EP 1180-1-1
1 Aug 01
(6) Any employment contract providing for direct services to a Federal Agency by an individual or
individuals.
(7) Any contract with the Post Office Department (now the U.S. Postal Service), the principal
purpose of which is the operation of postal contract stations.
The DOL's regulations at 29 CFR, Part 4, Sections 4.116 through 4.122 provide further explanation of
these statutory exemptions.
b. In addition, Section 4(b) of the Act grants the Secretary of Labor the authority to issue limitations,
tolerances and exemptions. Thus, the Secretary of Labor has exempted from SCA coverage certain
contracts as set forth at 29 CFR 4.123. While the list of exemptions listed therein is extensive, there are
many instances where the applicability of the Act is not clear. The sections that follow, therefore, detail
certain exemptions as well as applicability determinations of particular interest to USACE.
3-8. Federal Information Processing Resources Contracts.
a. Contracts for Federal Information Processing (FIP) resources (automatic data processing
equipment, software services, support services, maintenance, related supplies, and systems) which require
the use of service employees are generally subject to the provisions of the SCA, except as noted in
paragraphs b and c below.
b. Contracts for Maintenance or Repair of Automated Data Processing Equipment. The Secretary
of Labor has set forth an exemption from the Act's coverage contracts principally for the maintenance,
calibration and/or repair of certain automated data processing (ADP), scientific and medical, and office
business equipment. This exemption may be found within the regulations at 29 CFR 4.123(e). However,
since that regulation neither defines nor lists the types of ADP equipment excluded from SCA coverage,
the Department of Labor issued further guidance in its All Agency Memorandum No. 149, dated 21
March 1989 (Appendix B). Therein, the DOL indicates that it has adopted the functional definition of
ADP equipment within the Brooks Act, 40 USC 759. However, since neither 29 CFR 4.123(e) nor All
Agency Memorandum No. 149 contain the Definition of ADP equipment within the Brooks Act, it is set
forth below:
"...(T)he term 'automatic data processing equipment" means any equipment or
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