EP 1180-1-1
1 Aug 01
be paid if workers were Federal direct-hires must be listed in the SF 98a. Wage rates for white-collar
classes are established by the Federal General Schedule (GS rates and grades). Wage rates for blue-
collar classes are established by the Federal Wage System Schedules (Wage Board or NAF rates and
grades). These comparable pay rates or grade levels are used to apply the principles of due
consideration required by section 2(a)(5) of the Act. Comparable Federal fringe benefits need not be in
the SF 98a. All Federal employees, regardless of occupational class, receive the standard Federal fringe
benefits package. The level of benefits so provided by law and regulations at the time of the procurement
is used in the application of due consideration, if necessary.
4-6. Service Contract Administration Issues. Due to the complexity of the regulations implementing the
Act, it would be impossible to consider all potential problems in the pre-
solicitation and pre-award phase of service contract administration. However, noted below are some of
the more problematic issues that have arisen in recent years.
4-7. Certified Listing of Employee Anniversary Dates. In the case of a contract performed at a Federal
facility where employees may be retained by a succeeding contractor, DOL's regulations (29 CFR
4.6(1)(2)) provides that the incumbent prime contractor must furnish a certified list of all service
employees on the contractor's or subcontractor's payroll during the last month of the contract (with the
incumbent as well as predecessor contractors) of each employee, to the contracting officer not less than
10 days before contract completion. A copy of this list is to be provided to the successor contractor for
determining employee eligibility for vacation fringe benefits which are based on length of service with
predecessor contractors (where such benefit is required by an applicable wage determination). Failure to
obtain such employment data will not relieve a contractor from any obligation to provide vacation benefits
(see also FAR 22.1020).
4-8. Successor Contractor Obligations. There are special requirements for both contractors and
contracting agencies under the SCA in connection with recurring service contracts. Specifically, the Act
requires a new contractor who replaces a contractor subject to a collective bargaining agreement with a
union to pay its employees not less than the wage rates and fringe benefits that its predecessor would
have had to pay under the most current collective bargaining agreement, including any prospective
increases provided for in the agreement (see 41 USC 353(c); 29 CFR 4.163(b) and FAR 22,1002-3).
This provision is self-executing and imposes an absolute duty on the successor contractor, regardless of
the contractor's knowledge of the predecessor's collective bargaining agreement. There are certain
conditions under which this requirement would not apply and they are set forth below:
4-6
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