EP 1180-1-1
1 Aug 01
3-23. Contracts with the National Guard. Contracts for the operation and maintenance of state National
Guard training and logistical facilities are generally not subject to the SCA. While the National Guard
Bureau provides full or partial funding for these contracts, services are provided directly to the states and
not the U.S. Government. The states independently obtain services to support training and logistical
facilities for each state National Guard unit. Contracts are signed by state officials and are administered
by the individual states according to state contracting procedures. However, contracts entered into
between the National Guard Bureau, DOD, and state National Guard units which provide for the
acquisition of services for the direct benefit or use of the National Guard Bureau and which are signed by
a U.S. Property and Fiscal Officer would be subject to SCA.
3-24. Contracts Between a Federal or District of Columbia Agency and Another Such Agency. Prime
contracts between a Federal or District of Columbia agency and another such agency are not subject to
the SCA. However, "subcontracts" awarded under "prime contracts" between the Small Business
Administration and another Federal agency pursuant to various small business/minority set-aside
programs, such as the 8(a) program, are covered by the SCA. For further information in this matter,
refer to 29 CFR 4.110.
3-25. Civilian Non-Appropriated Fund Contracts. The SCA applies to all labor intensive contracts that
provide services to civilian non-appropriated fund instrumentalities (NAFI). Cafeterias, restaurants, food
services, and vending services are examples of civilian NAFI contracts to which the SCA applies. (See
AR 215-7, paragraph 2-30).
3-26. Carriage of Freight or Personnel. Administrative Contracting Officers (ACOs) should be aware of
actions which have affected the applicability of the SCA to certain contracts relating to the carriage of
freight or personnel by motor carriers where published tariff rates are in effect. By way of background, it
is noted that Section 7(3) of the Act had provided for an exemption of the Act's coverage for these and
similar services. However, the DOL has re-examined this application of this exemption and the
implementing regulations (29 CFR 4.118) in light of two recent legislative actions relating to the de-
regulation of the transportation industry. As a result of the Trucking Industry Regulatory Reform Act of
1994 (P.L. 103-311) and the Federal Aviation Administration Authorization Act of 1994 (P.L. 103-
305), interstate and intrastate motor common carriers providing transportation of property, other than
household goods, are no longer required to file tariff rates with the Interstate Commerce Commission or
any state. Accordingly, motor carriers, with the very limited exceptions noted within the subject
Memorandum, no longer qualify for the exemption set forth at Section 7(3) of the Service Contract Act.
3-16
Previous Page
