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Which wage and benefit terms apply?

The reviewed Service Contract Act guidance concerns covered federal and District of Columbia service contracts performed through service employees, subject to exceptions. For covered contracts over $2,500, the applicable wage determination and fringe benefits matter. Cleaning or maintenance alone does not decide coverage.

Obtain the solicitation, incorporated clauses, relevant wage determination, actual duties and work locations, plus applicable predecessor-contract and collective-bargaining facts. Map real jobs to the relevant classifications rather than using an overseas rate or generic national minimum. A subcontracting role does not, by itself, remove relevant obligations.

Sources: U.S. Department of Labor: Coverage and prevailing wage determinations

Can the promised cover be delivered at that price?

For several cleaning sites, check whether one supervisor can meet the required staffing periods while travelling between them. Include the applicable wages/benefits and the travel and reporting work rather than assuming the private-office template covers them.

Keep the origin of each requirement clear: legal rule, incorporated contract term or another buyer/prime-contractor condition. Contractual insurance, references or security conditions still matter, but are not automatically laws for every service business.

Compare start-up and payroll payment dates with expected receipts. If a material labour, benefit or staffing input remains unknown, the bid is incomplete; do not price it as zero. Coverage and applicable terms continue to matter during delivery.

Sources: U.S. Department of Labor: Coverage and prevailing wage determinations U.S. Small Business Administration: Start with a balance sheet; accounting methods

Scope

  • No specific solicitation, wage rate, coverage/exemption, classification or staffing permission is determined here.

Next step

Resolve applicable wage/benefit and actual staffing-cover inputs before committing to the bid price.

Sources & review notes

The source records distinguish access dates from substantive review dates. Updating an explanation does not itself recheck the law.

Service Contract Act FAQs

U.S. Department of Labor

Passage, dates and research notes

official-guidance · Coverage and prevailing wage determinations

unless a specific exemption applies.

Accessed: 2026-11-12T20:45:21.171684+00:00 · Meaning reviewed: 2026-11-12T20:57:01.744003+00:00 · Next review target: 2026-12-12

Full page retrieved through cloud HTTP despite web reader access failure; relevant coverage, >$2,500, fringe-benefit and exemption sections read. Do not infer private customer contracts are federal contracts.

Manage your finances

U.S. Small Business Administration

Passage, dates and research notes

official-guidance · Start with a balance sheet; accounting methods

The balance sheet is the foundation of managing your finances.

Accessed: 2026-11-12T20:45:21.183631+00:00 · Meaning reviewed: 2026-11-12T20:57:01.744003+00:00 · Next review target: 2026-12-12

Supports bookkeeping and cash/accrual distinction; fictional capital and cash-flow examples are original assumptions, not SBA benchmarks.

Detailed rule records (1)
Identify federal service-contract wage obligations before bidding Depends on the facts

Use applicable wage determination and fringe-benefit terms when pricing and performing covered work.

When to check: Bid review / contract award. Source review: 2026-11-12T20:57:01.744003+00:00.

Service Contract Act FAQs
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