SCA Administration
(Service Contract Act)

SCA Fringe Benefits Administration

Monthly reporting to ensure contractors contribute the correct amount of health and welfare fringe dollars on behalf of each full and part time service contract employee is required.  This reporting is sent to your benefit administrator where data is “scrubbed” to ensure the information is correct and that all SCA employees are accounted for. From there dollar amounts are tracked and applied to each employee’s benefit allowing contractors to prove that they have correctly overseen the administration of their benefits program.  BH Benefits understands all of these requirements and ensures that contractors are compliant.

What is the McNamara-O’Hara
Service Contract Act (SCA)

“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.

For contracts equal to or less than $2,500, contractors are required to pay the federal minimum wage as provided in Section 6(a)(1) of the Fair Labor Standards Act.

For prime contracts in excess of $100,000, contractors and subcontractors must also, under the provisions of the Contract Work Hours and Safety Standards Act, as amended, pay laborers and mechanics, including guards and watchmen, at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. The overtime provisions of the Fair Labor Standards Act may also apply to SCA-covered contracts.” (Source: US Department of Labor)