Service Contract Act Wages

Third Party Procurement

Frequently Asked Questions

Q = Question; A = Answer

Q. Are Federal grantees required to apply the Service Contract Act Wage rates to contracts over $2,500 for services such as janitorial, maintenance, septic services, etc.

A. The Service Contract Act (SCA) applies to contracts for certain services awarded directly by the Federal Government.  It does not apply to grantee third party contracts. For more information regarding the SCA, consult the Department of Labor website. (Reviewed: June 2010)