Service Contract Act Compliance Checklist

SERVICE CONTRACT ACT (SCA) COMPLIANCE CHECKLIST

TABLE OF CONTENTS

1. Contract and Company Information
2. Threshold Applicability Determination
3. Wage Determination Compliance
4. Employee Classification and Wages
5. Fringe Benefits Compliance
6. Posting and Notice Requirements
7. Record-Keeping Requirements
8. Subcontractor Compliance
9. Successor Contractor Obligations
10. Conformance Process
11. Enforcement and Penalties
12. Compliance Certification

I. CONTRACT AND COMPANY INFORMATION

Contractor Name: [________________________________]

Contract Number: [________________________________]

Contracting Agency: [________________________________]

Contract Description: [________________________________]

Contract Value: $[________________________________]

Period of Performance: [__/__/____] through [__/__/____]

Place(s) of Performance: [________________________________]

Wage Determination Number: [________________________________]

WD Revision Number: [________________________________]

WD Effective Date: [__/__/____]

Compliance Officer:

Name: [________________________________]

Title: [________________________________]

Phone: [________________________________]

II. THRESHOLD APPLICABILITY DETERMINATION

A. Does the SCA Apply?

☐ Contract exceeds $2,500
☐ Principal purpose is to furnish services in the United States (including D.C., Puerto Rico, Virgin Islands, Guam, and other U.S. territories)
☐ Services are performed by service employees (as defined in 41 U.S.C. § 6701(3))

B. Exemption Analysis

☐ Not exempt — SCA applies in full

Check if any exemption applies (29 CFR 4.115-4.123):
☐ Construction contracts covered by the Davis-Bacon Act (41 U.S.C. § 3141 et seq.)
☐ Contracts for transporting freight or personnel (49 U.S.C.)
☐ Contracts for communication services (telephone, telegraph, radio)
☐ Contracts for public utility services
☐ Contracts performed exclusively by bona fide executive, administrative, or professional employees (exempt from FLSA)
☐ Contracts for maintenance, calibration, or repair of ADP equipment (certain conditions, FAR 22.1003-4)
☐ Contracts for services performed outside the United States
☐ Other: [________________________________]

III. WAGE DETERMINATION COMPLIANCE

A. Wage Determination Incorporation

☐ Correct Wage Determination obtained from SAM.gov (Wage Determinations Online)
☐ WD applies to the geographic area of contract performance
☐ WD incorporated into the contract by the Contracting Officer
☐ WD is the most current revision as of the date of award or option exercise
☐ Multiple WDs obtained for multi-location contracts (if applicable)

B. Wage Determination Review

☐ All employee classifications performing on the contract identified in the WD
☐ Minimum wage rates for each classification reviewed and documented
☐ Health & welfare fringe benefit rate identified: $[________]/hour
☐ Vacation and holiday requirements identified

IV. EMPLOYEE CLASSIFICATION AND WAGES

A. Employee Classification Review

B. Minimum Wage Verification

☐ All service employees paid at or above the applicable WD rate
☐ All service employees paid at or above the federal minimum wage (currently $7.25/hr FLSA; $17.75/hr under E.O. 14026 for covered contracts as adjusted)
☐ Higher of WD rate, CBA rate, or Executive Order minimum applies

V. FRINGE BENEFITS COMPLIANCE

A. Health and Welfare Benefits

☐ H&W fringe benefit rate per WD: $[________]/hour
☐ Benefits provided through bona fide plan(s):
☐ Health insurance
☐ Life insurance
☐ Disability insurance
☐ Other: [________________________________]
☐ Cash equivalent paid for any shortfall between plan cost and WD H&W rate
☐ Cost per hour of benefits plan documented: $[________]/hour

B. Vacation

☐ Employees with less than 1 year of service: [____] weeks paid vacation
☐ Employees with 1-3 years: [____] weeks paid vacation
☐ Employees with 3-15 years: [____] weeks paid vacation
☐ Employees with 15+ years: [____] weeks paid vacation

