- Automated data processing equipment (including office information and word processing equipment);
- Scientific and medical equipment involving sophisticated technology; or office or business machines not included under contracts for construction, alteration, or repair, including painting and decorating, when the services are performed by the manufacturer or supplier.
- The ADPE or other equipment is commercially available, used regularly outside the government, and normally sold or traded by the supplier to the public in substantial quantities;
- Prices are established catalog or market prices; and
- Wages and fringe benefits paid under the contract are the same as the supplier pays employees servicing the same equipment for commercial customers.
7-7.1.1.3 Requirements
Many types of services are covered by the Service Contract Act, which attempts to cover contract workers who do not fall under the Davis-Bacon Act for construction and the Walsh-Healey Public Contracts Act for supplies. 29 CFR 4, Subpart C, and CFR 4.101 provide examples of coverage. The Service Contract Act does not cover executive, administrative, or professional personnel. If services are only incidental to the performance of a contract, the Service Contract Act does not apply.
The Service Contract Act also applies to subcontracts under covered contracts, and suppliers must include the Service Contract Act provisions in subcontracts for services. Except where indicated, the terms “contract” and “supplier” include “subcontracts” and “subcontractors” in this part.
7-7.1.1.4 Clauses
- Contracts Over $2,500—Clause 9-10— Service Contract Act must be included in every contract for services covered by the Service Contract Act that is over $2,500 or is modified to exceed $2,500. This includes indefinite-delivery contracts and ordering agreements when orders are expected to aggregate more than $2,500. Clause 9-10: Service Contract Act is incorporated by reference in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders when checked off by the CO.
- Contracts of $2,500 or Less—Every contract of $2,500 or less forservices covered by the Service Contract Act must includeClause 9-11: Service Contract Act — Short Form.Clause 9-11: Service Contract Act — Short Form is incorporated by reference in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders when checked off by the CO.
- Multiyear Service Contracts and Service Contracts With RenewalOptions— Except for mail transportation contracts, multiyear service contracts and service contracts with options to renew that include Clause 9-10: Service Contract Act or Clause 9-11: Service Contract Act — Short Form must also include Clause 9-12: Fair Labor Standards Act and Service Contract Act — Price Adjustment . Clause 9-12: Fair Labor Standards Act and Service Contract Act — Price Adjustment is incorporated by reference in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders when checked off by the CO.
7-7.1.1.5 Notice of Intent to Make a Service Contract
The CO must file a notice of intent to make a service contract with the Wage and Hour Division, Employment Standards Administration, Department of Labor, for any contract over $2,500 covered by the Service Contract Act. SF 98, Notice of Intention to Make a Service Contract, must be used. The notice must be accompanied by SF 98 or a statement indicating the numbers and classes of service employees expected to perform the contract or a statement that the number will not exceed five (5).
Whenever possible, notice of intent must be filed at least 60 days (30 days for unanticipated requirements) before a competitive solicitation is issued, noncompetitive negotiations begin, an option is exercised, a contract is extended, or the anniversary date of a multiyear contract. If it is not possible to file a notice before the 30-day limit, it must be filed as soon as possible, with an explanation of why it was not filed on time.
If the contract will be for substantially the same services as are being furnished at the same location by an incumbent supplier whose contract the proposed contract will succeed and the wages and fringe benefits of the service employees are determined by a collective bargaining agreement, the agreement must be filed with the SF 98 along with any related documents specifying wages and fringe benefits that will apply to the contract. If the CO believes that the collective bargaining agreement was not the result of “arm’s-length” negotiations, a statement of the facts leading the CO to that conclusion must accompany the agreement, and the Office of Special Wage Standards must be advised if the wages and fringe benefits vary substantially from those for similar services.
7-7.1.1.6 Minimum Wage Determinations
If more than five (5) service employees will be involved in performing work covered by the Service Contract Act, the contract may not be awarded without a Department of Labor determination of applicable minimum wages and fringe benefits, unless the determination will be incorporated in the contract after award.
The required determination will normally be issued by the Wage and Hour Division, Employment Standards Administration, in response to the notice of intent filed under the Notice of Intent to Make a Service Contract, in sufficient time to be included as an attachment to the solicitation.
