Government Contract Compliance

If you are a contractor or a subcontractor on a contract with the federal government for services or construction you should know about the Davis-Bacon Act (DBA)and the McNamara-O’Hara Service Contract Act (SCA).

The Davis Bacon Act (DBA) applies to federal funded (or assisted) contracts that exceed $2,000 and are for construction, alteration or repair.   Most people are aware of the DBA because it requires the payment of prevailing wages that are set by the U.S. Department of Labor. Although these wages are supposedly set to conform with the wage that prevails in a certain area, sometimes they can be higher than what a non-union company is accustomed to paying their employees. Click here to read more about the DBA and common violations.

The Service Contract Act (SCA) applies to contracts for more than $2,500 with the federal government that provide work done by “service employees”. The term “service employee” applies to many different types of employees; a list of which can be found here. The SCA also requires payment of a prevailing wage and a fringe benefit known as “Health & Welfare” which is a set amount for every employee and usually increases every year. In addition to the Health & Welfare benefit, most SCA contracts also require vacation pay and paid holidays. Click here to read more about the SCA and common violations. 

The Labor Brain Inc. is not a law firm and its employees do not practice law or provide legal services.  The information provided on our website,  in email correspondence with representatives of The Labor Brain, and at outreach events is for informational and educational purposes only.  The information provided is not a substitute for the advice of an attorney.