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McNamara-O’Hara Service Contract Act The McNamara-O’Hara Service Contract Act (SCA) was enacted in 1965 by the U.S Department of Labor to help protect service employee rights on prime Federal contracts that exceed $2,500. The SCA is cited as the “Service Contract Act of 1965”. The SCA provides the basis for certain provisions to be included in a service contract. These provisions provide the terms and conditions pertaining to minimum wages, fringe benefits, safe and sanitary working conditions, and the withholding of payments. A wage determination for the local area will be attached to the contract allowing the contractor to follow the minimum wages listed. The most recent wage determination for each county can be…show more content…
The FAR also lists some examples of contracts that are covered by the SCA. A few examples listed at FAR 22.1003-5 are data collection, processing, and analysis services; snow, trash, and garbage removal; and some support services at installations including grounds maintenance and landscaping. FAR 22.1003-3 and the SCA list out the seven instances for when the Service Contract Act does not apply. The seven instances are as follows:
• Any contract for construction, alteration, or repair of public buildings or public works, including painting and decorating;
• Any work required to be done in accordance with the provisions of 41 U.S.C. chapter 65, Contracts for Materials, Supplies, Articles and Equipment Exceeding $15,000;
• Any contract for transporting freight or personnel by vessel, aircraft, bus, truck, express, railroad, or oil or gas pipeline where published tariff rates are in effect;
• Any contract for furnishing services by radio, telephone, or cable companies subject to the Communications Act of 1934;
• Any contract for public utility services;
• Any employment contract providing for direct services to a Federal agency by an individual or individuals; or
• Any contract for operating postal contract stations for the U.S. Postal Service.
The Service Contract Act also states the consequences that occur if you do not follow the provisions pertaining to the act. If a contractor violates the act, they will be liable for the amount of any underpayments to the employees
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