If the place of performance is unknown when the solicitation is issued, a wage determination need not be included in the original solicitation. Instead, when proposals are received, a notice of intent must be filed in accordance with Notice of Intent to Make a Service Contract, showing each location where the contract might be performed, so that a wage determination may be made for each. The wage determination that applies to the successful potential supplier must be included in the contract. If the Department of Labor finds this impracticable, the department may issue a composite wage determination.
The CO must contact the Wage and Hour Division to find out whether a wage determination is still current when a solicitation or negotiation has been delayed for more than 60 days from the anticipated date of award stated on the SF 98 submitted. Any wage determination received in response must replace the earlier wage determination.
When a Notice of Intent to Make a Services Contract has been filed, but the wage determination has not been received in time for attachment to the solicitation, the solicitation must state that the wage determination will be issued as an amendment to the solicitation or incorporated into the contract at the time of award.
Any revision of a wage determination received less than 10 days before proposals are due is not effective unless there is enough time to notify potential suppliers. If the contract action involves noncompetitive procedures, exercise of an option, or extension of a contract, any revision of a wage determination received after award is not effective if performance begins within 30 days after award; otherwise, any revision received at least 10 days before performance begins is effective.
If circumstances require that a contract be awarded before a wage determination is obtained, the contract must include Clause 9-10: Service Contract Act and provide for equitable adjustment of the contract terms when the wage determination is incorporated, effective from the date of issuance unless another effective date is specified in the determination. The notice of intent, if not already filed, must be filed promptly and explain the need for immediate award.
The Wage and Hour Division may require that a wage determination be applied to a contract retroactively, if the contract is subject to the Service Contract Act and more than five (5) service employees are involved in performing the work. If the CO questions the applicability of the Service Contract Act to the contract, the CO must forward the matter for resolution to assigned Legal Counsel. If it is determined that the Service Contract Act is not applicable to the contract, the CO must advise the Department of Labor of the basis for this determination. No further action is needed unless the Secretary of Labor determines that the contract is subject to the Service Contract Act.
If a wage determination does not contain all the classifications and rates requested in the notice of intent, those classifications for which no determinations were received must be deleted from the attachment incorporating the wage determination. When omitted classifications or classifications not previously contemplated are found necessary after award, they must be incorporated following the procedures in Clause 9-10: Service Contract Act .
7-7.1.1.7 Award
-
Notice of Award — Upon the award of a contract of $10,000 or more that includes Clause 9-10: Service Contract Act (or upon issuing the first order under an indefinite-delivery contract or ordering agreement containing that clause), the CO must send an original and one copy of SF 99, Notice of Award of Contract, to:
DEPUTY ASSISTANT SECRETARY
EMPLOYMENT STANDARDS ADMINISTRATION
US DEPARTMENT OF LABOR
WASHINGTON DC 20210-0001
DIRECTOR BUREAU OF LABOR STANDARDS
EMPLOYMENT STANDARDS ADMINISTRATION
US DEPARTMENT OF LABOR
WASHINGTON DC 20210-0001
General questions about the Service Contract Act may also be directed to any regional office of the Employment Standards Administration of the Department of Labor.
7-7.1.1.8 Withholding Contract Payments and Contract Termination
A violation of the stipulations of Clause 9-10: Service Contract Act or Clause 9-11: Service Contract Act — Short Form makes the responsible party liable for the sum of any deductions, rebates, refunds, or underpayments due employees. At the written request of a district director (or above) of the Department of Labor, as much of the accrued payment due on the contract (or any other contract between the supplier and the Postal Service that has not been assigned) must be withheld as is necessary to pay the employees. Withheld sums must be kept in an escrow fund. Any compensation that the Postal Service or the Wage and Hour Division have found to be due must be paid directly from the withheld payments.
If the withheld payments are insufficient to reimburse the underpaid employees, this fact must be reported to the General Accounting Office (for possible setoff), the Wage and Hour Division of the Department of Labor, and the Department of Justice. The United States may bring an action to recover the remaining amount. Any sums recovered must be held in the escrow fund and paid, on order of the Secretary of Labor, directly to the underpaid employees.
Any violation of Clause 9-10: Service Contract Act or Clause 9-11: Service Contract Act — Short Form may be cause for termination of the supplier’s right to continue the work. If the contract is terminated, the Postal Service may enter into other contracts or arrangements to complete the work, charging any additional costs to the terminated supplier.
