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The Service Contract Act of 1965 (SCA) requires government contractors to pay most non-professional service employees designated minimum wage rates and fringe benefits. The SCA's implementing regulations are complex and often poorly understood both by federal contractors and government contracting officers and auditors, particularly with respect to the SCA's fringe benefits requirements. As a result, federal services contractors often face SCA questions (internal and external) and government allegations of SCA non-compliance. Potential penalties for SCA errors are severe, including default termination and debarment. In addition, a contractor's failure correctly to understand the SCA when preparing bid pricing may result in a reduction to anticipated profits on the resulting government contract.
This webinar will address key SCA concepts, the most common contractor SCA mistakes, and practice tips to avoid common SCA problem areas. Specific topics addressed during this presentation will include:
- Is My Contract SCA-Covered?
- Who Is A Service Employee And Who Is Exempt?
- Prevailing vs. CBA Wage Determinations
- Conformance Process
- Failure To Include A Wage Determination
- Calculating Fringe Benefits
- Contract Option Year Pricing
- SCA Considerations Under Multiple Award Schedule Contracts
- Interplay With Fair Labor Standards Act
- Subcontractors
- Record-Keeping Requirements
- Debarment Rule And Other Potential Penalties
- Impact Of The "Minimum Wage" Executive Order