In a situation where the collective bargaining agreement (CBA) does not apply to all service employees performing under the contract, the Service Contract Act (SCA) applies to the non-covered employees and the prevailing wage rates as determined by DOL shall apply. The contract officer should list the CBA covered and non-covered employees separately in the contract (FAR 22.108-2 (g)) to clearly distinguish how the employees are to be reimbursed.
According to FAR 22.1013, Review of wage determination, if the wages, fringe benefits, or periodic increases provided for in a CBA vary substantially from those prevailing wages for similar services in the locality, the contracting officer is required to immediately contact the agency labor advisor to
request a hearing on the matter in accordance with FAR 22.1021.
As reflected in FAR 22.1004, the Secretary of Labor has authority and oversight of the provisions of the Service Contract Act.