INFORMATION ON WAGE DETERMINATION.pdf

INFORMATION ON WAGE DETERMINATION

THE SERVICE CONTRACT ACT APPLIES TO THIS SOLICITATION

The McNamara-O’Hara Service Contract Act (SCA) requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement. The Department of Labor (DoL) issues wage determinations on a contract-by-contract basis in response to specific requests from contracting agencies. These determinations are incorporated into the contract.

For contracts equal to or less than $2,500, contractors are required to pay the federal minimum wage as provided in Section 6(a)(1) of the Fair Labor Standards Act (FLSA).

For prime contracts in excess of $100,000, contractors and subcontractors must also, under the provisions of the Contract Work Hours and Safety Standards Act, as amended, pay laborers and mechanics, including guards and watchmen, at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. The overtime provisions of the FLSA may also apply to SCA-covered contracts. The SCA web address is http://www.dol.gov/whd/govcontracts/sca.htm .

- The Department of Labor website is located at http://www.dol.gov. To find the wage determination for your area and industry:

1. Go to https://beta.sam.gov/ Click on https://beta.sam.gov/search?index=wd

2. Select the wage determination type (SCA). In the drop-down boxes, select Your State, then your county.

3. You will be asked if these services were previously performed. Click “No”.

4. You will be asked if the services are Non-Standard Services. Click “No”.

5. The webpage page shows the applicable Wage Determination you may print.

Individual wage determinations will be incorporated in each IDIQ awarded under this solicitation. It is the responsibility of the offeror to determine its pricing considers the applicable wage rates for the service worker category(ies) applicable to the services type, and to determine how the SCA applies to its business in relation to a potential Government Contract Award.

Questions regarding the Service Contract Act and/or wage determinations and how they apply to your business in relation to a Government Contract should be addressed directly with the Department of Labor office in your region.

DoL can assist you with how to become and remain SCA-compliant in relation to a Government Contract, including:

1. How to segregate Contract-work hours and Non-Contract work hours, appropriately documented in payroll records.

2. Calculating Health & Welfare Fringe Benefits.

3. Uniform Allowance.

4. Holidays.

5. Understanding and Application of Executive Oder 13658.

6. Ensuring the correct wage rate for the service work being performed versus the job title of the service worker and appropriately documenting in payroll records.

The VA does not enforce the Service Contract Act, but instead references the applicability of a specific Wage Determination. Enforcement is a function of the DoL at its discretion.

http://www.dol.gov/whd/minimumwage.htm http://www.dol.gov/whd/govcontracts/sca.htm http://www.dol.gov/ https://beta.sam.gov/ https://beta.sam.gov/search?index=wd