The comptroller general is responsible for sending a list of names of people or firms in violation of the Service Contract Act to all government agencies. Unless the Secretary of Labor recommends otherwise, Postal Service contracts may not be awarded to any violator on the list (or to any firm, corporation, partnership, or association in which such violator has a substantial interest) for 3 years from the date the list was published.
7-7.1.1.9 Enforcement
7-7.1.2 Davis-Bacon Act (40 U.S.C. 276(a) et seq.)
The Davis-Bacon Act requires that construction contracts over $2,000 contain a provision setting the minimum wages to be paid to all classes of laborers and mechanics working on the work site. Minimum wage rates are determined by the Secretary of Labor on the basis of prevailing wage rates. Further guidance concerning the Davis-Bacon Act is provided in Handbook P2, Design and Construction Purchasing Practice.
7-7.1.3 The Copeland Anti-Kickback Act (18 U.S.C. 874 and 41 U.S.C. 276(c))
The Copeland Anti-Kickback Act applies to any contract over $2,000 subject to the Davis-Bacon Act. The Copeland Act makes it unlawful to force laborers or mechanics to give up any part of their compensation except for permissible deductions such as taxes and union dues.
7-7.1.4 Randolph-Sheppard Act (20 U.S.C. 107 et seq.)
This act allows for the operation of food service and vending facilities by the blind on Federal properties to expand the economic opportunities of the blind, and for other purposes. Postal facilities are to include space for vending facilities operated by or on behalf of the blind.
7-7.1.4.1 Requirements
Blind suppliers licensed under the provisions of the Randolph-Sheppard Act or by a state licensing agency must be given priority for the operation of food vending services in Postal Service facilities. See Handbook AS-707H, Contracting for Food Services, and Handbook EL-602, Food Service Operations, for additional details.
7-7.1.5 Miller Act (40 U.S.C. 270(a)—(f))
7-7.1.5.1 Applicability
The Miller Act requires contract surety bonds on Federal construction. Specifically, a contractor on a Federal project must post two bonds — a performance bond and a labor and material payment bond. The surety company issuing these bonds must be listed as a qualified surety on the Treasury List http://www.fms.treas.gov/c570/c570.html , which the U.S. Department of the Treasury issues each year.
The Miller Act payment bond covers subcontractors and suppliers of material who have direct contracts with the prime supplier. These are called first-tier claimants. Subcontractors and material suppliers who have contracts with a subcontractor, but not those who have contracts with a supplier, are also covered and are called second-tier claimants. Anyone further down the contract chain is considered too remote and cannot assert a claim against a Miller Act payment bond posted by the contractor.
A subcontractor or supplier who has a direct contract with the prime supplier has no duty to provide any notice to the prime supplier before filing a suit on the bond. When the claimant is a second-tier subcontractor or material supplier, however, formal notice must be given to the prime supplier within 90 days of the last date the claimant furnished labor or materials for the project.
The final step in perfecting a claim on a payment bond is filling a lawsuit. For both first-tier and second-tier claimants, suit must be filed no sooner than 90 days after the last labor and material were furnished and no later than 1 year after that date. Full text of the Miller Act can be found on http://www.sio.org/html/miller.html .
7-7.1.5.2 Requirements
The Miller Act provides that before a contract that exceeds $100,000 in amount for the construction, alteration, or repair of any building or public work of the United States is awarded to any person, that person shall furnish the United States with the following:
- A performance bond in an amount that the CO regards as adequate for the protection of the United States. The bond amount is normally 100 percent of the contract price.
- A separate payment bond for the protection of suppliers of labor and materials. The amount of the payment bond shall be equal to the total amount payable by the terms of the contract unless the CO awarding the contract makes a written determination supported by specific findings that a payment bond in that amount is impractical, in which case the amount of the payment bond shall be set by the CO. In no case shall the amount of the payment bond be less than the amount of the performance bond.
7-7.1.6 Contract Work Hours and Safety Standards Act (40 U.S.C. 327—333)
7-7.1.6.1 Requirements
The Contract Work Hours and Safety Standards Act requires that certain contracts contain a clause specifying that no laborer or mechanic doing any work under the contract may be required or permitted to work more than 40 hours in any workweek unless paid at least one and one-half times the basic rate of pay for all overtime hours. A violation makes the supplier liable for liquidated damages. Lease agreements, being subject to Reorganization Plan No. 14 of 1950 under 39 U.S.C. 410(d), are subject to the safety standards of the Contract Work Hours and Safety Standards Act, in addition to the overtime pay requirements.
