Exemption from Application of the Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain Equipment-Certification
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.