52.222-51
Exemption from Application of the Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain Equipment-Requirements
This clause exempts certain equipment service contracts from SCLS only if strict eligibility, pricing, and compensation requirements are met and documented.
Overview
This clause outlines the requirements for contracts exempt from the Service Contract Labor Standards (SCLS) when providing maintenance, calibration, or repair services for certain equipment. The exemption applies only if the equipment is regularly used for non-government purposes, sold or traded in substantial quantities to the public, and services are provided at established catalog or market prices. Contractors must ensure that compensation plans for service employees match those for commercial customers and are responsible for ensuring subcontractors also comply. If the Department of Labor finds that exemption conditions are not met, the contract becomes subject to SCLS requirements.
Key Rules
- Equipment Eligibility
- Equipment must be used for non-government purposes and sold/traded in substantial quantities to the public.
- Pricing Requirements
- Services must be offered at established catalog or market prices, as defined in the clause.
- Employee Compensation
- Service employees must receive the same compensation as those servicing commercial customers.
- Subcontractor Compliance
- Contractors must ensure subcontractors meet exemption conditions and flow down the clause.
- Loss of Exemption
- If exemption conditions are not met, SCLS applies and DOL procedures are triggered.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and monitor compliance.
- Contractors: Verify all exemption conditions are met, ensure proper compensation, and flow down requirements to subcontractors.
- Agencies: Oversee compliance and respond to DOL findings regarding exemption status.
Practical Implications
- This clause allows certain service contracts to avoid SCLS requirements if strict conditions are met, reducing administrative burden.
- Contractors must carefully document eligibility and pricing to maintain exemption.
- Failure to comply can result in retroactive application of SCLS and potential penalties.