[Code of Federal Regulations]
[Title 29, Volume 1]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR4.110]

[Page 55-56]
 
                             TITLE 29--LABOR
 
PART 4_LABOR STANDARDS FOR FEDERAL SERVICE CONTRACTS--Table of Contents
 
    Subpart C_Application of the McNamara-O'Hara Service Contract Act
 
Sec. 4.110  What contracts are covered.

    The Act covers service contracts of the Federal agencies described 
in Sec. Sec. 4.107-4.108. Except as otherwise specifically provided 
(see Sec. Sec. 4.115 et seq.), all such contracts, the principal 
purpose of which is to furnish services in the United States through the 
use of service employees, are subject to its terms. This is true of 
contracts entered into by such agencies with States or their political 
subdivisions, as well as such contracts entered into with private 
employers. Contracts between a Federal or District of Columbia agency 
and another such agency are not within the purview of the Act; however, 
``subcontracts'' awarded under ``prime contracts'' between the Small 
Business Administration and another Federal agency pursuant to various 
preferential set-aside programs, such as the 8(a) program, are covered 
by the Act. It makes no difference in the coverage of a contract whether 
the contract services are procured through negotiation or through 
advertising for bids. Also, the mere fact that an agreement is not 
reduced to writing does not mean that the contract is not within the 
coverage of the Act. The amount of the contract is not determinative of 
the Act's coverage, although the requirements are different for 
contracts in excess of $2,500 and for contracts of a lesser amount. The 
Act is applicable to the contract if the principal purpose of the 
contract is to furnish services, if such services are to be furnished in 
the United States, and if service employees will be used in providing 
such services.

[[Page 56]]

These elements of coverage will be discussed separately in the following 
sections.