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ARTICLE · 30 AUGUST 2023

Missing SCA Clause Did Not Excuse Noncompliance Or Allow For Full Equitable Adjustment

Morrison Foerster
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In Innovative Technologies, Inc., ASBCA No. 6186, 62185, the Armed Services Board of Contract Appeals ("ASBCA" or the "Board") held that, despite the federal government's failure to include or incorporate the McNamara-O'Hara Service Contract Act ("SCA") FAR Clause 52.222-41 (the "SCA Clause") in the contract.

United StatesGovernment, Public Sector

In Innovative Technologies, Inc., ASBCA No. 6186, 62185, the Armed Services Board of Contract Appeals ("ASBCA" or the "Board") held that, despite the federal government's failure to include or incorporate the McNamara-O'Hara Service Contract Act ("SCA") FAR Clause 52.222-41 (the "SCA Clause") in the contract, the contractor was required to comply with the SCA and not entitled to an equitable adjustment for all costs it incurred from a $1.5 million settlement with the U.S. Department of Labor ("DOL") for its noncompliance. This case serves as an important reminder for contractors to be vigilant in determining whether their services contracts are covered by the SCA, even if the agency fails to include or reference the SCA Clause.

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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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