SCA Meeting Minutes

MEETING MINUTES

Service Contract Act (SCA) Inclusion in USC-7 USC Sealift Industry & USTRANSCOM/TCAQ

23 Feb 12

USTRANSCOM/TCAQ hosted a meeting with the USC sealift industry and members of TCJA to address outstanding SCA concerns from industry. The below comments capture the major points discussed.

1. TCAQ advised industry that any future discussions with DOL would only be conducted on an individual basis as the opening of the USC-7 solicitation does not warrant group discussions.

USTRANSCOM is willing to support individual carrier meetings upon request.

2. Carriers were advised to independently provide inputs or concerns to TCAQ on any of the current labor categories provided in the prevailing wage determinations as incorporated into the USC-7 solicitation.

3. Carriers still have concerns on how "owner operators" will be viewed by DOL and its enforcement of the act. Carriers also expressed concerns on how DOL would convert hourly wages to the commercial standards of paying truckers. USTRANSCOM advised industry these were valid questions and to provide them in writing to the Contracting Officer. The Contracting Officer will forward to DOL for response or consideration in DOL's forthcoming "Compliance Guide."

4. Carriers did express concerns that "other" labor categories may be absent from the prevailing wage determination (example: rail operations). USTRANSCOM reminded industry the responsibility remains on them to provide the Contracting Officer any additional labor categories that may have been inadvertently omitted from the prevailing wage determination. The USTRANSCOM Contracting Officer will work closely with DOL to determine the applicability of any "additional" labor categories. The carriers did express their intent was not to add further labor categories to the wage determination.

5. USTRANSCOM does not have a predecessor USC contract with governing Collective Bargaining Agreements (CBA) to assist the Contracting Officer with CBA implementation in USC-7. Therefore, if there are CBAs the carriers wish to be incorporated, they should provide copies to the Contracting Officer.

6. USTRANSCOM will provide via Fed Biz Ops (FBO) DOL's interpretation of the tariff exemptions.

7. The Fair Labor Standards Act and Service Contract Act (multiple year and option contracts) clause will be added to the solicitation via amendment. The carriers believe this Act provides an exemption to the owner/operator truck drivers. They were asked to submit their interpretation in writing to the Contracting Officer or directly to DOL.

8. USTRANSCOM reiterated its role as it relates to the SCA and that of DOL. DOL remains the enforcement & compliance agency of the act while the Contracting Officer incorporates the act by inclusion of the current prevailing wage determination or CBA into the contract.

9. USTRANSCOM advised industry that any interest in investigating an "exemption" of the SCA from USC-7 would have to be pursued by industry.

10. With the incorporation of the wage determination and labor categories identified, all necessary information has been provided enabling industry to submit offers by the 20 March 2012 deadline.

11. Industry discussed the possibility of seeking an exemption to SCA specifically to their business. This would be a collaborative effort among Industry members, which may be a very lengthy process.

12. USTRANSCOM is working closely with DOL to regionalize the stevedoring I Longshoremen wage classifications reducing the volume of pages currently provided in the general wage determinations that were incorporated in the recent USC-7 amendment. The incorporated wage determination identifies the prevailing labor categories and wages which proposed offerors must comply with when submitting proposals. When a regionalized wage determination is received, if more than 10 days prior to proposal submission date, it will be incorporated into the USC solicitation.

WILLIAM R. LINDQUIST

Contracting Officer