SCA Contract Administration Reminders

On July 25, 2017 the U.S. Department of Labor announced an increase to the prevailing health and welfare fringe benefit rate under the McNamara-O’Hara Service Contract Act (SCA).  The rate increased to $4.41 per hour.

For existing contracts, government contractors should check routinely to verify if new wage determinations (WD) have been published by contracting agencies (or, in the case of subcontractors, by their prime contractor) by incorporation into their contracts. Generally, the new rate will go into effect on the anniversary date (annually, or every two years for non-appropriated funds contracts) or option renewal/modification date of these contracts — whichever date for a particular contract triggers incorporation of a new WD by the contracting agency.

In addition, C2 Clients should advise C2 of any changes to their SCA contracts or award of new SCA Contracts. For clients who reconcile health and welfare dollars on a monthly basis, it is important to note if the WD number ends in an odd or an even number. This number will determine if reconciliations are completed on a one-for-one basis (odd numbers) or on an average basis (even numbers).

Further information is available at: