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What are the rules for the Service Contract Act when I have employees working remotely?

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My firm is bidding on a federal service contract for IT support, NAICS 541519, that was released as an RFQ on SAM.gov. It's a small business set-aside. We have employees in Georgia, Florida, and Alabama, and they will all be working remotely on this contract. I know the Service Contract Act applies to service contracts over $2,500, and it requires us to pay prevailing wage rates. I'm trying to understand how to determine the correct wage determinations for employees who are not physically located at a government site. Do I use the wage determination for the agency's location, the employee's home address, or the location of the end customer receiving the service? What if the wage determinations vary significantly between these locations?

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asked Keisha W. Verified vendor8(a) firm founder, staffing and training · Atlanta, GA · 491 rep

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The Service Contract Act applies only to service contracts performed in the United States, and the wage determination for your employees should be based on the physical location where the services are performed, which in your case means their remote home offices. The Service Contract Act clause at FAR 52.222-41 is inserted in service contracts that are above the threshold. This means you need to find the wage determination for each state and county where your employees will be working, not the agency's location or the end customer's location, unless those are the same. If the wage determinations vary, you must pay each employee according to the prevailing wage for their specific work location. We've run into this ourselves with day porters versus nightly cleanings, where the wage determinations can be different for the same county based on the type of work. Always check the Department of Labor's website for the most current wage determinations for each specific location.

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answered Marcus T. Verified vendorOwner, janitorial and facilities firm · Columbus, OH · 836 rep

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Sign up to answerCite the FAR clause or procurement code where you can.

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