52.222-52 Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services-Certification
Source: FAR 52.222-52 on acquisition.gov
Offerors must accurately certify their eligibility for exemption from Service Contract Labor Standards or risk disqualification and mandatory compliance with SCLS requirements.
Overview
FAR 52.222-52 provides a certification process for offerors seeking exemption from the Service Contract Labor Standards (SCLS, formerly known as the Service Contract Act) for certain service contracts. The provision requires offerors to certify that their services meet specific criteria related to commercial availability, pricing, employee time allocation, and compensation practices. If the offeror certifies compliance and the contracting officer concurs, the SCLS clause will not be included in the contract. If the offeror does not certify, or 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 whether their services meet all four exemption criteria: commercial availability, established pricing, minimal employee time on government contracts, and consistent compensation plans.
- Subcontractor Compliance
- The offeror’s certification extends to any subcontractors providing exempt services.
- Contract Clause Inclusion
- If certified and approved, the SCLS clause is omitted from the contract; if not, the clause remains or the offeror may be allowed to revise their offer.
- Notification Obligation
- Offerors who do not certify must notify the contracting officer if a wage determination is missing from the solicitation.
- Award Eligibility
- Failure to execute the certification or required notification may disqualify the offeror from award.
Responsibilities
- Contracting Officers: Must verify certifications, determine applicability of SCLS, and ensure proper clauses are included or omitted.
- Contractors: Must accurately complete the certification, ensure subcontractor compliance, and notify the contracting officer as required.
- Agencies: Oversee compliance and ensure proper application of labor standards exemptions.
Practical Implications
- This provision allows certain commercial service contracts to be exempt from SCLS, reducing administrative burden if criteria are met.
- Contractors must carefully assess their eligibility and ensure all certification requirements are met to avoid disqualification or compliance issues.
- Common pitfalls include misunderstanding the exemption criteria, failing to notify the contracting officer, or inconsistent compensation practices.
As prescribed in 22.1006(e)(3), insert the following provision:
Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services-Certification (May 2014)
(a) The offeror shall check the following certification:
Certification
The offeror □ does □ does not certify that-
(1) The services under the contract are offered and sold regularly to non-Governmental customers, and are provided by the offeror (or subcontractor in the case of an exempt subcontract) to the general public in substantial quantities in the course of normal business operations;
(2) The contract services are furnished at prices that are, or are based on, established catalog or market prices. 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. An "established market price" is a current price, established in the usual course of ordinary and usual trade between buyers and sellers free to bargain, which can be substantiated from sources independent of the manufacturer or offeror;
(3) Each service employee who will perform the services under the contract will spend only a small portion of his or her time (a monthly average of less than 20 percent of the available hours on an annualized basis, or less than 20 percent of available hours during the contract period if the contract period is less than a month) servicing the Government contract; and
(4) The offeror uses the same compensation (wage and fringe benefits) plan for all service employees performing work under the contract as the offeror uses for these employees and for equivalent employees servicing 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(d)(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 FAR 52.222-53, Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services-Requirements, in this solicitation will not be included in any resultant contract awarded to this offer, 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 of this solicitation at 52.222-53, Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services-Requirements, will not be included in any resultant contract 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)