How long can service contracts last?

Contracts for services subject to the SCA cannot exceed a total length of five years. Contracts for services NOT subject to the SCA cannot exceed a total length of five years, unless they use performance-based acquisition (PBA) procedures (see Contracting Policy 37.4, Performance-Based Acquisitions).

When does a contractor agree to perform a service?

When a contractor agrees to perform a particular service in exchange for compensation, the terms and conditions of that agreement are reflected in a standard contract.

What are the terms of a service contract?

1. DEFINITIONS For purposes of this Agreement, the following terms shall have the following meanings: a. “Services” means any and all services specified in the Statement of Work (as defined below). b.

What do you mean by ongoing service contract?

Ongoing Service Contract: This is a type of service contract used for ongoing work as requested by a client. These contracts generally specify a payment schedule and a service limit for the ongoing development, production, and/or maintenance of the service offers.

What happens when a service agreement is terminated?

When this happens, there is cause for the other party file to have the contract terminated. For the contract to be terminated, the party claiming the breach must show that the failure resulted in a material breach of the terms of the contract. Canceling a service agreement must be done according to the terms of the contract.

When to enter into a severable services contract?

(a) Authority To Enter Into Contract .-The head of an executive agency may enter into a contract for the procurement of severable services for a period that begins in one fiscal year and ends in the next fiscal year if (without regard to any option to extend the period of the contract) the contract period does not exceed one year.

Who is an employee under the Service Contract Act?

A “service employee” is an employee, excluding an executive, administrative, or exempt professional employee under 29 CFR Part 541, who is actively working in performance of a service pursuant to contract covered by the SCA. Understanding the McNamara-O’Hara Service Contract Act

What is 37.106 funding and term of service contracts?

37.106 Funding and term of service contracts. 37.106 Funding and term of service contracts.

What happens if you fail to comply with the Service Contracts Act?

Failure to comply with the requirement of the Service Contracts Act could result in terminating the service contract and payment of the costs associated with the termination to the federal government.