Overview
This section provides precise definitions for terms used within FAR Subpart 22.10, establishing the legal boundaries and jurisdictional scope for the application of the Service Contract Labor Standards (SCLS).
Key Rules
- Contractor Inclusion: The term "contractor" is defined broadly to include subcontractors at any tier, ensuring that labor standards requirements flow down through the entire supply chain.
- Multiple Year Contracts: Defined as any contract with a term exceeding one year, including multi-year contracts under FAR 17.103, regardless of how the funding is structured across fiscal years.
- Geographic Jurisdiction: The "United States" is specifically limited to the 50 States, D.C., and listed territories (e.g., Puerto Rico, Guam, U.S. Virgin Islands); it explicitly excludes U.S. military bases or possessions located within foreign countries.
- Wage Determination Authority: Establishes that wage determinations are formal mandates issued by the Department of Labor (DOL) Wage and Hour Division regarding minimum wages and fringe benefits for specific classes of service employees in a given locality.
Practical Implications
- Flow-Down Requirements: Prime contractors are legally responsible for ensuring that all subcontractors, regardless of tier, comply with SCLS if the overarching subcontract is subject to the statute.
- Applicability Verification: Contracting Officers and contractors must use these definitions to determine if a contract performed outside the 50 states is subject to the FAR 22.10 requirements based on the specific list of included territories.