[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: 29CFR4.118]

[Page 61-62]
 
                             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. 4.118  Contracts for carriage subject to published tariff rates.

    The Act, in paragraph (3) of section 7, exempts from its provisions 
``any contract for the carriage of freight or personnel by vessel, 
airplane, bus, truck, express, railway line or oil or gas pipeline where 
published tariff rates are in effect''. In order for this exemption to 
be applicable, the contract must be for such carriage by a common 
carrier described by the terms used. It does not, for example, apply to 
contracts for taxicab or ambulance service, because taxicab and 
ambulance companies are not among the common carriers specified by the 
statute. Also, a contract for transportation service does not come 
within this exemption unless the service contracted for is actually 
governed by published tariff rates in effect pursuant to State or 
Federal law for such carriage. The contracts excluded from the reach of 
the Act by this exemption are typically those where there is on file 
with the Interstate Commerce Commission or an appropriate State or local 
regulatory body a tariff rate applicable to the transportation involved, 
and the transportation contract between the Government and the carrier 
is evidenced by a Government bill of lading citing the published tariff 
rate. An administrative exemption has been provided for certain 
contracts where such carriage is subject to rates covered by section 
10721 of the Interstate Commerce Act and is in accordance with 
applicable regulations governing such rates. See Sec. 4.123(d). 
However, only contracts principally for the carriage of ``freight or 
personnel'' are exempt. Thus, the exemption cannot apply where the 
principal purpose of the contract is packing, crating, handling, 
loading, and/or storage of goods prior to or following line-haul 
transportation. The fact that substantial local drayage to and from the 
contractor's establishment (such as a warehouse) may be required in such 
contracts does not alter the fact that their principal purpose is other 
than the carriage of freight. Also, this exemption does not exclude any 
contracts for the transportation of mail from the application of the 
Act, because the term freight does not include the mail. (For an 
administrative exemption of certain contracts

[[Page 62]]

with common carriers for carriage of mail, see Sec. 4.123(d).)