The Service Contract Act: Avoiding Common Mistakes And Problems

Click here to view a pdf version of the slides.

Click here to view a recording of the webinar presentation.

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

Unless you are a current client of Holland & Hart LLP, please do not send any confidential information by email. If you are not a current client and send an email to an individual at Holland & Hart LLP, you acknowledge that we have no obligation to maintain the confidentiality of any information you submit to us, unless we have already agreed to represent you or we later agree to do so. Thus, we may represent a party adverse to you, even if the information you submit to us could be used against you in a matter, and even if you submitted it in a good faith effort to retain us.