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Special Procurement Procedures Helped Prevent Wage Busting Under Federal Service Contracts in the Cape Canaveral Area


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The Federal Government frequently contracts for many continuing support services. In 1974, the latest year for which data was available, a Department of Labor special analysis showed that the Government had about 27,000 service contracts employing over 337,000 workers at a cost of nearly $3.3 billion. The Service Contract Act of 1965, as amended (SCA)(41 U.S.C. 351), protects from wage busting all contractor service employees, except bona fide executive, administrative, and professional employees. "Wage busting" is the practice of lowering employee wages and fringe benefits by either incumbent or successor contractors in an effort to become low bidders or offerors on Government service contracts, when the employees continue to perform the same jobs. Legislation introduced in the 95th Congress would include professional employees under SCA. This report discusses how special procurement procedures used by the National Aeronautics and Space Administration (NASA) and the Department of the Air Force helped prevent wage busting of employees not covered by SCA during the recompetition of major support service contracts in the Cape Canaveral, Florida, area in 1977.



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