7-7.1.6.2 Exemptions
The Secretary of Labor is responsible for enforcement of the Work Hours and Safety Standards Act and may permit variations and exemptions from the Work Hours and Safety Standards Act’s requirements when necessary in the public interest or to prevent injustice or undue hardship (29 CFR 5.14).
7-7.1.6.3 Clauses
Clause 9-2: Contract Work Hours and Safety Standards Act — Overtime Compensation is incorporated by reference in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders and must be checked off by COs for all contracts, lease agreements, and ordering agreements that may involve the employment of laborers or mechanics, except:
- Construction contracts and lease agreements involving alterations or improvements of $2,000 or less, and other contracts and lease agreements of $2,500 or less;
- Indefinite-delivery contracts and ordering agreements, if the total amount of all orders placed for 1 year after the effective date will not exceed the above limits involving construction contracts and lease agreements involving alterations or improvements;
- Contracts for supplies usually purchased in the open market or requiring labor merely incidental to the sale;
- Contracts for work subject solely to the Walsh-Healey Public Contracts Act;
- Contracts for transportation by land, air, or water; and
- Any other contracts exempt under regulations of the Secretary of Labor (see 29 CFR 5.15).
7-7.1.7 Prohibition on Convict Labor (39 U.S.C. 2201)
7-7.1.7.1 Requirements
Under 39 U.S.C. 2201, the Postal Service may not contract for supplies to be manufactured by convict labor, except for purchase from Federal Prison Industries, Inc. The Postal Service may purchase supplies from firms employing persons on parole or probation under the conditions set forth in Executive Order (EO) 11755, December 29, 1973, as amended, which the Postal Service has elected to follow.
7-7.1.7.2 Clauses
7-7.1.7.3 Federal Prison Industries, Inc.
- Mailbag requirements exceeding the capacity of the MES; and
- May obtain other products and services available from Federal Prison Industries.
Price and delivery terms must be reasonable compared with those available in the commercial marketplace (as determined by market research or other means not involving obtaining competitive proposals).
7-7.1.7.4 Ordering
Supplies and services available from Federal Prison Industries are listed in its Schedule of Products brochure. This brochure and individual product and service catalogs (which provide detailed ordering instructions) are available at Federal Prison Industries’ Web site ( www.unicor.gov ) and are available from:
UNICOR CORPORATE DIVISION
FEDERAL PRISON INDUSTRIES INC
320 FIRST STREET NW
WASHINGTON DC 20534-0001
7-7.1.8 Walsh-Healey Public Contracts Act (41 U.S.C. 35—45,)
7-7.1.8.1 Applicability
The Walsh-Healey Public Contracts Act applies to indefinite-delivery contracts and ordering agreements if the aggregate amount of all orders is expected to exceed $10,000 during the year following award. Indefinite-delivery contracts and ordering agreements not initially subject to the Walsh-Healey Public Contracts Act become subject to the Walsh-Healey Public Contracts Act if orders will exceed $10,000 during any year after the first year. Applicability must therefore be determined annually until the contracts or agreements become subject to the Act.
If a contract for $10,000 or less is modified to exceed $10,000, the Walsh-Healey Public Contracts Act applies. If a contract that exceeds $10,000 is modified to $10,000 or less, the work performed after the modification is subject to the Walsh-Healey Public Contracts Act if both parties agreed to the modification.
7-7.1.8.2 Exemptions
- Noncompetitive purchases, when delaying the purchase would seriously harm the Postal Service.
- Perishables, including dairy, livestock, and nursery products.
- Purchases of agricultural or farm products processed for first sale by the original producers.
- Commercially available items.
When a contract subject to the Walsh-Healey Public Contracts Act is awarded, the CO, under the regulations or instructions issued by the Secretary of Labor, must:
- Give the supplier a Department of Labor combination letter and poster (WH Publication 1313) explaining the Walsh-Healey Public Contracts Act; and
- Report any violation of the representations or stipulations required by the Walsh-Healey Public Contracts Act to the Secretary of Labor through the Inspection Service.
The Secretary of Labor may allow exceptions to the requirement that the representations and stipulations of the Walsh-Healey Public Contracts Act be included in contracts. The CO must submit requests for exceptions to the Administrator, Wage and Hour Division, Department of Labor, through the manager, SM Infrastructure.
