My firm is looking at an RFP for administrative support services, NAICS code 561110. It's a federal contract, full and open, with a response due in about three weeks. A portion of the work will be performed overseas, specifically in Germany. I'm trying to figure out if the Service Contract Act (SCA) applies to the entire contract or just the part performed stateside. I've been reviewing the solicitation for any specific clauses, but it's not entirely clear on the international aspect. Does the SCA apply to service contracts performed outside the United States?
How does the Service Contract Act apply to contracts performed outside the U.S.?
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The Service Contract Act (SCA) does not apply to service contracts performed outside the United States. The Service Contract Labor Standards apply only to service contracts performed in the United States, as stated in FAR 22.1003-2. This means the portion of your administrative support services contract performed in Germany would not be subject to SCA wage determinations. However, the part of the work performed stateside would be subject to SCA if the contract exceeds $2,500 and the clause at FAR 52.222-41 is inserted. My firm has done some work for county offices where the employees needed to travel out of state, and for those parts the SCA did not apply. It's always worth checking the specific language in the solicitation and any included wage determinations to understand the full scope.