In this presentation, JAMIS Software together with FCE Benefit will discuss the opportunities and challenges that come with the Service Contract Act, also known as McNamara–O’Hara Service Contract Act of 1965 is meant to secure certain wages and benefits standards for the individuals employed by government contractors. As a government contractor, it is crucial to understand what the SCA implies and to do everything you need to comply.
The SCA covers any contract that is fulfilled in the United States. Some services are not covered by this Act, such as construction, freight carriage, communication services, public utility services, postal services and direct services provided by an individual to a Federal Agency. Anything else is covered.
If you fail to comply, you could be banned from government contracting for three years, lose your funding and be liable to compensate the employees who were underpaid. Keep in mind that anyone can report you for failing to comply, including employees, unions, and other contractors.
The Davis-Bacon and Related Acts, apply to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Davis-Bacon Act and Related Act contractors and subcontractors must pay their laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. The Davis-Bacon Act directs the Department of Labor to determine such locally prevailing wage rates. The Davis-Bacon Act applies to contractors and subcontractors performing work on federal or District of Columbia contracts. The Davis-Bacon Act prevailing wage provisions apply to the “Related Acts,” under which federal agencies assist construction projects through grants, loans, loan guarantees, and insurance.