Federal Contractor Information

SCA & BACON-DAVIS

The McNamara-O’Hara Service Contract Act of 1965 (SCA), codified at 41U.S.C. §§ 351.€“358, requires general contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality as determined by the United States Department of Labor, or the rates contained in a predecessor contractor’s collective bargaining agreement. This is also known as the prevailing wage.

The SCA applies to every contract entered into by the United States or the District of Columbia, the principal purpose of which is to furnish services to the United States through the use of service employees. The SCA requires contractors and subcontractors performing services on covered federal or District of Columbia contracts in excess of $2,500 to pay service employees in various classes no less than the monetary wage rates and to furnish fringe  benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor’s collective bargaining agreement. Safety and health standards also apply to such contracts.

The 1931 Davis-Bacon Act  40 U.S.C.A. §§ 276a to 276a-5 requires the payment of prevailing wage rates to all labors and mechanics on Federal or Federally assisted construction contracts. Overall program responsibilities are administered by the U.S. Department of Labor. Project specific responsibilities are administered by the contracting agency. Davis-Bacon Act requirements are implemented in various Federal assistance programs through the “related act” provisions in each agency’s implementing statutes.