Service Contract Reform Act of 1986

Service Contract Reform Act of 1986 - Amends the Service Contract Act of 1965 to raise from $2,500 to $200,000 the minimum size of a private service contract with the Federal Government subject to such Act. Declares that such Act applies only to contracts whose principal purpose is to furnish services.

Revises provisions regarding predecessor contracts. Provides that a successor contractor shall not be required to pay the wages and fringe benefits of a predecessor contractor unless the Secretary of Labor establishes that wages and fringe benefits under the successor contract are less than prevailing wages and fringe benefits in the locality in which the work is to be performed.

Directs the Secretary to make wage and fringe benefit determinations for service contracts under which 25 or more service employees are to be employed. (Current law requires such determinations for five or more service employees.)