Which companies are covered under the McNamara-O'Hara Service Contract Act?

Which companies are covered under the McNamara-O'Hara Service Contract Act?

• A. Those with income over $1,000,000
• B. Start-ups with government contracts
• C. Companies with government services contract(s) in excess of $2,500
• D. Companies without labor relations

Answer: (C)

The McNamara-O'Hara Service Contract Act (SCA) applies specifically to contracts entered into by the federal government for services. The key threshold that classifies a company under this act is the nature of its contractual obligations. When a company has a government services contract that exceeds $2,500, it becomes subject to the provisions of the SCA. This includes requirements related to wage determinations and health and safety standards for employees working under these contracts. The SCA's intent is to ensure that service workers on government contracts are provided with fair wages and benefits, reflecting the standards of the area where the work is performed. Therefore, referencing the specific amount of $2,500 aligns directly with the criteria established by the SCA, making this choice the most accurate. Other choices, such as those based on company income, the status of being a start-up, or the absence of labor relations, do not directly relate to the application of the SCA. The act's focus is on contract value rather than the financial status of the company or its operational structure. Thus, the clear connection between service contracts over the specified monetary threshold and the application of the SCA confirms that companies with government services contracts exceeding $2,500 are indeed covered under

The McNamara-O'Hara Service Contract Act (SCA) applies specifically to contracts entered into by the federal government for services. The key threshold that classifies a company under this act is the nature of its contractual obligations. When a company has a government services contract that exceeds $2,500, it becomes subject to the provisions of the SCA. This includes requirements related to wage determinations and health and safety standards for employees working under these contracts.

The SCA's intent is to ensure that service workers on government contracts are provided with fair wages and benefits, reflecting the standards of the area where the work is performed. Therefore, referencing the specific amount of $2,500 aligns directly with the criteria established by the SCA, making this choice the most accurate.

Other choices, such as those based on company income, the status of being a start-up, or the absence of labor relations, do not directly relate to the application of the SCA. The act's focus is on contract value rather than the financial status of the company or its operational structure. Thus, the clear connection between service contracts over the specified monetary threshold and the application of the SCA confirms that companies with government services contracts exceeding $2,500 are indeed covered under