EP 1180-1-1
1 Aug 01
interconnected system or subsystems of equipment that is used in the automatic
acquisition, storage, manipulation, management, movement, control, display,
switching interchange, transmission, or reception, of data or information ---
(i) by a Federal agency, or
(ii) under a contract with a Federal agency which---
(I) requires the use of such equipment, or
(II) requires the performance of a service or the furnishing of a
product which is performed or produced making significant use
of such equipment.
...(S)uch term includes ---
(i) computers;
(ii) ancillary equipment;
(iii) software, firmware, and similar procedures;
(iv) services, including support services; and
(v) related services as defined by regulations issued by the Administrator
for General Services.
This exemption is limited to the servicing of only such listed items of equipment furnished to the
government which are also furnished commercially, the contract services must be furnished at
catalog or market prices, and the contractor must utilize the same compensation plan for all service
employees performing on both government and commercial work. The contractor must certify to all of
these conditions in the contract. These requirements, as well as the contractor certification, are contained
in the contract clause set forth at FAR 52.222-48. In addition, the CO is required to make an affirmative
determination that the conditions of the exemption have been met prior to contract award. In this regard,
the General Services Board of Contract Appeals (GSBCA), in the Electronic Genie, Inc. case, 90-3
BCA 23,045, held that a push-button telephone is "ADP equipment" under the Brooks Act. Therefore,
under the GSBCA's ruling, contracts for the maintenance, calibration and/or repair of push-button
telephone equipment would qualify for the SCA exemption.
c. Work Performed by Computer Programmers, Systems Analysts and "Other Skilled Professional
Workers". In 1990, Congress amended the Fair Labor Standards Act (see Section 2 of Public Law No.
101-583) to provide that "computer systems analysts, computer programmers, software engineers and
other similarly skilled professional employees" are to be exempt as "executive, administrative or
professional employees under Section 13(a)(1) of the Fair Labor Standards Act." It further provided that
such employees would be exempt even if they are paid on an hourly basis if their hourly rate of pay is at
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