key service contract act terminology

1. Administrative Law Judge (ALJ) – Serves on DOL’s Administrative Review Board to hear issues concerning the SCA or Davis-Bacon Act.

2. Administrator – Administers DOL’s Wage and Hour Division.

3. Averaging H&W – Under the SCA, minimum health and welfare (H&W) fringe benefit requirements are stated as a per-hour rate to be paid in addition to the minimum wage listed on the wage determination (WD). On certain SCA WDs, an employer may comply by ensuring that the overall amount paid by the employer for such benefits at least averages the required H&W rate for all hours worked by the covered workers. (See 29 CFR Part 4: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=99753f944bb13ac06f47f9d843d6b0f0&rgn=div5&view=text&node=29:1.1.1.1.5&idno=29)

4. Bona Fide Fringe Benefits – Fringe benefits provided by the employer to the employee which meet the definitions and requirements under SCA for compliance, as defined in 29 CFR, Part 4, Section 4.171: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=99753f944bb13ac06f47f9d843d6b0f0&rgn=div5&view=text&node=29:1.1.1.1.5&idno=29. Used as an alternative to providing traditional fringe benefits under the SCA.

5. CBA – Collective Bargaining Agreement. A contract between an employer and the representative of the employees, often a union. Terms of a CBA include wages, benefits, assignments, working conditions, grievance and seniority procedures, etc.

6. CFR – Code of Federal Regulations. Contains regulations published by each federal agency, including DOL. (See http://www.wdol.gov Library Page to link those documents).

7. Conformance – A process under the SCA for contractors to request an enforceable SCA or DBA wage and benefit rate for a classification that is required in the performance of a contract but is not listed on the applicable WD. The contractor initiates the request by preparing an SF 1444, Request for Authorization of Additional Classification and Rate, at the time of employment of the unlisted classification. The contractor must submit a proposed rate for the classification, and the employee(s) working in the classification must sign the proposal concurring or disagreeing with the employer’s proposal. The procuring agency’s contracting officer may concur or disagree with the proposal, and DOL has ultimate authority to approve/deny the employer’s request. For more information, see http://www.dol.gov/whd/recovery/dbsurvey/conformance.ht.  

8. Contracting Officer (CO)- The government official authorized to award, modify, administer, and/or terminate a federal contract, and to make related determinations and findings. The CO is the contractor’s official point of contract for all matters related to a particular contract.

9. Covered Employees – These are service employees engaged on a federal government contract for services, who do not fall within the exemptions as individuals acting in a bona fide executive, administrative, or professional capacities.

10. CWHSSA – Contract Work Hours and Safety Standards Act. Applicable to certain construction and service contracts. CWHSSA requires overtime premiums and safety and health standards for specific workers.  For more information, see: http://www.dol.gov/compliance/laws/comp-cwhssa.htm.

11. DBA – Davis Bacon Act. The minimum wage and fringe benefit requirements applicable to contracts for construction, reconstruction, alteration or repair of public buildings or public works. DBA (“Related Acted” are statutes that were passed to provide for some specific purpose (E.G., appropriation bills that provide federal funding for construction or maintenance of public housing or highways) AND that include a requirement that work be performed in compliance with the provisions of DBA. For more information, see: http://www.dol.gov/whd/contracts/dbra.htm.

12. Debarment – A process by which DOL or another federal agency may seek to make a company ineligible for the award of federal contracts. With SCA violations, a debarment ruling may be issued for up to three years, and in the context of the SCA is the result of a contractor’s violation of labor or procurement law.

13. Exempt Employees – Employees who are not subject to the minimum wages, fringe benefits, or other provisions of FLSA, SCA or DBA because they meet the requirements stated in the statutes or in regulations for exemptions. These employees are persons employed in a bona fide executive, administrative, or professional capacity, as those terms are defined in 29 CFR Part 541.  For more information, see: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&tpl=/ecfrbrowse/Title29/29cfr541_main_02.tpl. 

14. FAR – Federal Acquisition Regulation. Published at 29 CFR Part 48, the FAR lists regulations that govern acquisition and procedures for federal agencies. Most federal agencies publish supplements to the FAR (e.g., DFAR for defense agencies) that contain further procedures governing that particular agency’s procurement.  Access the full text of the FAR at: https://www.acquisition.gov/far/. The Defense Federal Acquisition Regulation Supplement (DFARS)  is available at: http://www.acq.osd.mil/dpap/dars/dfars/html/current/tochtml.htm.

