Service Contract Act; Labor Standards for Federal Service Contracts

This document revises 29 CFR part 4 to delete the requirement in Sec. 4.7 of 29 CFR part 4 that any service contract of the Federal Government in an amount less then $2,500 that is subject to the McNamara-O'Hara Service Contract Act of 1965, as amended (SCA), must contain a clause specifying that the contractor or any subcontractor shall pay the minimum wage under the Fair Labor Standards Act (FLSA) to employees engaged in the performance of the contract. This revision is in response to the new ``micro purchase'' authority established by Sec. 4301 of the Federal Acquisition Streamlining Act of 1994 (FASA) and facilitates the use of government credit cards for the purchase of supplies and services under $2,500.