FAR 52.222-52—Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services-Certification.
Plain-English Summary
FAR 52.222-52 is a certification provision used when a solicitation may qualify for an exemption from the Service Contract Labor Standards (SCLS, formerly the Service Contract Act) for certain commercial services. It tells the offeror to certify whether the services are regularly sold to the general public, furnished at established catalog or market prices, performed by service employees who spend only a small portion of their time on the Government contract, and supported by the same wage-and-fringe-benefit plan used for comparable commercial work. The provision also explains how the offeror’s certification affects whether the SCLS clause will be included in the resulting contract, how subcontracted exempt services are treated, and what happens if the offeror does not certify. In practice, this provision is a gatekeeping tool: it helps the contracting officer decide whether the SCLS requirements should apply to the procurement and whether the related requirements clause should be omitted from the award. It also creates an affirmative duty for the offeror to alert the contracting officer if no wage determination was attached to the solicitation, and it prohibits award if the certification is not properly executed or the required notice is not given.
Key Rules
Offeror must certify status
The offeror must check whether it does or does not certify that the services meet all four exemption conditions. This is not a casual statement; it is the formal basis for the contracting officer’s decision on whether the SCLS statute applies.
Commercial sales requirement
The services must be regularly offered and sold to non-Governmental customers and provided to the general public in substantial quantities in the normal course of business. This rule is aimed at true commercial services, not work created primarily for Government use.
Established price requirement
The services must be furnished at prices that are, or are based on, established catalog or market prices. The provision defines both terms, requiring a regularly maintained and publicly available catalog/price list or a current market price that can be supported by independent sources.
Limited Government labor time
Each service employee must spend only a small portion of time on the Government contract—less than 20 percent of available hours on a monthly average, or less than 20 percent over the contract period if the period is under a month. This prevents the exemption from being used where employees are substantially dedicated to the Government work.
Same compensation plan
The offeror must use the same wage and fringe-benefit plan for all service employees performing the contract work that it uses for those employees and equivalent employees serving commercial customers. The exemption depends on consistent treatment between Government and commercial workforces.
Subcontractor certification flows down
If the offeror subcontracts out the exempt services, its certification also covers the subcontractor’s compliance. The prime contractor cannot rely on the exemption without ensuring the subcontracted services also fit the certified conditions.
Effect on clause inclusion
If the contracting officer determines the SCLS does not apply, the SCLS clause will not be included in the resulting contract. If the contracting officer determines the SCLS does apply, the related exemption requirements clause will not be included, and the offeror may be allowed to submit a revised offer.
No certification means no award
If the offeror does not certify the conditions, the contracting officer may not award unless the offeror also complies with the notice requirement in paragraph (c). Failure to execute the certification or provide the required notice is an award-blocking defect.
Responsibilities
Offeror
Decide whether the services meet all exemption conditions and check the appropriate certification. If not certifying, notify the contracting officer as soon as possible if no SCLS wage determination was attached to the solicitation. Ensure the certification is accurate for both prime and subcontracted exempt services.
Contracting Officer
Evaluate the certification and determine, under FAR 22.1003-4(d)(3), whether the SCLS statute applies. Include or omit the SCLS-related clauses in the resulting contract based on that determination, and may allow a revised offer if the statute applies. Do not make award if the offeror fails to execute the certification or provide the required notice.
Subcontractor
If performing exempt services under a subcontract, the subcontracted work must satisfy the same exemption conditions reflected in the prime offeror’s certification. The subcontractor’s work and pricing/compensation practices must remain consistent with the exemption basis.
Agency/Procurement Team
Structure the solicitation so the certification is used when appropriate and ensure the solicitation package reflects whether a wage determination is attached. Support the contracting officer in determining whether the SCLS applies and whether the exemption can be used.
Practical Implications
This provision is often the deciding factor in whether commercial service contracts are subject to SCLS wage determinations and related labor requirements. Contractors should treat the certification as a compliance representation backed by real business records, not just a checkbox.
A common pitfall is assuming a service is exempt simply because it is commercial. The contractor must satisfy all four conditions at once, including the 20 percent labor-time test and the same compensation-plan requirement.
Another frequent issue is weak support for ‘established catalog price’ or ‘established market price.’ Contractors should be prepared to document pricing history, catalogs, price lists, market data, and how those prices are maintained and made available.
Offerors should pay close attention to subcontracting. If exempt services are subcontracted, the prime’s certification still carries responsibility for the subcontracted work, so the exemption analysis must cover the full performance chain.
If the solicitation does not include a wage determination and the offeror does not certify, the offeror must promptly notify the contracting officer. Missing this step can delay award or make the offer ineligible for award altogether.
Official Regulatory Text
As prescribed in 22.1006 (e)(3) , insert the following provision: Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services-Certification (May 2014) (a) The offeror shall check the following certification: Certification The offeror □ does □ does not certify that- (1) The services under the contract are offered and sold regularly to non-Governmental customers, and are provided by the offeror (or subcontractor in the case of an exempt subcontract) to the general public in substantial quantities in the course of normal business operations; (2) The contract services are furnished at prices that are, or are based on, established catalog or market prices. An "established catalog price" is a price included in a catalog, price list, schedule, or other form that is regularly maintained by the manufacturer or the offeror, is either published or otherwise available for inspection by customers, and states prices at which sales currently, or were last, made to a significant number of buyers constituting the general public. An "established market price" is a current price, established in the usual course of ordinary and usual trade between buyers and sellers free to bargain, which can be substantiated from sources independent of the manufacturer or offeror; (3) Each service employee who will perform the services under the contract will spend only a small portion of his or her time (a monthly average of less than 20 percent of the available hours on an annualized basis, or less than 20 percent of available hours during the contract period if the contract period is less than a month) servicing the Government contract; and (4) The offeror uses the same compensation (wage and fringe benefits) plan for all service employees performing work under the contract as the offeror uses for these employees and for equivalent employees servicing commercial customers. (b) Certification by the offeror as to its compliance with respect to the contract also constitutes its certification as to compliance by its subcontractor if it subcontracts out the exempt services. If the offeror certifies to the conditions in paragraph (a) of this provision, and the Contracting Officer determines in accordance with FAR 22.1003-4 (d)(3) that the Service Contract Labor Standards statute- (1) Will not apply to this offeror, then the Service Contract Labor Standards clause in this solicitation will not be included in any resultant contract to this offeror; or (2) Will apply to this offeror, then the clause at FAR 52.222-53 , Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services-Requirements, in this solicitation will not be included in any resultant contract awarded to this offer, and the offeror may be provided an opportunity to submit a new offer on that basis. (c) If the offeror does not certify to the conditions in paragraph (a) of this provision- (1) The clause of this solicitation at 52.222-53 , Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services-Requirements, will not be included in any resultant contract to this offeror; and (2) The offeror shall notify the Contracting Officer as soon as possible if the Contracting Officer did not attach a Service Contract Labor Standards wage determination to the solicitation. (d) The Contracting Officer may not make an award to the offeror, if the offeror fails to execute the certification in paragraph (a) of this provision or to contact the Contracting Officer as required in paragraph (c) of this provision. (End of provision)