22.1006 Solicitation provisions and contract

clauses.

(a)

(1) The contracting officer shall insert the clause at 52.222-41, Service Contract Labor Standards, in

solicitations and contracts (except as provided in paragraph (a)(2) of this section) if the contract is

subject to the Service Contract Labor Standards statute and is-

(i) Over $2,500; or

(ii) For an indefinite dollar amount and the contracting officer does not know in advance that the

contract amount will be $2,500 or less.

(2) The contracting officer shall not insert the clause at 52.222-41 (or any of the associated Service

Contract Labor Standards statute clauses as prescribed in this section for possible use when

52.222-41 applies) in the resultant contract if-

(i) The solicitation includes the provision at-

(A) 52.222-48, Exemption from Application of the Service Contract Labor Standards statute to

Contracts for Maintenance, Calibration, or Repair of Certain Equipment-Certification;

(B) 52.222-52, Exemption from Application of the Service Contract Labor Standards statute to

Contracts for Certain Services-Certification; or

(C) Either of the comparable certifications is checked as applicable in the provision at 52.204-8(c)(2)

or 52.212-3(k); and

(ii) The contracting officer has made the determination, in accordance with paragraphs (c)(3) or

(d)(3) of subsection 22.1003-4, that the Service Contract Labor Standards statute does not apply to

the contract. (In such case, insert the clause at 52.222-51, Exemption from Application of the

Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain

Equipment-Requirements, or 52.222-53, Exemption from Application of the Service Contract Labor

Standards to Contracts for Certain Services-Requirements, in the contract, in accordance with the

prescription at paragraph (e)(2)(ii) or (e)(4)(ii) of this subsection).

(b) The contracting officer shall insert the clause at 52.222-42, Statement of Equivalent Rates for

Federal Hires, in solicitations and contracts if the contract amount is expected to be over $2,500 and

the Service Contract Labor Standards statute is applicable. (See 22.1016.)

(c)

(1) The contracting officer shall insert the clause at 52.222-43, Fair Labor Standards Act and Service

Contract Labor Standards-Price Adjustment (Multiple Year and Option Contracts), or another clause

which accomplishes the same purpose, in solicitations and contracts if the contract is expected to be

a fixed-price, time-and-materials, or labor-hour service contract containing the clause at 52.222-41,

Service Contract Labor Standards, and is a multiple year contract or is a contract with options to
renew which exceeds the simplified acquisition threshold. The clause may be used in contracts that

do not exceed the simplified acquisition threshold. The clause at 52.222-43, Fair Labor Standards

Act and Service Contract Labor Standards-Price Adjustment (Multiple Year and Option Contracts),

applies to both contracts subject to area prevailing wage determinations and contracts subject to the

incumbent contractor’s collective bargaining agreement in effect during this contract’s preceding

contract period (see 22.1002-2 and 22.1002-3). Contracting officers shall ensure that contract prices

or contract unit price labor rates are adjusted only to the extent that a contractor’s increases or

decreases in applicable wages and fringe benefits are made to comply with the requirements set

forth in the clauses at 52.222-43 (subparagraphs(d)(1), (2) and (3)), or 52.222-44

(subparagraphs(b)(1) and (2)). (For example, the prior year wage determination required a minimum

wage rate of $4.00 per hour. The contractor actually paid $4.10. The new wage determination

increases the minimum rate to $4.50. The contractor increases the rate actually paid to $4.75 per

hour. The allowable price adjustment is $.40 per hour.)

(2) The contracting officer shall insert the clause at 52.222-44, Fair Labor Standards Act and Service

Contract Labor Standards-Price Adjustment, in solicitations and contracts if the contract is expected

to be a fixed-price, time-and-materials, or labor-hour service contract containing the clause at

52.222-41, Service Contract Labor Standards, exceeds the simplified acquisition threshold, and is

not a multiple year contract or is not a contract with options to renew. The clause may be used in

contracts that do not exceed the simplified acquisition threshold. The clause at 52.222-44, Fair

Labor Standards Act and Service Contract Labor Standards-Price Adjustment, applies to both

contracts subject to area prevailing wage determinations and contracts subject to contractor

collective bargaining agreements (see 22.1002-2 and 22.1002-3).

(3) The clauses prescribed in paragraph 22.1006(c)(1) cover situations in which revised minimum

wage rates are applied to contracts by operation of law, or by revision of a wage determination in

connection with (i) exercise of a contract option or (ii) extension of a multiple year contract into a

new program year. If a clause prescribed in 16.203-4(d) is used, it must not conflict with, or

duplicate payment under, the clauses prescribed in this paragraph 22.1006(c).

(d) [Reserved]

(e)

(1) The contracting officer shall insert the provision at 52.222-48, Exemption from Application of the

Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain

Equipment-Certification, in solicitations that-

(i) Include the clause at 52.222-41, Service Contract Labor Standards; and

(ii) The contract may be exempt from the Service Contract Labor Standards statute in accordance

with 22.1003-4(c).

(2) The contracting officer shall insert the clause at 52.222-51, Exemption from Application of the

Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain

Equipment-Requirements-

(i) In solicitations that include the provision at 52.222-48, or the comparable provision is checked as

applicable in the clause at 52.204-8(c)(2)(iii) or 52.212-3(k)(1); and

(ii) In resulting contracts in which the contracting officer has determined, in accordance with

22.1003-4(c)(3), that the Service Contract Labor Standards statute does not apply.
(3)

(i) Except as provided in paragraph (e)(3)(ii) of this section, the contracting officer shall insert the

provision at 52.222-52, Exemption from Application of the Service Contract Labor Standards to

Contracts for Certain Services--Certification, in solicitations that-

(A) Include the clause at 52.222-41, Service Contract Labor Standards, and

(B) The contract may be exempt from the Service Contract Labor Standards statute in accordance

with 22.1003-4(d).

(ii) When resoliciting in accordance with 22.1003-4(d)(3)(iii), amend the solicitation by removing the

provision at 52.222-52 from the solicitation.

(4) The contracting officer shall insert the clause at 52.222-53, Exemption from Application of the

Service Contract Labor Standards to Contracts for Certain Services-Requirements-

(i) In solicitations that include the provision at 52.222-52, or the comparable provision is checked as

applicable in 52.204-8(c)(2) or 52.212-3(k)(2); and

(ii) In resulting contracts in which the contracting officer has determined, in accordance with

22.1003-4(d)(3), that the Service Contract Labor Standards statute does not apply.

(f) The contracting officer shall insert the clause at 52.222-49, Service Contract Labor StandardsPlace of Performance Unknown, if using the procedures prescribed in 22.1009-4.

Parent topic: Subpart 22.10 - Service Contract Labor Standards