Labour market · 16/06/1995

Service Contract Act; Labor Standards for Federal Service Contracts

The Department of Labor (DOL) is proposing to delete the requirement in Sec. 4.7 of 29 CFR part 4 that any service contract of the Federal Government in an amount less than $2,500 that is subject to the McNamara-O'Hara Service Contract Act of 1965, as amended (SCA), must contain a clause specifying that the contractor or any subcontractor shall pay the minimum wage under the Fair Labor Standards Act (FLSA) to employees engaged in the performance of the contract. This proposed revision is being made to conform the regulations to a new class of Federal government purchases established by the Federal Acquisition Streamlining Act of 1994 (FASA). Requirements otherwise applicable to Federal contracting are eliminated for purchases under $2,500 for the purpose of facilitating the use of government credit cards for the making of low dollar value purchases of supplies and services. The streamlining objectives of the new procurement procedures contemplated by FASA are impeded by contract clause requirements in Sec. 4.7, which were intended for use in contracts awarded traditional procurement procedures.