Service Contract Act & Davis Bacon

McNamara-O’Hara Service Contracts Act of 1965, (as amended) – 41 U.S.C. 351 et seq.

The McNamara-O’Hara Service Contract Act requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor’s collective bargaining agreement. The Department of Labor issues wage determinations on a contract-by-contract basis in response to specific requests from contracting agencies. These determinations are incorporated into the contract.

  • All contractors must be able to show compliance with the Service Contract Act
  • A contractor should always be prepared to provide complete records upon request

Key records include information on fringe benefits provided or the cash equivalent in lieu of fringe benefits.

The Davis Bacon Act – 40 U.S.C. 3141 et seq.

The Davis-Bacon Act of 1931 is the United States federal law that establishes the requirement for paying the local prevailing wage on public works projects for laborers and mechanics.  The advertised specifications for every contract in excess of $2,000, to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, including painting and decorating, of public buildings and public works of the Government or the District of Columbia that are located in a State or the District of Columbia and which requires or involves the employment of mechanics or laborers shall contain a provision stating the minimum wages to be paid various classes of laborers and mechanics.

Stafford Financial Consulting Group does the following for Government Contracts: 

  • PROVIDES strategic planning and management oversight and advisory services for Service Contract Act (SCA) participating trucking and logistics firms
  • ADVISES Trucking and logistics firms on health and welfare benefit plans by providing transparent and independent services to SCA mail contractors and haulers
  • PROTECTS employers from unintended consequences of employee benefit decisions and employee communications for SCA trucking contractors
  • EDUCATES SCA-affected contractors, trucking, and logistics companies on compliance, adherence, implementation, marketing, and communication of health, welfare, and retirement plan strategies
  • NEGOTIATES cost, effectiveness of benefit plans, and administration packages of many of the qualified vendors and insurance companies who operate in the SCA benefit space
  • SUPPORTS local, state, and national associations who have joined together to enhance their services to the SCA marketplace and employers
  • INVESTS through education, negotiation, innovation, and tenacity in relationships, and partners to offer transparent, effective services to SCA mail trucking contractors
  • MAINTAINS up-to-date knowledge of shifts or changes in the Affordable Care Act as it applies to government contractors and mail haulers and ensures compliance


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