Service Contract Act (SCA) for Executives

The Professional Services Council (PSC) is the national trade association of the government professional and technical services industry. The PSC mission is to provide value to their members by being the leading advocate and resource for the federal professional and technical services industry. In December the group held a conference outlining SCA for Executives. The conference addressed training, Contracting Officers, and Paying SCA Wages and Fringe Benefits.

• Training. SCA compliance is difficult because the regulations are complicated and it touches various departments and personnel in your organization. It is important to make sure your employees working in accounting, human resources, program management, contracts and executive management are properly trained. Al Corvigno, President MARAL, LLC holds a two day SCA training class at the PSC facility three times a year. You may e-mail him at acorvigno@marallc.com or call him at 252-312-4853, if you would like more information.
  Al has over 40 years of experience in SCA and runs the SCA program for PSC, along with his one day SCA courses in Arlington, VA, and at client locations nationwide. It is the only SCA training program that includes a technical manual along with a 24/7 technical hotline.
• Contracting Officers. Many contractors have had problems and or issues dealing with their respective Contracting Agencies. The PSC training is helpful if and when an issue arises. If your employees are properly trained contractors will have a”road map” to follow insuring they have attempted to comply with the SCA.
  If an issue arises with a Contracting Officer it is often recommended that the contractor utilize a “third party” advocate, such as a DOD Labor Advisor, who is responsible for that contract and can speak to the Contracting Officer and reconcile the issue.
• Paying SCA Wages and Fringe Benefits. Contractors should not pay wage increases or fringe benefit health and welfare costs until their contracts have been modified by their Contracting Officer. Making increased payments before your contract is modified can compromise your company’s position when and if a request for an equitable adjustment is submitted.

It is important to make the proper business decisions and comply with the SCA because some of the items discussed have the potential to “make or break” your contract.

At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your fringe-benefit obligations and provides your employees with valuable benefits.