Service Contract Modernization Act
Bill: S.2963 | Sponsor: Sen. Lankford, James (R-OK)
Policy area: Government Operations and Politics

Summary:
Service Contract Modernization Act
This bill increases a threshold used to determine whether an employee of a federal services contractor or subcontractor is entitled to wages and fringe benefits prevailing in the locality where services are performed (or in a predecessor contractor's collective bargaining agreement).
Under current law, a federal contractor or subcontractor that enters into a service contract in excess of $2,500 must comply with prevailing wage and related requirements. This bill increases that amount by adjusting it for inflation since 1965 and provides for future increases based on inflation.

To establish a socioeconomic labor threshold and use that threshold for 
        purposes of chapter 67 of title 41, United States Code.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Service Contract Modernization 
Act''.

SEC. 2. SOCIOECONOMIC LABOR THRESHOLD.

    (a) In General.--For purposes of this Act, the socioeconomic labor 
threshold is--
            (1) for the period beginning on the date of enactment of 
        this Act and ending on October 1 following such date of 
        enactment, the amount determined by the Secretary of Labor 
        under subsection (b)(1); and
            (2) for each 1-year period beginning on October 1 following 
        such date of enactment, the amount determined by the Secretary 
        of Labor under subsection (b)(2).
    (b) Inflation Adjustments.--
            (1) Initial period.--The amount determined under this 
        paragraph for the period described in subsection (a)(1) shall 
        be $2,500 as--
                    (A) increased by the percentage increase in the 
                Consumer Price Index for All Urban Consumers (all 
                items; United States city average), as published by the 
                Bureau of Labor Statistics, comparing--
                            (i) such Consumer Price Index for October 
                        of 1965; and
                            (ii) such Consumer Price Index for the most 
                        recent month as of the date of enactment of 
                        this Act for which such Consumer Price Index is 
                        available; and
                    (B) (if applicable), rounded to the nearest 
                multiple of $100.
            (2) Subsequent periods.--
                    (A) In general.--The amount determined under this 
                paragraph for the applicable period described in 
                subsection (a)(2) shall be the amount in effect on the 
                date of such determination as--
                            (i) increased (if applicable) from such 
                        amount by the annual percentage increase, if 
                        any, in the Consumer Price Index for All Urban 
                        Consumers (all items; United States city 
                        average), as published by the Bureau of Labor 
                        Statistics, from the preceding year as 
                        calculated in accordance with subparagraph (B); 
                        and
                            (ii) (if applicable) rounded to the nearest 
                        multiple of $100.
                    (B) Consumer price index.--In making the 
                determination under subparagraph (A) and calculating 
                the percentage increase in the Consumer Price Index for 
                All Urban Consumers under subparagraph (A)(i), the 
                Secretary of Labor shall compare the Consumer Price 
                Index for All Urban Consumers (all items; United States 
                city average), as determined by the Bureau of Labor 
                Statistics, for June of the calendar year in which such 
                determination is made with the Consumer Price Index for 
                All Urban Consumers (all items; United States city 
                average), as determined by the Bureau of Labor 
                Statistics, for June of the preceding calendar year.
                    (C) Rule of construction.--With respect to a 
                determination under subparagraph (A) of the amount in 
                effect under this paragraph for an applicable period 
                under subsection (a)(2), if there is not an annual 
                percentage increase in the Consumer Price Index for All 
                Urban Consumers (all items; United States city average) 
                from the preceding year as described in subparagraph 
                (A)(i), the amount in effect under this subsection for 
                such applicable period shall be the amount in effect 
                under subsection (a) on the date of such determination.

SEC. 3. AMENDMENTS TO THE MCNAMARA-O'HARA SERVICE CONTRACT ACT.

    (a) Definition.--Section 6701 of title 41, United States Code, is 
amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following:
            ``(4) Socioeconomic labor threshold.--The term 
        `socioeconomic labor threshold' means the socioeconomic labor 
        threshold established under section 2 of the Service Contract 
        Modernization Act.''.
    (b) Applicability Threshold.--Section 6702(a)(2) of title 41, 
United States Code, is amended to read as follows:
            ``(2) involves an amount exceeding--
                    ``(A) for contracts and bid specifications made 
                prior to the date of enactment of the Service Contract 
                Modernization Act, $2,500; and
                    ``(B) for contracts and bid specifications made on 
                or after such date of enactment, the socioeconomic 
                labor threshold.''.
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