EP 1180-1-1
1 Aug 01
the furnishing of technical information, together with soil samples and rock cores, and/or a record to the
government of what was encountered during subsurface drilling, are subject to the SCA if such drilling
operations are not directly connected with the construction of a public work. The DOL has ruled that
contracts for drilling are covered by the DBA when they are directly related and incidental to, or an
integral part of the actual construction process. Further, contracts for the digging of test holes which may
later become public works or permit conversion to water wells are covered by the DBA.
3-20. Work Performed by the Contractor Alone. The SCA does not apply where the CO knows in
advance that the contractor alone will perform the services, since no service employees are utilized in such
case. (Wage & Hour Opinion Letter 512, September 23, 1966).
3-21. State and Municipal Employees. States and their political subdivisions may obtain a Federal
service contract and undertake to perform it with state or municipal employees (e.g., police, fire, or trash
removal services). The SCA does not contain an exemption for contracts performed by state or
municipal employees. Thus, the SCA will apply to contracts with states or political subdivisions in the
same manner as to contracts with private contractors (see 29 CFR 4.110).
3-22. USACE Law Enforcement Contracts Under the Water Resources Development Act. Section
120 of the WRDA (P.L. 94-587, 90 Stat. 29240 as amended by Section 101 of Public Law 96-536 (94
Stat. 3168)) provides authority for the Secretary of the Army, acting through the Commander, USACE,
to contract with states and their political subdivisions for the purpose of obtaining increased law
enforcement services at water resources development projects under the jurisdiction of the Secretary of
the Army. The DOL has advised the Corps that they view Section 2(a) of the SCA as applicable to such
services. The DOL maintains that the statutory language is clear. The Act applies to "every contract
entered into by the United States or the District of Columbia in excess of ,500, except as provided in
Section 7 of this Act...the principal purpose of which is to furnish services in the United States through the
use of service employees..." (Emphasis added.) In this regard, there is no limitation in the Act regarding
the beneficiary of contract services, nor is there any indication in the legislative history that only contracts
for services of direct benefit to the government, as distinguished from the general public, are subject to the
Act. (see 29 CFR 4.133 (a)). Further, the provisions of the CWHSSA are to be incorporated within
these contracts. Covered employees are entitled to the required overtime premium to the extent that they
perform contract work in excess of 40 hours. In submitting SCA wage rate requests to the DOL, COs
are advised to clearly indicate that the subject solicitation will be a sole-source type procurement. The
DOL has recommended that such information be furnished within Block 6, Services to Be Performed, of
the Standard Form SF 98, Notice of Intention to Make a Service Contract.
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