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  • Question

    When determining the Wage Determination and the SCA wages for the Option Year are Higher than the CBA wages are, is the Contractor entitled to the SCA wages for that option period. What about the Health & welfare benefits the CBA are higher than the SCA?


    Answer

    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. 
     

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