EP 1180-1-1
1 Aug 01
least 6.5 times greater than the applicable minimum wage rate under Section 6 of the Act. As a result of
this exemption under the FLSA, such workers would also be exempt from the SCA. (See 29 CFR
541.3(e))
3-9. Carpet Installation. As noted in Section 3-7, the SCA exempts from coverage contracts for
construction, alteration, and/or repair including painting or decorating of public buildings or public works
which are subject to the Davis-Bacon Act. Where carpet laying is performed as an integral part of, or in
conjunction with, "new" construction, alteration, or reconstruction of a public building or public work, as
opposed to routine maintenance, the Davis-Bacon Act would apply. However, where the installation of
carpeting is performed as a separate contract and is not an integral part of either a construction project or
incidental to a supply contract, the installation work would be subject to the SCA.
3-10. Overhaul and Modification of Aircraft and Other Equipment.
a. As noted in paragraph 3-7, the SCA exempts from its provisions "any work required to be done
in accordance with the provisions of the Walsh-Healey Public Contracts Act." DOL
regulations set forth at 29 CFR 4.117 provide detailed guidelines for delineating when contracts for major
overhaul of equipment would be considered "remanufacturing" subject to the Walsh-Healey Act rather
than the SCA. Complete or substantial tear down and overhaul of heavy construction equipment, aircraft,
engines, etc. where the government receives a totally rebuilt end item with a new (or nearly new) life
expectancy resulting from processes similar to original manufacturing will normally be considered
"remanufacturing" subject to the Walsh-Healey Act. Additional guidance distinguishing remanufacturing
from repair of equipment is set forth at FAR 22.1103-6.
b. Contracts for routine maintenance or repair, inspection, etc. are subject to the SCA.
3-11. Shipbuilding, Alteration and Repair.
a. Subpart 36.102 of the FAR states in part that the term "construction contract" does not apply to
construction of "vessels." The above FAR guidance is apparently based on certain legislative enactments
(52 Stat. 403; 72 Stat. 839) providing that each contract for the construction, alteration, furnishing or
equipping of a naval vessel is subject to the Walsh-Healey Act. However, the Secretary of Labor, who is
tasked with the administration of both the Davis-Bacon and Walsh-Healey Acts, has interpreted the
aforementioned references to Walsh- Healey Act as applying only to the construction of naval (U.S.
Navy and U.S. Coast Guard) vessels. Thus, Corps of Engineers contracts calling for the construction,
3-7
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