The McNamara-O’Hara Service Contract Act of 1965 (SCA) (also known as the Service Contract Labor Standards) continues to present challenges to government contractors, including both new and experienced industry players. As discussed in depth in our prior article, assessing the potential impact of the SCA on service contracting opportunity during the proposal preparation process is essential. And now with the new change in administration, service contractors should be prepared for heightened scrutiny and increased enforcement activity in the Department of Labor’s Wage & Hour Division.
In an SCA enforcement environment where DoL investigators find violations in approximately 70% of all SCA audits, thorough consideration of the SCA’s requirements at the pre-award stage can help prevent troubles during contract performance and mitigate audit risk. To that end, we have summarized below several issues that contractors should consider when bidding on an SCA-covered contract. However, because of the complexities of the SCA and its implementing regulations, this summary is meant only as general guidance and not a substitute for a thorough fact-specific analysis of a particular SCA-covered opportunity.
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