FAR 22.1003-7—Questions concerning applicability of the Service Contract Labor Standards statute.
Plain-English Summary
FAR 22.1003-7 addresses what happens when there is uncertainty about whether the Service Contract Labor Standards (SCLS) statute applies to a particular acquisition. It covers the contracting officer’s duty to seek advice from the agency labor advisor, the escalation of unresolved applicability questions to the Administrator, Wage and Hour Division, and the requirement that this be done in a timely manner. In practice, this section is a procedural safeguard to prevent a contract from being incorrectly treated as covered or noncovered under SCLS, which can affect wage determinations, solicitation clauses, contractor pricing, and post-award compliance obligations. The section exists to ensure that coverage determinations are made with labor-law expertise and, when necessary, by the Department of Labor’s designated authority rather than by unilateral local judgment. For contracting officers and contractors, the practical significance is that uncertainty about SCLS coverage should be resolved early, before solicitation or award decisions lock in the wrong labor requirements.
Key Rules
Seek labor advisor input
If the contracting officer questions whether the Service Contract Labor Standards statute applies, the first required step is to request advice from the agency labor advisor. This ensures the issue is reviewed by someone with labor-law expertise before the acquisition proceeds on an uncertain basis.
Escalate unresolved questions
If the question cannot be resolved at the agency level, it must be submitted to the Administrator, Wage and Hour Division, for a determination. The regulation makes clear that final resolution of difficult applicability questions belongs with the Department of Labor authority identified in the rule.
Act in a timely manner
Any unresolved question must be sent to the Wage and Hour Division in a timely manner. This means the contracting officer should not wait until late in the procurement process, because delayed resolution can disrupt solicitation preparation, pricing, award timing, and clause inclusion.
Applicability must be determined before proceeding
The rule is designed to ensure that coverage questions are addressed before the acquisition is treated as subject to, or exempt from, SCLS requirements. Proper timing helps avoid using the wrong wage determination or omitting required labor clauses.
Responsibilities
Contracting Officer
Identify when there is a question about SCLS applicability, request advice from the agency labor advisor, and submit unresolved questions to the Administrator, Wage and Hour Division, in a timely manner.
Agency Labor Advisor
Provide advice to the contracting officer on whether the Service Contract Labor Standards statute applies to the acquisition and help resolve the coverage question at the agency level when possible.
Administrator, Wage and Hour Division
Make the determination on unresolved applicability questions that are submitted after agency-level review.
Practical Implications
This section is a process rule, not a coverage test; it tells you how to resolve uncertainty, not how to decide coverage on your own.
Contracting officers should raise questions early, because late referral can delay solicitation issuance, award, or contract administration.
A common pitfall is assuming an acquisition is exempt or covered without consulting labor expertise, which can lead to missing clauses or the wrong wage determination.
Another risk is treating the agency labor advisor’s view as final when the issue remains unresolved; the rule requires escalation to the Wage and Hour Division.
For contractors, the practical effect is that SCLS coverage may be clarified before pricing and performance obligations are finalized, so early uncertainty can affect bid strategy and labor cost assumptions.
Official Regulatory Text
If the contracting officer questions the applicability of the Service Contract Labor Standards statute to an acquisition, the contracting officer shall request the advice of the agency labor advisor. Unresolved questions shall be submitted in a timely manner to the Administrator, Wage and Hour Division, for determination.