Federal

Service Contract Modernization Act

Source: Congress.gov · 951 words in original text

What This Bill Does

This bill creates a "socioeconomic labor threshold" - a dollar amount that triggers certain labor rules for government service contracts. The threshold will adjust each year based on inflation to account for the rising cost of living.

Who It Affects

Companies that bid on federal service contracts. The Secretary of Labor, who must calculate and announce the threshold amount each year.

Key Provisions

• The initial socioeconomic labor threshold is $2,500, adjusted upward by comparing inflation rates from October 1965 to the bill's enactment date, and rounded to the nearest $100. (Sec. 2(b)(1)) • Starting October 1 after the bill becomes law, and each October 1 thereafter, the Secretary of Labor must recalculate the threshold by adjusting the previous year's amount based on inflation changes measured between June of the prior year and June of the current year. (Sec. 2(b)(2)) • The threshold applies to contracts made on or after the bill's enactment date, while older contracts continue using the $2,500 amount. (Sec. 3(b)) • The bill defines "socioeconomic labor threshold" as the amount established under the bill's threshold section. (Sec. 3(a))

What Changes

If this becomes law, the dollar amount triggering certain labor protections in federal service contracts will automatically increase each year based on inflation instead of remaining fixed at $2,500.

Important Definitions

"Socioeconomic labor threshold" means the dollar amount established by this bill that adjusts annually for inflation.

II 118TH CONGRESS 1ST SESSION S. 335 To establish a socioeconomic labor threshold and use that threshold for purposes of chapter 67 of title 41, United States Code. IN THE SENATE OF THE UNITED STATES FEBRUARY 9, 2023 Mr. LANKFORD introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To establish a socioeconomic labor threshold and use that threshold for purposes of chapter 67 of title 41, United States Code. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Service Contract Mod- 4 ernization Act’’. 5 SEC. 2. SOCIOECONOMIC LABOR THRESHOLD. 6 (a) IN GENERAL.—For purposes of this Act, the so- 7 cioeconomic labor threshold is— 8 (1) for the period beginning on the date of en- 9 actment of this Act and ending on October 1 fol- 10 VerDate Sep 11 2014 06:48 Feb 22, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S335.IS S335 kjohnson on DSK79L0C42PROD with BILLS 2 •S 335 IS lowing such date of enactment, the amount deter- 1 mined by the Secretary of Labor under subsection 2 (b)(1); and 3 (2) for each 1-year period beginning on October 4 1 following such date of enactment, the amount de- 5 termined by the Secretary of Labor under subsection 6 (b)(2). 7 (b) INFLATION ADJUSTMENTS.— 8 (1) INITIAL PERIOD.—The amount determined 9 under this paragraph for the period described in 10 subsection (a)(1) shall be $2,500 as— 11 (A) increased by the percentage increase in 12 the Consumer Price Index for All Urban Con- 13 sumers (all items; United States city average), 14 as published by the Bureau of Labor Statistics, 15 comparing— 16 (i) such Consumer Price Index for Oc- 17 tober of 1965; and 18 (ii) such Consumer Price Index for 19 the most recent month as of the date of 20 enactment of this Act for which such Con- 21 sumer Price Index is available; and 22 (B) (if applicable), rounded to the nearest 23 multiple of $100. 24 (2) SUBSEQUENT PERIODS.— 25 VerDate Sep 11 2014 06:48 Feb 22, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S335.IS S335 kjohnson on DSK79L0C42PROD with BILLS 3 •S 335 IS (A) IN GENERAL.—The amount deter- 1 mined under this paragraph for the applicable 2 period described in subsection (a)(2) shall be 3 the amount in effect on the date of such deter- 4 mination as— 5 (i) increased (if applicable) from such 6 amount by the annual percentage increase, 7 if any, in the Consumer Price Index for All 8 Urban Consumers (all items; United States 9 city average), as published by the Bureau 10 of Labor Statistics, from the preceding 11 year as calculated in accordance with sub- 12 paragraph (B); and 13 (ii) (if applicable) rounded to the 14 nearest multiple of $100. 15 (B) CONSUMER PRICE INDEX.—In making 16 the determination under subparagraph (A) and 17 calculating the percentage increase in the Con- 18 sumer Price Index for All Urban Consumers 19 under subparagraph (A)(i), the Secretary of 20 Labor shall compare the Consumer Price Index 21 for All Urban Consumers (all items; United 22 States city average), as determined by the Bu- 23 reau of Labor Statistics, for June of the cal- 24 endar year in which such determination is made 25 VerDate Sep 11 2014 06:48 Feb 22, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S335.IS S335 kjohnson on DSK79L0C42PROD with BILLS 4 •S 335 IS with the Consumer Price Index for All Urban 1 Consumers (all items; United States city aver- 2 age), as determined by the Bureau of Labor 3 Statistics, for June of the preceding calendar 4 year. 5 (C) RULE OF CONSTRUCTION.—With re- 6 spect to a determination under subparagraph 7 (A) of the amount in effect under this para- 8 graph for an applicable period under subsection 9 (a)(2), if there is not an annual percentage in- 10 crease in the Consumer Price Index for All 11 Urban Consumers (all items; United States city 12 average) from the preceding year as described 13 in subparagraph (A)(i), the amount in effect 14 under this subsection for such applicable period 15 shall be the amount in effect under subsection 16 (a) on the date of such determination. 17 SEC. 3. AMENDMENTS TO THE MCNAMARA-O’HARA SERVICE 18 CONTRACT ACT. 19 (a) DEFINITION.—Section 6701 of title 41, United 20 States Code, is amended— 21 (1) by redesignating paragraph (4) as para- 22 graph (5); and 23 (2) by inserting after paragraph (3) the fol- 24 lowing: 25 VerDate Sep 11 2014 06:48 Feb 22, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S335.IS S335 kjohnson on DSK79L0C42PROD with BILLS 5 •S 335 IS ‘‘(4) SOCIOECONOMIC LABOR THRESHOLD.— 1 The term ‘socioeconomic labor threshold’ means the 2 socioeconomic labor threshold established under sec- 3 tion 2 of the Service Contract Modernization Act.’’. 4 (b) APPLICABILITY THRESHOLD.—Section 5 6702(a)(2) of title 41, United States Code, is amended 6 to read as follows: 7 ‘‘(2) involves an amount exceeding— 8 ‘‘(A) for contracts and bid specifications 9 made prior to the date of enactment of the 10 Service Contract Modernization Act, $2,500; 11 and 12 ‘‘(B) for contracts and bid specifications 13 made on or after such date of enactment, the 14 socioeconomic labor threshold.’’. 15 Æ VerDate Sep 11 2014 06:48 Feb 22, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S335.IS S335 kjohnson on DSK79L0C42PROD with BILLS

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