7-7.1.8.3 Requirements
The Walsh-Healey Public Contracts Act requires that certain contracts for the manufacture or furnishing of supplies must incorporate the Walsh-Healey Public Contracts Act requirements by reference. No CO, supplier, or subcontractor may purchase quantities amounting to less than $10,000 to avoid compliance with the Walsh-Healey Public Contracts Act.
7-7.1.8.4 Clauses
7-7.1.9 Freedom of Information Act (5 U.S.C. 552)
The Freedom of Information Act (FOIA) provides the public with a right of access to records (hard-copy and electronic) that are maintained by Federal agencies, including the Postal Service. The FOIA contains exemptions that authorize the withholding of certain information. Postal Service regulations implementing the FOIA are located in 39 CFR 265. For procedures that implement FOIA, consult Handbook AS-353, Guide to Privacy and the Freedom of Information Act. For Postal Service Supplying Practices pertaining to FOIA, refer to the Section 7-14 , Privacy Considerations . For additional information, visit www.usps.com/foia .
7-7.1.10 Fair Labor Standards Act (29 U.S.C. 201—219)
The Fair Labor Standards Act provides for minimum wages and maximum work hours, and it appoints the Wage and Hour Division of the Department of Labor to interpret and enforce the Fair Labor Standards Act (including investigating and inspecting general suppliers). The Fair Labor Standards Act applies to all employees (with some exceptions) engaged in interstate or foreign commerce, the production of supplies for such commerce, or any closely related process or occupation essential to such production. It also prohibits oppressive child labor.
Suppliers or their employees who inquire concerning the applicability or interpretation of the Fair Labor Standards Act must be advised that rulings fall under the jurisdiction of the Department of Labor and must be referred to the Regional Administrator, Wage and Hour Division, Department of Labor.
7-7.1.11 The Privacy Act of 1974 (5 U.S.C. 552(a))
The Privacy Act provides privacy protections for personal information maintained by Federal agencies. The Privacy Act provides privacy protections for personal information that agencies maintain in a “system of records,” which includes files, databases, or programs from which personal information is retrieved by name or other identifier. Postal Service regulations regarding the Privacy Act are located in 39 CFR 266 and 39 CFR 268. Handbook AS-353, Guide to Privacy and the Freedom of Information Act, describes procedures relating to the Privacy Act, a full description of Privacy Act protections, as well as the Postal Service systems of records.
7-7.1.11.1 Requirements
When an agency maintains a system of records, it must publish a notice that describes the system in the Federal Register. The notice must document how the agency manages personal information within the system. This includes how information is collected, used, disclosed, stored, and discarded. It also includes how individuals can exercise their rights to obtain access to and amend their personal information that is maintained in the system. The Privacy Act further requires that the Postal Service provide an appropriate privacy notice to individuals when they are asked to provide information about themselves.
7-7.1.11.2 Penalties
- Willfully maintains a system of records that contains information about an individual without giving appropriate notice in the Federal Register; or
- Knowing that disclosure is prohibited, willfully discloses information about an individual in any manner to any person or agency not entitled to receive it.
The Privacy Act also provides criminal penalties, in the form of fines, for any person who knowingly and willfully requests or obtains under false pretenses any record about another individual.
7-7.1.12 Architectural Barriers Act (42 U.S.C. 51)
The Architectural Barriers Act requires that Postal Service buildings (both owned and leased) are accessible to the physically handicapped. Like Section 508 of the Rehabilitation Act of 1973, the Architectural Barriers Act impacts the cost of constructing or leasing buildings. Accessibility requirements of the Americans with Disabilities Act, applicable to private structures, have less stringent standards and put the burden on lessor, as opposed to the lessee. Full text of the Architectural Barriers Act can be found on http://www.access-board.gov/about/ABA.htm .
7-7.1.13 Administrative Dispute Resolution Act of 1996 (ADRA) (28 U.S.C. 1491(b))
The Administrative Dispute Resolution Act (ADRA) constitutes a mandate to all Federal agencies to provide ADR services. It requires the Postal Service to have policies that address the use of ADR techniques and to appoint a dispute resolution specialist. For Postal Service practices concerning ADR, consult Sections 2-37 , Hold Discussions , and 2-38 , Negotiate with Suppliers , as well as Section 7-4 , Supplier Disagreement Resolution .
7-7.1.13.1 Applicability
- Formal and informal adjudications.