C. Holidays

☐ The following paid holidays provided (minimum per WD):
☐ New Year's Day
☐ Martin Luther King Jr. Birthday
☐ Washington's Birthday (Presidents' Day)
☐ Memorial Day
☐ Juneteenth National Independence Day
☐ Independence Day
☐ Labor Day
☐ Columbus Day
☐ Veterans Day
☐ Thanksgiving Day
☐ Christmas Day
☐ Other: [________________________________]

VI. POSTING AND NOTICE REQUIREMENTS

☐ Wage Determination posted at job site in a prominent, accessible location (29 CFR 4.184)
☐ DOL WH Publication 1313 (Notice to Employees Working on Government Contracts) posted
☐ FAR 52.222-41 clause included in subcontracts
☐ Safe and healthful working conditions maintained per the SCA (41 U.S.C. § 6703(2))

VII. RECORD-KEEPING REQUIREMENTS

☐ Payroll records showing each employee's:
☐ Name, address, and Social Security Number
☐ Work classification
☐ Hourly rate of pay (including fringe benefits or cash equivalent)
☐ Daily and weekly hours worked
☐ Deductions made
☐ Total wages paid each pay period
☐ Records of fringe benefits furnished
☐ Records of equivalent payments made in lieu of benefits
☐ Certified payrolls maintained (if required by contract)
☐ Records retained for minimum of 3 years after contract completion

VIII. SUBCONTRACTOR COMPLIANCE

☐ FAR 52.222-41 (Service Contract Labor Standards) flowed down to all subcontracts for services
☐ Applicable Wage Determination provided to subcontractors
☐ Subcontractor compliance monitoring program in place
☐ Subcontractor payroll records reviewed periodically
☐ Subcontractors aware of SCA requirements and penalties

IX. SUCCESSOR CONTRACTOR OBLIGATIONS

☐ Predecessor contractor's CBA reviewed (if applicable)
☐ Employees of predecessor contractor offered right of first refusal (E.O. 14055, if applicable)
☐ CBA wage rates incorporated into pricing (if CBA WD applies)
☐ Transition plan developed for employee absorption

X. CONFORMANCE PROCESS

☐ All employee classifications checked against WD
☐ Conformance requests submitted for unlisted classifications:

☐ Conformance rate set at minimum comparable to rates for similar work in the WD
☐ Contracting Officer notified of conformance requests

XI. ENFORCEMENT AND PENALTIES

Potential Consequences of Non-Compliance:

• Withholding of contract payments sufficient to cover wage/benefit underpayments
• Contract termination for default
• Contractor liability for excess costs of reprocurement
• Debarment from federal contracts for up to 3 years (41 U.S.C. § 6706(a))
• Liability for back wages and fringe benefits owed to employees

XII. COMPLIANCE CERTIFICATION

The undersigned certifies that this compliance checklist has been completed and the contractor is in full compliance with the McNamara-O'Hara Service Contract Act and all applicable Wage Determinations for the identified contract(s).

☐ All service employees are properly classified and paid at or above WD rates
☐ All required fringe benefits are provided or cash equivalents paid
☐ All posting and notice requirements are met
☐ All record-keeping requirements are satisfied
☐ All subcontractors have been notified and are in compliance

Compliance Officer:

Name: [________________________________]

Title: [________________________________]

Signature: [________________________________]

Date: [__/__/____]

Company Official:

Name: [________________________________]

Title: [________________________________]

Signature: [________________________________]

Date: [__/__/____]

SOURCES AND REFERENCES

• 41 U.S.C. §§ 6701-6707 - McNamara-O'Hara Service Contract Act
• 29 CFR Part 4 - Labor Standards for Federal Service Contracts
• FAR Subpart 22.10 - Service Contract Labor Standards
• DOL Wage Determinations (SAM.gov)
• DOL Service Contract Act Overview