U.S. flag
          An official website of the United States Government  Main navigation
  

        

              Data Initiatives
                              Regulations
                                                                        Row 1
                                              FAR FAR
                              Smart Matrix Smart Matrix
                              Chapter 99 (CAS) Chapter 99 (CAS)
                              Row 2
                                              DFARS DFARS
                              DFARSPGI DFARSPGI
                              AFARS AFARS
                              DAFFARS DAFFARS
                              DAFFARS MP DAFFARS MP
                              DARS DARS
                              DLAD DLAD
                              NMCARS NMCARS
                              Row 3
                                              SOFARS SOFARS
                              TRANSFARS TRANSFARS
                              AGAR AGAR
                              AIDAR AIDAR
                              CAR CAR
                              DEAR DEAR
                              DIAR DIAR
                              DOLAR DOLAR
                              Row 4
                                              DOSAR DOSAR
                              DTAR DTAR
                              EDAR EDAR
                              EPAAR EPAAR
                              FEHBAR FEHBAR
                              GSAM/R GSAM/R
                              HHSAR HHSAR
                              HSAR HSAR
                              Row 5
                                              HUDAR HUDAR
                              IAAR IAAR
                              JAR JAR
                              LIFAR LIFAR
                              NFS NFS
                              NRCAR NRCAR
                              TAR TAR
                              VAAR VAAR
                              Tools
                                                                        Archives
                              Smart Matrix
                              Regulations Search
                              Acquisition Regulation Comparator (ARC)
                              Policy Network
                                                                        CAOC
                              CAAC
                              FAR Council
                              ISDC
 Breadcrumb
        Home
                            Regulations
                            FAR
                            22.1003-4 Administrative limitations, variations, tolerances, and exemptions.
        
                  FAR
FAR
FAC Number: 2024-03 Effective Date: 02/23/2024
PartPart 1Part 2Part 3Part 4Part 5Part 6Part 7Part 8Part 9Part 10Part 11Part 12Part 13Part 14Part 15Part 16Part 17Part 18Part 19Part 20Part 21Part 22Part 23Part 24Part 25Part 26Part 27Part 28Part 29Part 30Part 31Part 32Part 33Part 34Part 35Part 36Part 37Part 38Part 39Part 40Part 41Part 42Part 43Part 44Part 45Part 46Part 47Part 48Part 49Part 50Part 51Part 52Part 53
Subpart22.022.122.222.322.422.522.622.822.922.1022.1122.1322.1422.1522.1622.1722.1822.1922.21
Section22.100022.100122.100222.100322.100422.100522.100622.100722.100822.100922.101022.101122.101222.101322.101422.101522.101622.101722.101822.101922.102022.102122.102222.102322.102422.102522.1026
Leave this field blank
        
                  

                                
                  