- Rulemakings.
- Enforcement actions.
- Issuing and revoking licenses or permits.
- Contract administration.
- Litigation brought by or against the Postal Service.
- Other Postal Service actions.
7-7.1.13.2 Requirements
For the purpose of the statute, alternative means of dispute resolution include conciliation, mediation, facilitation, fact finding, minitrials, and the use of an SDR Official.
- Provides that the Postal Service, once having agreed to binding arbitration, may not vacate or “opt out” of arbitral decisions with which it does not agree.
- Exempts certain confidential communications between a party to a dispute and a neutral party, which were made during ADR proceedings, from disclosure under the FOIA.
7-7.1.14 Rehabilitation Act of 1973 (29 U.S.C. 702 et seq.)
The Rehabilitation Act of 1973 requires suppliers to take affirmative action to employ and advance qualified individuals without discrimination as to their physical or mental handicaps.
7-7.1.14.1 Applicability
With the exceptions outlined below, every contract for supplies or services (including construction and transportation services) over $2,500 must include Clause 9-3: Davis-Bacon Act , which is incorporated by reference in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders , and must be checked off by the CO when applicable.
7-7.1.14.2 Requirements
The Postal Service complies with the Rehabilitation Act of 1973, EO 11758 of January 15, 1974, and the implementing regulations of the Secretary of Labor (41 CFR 60—741). The requirements of Clause 9-13: Affirmative Action for Handicapped Workers does not apply to any agency, instrumentality, or subdivision of the state or local government that does not participate in work under the contract.
7-7.1.14.3 Exemptions
The VP, SM, may exempt any supplier or subcontractor (or any group or category of supplier or subcontractor) from any provisions of Clause 9-13: Affirmative Action for Handicapped Workers in the Postal Service’s interest. The CO must submit a justification for any proposed exemption to the VP, SM.
7-7.1.14.4 Section 508
Section 508 of the Rehabilitation Act is a law that requires Federal agencies, including the Postal Service, to procure electronic and information technology (EIT) that is accessible to persons with disabilities. The law requires that EIT equipment and systems procured on or after June 21, 2001, comply with standards written by the Architectural and Transportation Barriers Compliance Board (Access Board). These standards were published December 21, 2000, in the Federal Register. EIT includes technology such as web pages, software applications, computers, self-contained kiosks, copiers, multimedia, and telecommunications systems. These standards are intended to make these technology products more accessible to individuals with disabilities.
7-7.1.14.5 Department of Labor Notices
Under Clause 9-13: Affirmative Action for Handicapped Workers , the CO must provide the supplier with Department of Labor notices that state the supplier’s obligations and handicapped individuals’ rights under the Employment of the Handicapped program. These notices may be obtained from:
OFFICE OF INFORMATION
EMPLOYMENT STANDARDS ADMINISTRATION
US DEPARTMENT OF LABOR
WASHINGTON DC 20210-0001
7-7.1.14.6 Collective Bargaining Agreements
When performance under Clause 9-13: Affirmative Action for Handicapped Workers requires revision of a collective bargaining agreement, the unions that are parties to such agreements must be advised that the Department of Labor will give them appropriate opportunity to express their views. Neither the CO nor any representative of the CO may discuss with representatives of the supplier or of the unions any aspects of the collective bargaining agreements.
7-7.1.14.7 Complaints
The CO must forward any complaint concerning the Rehabilitation Act through channels to the VP, SM. No investigation or attempt to resolve the complaint may be made without specific instructions from the VP, SM.
7-7.1.14.8 Department of Labor Sanctions
When SM Infrastructure is notified that the Department of Labor has imposed sanctions on a supplier (such as withholding progress payments, terminating or suspending the contract, or debarring the supplier) for violation of Clause 9-13: Affirmative Action for Handicapped Workers , the CO must put the sanctions into effect as soon as possible.
7-7.1.15 The Javits-Wagner-O’Day Act (41 U.S.C. 46—48)
The Javits-Wagner-O’Day Act requires that the Postal Service and other Federal agencies purchase certain supplies and services from qualified workshops that employ people who are blind or severely disabled. The Committee for Purchase from People Who Are Blind or Severely Disabled determines which supplies and services must be purchased and their price. Additional information on the applicability of the Javits-Wagner-O’Day Act can be found in Section 2-13 , Purchase From Mandatory Sources .
