II 

117TH CONGRESS 

1ST SESSION S. 2963 

To establish a socioeconomic labor threshold and use that threshold for 

purposes of chapter 67 of title 41, United States Code. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 7, 2021 

Mr. LANKFORD introduced the following bill; which was read twice and 

referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To establish a socioeconomic labor threshold and use that 

threshold for purposes of chapter 67 of title 41, United 

States Code. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Service Contract Mod5 ernization Act’’. 

6 SEC. 2. SOCIOECONOMIC LABOR THRESHOLD. 

7 (a) IN GENERAL.—For purposes of this Act, the so8 cioeconomic labor threshold is— 

9 (1) for the period beginning on the date of en10 actment of this Act and ending on October 1 folVerDate Sep 11 2014 23:38 Oct 08, 2021 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2963.IS S2963

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1 lowing such date of enactment, the amount deter2 mined by the Secretary of Labor under subsection 

3 (b)(1); and 

4 (2) for each 1-year period beginning on October 

5 1 following such date of enactment, the amount de6 termined by the Secretary of Labor under subsection 

7 (b)(2). 

8 (b) INFLATION ADJUSTMENTS.— 

9 (1) INITIAL PERIOD.—The amount determined 

10 under this paragraph for the period described in 

11 subsection (a)(1) shall be $2,500 as— 

12 (A) increased by the percentage increase in 

13 the Consumer Price Index for All Urban Con14 sumers (all items; United States city average), 

15 as published by the Bureau of Labor Statistics, 

16 comparing— 

17 (i) such Consumer Price Index for Oc18 tober of 1965; and 

19 (ii) such Consumer Price Index for 

20 the most recent month as of the date of 

21 enactment of this Act for which such Con22 sumer Price Index is available; and 

23 (B) (if applicable), rounded to the nearest 

24 multiple of $100. 

25 (2) SUBSEQUENT PERIODS.— 


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1 (A) IN GENERAL.—The amount deter2 mined under this paragraph for the applicable 

3 period described in subsection (a)(2) shall be 

4 the amount in effect on the date of such deter5 mination as— 

6 (i) increased (if applicable) from such 

7 amount by the annual percentage increase, 

8 if any, in the Consumer Price Index for All 

9 Urban Consumers (all items; United States 

10 city average), as published by the Bureau 

11 of Labor Statistics, from the preceding 

12 year as calculated in accordance with sub13 paragraph (B); and 

14 (ii) (if applicable) rounded to the 

15 nearest multiple of $100. 

16 (B) CONSUMER PRICE INDEX.—In making 

17 the determination under subparagraph (A) and 

18 calculating the percentage increase in the Con19 sumer Price Index for All Urban Consumers 

20 under subparagraph (A)(i), the Secretary of 

21 Labor shall compare the Consumer Price Index 

22 for All Urban Consumers (all items; United 

23 States city average), as determined by the Bu24 reau of Labor Statistics, for June of the cal25 endar year in which such determination is made 


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1 with the Consumer Price Index for All Urban 

2 Consumers (all items; United States city aver3 age), as determined by the Bureau of Labor 

4 Statistics, for June of the preceding calendar 

5 year. 

6 (C) RULE OF CONSTRUCTION.—With re7 spect to a determination under subparagraph 

8 (A) of the amount in effect under this para9 graph for an applicable period under subsection 

10 (a)(2), if there is not an annual percentage in11 crease in the Consumer Price Index for All 

12 Urban Consumers (all items; United States city 

13 average) from the preceding year as described 

14 in subparagraph (A)(i), the amount in effect 

15 under this subsection for such applicable period 

16 shall be the amount in effect under subsection 

17 (a) on the date of such determination. 

18 SEC. 3. AMENDMENTS TO THE MCNAMARA-O’HARA SERVICE 

19 CONTRACT ACT. 

20 (a) DEFINITION.—Section 6701 of title 41, United 

21 States Code, is amended— 

22 (1) by redesignating paragraph (4) as para23 graph (5); and 

24 (2) by inserting after paragraph (3) the fol25 lowing: 


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1 ‘‘(4) SOCIOECONOMIC LABOR THRESHOLD.— 

2 The term ‘socioeconomic labor threshold’ means the 

3 socioeconomic labor threshold established under sec4 tion 2 of the Service Contract Modernization Act.’’. 

5 (b) APPLICABILITY THRESHOLD.—Section 

6 6702(a)(2) of title 41, United States Code, is amended 

7 to read as follows: 

8 ‘‘(2) involves an amount exceeding— 

9 ‘‘(A) for contracts and bid specifications 

10 made prior to the date of enactment of the 

11 Service Contract Modernization Act, $2,500; 

12 and 

13 ‘‘(B) for contracts and bid specifications 

14 made on or after such date of enactment, the 

15 socioeconomic labor threshold.’’. 

Æ 


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