equipment services if they certify compliance with specific commercial and compensation criteria.
Overview
FAR 52.222-48 provides a certification provision for contractors seeking exemption from the Service Contract Labor Standards (SCLS, formerly known as the Service Contract Act) for contracts involving maintenance, calibration, or repair of certain equipment. The provision requires offerors to certify that the equipment is regularly used for non-government purposes, sold or traded in substantial quantities to the public, and that services are offered at established catalog or market prices. Additionally, contractors must certify that compensation plans for service employees are consistent with those for commercial customers. This certification also covers subcontractors. If the certification is made and accepted, the SCLS clause will not be included in the contract. If not certified, or if the offeror fails to notify the Contracting Officer when required, the exemption does not apply, and the SCLS requirements remain in force.
Key Rules
- Certification Requirement
- Offerors must certify compliance with three conditions regarding equipment use, pricing, and employee compensation to qualify for exemption from SCLS.
- Subcontractor Coverage
- The offeror’s certification extends to subcontractors providing exempt services.
- Contract Clause Inclusion
- If certified and approved, the SCLS clause is omitted from the contract; otherwise, it is included, or the offeror may be allowed to submit a new offer.
- Notification Obligation
- If not certifying, the offeror must notify the Contracting Officer if a wage determination was not attached to the solicitation.
- Award Eligibility
- Failure to certify or notify as required may disqualify the offeror from award.
Responsibilities
- Contracting Officers: Must verify certification, determine applicability of SCLS, and ensure proper clauses are included or omitted.
- Contractors: Must accurately complete the certification, ensure compliance for themselves and subcontractors, and notify the Contracting Officer if required.
- Agencies: Oversee compliance and proper application of labor standards exemptions.
Practical Implications
- This provision allows contractors to avoid SCLS requirements if they meet specific commercial criteria, reducing administrative burden.
- Contractors must carefully assess their business practices and compensation plans before certifying.
- Failure to properly certify or notify can result in lost contract opportunities or compliance violations.
As prescribed in 22.1006(e)(1), insert the following provision:
Exemption from Application of the Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain Equipment-Certification (May 2014)
(a) The offeror shall check the following certification:
Certification
The offeror □ does □ does not certify that-
(1) The items of equipment to be serviced under this contract are used regularly for other than Government purposes, and are sold or traded by the offeror (or subcontractor in the case of an exempt subcontractor) in substantial quantities to the general public in the course of normal business operations;
(2) The services will be furnished at prices which are, or are based on, established catalog or market prices for the maintenance, calibration, or repair of equipment.
(i) An "established catalog price" is a price included in a catalog, price list, schedule, or other form that is regularly maintained by the manufacturer or the offeror, is either published or otherwise available for inspection by customers, and states prices at which sales currently, or were last, made to a significant number of buyers constituting the general public.
(ii) An "established market price" is a current price, established in the usual course of trade between buyers and sellers free to bargain, which can be substantiated from sources independent of the manufacturer or offeror; and
(3) The compensation (wage and fringe benefits) plan for all service employees performing work under the contract are the same as that used for these employees and equivalent employees servicing the same equipment of commercial customers.
(b) Certification by the offeror as to its compliance with respect to the contract also constitutes its certification as to compliance by its subcontractor if it subcontracts out the exempt services. If the offeror certifies to the conditions in paragraph (a) of this provision, and the Contracting Officer determines in accordance with FAR 22.1003-4(c)(3) that the Service Contract Labor Standards statute-
(1) Will not apply to this offeror, then the Service Contract Labor Standards clause in this solicitation will not be included in any resultant contract to this offeror; or
(2) Will apply to this offeror, then 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, in this solicitation will not be included in any resultant contract awarded to this offeror, and the offeror may be provided an opportunity to submit a new offer on that basis.
(c) If the offeror does not certify to the conditions in paragraph (a) of this provision-
(1) The clause in this solicitation at 52.222-51, Exemption from Application of the Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain Equipment-Requirements, will not be included in any resultant contract awarded to this offeror; and
(2) The offeror shall notify the Contracting Officer as soon as possible, if the Contracting Officer did not attach a Service Contract Labor Standards wage determination to the solicitation.
(d) The Contracting Officer may not make an award to the offeror, if the offeror fails to execute the certification in paragraph (a) of this provision or to contact the Contracting Officer as required in paragraph (c) of this provision.
(End of provision)