Service
Contract Act
Title 29, Code of Federal Regulations,
Part 4
Labor Standards for Federal Service Contracts
29 CFR 4.133 - Beneficiary
of contract services.
(a) The Act does not say
to whom the services under a covered
contract must be furnished. So far as its language is concerned, it
is
enough if the contract is ``entered into'' by and with the Government
and if its principal purpose is ``to furnish services in the United
States through the use of service employees''. It is clear that Congress
intended to cover at least contracts for services of direct benefit
to
the Government, its property, or its civilian or military personnel
for
whose needs it is necessary or desirable for the Government to make
provision for such services. For example, the legislative history makes
specific reference to such contracts as those for furnishing food
service and laundry and dry cleaning service for personnel at military
installations. Furthermore, there is no limitation in the Act regarding
the beneficiary of the services, nor is there any indication that only
contracts for services of direct benefit to the Government, as
distinguished from the general public, are subject to the Act.
Therefore, where the principal
purpose of the Government contract is to
provide services through the use of service employees, the contract
is
covered by the Act, regardless of the direct beneficiary of the services
or the source of the funds from which the contractor is paid for the
service, and irrespective of whether the contractor performs the work
in
its own establishment, on a Government installation, or elsewhere. The
fact that the contract requires or permits the contractor to provide
the
services directly to individual personnel as a concessionaire, rather
than through the contracting agency, does not negate coverage by the
Act.
(b) The Department of Labor,
pursuant to section 4(b) of the Act,
exempts from the provisions of the Act certain kinds of concession
contracts providing services to the general public, as provided herein.
Specifically, concession contracts (such as those entered into by the
National Park Service) principally for the furnishing of food, lodging,
automobile fuel, souvenirs, newspaper stands, and recreational equipment
to the general public, as distinguished from the United States Government
or its personnel, are exempt. This exemption is necessary and proper
in the public interest and is in accord with the remedial purpose of
the Act. Where concession contracts, however, include substantial requirements
for services other than those stated, those services are not exempt.
The exemption provided does not affect a concession contractor's obligation
to comply with the labor standards provisions of any other statutes
such as the Contract Work Hours and Safety Standards Act (40 U.S.C.
327 et seq.), the Davis-Bacon Act (40 U.S.C. 276a et seq.; see part
5 of this title) and the Fair Labor Standards Act (29
U.S.C. 201 et seq.).