Service Contract Modernization Act

Service Contract Modernization Act

This bill increases a threshold used to determine whether an employee of a federal services contractor or subcontractor is entitled to wages and fringe benefits prevailing in the locality where services are performed (or in a predecessor contractor's collective bargaining agreement).

Under current law, a federal contractor or subcontractor that enters into a service contract in excess of $2,500 must comply with prevailing wage and related requirements. This bill increases that amount by adjusting it for inflation since 1965 and provides for future increases based on inflation.