        « PreviousNext »
22.1003-4 Administrative limitations, variations, tolerances, and exemptions.22.1003-4 Administrative limitations, variations, tolerances, and exemptions.       (a) 						            The Secretary of Labor may provide reasonable limitations and may make rules and regulations allowing reasonable variations, tolerances, and exemptions to and from any or all provisions of the Service Contract Labor Standards statute other than   41 U.S.C.6707(f). These will be made only in special circumstances where it has been determined that the limitation, variation, tolerance, or exemption is necessary and proper in the public interest or to avoid the serious impairment of Government business, and is in accord with the remedial purpose of the Service Contract Labor Standards statute to protect prevailing labor standards (  41 U.S.C.6707(b)). See 29 CFR 4.123 for a listing of administrative exemptions, tolerances, and variations. Requests for limitations, variances, tolerances, and exemptions from the Service Contract Labor Standards statute shall be submitted in writing through contracting channels and the agency labor advisor to the Wage and Hour Administrator.                                          (b) 						            In addition to the statutory exemptions cited in  22.1003-3 of this subsection, the Secretary of Labor has exempted the following types of contracts from all provisions of the Service Contract Labor Standards statute:                                                         (1) 								                Contracts entered into by the United States with common carriers for the carriage of mail by rail, air (except air star routes), bus, and ocean vessel, where such carriage is performed on regularly scheduled runs of the trains, airplanes, buses, and vessels over regularly established routes and accounts for an insubstantial portion of the revenue therefrom.                                                            (2) 								                Any contract entered into by the U.S. Postal Service with an individual owner-operator for mail service if it is not contemplated at the time the contract is made that the owner-operator will hire any service employee to perform the services under the contract except for short periods of vacation time or for unexpected contingencies or emergency situations such as illness, or accident.                                                            (3) 								                Contracts for the carriage of freight or personnel if such carriage is subject to rates covered by section 10721 of the Interstate Commerce Act.                                                                             (c)                   *Contracts for maintenance, calibration or repair of certain equipment*.-                                                         (1)                         *Exemption*. The Secretary of Labor has exempted from the Service Contract Labor Standards statute contracts and subcontracts in which the primary purpose is to furnish maintenance, calibration, or repair of the following types of equipment, if the conditions at paragraph (c)(2) of this subsection are met:                                                                           (i) 										                    Automated data processing equipment and office information/word processing systems.                                                                              (ii) 										                    Scientific equipment and medical apparatus or equipment if the application of micro-electronic circuitry or other technology of at least similar sophistication is an essential element (for example, Product or Service Code (PSC) 6515, "Medical and Surgical Instruments, Equipment, and Supplies;" PSC 6525, "Imaging Equipment and Supplies: Medical, Dental, Veterinary;" PSC 6630, "Chemical Analysis Instruments;" and PSC 6655, "Geophysical Instruments," are largely composed of the types of equipment exempted in this paragraph).                                                                              (iii) 										                    Office/business machines not otherwise exempt pursuant to paragraph (c)(1)(i) of this subsection, if such services are performed by the manufacturer or supplier of the equipment.                                                                                                           (2)                         *Conditions*. The exemption at paragraph (c)(1) of this subsection applies if all the following conditions are met for a contract (or a subcontract):                                                                           (i) 										                    The items of equipment to be serviced under the contract are used regularly for other than Government purposes and are sold or traded by the contractor in substantial quantities to the general public in the course of normal business operations.                                                                              (ii) 										                    The services will be furnished at prices which are, or are based on, established catalog or market prices for the maintenance, calibration, or repair of such equipment. As defined at 29 CFR 4.123(e)(1)(ii)(B)-                                                                                             (A) 												                        An established catalog price is a price included in a catalog price list, schedule, or other form that is regularly maintained by the manufacturer or the contractor, is either published or otherwise available for inspection by customers, and states prices at which sales currently, or were last, made to a significant number of buyers constituting the general public.                                                                                                (B) 												                        An established market price is a current price, established in the usual course of trade between buyers and sellers free to bargain, which can be substantiated from sources independent of the manufacturer or contractor.                                                                                                                                         (iii) 										                    The contractor will use the same compensation (wage and fringe benefits) plan for all service employees performing work under the contract as the contractor uses for these employees and equivalent employees servicing the same equipment of commercial customers.                                                                              (iv) 										                    The apparent successful offeror certifies to the conditions in paragraph (c)(2)(i) through (iii) of this subsection. (See  22.1006(e).)                                                                                                           (3)                         *Affirmative determination and contract award*.                                                                           (i) 										                    For	source selections where the contracting officer has	established a competitive range, if the contracting officer	determines that one or more of the conditions in paragraphs  22.1003-4(c)(2)(i) through (iii) of an offeror’s	certification will not be met, the contracting officer shall	identify the deficiency to the offeror before receipt of the	final proposal revisions. Unless the offeror provides a	revised offer acknowledging applicability of the Service	Contract Labor Standards statute or demonstrating to the	satisfaction of the contracting officer an ability to meet	all required conditions for exemption, the offer will not be	further considered for award.                                                                              (ii) 										                    The contracting officer shall determine in writing the applicability of this exemption to the contract before contract award. If the apparent successful offeror will meet all conditions in paragraph (c)(2) of this subsection, the contracting officer shall make an affirmative determination and award the contract without the otherwise applicable Service Contract Labor Standards clause(s).                                                                              (iii) 										                    If the apparent successful offeror does not certify to the conditions in paragraph (c)(2)(i) through (iii) of this subsection, the contracting officer shall incorporate in the contract the Service Contract Act clause (see  22.1006(a)) and, if the contract will exceed $2,500, the appropriate Department of Labor wage determination (see  22.1007).                                                                                                           (4)                         *Department of Labor determination*.                                                                           (i) 										                    If the Department of Labor determines after award of the contract that any condition for exemption in paragraph (c)(2) of this subsection has not been met, the exemption shall be deemed inapplicable, and the contract shall become subject to the Service Contract Labor Standards statute, effective as of the date of the Department of Labor determination. In such case, the procedures at 29 CFR 4.123(e)(1)(iv) and 29 CFR 4.5(c) shall be followed.                                                                              (ii) 										                    If the Department of Labor determines that any conditions in paragraph (c)(2) of this subsection have not been met with respect to a subcontract, the exemption shall be deemed inapplicable. The contractor may be responsible for ensuring that the subcontractor complies with the Service Contract Labor Standards statute, effective as of the date of the subcontract award.                                                                                                                            (d)                   *Contracts for certain services*.-                                                         (1)                         *Exemption*. Except as                         provided in paragraph (d)(5) of this subsection, the                         Secretary of Labor has exempted from the Service                         Contract Labor Standards statute contracts and                         subcontracts in which the primary purpose is to provide                         the following services, if the conditions in paragraph                         (d)(2) of this subsection are met:                                                                           (i) 										                    Automobile or other vehicle (*e.g*., aircraft) maintenance services (other than contracts or subcontracts to operate a Government motor pool or similar facility).                                                                              (ii) 										                    Financial services involving the issuance and servicing of cards (including credit cards, debit cards, purchase cards, smart cards, and similar card services).                                                                              (iii) 										                    Hotel/motel services for conferences, including lodging and/or meals, that are part of the contract or subcontract for the conference (which must not include ongoing contracts for lodging on an as needed or continuing basis).                                                                              (iv) 										                    Maintenance, calibration, repair, and/or installation (where the installation is not subject to the Construction Wage Rate Requirements statute, as provided in 29 CFR 4.116(c)(2)) services for all types of equipment where the services are obtained from the manufacturer or supplier of the equipment under a contract awarded on a sole source basis.                                                                              (v) 										                    Transportation by common carrier of persons by air, motor vehicle, rail, or marine vessel on regularly scheduled routes or via standard commercial services (not including charter services).                                                                              (vi) 										                    Real estate services, including real property appraisal services, related to housing Federal agencies or disposing of real property owned by the Government.                                                                              (vii) 										                    Relocation services, including services of real estate brokers and appraisers to assist Federal employees or military personnel in buying and selling homes (which shall not include actual moving or storage of household goods and related services).                                                                                                           (2)                         *Conditions*. The exemption for the services in paragraph (d)(1) of this subsection applies if all the following conditions are met for a contract (or for a subcontract):                                                                           (i)                                                                                             (A) 												                        Except for services identified in paragraph (d)(1)(iv) of this subsection, the contractor will be selected for award based on other factors in addition to price or cost, with the combination of other factors at least as important as price or cost; or                                                                                                (B) 												                        The contract will be awarded on a sole source basis.                                                                                                                                         (ii) 										                    The services under the contract are offered and sold regularly to non-Governmental customers, and are provided by the contractor (or subcontractor in the case of an exempt subcontract) to the general public in substantial quantities in the course of normal business operations.                                                                              (iii) 										                    The contract services are furnished at prices that are, or are based on, established catalog or market prices. As defined at 29 CFR 4.123(e)(2)(ii)(C)-                                                                                             (A) 												                        An established catalog price is a price included in a catalog, price list, schedule, or other form that is regularly maintained by the contractor, is either published or otherwise available for inspection by customers, and states prices at which sales are currently, or were last, made to a significant number of buyers constituting the general public; and                                                                                                (B) 												                        An established market price is a current price, established in the usual course of trade between buyers and sellers free to bargain, which can be substantiated from sources independent of the manufacturer or contractor.                                                                                                                                         (iv) 										                    Each service employee who will perform the services under the contract will spend only a small portion of his or her time (a monthly average of less than 20 percent of the available hours on an annualized basis, or less than 20 percent of available hours during the contract period if the contract period is less than a month) servicing the Government contract.                                                                              (v) 										                    The contractor will use the same compensation (wage and fringe benefits) plan for all service employees performing work under the contract as the contractor uses for these employees and equivalent employees servicing commercial customers.                                                                              (vi) 										                    The contracting officer (or contractor with respect to a subcontract) determines in advance before issuing the solicitation, based on the nature of the contract requirements and knowledge of the practices of likely offerors, that all or nearly all offerors will meet the conditions in paragraph (d)(2)(ii) through (v) of this subsection. If the services are currently being performed under contract, the contracting officer (or contractor with respect to a subcontract) shall consider the practices of the existing contractor in making a determination regarding the conditions in paragraphs (d)(2)(ii) through (v) of this subsection.                                                                              (vii)                                                                                             (A) 												                        The apparent successful offeror certifies that the conditions in paragraphs (d)(2)(ii) through (v) will be met; and                                                                                                (B) 												                        For other than sole source awards, the contracting officer determines that the same certification is obtained from substantially all other offerors that are-                                                                                                               (1) 														                            In the competitive range, if discussions are to be conducted (see FAR  15.306(c)); or                                                                                                                  (2) 														                            Considered responsive, if award is to be made without discussions (see FAR  15.306(a)).                                                                                                                                                                                                                                             (3)                         *Contract award or resolicitation*.                                                                           (i) 										                    If the apparent successful offeror does not certify to the conditions, the contracting officer shall insert in the contract the applicable Service Contract Labor Standards clause(s) (see  22.1006) and, if the contract will exceed $2,500, the appropriate Department of Labor wage determination (see  22.1007).                                                                              (ii) 										                    The contracting officer shall award the contract without the otherwise applicable Service Contract Labor Standards clause(s) if-                                                                                             (A) 												                        The apparent successful offeror certifies to the conditions in paragraphs (d)(2)(ii) through (v) of this subsection;                                                                                                (B) 												                        The contracting officer determines that the same certification is obtained from substantially all other offerors that are-                                                                                                               (1) 														                            In the competitive range, if discussions are to be conducted (see FAR  15.306); or                                                                                                                  (2) 														                            Considered responsive, if award is to be made without discussions (see FAR  15.306(a)); and                                                                                                                                                                       (C) 												                        The contracting officer has no reason to doubt the certification.                                                                                                                                         (iii) 										                    If the conditions in paragraph (d)(3)(ii) of this subsection are not met, then the contracting officer shall resolicit, amending the solicitation by removing the exemption provision from the solicitation as prescribed at  22.1006(e)(3). The contract will include the applicable Service Contract Labor Standards clause(s) as prescribed at  22.1006 and, if the contract will exceed $2,500, the appropriate Department of Labor wage determination (see  22.1007).                                                                                                           (4)                         *Department of Labor determination*.                                                                           (i) 										                    If the Department of Labor determines after award of the contract that any conditions for exemption at paragraph (d)(2) of this subsection have not been met, the exemption shall be deemed inapplicable, and the contract shall become subject to the Service Contract Labor Standards statute. In such case, the procedures at 29 CFR 4.123(e)(2)(iii) and 29 CFR  4.5(c) shall be followed.                                                                              (ii) 										                    If the Department of Labor determines that any conditions in paragraph (d)(2) of this subsection have not been met with respect to a subcontract, the exemption shall be deemed inapplicable. The contractor may be responsible for ensuring that the subcontractor complies with the Service Contract Labor Standards statute, effective as of the date of the subcontract award.                                                                                                           (5)                         *Exceptions*. The exemption at paragraph (d)(1) of this subsection does not apply to solicitations and contracts (subcontracts)-                                                                           (i) 										                    Awarded under ,   41 U.S.C. chapter 85, Committee for Purchase from People Who Are Blind or Severely Disabled (see  subpart  8.7).                                                                              (ii) 										                    For the operation of a Government facility, or part of a Government facility (but may be applicable to subcontracts for services); or                                                                              (iii) 										                    Subject to   41 U.S.C. 6707(c) (see  22.1002-3).    **Parent topic:**  22.1003 Applicability.
« PreviousNext »
FavoriteX

