EP 1180-1-1
1 Aug 01
b. It is also noted that recurring services procured on a monthly rather than annual basis are
generally subject to the Act even if the monthly do not equal or exceed the ,500 contract threshold for
SCA application. The DOL's regulations provide, in relevant part:
...if an agency procures continuing services through the issuance of monthly purchase
orders, the amount of the contract for purposes of application of the Act is not
measured by the amount of an individual purchase order. In such cases, if the continuing
services were procured through formal advertising, the contract term would typically be
for one year, and the monthly purchase orders must be grouped together to determine
whether the yearly amount may exceed ,500. However, a purchase order for services
which are not continuing but are performed on a one-time or sporadic basis and which are
not performed under a requirements contract or under the terms of a basic ordering
agreement or similar agreement need not be equated to a yearly amount. (See 4.142(b).)
3-7. Exempt Contracts. The Act provides for both specific statutory exemptions as well as procedures
under which the Secretary of Labor may make such rules and regulations allowing reasonable variations,
tolerances, and exemptions to, and from, any and all provisions of the Act.
a. Section 7 of the Act specifically excludes from SCA coverage the following types of contracts:
(1) Any contract for construction, alteration, and/or repair, including painting and decorating of public
buildings or public works (i.e., contracts for the procurement of construction activity covered by the
Davis-Bacon Act).
(2) Any work required to be done in accordance with the provisions of the Walsh-Healey Public
Contracts Act (i.e., specifications or requirements for the procurement of materials, supplies, articles,
and/or equipment).
(3) Any contracts for the carriage of freight or personnel by vessel, airplane, bus, truck, express,
railway line, or oil or gas pipeline where published tariff rates are in effect.
(4) Any contract for the furnishing of services by radio, telephone, telegraph, or cable companies,
subject to the Communications Act of 1934.
(5) Any contract for public utility services, including electric light and power, water, steam, and gas.
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