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  • Question

    At what point does the Service Contract Act Apply? FAR part 22.1007 states any contract above $2,500.


    Answer

    It appears that you do meet the dollar threshold but the type of individuals or services that you are procuring may not meet the definition of “service employee” and therefore the Service Contract Act would not apply.
     
    The requirements of 41 U.S.C. Chapter 67, Service Contract Labor Standards (formerly known as the Service Contract Act of 1965, as amended (Jan 2006), apply to service employees as defined:
     
    “Service employee,” as used in this clause, means any person engaged in the performance of this Agreement other than any person employed in a bona fide executive, administrative, or professional capacity, as these terms are defined in Part 541 of Title 29, Code of Federal Regulations, as revised.
     
    29 CFR Part 541 -  Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees; Final Rule, contains many definitions, explanations, and examples of individuals employed in an executive, administrative, or professional capacity.
     
    As I read this document and interpret its intent, it is my opinion is that your musicians and religious educational coordinators would fall into the category of administrative employees or professional employees, as defined.  This would mean that they do not meet the definition of service employees and therefore your contracts would not be subject to the Service Contract Labor Standards.   
     
    However, this answer is based on the information provided as we do not have all the details and facts pertaining to your situation.  As always, we highly recommend you consult the contracting officer as well as your legal office.

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