Term -Service Contract Act

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The McNamara-O’Hara Service Contract Act (SCA) covers contracts entered into by Federal and District of Columbia agencies where the principal purpose of the contract is to furnish services in the U.S. through the use of “service employees.” The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor’s collective bargaining agreement.

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