Service Contract Act

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Title 29, Code of Federal Regulations, Part 4
Labor Standards for Federal Service Contracts

(29 CFR 4.143-4.144)

29 CFR 4.143 - Effects of changes or extensions of contracts, generally.

(a) Sometimes an existing service contract is modified, amended, or
extended in such a manner that the changed contract is considered to be a new contract for purposes of the application of the Act's provisions.The general rule with respect to such contracts is that, whenever changes affecting the labor requirements are made in the terms of the contract, the provisions of the Act and the regulations thereunder will apply to the changed contract in the same manner and to the same extent as they would to a wholly new contract. However, contract modifications or amendments (other than contract extensions) that are unrelated to the labor requirements of a contractwill not be deemed to create a new contract for purposes of the Act. In
addition, only significant changes related to labor requirements will be
considered as creating new contracts. This limitation on the application
of the Act has been found to be in accordance with the provisions of
section 4(b) of the Act.

(b) Also, whenever the term of an existing contract is extended,
pursuant to an option clause or otherwise, so that the contractor
furnishes services over an extended period of time, rather than being
granted extra time to fulfill his original commitment, the contract
extension is considered to be a new contract for purposes of the
application of the Act's provisions. All such ``new'' contracts as
discussed above require the insertion of a new or revised wage
determination in the contract as provided in Sec. 4.5.

29 CFR 4.144 - Contract modifications affecting amount.

Where a contract which was originally issued in an amount not in
excess of $2,500 is later modified so that its amount may exceed that
figure, all the provisions of section 2(a) of the Act, and the
regulations thereunder are applicable from the date of modification to
the date of contract completion. In the event of such modification, the
contracting officer will immediately request a wage determination from
the Department of Labor and insert the required contract clauses and any wage determination issued into the contract. In the event that a
contract for services subject to the Act in excess of $2,500 is modified
so that it cannot exceed $2,500, compliance with the provisions of
section 2(a) of the Act and the contract clauses required thereunder
ceases to be an obligation of the contractor when such modification
becomes effective.