Service Contract Act

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

29 CFR 4.121 - Contracts for individual services.

The Act, in paragraph (6) of section 7, exempts from its provisions
``any employment contract providing for direct services to a Federal
agency by an individual or individuals.'' This exemption, which applies
only to an ``employment contract'' for ``direct services,'' makes it
clear that the Act's application to Federal contracts for services is
intended to be limited to service contracts entered into with
independent contractors. If a contract to furnish services (to be
performed by a service employee as defined in the Act) provides that
they will be furnished directly to the Federal agency by the individual
under conditions or circumstances which will make him an employee of the agency in providing the contract service, the exemption applies and the contract will not be subject to the Act's provisions. The exemption does not exclude from the Act any contract for services of the kind performed by service employees which is entered into with an independent contractor whose individual services will be used in performing the contract, but as noted earlier in Sec. 4.113, such a contract would be outside the general coverage of the Act if only the contractor's individual services would be furnished and no service employee would in any event be used in its performance.