FAR 22.1003-1—General.
Plain-English Summary
FAR 22.1003-1 explains the basic coverage rule for the Service Contract Labor Standards (SCLS) subpart in FAR 22.10. It tells contracting officers and contractors when the subpart applies: to Government contracts whose principal purpose is to furnish services in the United States through the use of service employees, and to any subcontract at any tier under such a contract, unless an exemption in FAR 22.1003-3 or 22.1003-4 applies. It also clarifies what is not covered: individual service requirements inside a contract that is not primarily for services. The section further warns that the label, type, or form of the contract does not control coverage; the actual principal purpose and work performed do. In practice, this means agencies must look past contract titles and vehicles and determine whether the work is service-based and performed in the United States by service employees, because that determination drives wage and labor standard obligations throughout the prime contract and subcontract chain.
Key Rules
Applies to service contracts
The subpart covers Government contracts whose principal purpose is to furnish services in the United States through the use of service employees. Coverage turns on the nature of the work, not on the contract’s label or procurement vehicle.
Covers subcontracts at any tier
If the prime contract is covered, the subpart also applies to subcontracts at any tier under that contract. Prime contractors must therefore flow the applicable labor requirements down the subcontract chain as needed.
Exemptions may remove coverage
Coverage is subject to the exemptions in FAR 22.1003-3 and 22.1003-4. A contract that otherwise appears covered may be excluded if one of those specific exemptions applies.
Not for incidental service work
The subpart does not apply to individual contract requirements for services when the overall contract does not have the furnishing of services as its principal purpose. Incidental or ancillary service tasks inside a non-service contract do not, by themselves, make the contract covered.
Contract form is not controlling
The nomenclature, type, or particular form of contract used by the agency does not determine coverage. Agencies must evaluate the substance of the requirement rather than relying on whether the instrument is called a supply contract, IDIQ, task order, or another form.
Responsibilities
Contracting Officer
Determine whether the contract’s principal purpose is to furnish services in the United States through service employees, and whether any exemption in FAR 22.1003-3 or 22.1003-4 applies. The contracting officer must look beyond the contract title or form and apply the coverage rule based on the actual requirement.
Agency
Structure acquisitions and contract administration so that service-contract coverage is identified correctly at the outset and applied consistently. The agency must not rely on nomenclature alone when deciding whether the subpart applies.
Prime Contractor
Recognize when the prime contract is covered and ensure the applicable labor requirements are addressed in subcontracting and performance planning. The prime contractor must understand that coverage can extend to lower-tier subcontracts.
Subcontractors
Comply with applicable service-contract labor requirements when performing under a covered subcontract at any tier. Subcontractors should not assume they are outside the subpart simply because they are not the prime contractor.
Practical Implications
This section is the gateway to SCLS coverage, so the first practical task is always to identify the contract’s principal purpose. If that determination is wrong, wage and labor obligations may be omitted or applied unnecessarily.
Contract titles can be misleading. A contract labeled as something other than a service contract may still be covered if its real purpose is to furnish services through service employees.
Incidental service work inside a supply or mixed contract usually does not trigger coverage by itself, but mixed acquisitions require careful analysis to avoid missing a covered service component that is actually the principal purpose.
Because coverage flows to subcontracts at any tier, prime contractors need to manage subcontract language and compliance expectations early, not after award.
The exemptions in FAR 22.1003-3 and 22.1003-4 are essential screening points; failing to check them can lead to incorrect wage determinations, missing clauses, and downstream compliance problems.
Official Regulatory Text
This subpart 22.10 applies to all Government contracts, the principal purpose of which is to furnish services in the United States through the use of service employees, except as exempted in 22.1003-3 and 22.1003-4 of this section, or any subcontract at any tier thereunder. This subpart does not apply to individual contract requirements for services in contracts not having as their principal purpose the furnishing of services. The nomenclature, type, or particular form of contract used by contracting agencies is not determinative of coverage.