      Far Parts
            Regulations FAR Menu
  

        
      Index
                              List of Sections Affected
                              DOD Deviations
                              CAAC Deviations
                              1
                              2
                              3
                              4
                              5
                              6
                              7
                              8
                              9
                              10
                              11
                              12
                              13
                              14
                              15
                              16
                              17
                              18
                              19
                              20
                              21
                              22
                              23
                              24
                              25
                              26
                              27
                              28
                              29
                              30
                              31
                              32
                              33
                              34
                              35
                              36
                              37
                              38
                              39
                              40
                              41
                              42
                              43
                              44
                              45
                              46
                              47
                              48
                              49
                              50
                              51
                              52
                              53
                              Chapter 99 (CAS)Definitions
    Toggle
FAC Changes
    Toggle
Style Formatter
    Toggle

      ×
        Data Initiatives
                                                              Regulations
                                                              Tools
                                              Archives
                                                              Smart Matrix
                                                              Regulations Search
                                                              Acquisition Regulation Comparator (ARC)
                                                              Policy Network
                                              CAO.gov
                                                        CAO Home
                                                              Council Member
                                                                    Large Agencies
                                                              Small Agencies
                                                              Council Defining Documents
                                                                    CAOC History
                                                              CAOC Charter
                                                              Civilian Agency Acquisition Council (CAAC)
                                                              Federal Acquisition Regulatory Council
                                                              Interagency Suspension and Debarment Committee (ISDC)
                                                              Search
 ˄ Top Sign up for FAR News

                            Share the FAR
                        Upper Footer Menu
  

        
      Useful Links
                              FAR Resources
                              Training
                              Acquisition Systems
            
                            **Contact Us/FAQs**
                        **Privacy and Security Notice**
                        **Accessibility Aids**
                        **Last Updated 03/29/2024**
 ACQUISITION.GOV
                An official website of the General Services Administration About GSA
                Accessibility support
                FOIA requests
                No FEAR Act data
                Office of the Inspector General
                Performance reports
                Privacy policy Looking for U.S. government information and services?
            Visit USA.gov
 «
    
    Tt