7-7.1.16 Vietnam Era Veterans Readjustment Assistance Act of 1972 (38 U.S.C. 4212)
7-7.1.16.1 Applicability
Except as provided in submitted reports, every contract for supplies or services (including utility, construction, and transportation services) or for the use of real or personal property (including lease arrangements) in the amount of $25,000 or more must include Clause 9-14: Affirmative Action for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans , which is included in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders , and must be checked off by the CO as applicable. No CO, supplier, or subcontractor may purchase quantities of supplies or services in less-than-normal quantities to avoid application of Clause 9-14: Affirmative Action for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans .
7-7.1.16.2 Requirements
The Vietnam Era Veterans Readjustment Assistance Act of 1972, EO 11701 of January 23, 1973, the Veterans Employment Opportunities Act of 1999, and the implementing regulations of the Secretary of Labor (41 CFR 60—250) require suppliers to take affirmative action to employ, and advance in employment, qualified special disabled veterans, veterans of the Vietnam era, and other eligible veterans without discrimination based on their disability or veterans’ status, and to list all employment openings with appropriate local employment services.
Contracts may not be awarded to suppliers that have not submitted an annual Form VETS-100, Federal Contractor Veterans’ Employment Report. To determine whether a report has been submitted, COs must:
- Query the Department of Labor’s VETS-100 Database via the Internet at www.vets100.cudenver.edu/vets100search.htm, using the validation code “vets” to proceed with the search in the database; or
- Contact the VETS-100 reporting system via e-mail atverify@vets100.com for confirmation, if the supplier represents that it has submitted the VETS-100 report and is not listed in the database.
7-7.1.16.3 Request for Exemptions
The CO must submit a detailed justification for any proposed exemption to the VP, SM, for submission through channels to the PMG and the director, Office of Federal Contract Compliance Programs (OFCCP).
7-7.1.16.4 Department of Labor Notices
The CO must furnish the supplier appropriate notices for posting when such notices are prescribed by the director, OFCCP at the Department of Labor’s Employment Standards Administration.
7-7.1.16.5 Complaints
The CO must forward any complaint concerning the Vietnam Era Veterans Readjustment Assistance Act of 1972 through channels to the VP, SM. No investigation or attempt to resolve the complaint may be made without specific instructions from the VP, SM.
7-7.1.16.6 Department of Labor Sanctions
When SM Infrastructure is notified that the Department of Labor has imposed sanctions on a supplier (such as withholding progress payments, terminating or suspending the contract, or debarring the supplier) for violation of Clause 9-14: Affirmative Action for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans , the CO must put the sanctions into effect as soon as possible.
7-7.1.17 Contract Disputes Act (41 U.S.C. 601 et seq.)
7-7.1.17.1 Requirements
The CDA creates a comprehensive system for resolving disputes between a supplier and SM at the Postal Service relating to the performance of most purchase contracts. The trigger point for this system is the CO’s decision. The claims of both the supplier and the Postal Service must be the subject of a CO’s decision. The supplier may appeal such a decision to the appropriate agency board of contract appeals; such boards are specifically authorized by the CDA. Alternatively, the supplier, in lieu of appealing a CO’s decision to a board of contract appeals, may file suit on its claim in the United States Court of Federal Claims (CFC). In both forums, the claim is heard de novo. If the supplier or the Postal Service (with the approval of the Attorney General) wishes, either may appeal a decision of a board of contract appeals or the CFC to the United States Court of Appeals for the Federal Circuit (CAFC). Additional information regarding the CDA procedures can be found in 39 CFR sections 601.109 through 601.112, and regulations governing proceedings under the CDA before the Postal Service Board of Contract Appeals can be found at 39 CFR Part 955.
7-7.1.17.2 Applicability
- The purchase of goods, other than real property;
- The purchase of services;
- The purchase of construction, alteration, repair, or maintenance of real property; or
- The disposal of personal property.
7-7.1.18 Prompt Payment Act, As Amended (39 U.S.C. 3901 et seq.)
The Postal Service will pay interest on late payments and unearned prompt payment discounts in accordance with the Prompt Payment Act, 31 U.S.C. 3901 et. seq., as amended by the Prompt Payment Act Amendments of 1988, P.L. 100—496, in accordance with Clause 4-1: General Terms and Conditions , paragraph i , or Clause B-22 : Interest .