15. Fringe Benefits – Benefits that must be furnished to service employees, the minimum of which to be determined by the Secretary of Labor (and published on the applicable wage determination). These may include medical or hospital care, pensions or retirement, compensation for injuries or illness resulting from occupational activity, and other forms of insurance.

16. FLSA – Fair Labor Standards Act. FLSA requires employers to pay minimum wages and overtime premiums, restricts child labor, and requires payroll recordkeeping. Regulations issued under the statute govern the definitions of wages; hours worked; and exemptions for executive, administrative, professional, and outsides sales, and other workers. Access at the Act at: http://www.dol.gov/whd/flsa/.  

17. Health & Welfare (H&W) – Fringe benefits listed on most SCA wage determinations that must be met in addition to paying the stated SCA minimum wage. H&W generally includes benefits such as medical, life, and disability insurance, sick leave, pension, retirement, or other similar benefits plans. H&W requires that benefits be “bona fide” as defined in 29 CFR Part 4, Section 171.  See: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&tpl=/ecfrbrowse/Title29/29cfr4_main_02.tpl.

18. Job or Position Description – A detained description of the work performed by each worker classification listed on an SCA WD, as defined in DOL’s Service Contract Act Directory of Occupations (See www.wdol.gov Library Page for a link to this document).  

19. Per-Person (or Single) H&W Rate – Under SCA, minimum H&W requirements are stated as a per-hour rate to be paid in addition to the minimum wage listed on the wage determination (WD). On certain SCA WDs, an employer must comply by paying for such benefits at an amount at least equal to the stated H&W rate for all hours paid to a worker each week, up to a total of 40 hours per week. “All hours paid each week” includes work hours and paid leave hours (See 29 CFR Part 4: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&tpl=/ecfrbrowse/Title29/29cfr4_main_02.tpl).

20. Predecessor Contract – For SCA Section 4(c) purposes, a predecessor contract is the SCA-covered contract which was previously performed at the same locality for the purpose of providing the same services.

21. Prevailing Wages – Wage rates based on data from DOL surveys and other information that generally reflect an average rate paid to certain employee classifications within a specific geographical location.

22. Request for SCA Price Adjustment- A contractor’s request, generally submitted under FAR clause 52.222-43 or similar clauses, for an adjustment to a contractor’s otherwise fixed price, based on changes in the contract’s SCA wage and benefit requirements.

23. Review and Reconsideration – The process by which a federal agency, contractor, or other interested party may appeal wage or benefit rates issued by DOL in a WD, or decisions issued by DOL on such matters as coverage, exemptions, conformances, or other related subjects.

24. Secretary – The Secretary of Labor

25. Service Contract – A contract for services entered into by the United States or District of Columbia, for performance within the United States, in excess of $2500.

26. Service Employees – Employees engaged in the performance of service contracts.

27. Successor Contract – Under SCA Section 4(c), a new contract that succeeds an SCA-covered contract previously performed in the same locality for the same services (or the exercise of an option or issuance of an extension of an existing SCA-covered contract)(See 29 CFR, Part 4).  .

28. Successor Contractor Rule – Prohibits a successor contractor from paying its employees less than its predecessor had paid its employees pursuant to the predecessor’s CBA. See 29 CFR §4.163 at:  http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=e7900f6b56e314926b23a24566e5bad2&rgn=div8&view=text&node=29:1.1.1.1.5.4.23.5&idno=29).

29. Unusual Circumstances – Not statutorily defined, but is a defense to debarment for violation of the SCA, consisting of a three pronged test applied on a case-by-case basis that focuses on whether the violation was willful or deliberate, good faith compliance, and the general seriousness of the violation (See 29 CFR Part 4.188).  Access this regulation here: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=7636650f8d5348b55f5c94bd84296cb1&rgn=div8&view=text&node=29:1.1.1.1.5.5.27.2&idno=29

30. Wage and Hour Division (WHD) – Within DOL’s Employment Standards Administration, WHD administers and enforces labor laws including FLSA, SCA and DBA.

31. Wage Determinations (WDs) – Issued by DOL under SCA and DBA provisions. WDs publish minimum wages and fringe benefits for each classification listed on the WD. Area WDs generally reflect wages that are prevailing for a broad number of classifications working in a specific, often broad, geographic area.
• Industry-Specific WDs – Reflect wages and benefits prevailing in certain unique agencies.
• CBA WDs – Reflect collective bargaining agreements determined by DOL to be protected and applicable to successor contractor workers.