FAR 22.1001—Definitions.
Plain-English Summary
FAR 22.1001 defines the core terms used in the Service Contract Labor Standards subpart, so readers can apply the rest of the rules correctly. It covers five specific topics: who counts as a "contractor" for purposes of the statute, what qualifies as a "multiple year contract," the geographic meaning of "United States," what the Department of Labor’s "Wage and Hour Division" is, and what a "wage determination" means. These definitions matter because they determine the scope of coverage, where the labor standards apply, and which workers and contracts are subject to minimum wage and fringe benefit requirements. In practice, the definitions control whether prime contractors and subcontractors must comply, whether a contract is treated as a multiple-year arrangement, and which locality-based wage rates or fringe benefits must be incorporated into the contract. They also clarify that the Service Contract Labor Standards reach certain offshore areas and exclude some foreign locations and U.S. bases or possessions inside foreign countries. Understanding these terms is essential for both contracting officers and contractors because a mistake at the definition stage can lead to incorrect wage determinations, missing flowdown obligations, or noncompliance with labor standards.
Key Rules
Contractor includes covered subs
For this subpart, "contractor" is not limited to the prime contractor. It also includes a subcontractor at any tier if that subcontract is subject to the statute, which means the labor standards can flow down through the entire subcontracting chain.
Multiple-year contract definition
A multiple-year contract is any contract with a term of more than one year, regardless of how it is funded by fiscal year. The definition also includes multi-year contracts as that term is used in FAR 17.103.
United States has special scope
"United States" includes the 50 States, D.C., Puerto Rico, the Northern Mariana Islands, American Samoa, Guam, the U.S. Virgin Islands, Johnston Island, Wake Island, and the outer Continental Shelf as defined by the Outer Continental Shelf Lands Act. It does not include other places subject to U.S. jurisdiction or U.S. bases or possessions located within a foreign country.
Wage and Hour Division role
The Wage and Hour Division is the Department of Labor unit assigned the Secretary of Labor’s functions under the Service Contract Labor Standards statute. This identifies the DOL office responsible for administering key labor-standard functions under the subpart.
Wage determination meaning
A wage determination is the minimum wage or fringe benefit determination made under 41 U.S.C. 6703 or 6707(c) for service employees in a particular locality. It is the controlling labor-rate document that must be applied to covered work in the relevant area.
Responsibilities
Contracting Officer
Identify whether the contract is covered by the Service Contract Labor Standards and apply the correct definitions when deciding if the statute and its wage requirements apply. Ensure the proper wage determination is incorporated based on the locality and contract coverage, and recognize when subcontract flowdown issues may affect administration.
Contractor
Determine whether its contract and any lower-tier subcontracts are subject to the statute, including whether the work is performed in a covered U.S. location and whether the contract is a multiple-year contract. Apply the correct wage determination and ensure subcontractors at any tier comply when the statute applies.
Subcontractor
Comply with the Service Contract Labor Standards when its subcontract is subject to the statute, including following the applicable wage determination and any required fringe benefit obligations. Understand that coverage can apply even when the subcontract is not at the prime level.
Department of Labor Wage and Hour Division
Administer the Secretary of Labor’s functions under the Service Contract Labor Standards statute, including issuing or supporting wage determinations and related enforcement or interpretive functions within its authority.
Agency
Support acquisition planning and contract administration by identifying covered work locations, ensuring the correct labor standards are used, and coordinating with contracting personnel when wage determinations or coverage questions arise.
Practical Implications
Coverage can extend beyond the prime contractor, so subcontract flowdown analysis is critical from the start of performance.
The definition of "United States" is broader than many contractors expect, especially for offshore work and certain U.S. territories, but narrower than general notions of U.S. jurisdiction because some foreign-based U.S. installations are excluded.
A contract lasting more than one year may trigger multiple-year treatment even if funded year by year, so funding structure alone does not control coverage.
The wage determination is locality-specific, so using the wrong geographic area can cause underpayment, back pay liability, and contract administration problems.
Contracting officers and contractors should verify coverage early, because definition mistakes often lead to incorrect clauses, missing wage determinations, and avoidable compliance findings.
Official Regulatory Text
As used in this subpart- Contractor includes a subcontractor at any tier whose subcontract is subject to the provisions of the statute. Multiple year contracts means contracts having a term of more than 1 year regardless of fiscal year funding. The term includes multi year contracts (see 17.103 ). United States means the 50 States, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, Guam, the U.S. Virgin Islands, Johnston Island, Wake Island, and the outer Continental Shelf as defined in the Outer Continental Shelf Lands Act ( 43 U.S.C.1331 , etseq .), but does not include any other place subject to U.S. jurisdiction or any U.S. base or possession within a foreign country (29 CFR 4.112). Wage and Hour Division means the unit in the Department of Labor to which is assigned functions of the Secretary of Labor under the Service Contract Labor Standards statute. Wage determination means a determination of minimum wages or fringe benefits made under 41 U.S.C.6703 or 6707(c) applicable to the employment in a given locality of one or more classes of service employees.