Contracts Requiring SCA and DBA

  • The DBA applies to an SCA-covered contract principally for the furnishing of services in the United States through the use of service employees if a substantial amount of construction work is also necessary for performance of the contract and the construction work is physically or functionally segregable from the other contract work.
    1. Substantial relates to the type and quantity of construction work to be performed, not merely its value in dollars or the value of the construction work as compared to the total contract value, and
    2. Segregable means that as a practical matter the construction work is functionally separate from, and is capable of being performed on a segregated basis from, the other work called for by the contract. 29 C.F.R. § 4.116(c)(2); FAR 48 C.F.R. § 22.402(b).

      Examples:
    3. Contract for furnishing cafeteria and food services that includes requirements to renovate and paint the cafeteria and kitchen. While this is an SCA contract, the construction specifications of the contract are DBA-covered.
    4. Base maintenance and support contract that provides services for operation of a military base and requires substantial and segregable construction work orders such as:
      1. Painting base housing and buildings.
      2. Refinishing floors.
      3. Reroofing buildings.
    5. Questions sometimes arise as to whether the work required under an individual work order, task order or service call is for SCA maintenance or DBA painting/repairs.
      1. DFARS guidance regarding installation support contracts advises that where the distinction is unclear:
      2. Individual service calls or orders which will require a total of 32 or more work-hours to perform shall be considered to be repair work subject to the DBA. DFARS 48 C.F.R. § 222.402-70(d)(1).
      3. Painting work of 200 square feet or more to be performed under an individual service call or order shall be considered to be subject to the DBA regardless of the total work-hours required. DFARS 48 C.F.R. § 222.402-70(d)(3).
      4. Also, contracting officers may not avoid application of the DBA by splitting individual tasks between orders or contracts. 48 C.F.R. § 222.402-70(f).

DISPUTES CONCERNING COVERAGE DETERMINATIONS

    1. The contracting agency has the initial responsibility for determining the labor standards statutes applicable to a contract. This is important because many federal agency procurement officials are responsible, in the first instance, to designate application of PCA, DBA, and/or SCA requirements appropriately to federal contracts and multiple work elements of contracts that warrant the application of different labor standards. (See FAR 48 C.F.R. Subparts 22.3, 22.4, 22.6, 22.10, and 22.12.)
    2. Agency procurement personnel and contracting officers should seek guidance from their agency labor advisors when there are questions regarding coverage determinations.
    3. In addition, WHD may provide compliance assistance regarding appropriate application of the federal prevailing wage statutes.
    4. If an agency is found to have erred in its determination(s), substantial cost adjustment expenses and administrative burdens may result from failure to apply the PCA, DBA and SCA labor standards appropriately. For example, see FAR 48 C.F.R. § 22.404-6(b)(5), § 22.404-9 and § 22.1015.
    5. WHD has the authority for issuing final determinations on coverage. Each final ruling is based on the facts of a specific situation and how those facts relate to the coverage principles set forth by regulation, statute, and pertinent case law.
    6. In making coverage determinations, WHD generally solicits input from interested parties.
    7. Final WHD rulings may be appealed to the Administrative Review Board (ARB) under 29 C.F.R. Part 7 regarding DBA and DBRA cases, and 29 C.F.R. Part 8 regarding SCA cases.
    8. The members of the ARB are appointed by the Secretary of Labor to review final rulings and interpretations on wage determinations, coverage, and enforcement issues under the DBRA and SCA. The Board has the full authority of the Secretary of Labor in such matters.


Consulting Services We Provide

  • Review public works preconstruction contracts
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  • Audit labor classification for each worker employed
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  • Monitor DIR wage determinations
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