EP 1180-1-1
1 Aug 01
states, the District of Columbia, Puerto Rico, the Virgin Islands, Outer Continental Shelf
Lands (as defined in the Outer Continental Shelf Lands Act), American Samoa, Wake Island,
Commonwealth of the Northern Mariana Islands, and Johnston Island. This definition specifically
excludes any other territory under the jurisdiction of the United States and any United States base or
possession within a foreign country.
b. Contracts wherein some services are performed inside, and some are performed outside of the
United States, as defined in paragraph a above, are covered by the Act. The Act's provisions, however,
are applied to only those services performed within the statutory geographic scope.
3-5. Department of Labor Authority. In addressing the applicability of the SCA to prospective or even
existing contracts, it must be noted that Section 4 of the Act authorizes the Secretary of Labor to "enforce
the Act, make rules, regulations, issue orders, hold hearings, and make decisions based upon findings of
fact, and take other appropriate action hereunder." This authority is outlined in greater detail within
Section 101(b) of 29 CFR, Part 4. Particularly noteworthy is the Department of Labor's authority to
require contracting agencies to modify existing contracts that have erroneously omitted the applicable
SCA provisions and wage rates (see 29 CFR 4.5(c)(2)). Further, it should be noted that DOL
determinations as to whether or not a particular contract is subject to the Act are not judicially reviewable
(Curtiss-Wright Corp. v. McLucas, 381 F. Supp. 657; Brinks, Inc. v. Board of Governors of the Federal
Reserve System, 466 F. Supp 112). In this regard, see also the decision of the General Accounting
Office in B-221203, dated 12 Dec 85.
3-6.
Contracts of ,500 or Less.
a. Every contract with the Federal Government which is not in excess of ,500 but has as
its principal purpose the furnishing of services through the use of service employees shall contain the
following clause:
Except to the extent that an exemption, variation or tolerance would apply if this were a
contract in excess of ,500, the contractor and any subcontractor hereunder shall pay all
of his employees engaged in performing work on the contract not less than the minimum
wage specified under Section 6(a)(1) of the Fair Labor Standards Act of 1938, as
amended. Regulations and interpretations of the Service Contract Act of 1965, as
amended, are contained in 29 CFR, Part 4.
3-3
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