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    Is the Service Contract Act and Contractor Manpower Reporting applicable to this?


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    I'm not familiar with the Army's Request for Service Contract Approval (RSCA) or it's applicability to your scenario.  However, in order to determine the applicability of the Service Contract Labors Standards (SCLS) statute and manpower reporting (assuming SCLS applicability is what drives manpower reporting requirements in your agency) to your contract, one must follow the rules in FAR Subpart 22.10 -- Service Contract Labor Standards.  In answering your question, I'm making a couple of assumptions: 1) the training services are going to be (or have been) added to the contract by way of a contract modification after the original contract was awarded.  2) these training services were considered in-scope of the contract as supported by the Contracting Officer's in-scope determination.  Otherwise, if the modification is considered out-of-scope, the training in question might be considered a new requirement which could be in violation of the Competition in Contracting Act (CICA) if these services were added to the contract without an approved J&A.  Of course for the J&A to be proper, one or more of the exceptions at FAR 6.302 would need to apply and be cited as the J&A authority, and the J&A would need to be posted on FedBizOpps in accordance with FAR 6.303 and 6.305. 
     
    FAR 22.1003-1 states "This subpart 22.10 applies to all Government contracts, the principal purpose of which is to furnish services in the United States through the use of service employees, except as exempted in 22.1003-3 and 22.1003-4 of this section, or any subcontract at any tier thereunder. This subpart does not apply to individual contract requirements for services in contracts not having as their principal purpose the furnishing of services. The nomenclature, type, or particular form of contract used by contracting agencies is not determinative of coverage."
       
    Principal Purpose: 
       
    If the principal purpose of the contract is for services, then the SCLS may apply. If the contract is mainly for construction or supplies then SCLS does not apply. Services involve time and effort performing a service, as opposed to furnishing an end product.  The DOL regulations state that “The proportion of labor cost to the total cost of the contract and the necessity of furnishing or receiving tangible non-labor items in performing the contract obligations will be considered, but are not necessarily determinative.”  The DOL regulations go on to state that “…no hard and fast rule can be laid down as to the precise meaning of the term ‘principal purpose’….”  The regulations also cite Congressional intent to include “…those contracts which have as their principal purpose the procurement of something other than the construction activity described in the Construction Wage Rate Requirements statutes (40 U.S.C.  chapter 31, subchapter IV; formerly known as the Davis-Bacon Act) (CWRR) or the materials, supplies, articles and equipment described in the Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000 statutes (41 U.S.C. chapter 65) (formerly known as the Walsh-Healey Public Contracts Act).”  This language makes it clear that any contract that is not principally for construction (covered by the CWRR statutes) and/or for supplies (covered by 41 U.S.C. chapter 65) will likely be construed as being principally for services.
       
    In the United States: 
     
     Only services to be performed “in the United States” require SCLS coverage. For SCLS purposes, the term “United States” includes the 50 states, the District of Columbia, Puerto Rico, the Virgin Islands, Outer Continental Shelf Lands, American Samoa, Guam, Wake Island, the Northern Mariana Islands, and Johnston Island. On contracts performed both inside the U.S. and outside the U.S., the SCLS applies only to the portion of the contract performed inside the U.S.
       
    Service Employees 
       
    Contract work must be performed by “service employees” for the SCLS to apply to the contract. “Service employees” (as defined at FAR 22.1001) are persons performing service contract work as hourly-paid non-exempt workers. The term EXCLUDES bona fide executive, administrative, or professional employees who meet the exemption criteria set forth in 29 CFR 541.  A DOL fact sheet providing more detail on these exceptions can be found at http://www.dol.gov/whd/overtime/fs17a_overview.pdf.  These exemptions often include, but are not limited to professionals (engineers, doctors, etc.), executives (upper level managers), or administrators (personnel directors, etc.). Note that highly skilled technicians and lower level supervisors would normally not qualify for exemption. If the contract will involve significant or substantial use of service employees, or their use will constitute more than a minor factor in contract performance, SCLS should be included if no exemption is applicable.  See 29 CFR 4.113(a)(3).  DOL generally considers 20% of the workforce to be substantial (SCLS), and 10% or less to be a “minor factor” (no SCLS).  SCLS coverage where service employees are in between 10 and 20% can hinge on the actual number of employees, and may require consultation with DOL.  Even if SCLS applies to the contract, the SCLS protections will apply to the service employees, only.
       
    If SCLS applicability remains uncertain after reading the applicability of the Act at 29 CFR, Part 4, Subpart C, then consult the U.S. Department of Labor (DOL), Wage and Hour Division (WHD), Field Operations Handbook, Chapter 14 which relates to applicability of SCA.  The handbook can be accessed at http://www.dol.gov/whd/FOH/index.htm.  In addition to providing more background on applicability, it also provides interpretations of applicability for certain types of requirements such as surveying, demolition, disaster relief contracts, drilling work, and maintenance. Other than the FAR and DOL website, some information in this response came from WIFCON website.

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