WHO WE SERVE

The SCA Compliance Software Built for Federal Service Contractors, Not Construction

The Service Contract Act has its own wage determinations, its own classification system, and its own fringe benefit rules. But every compliance tool on the market treats SCA like an afterthought bolted onto a Davis-Bacon platform. SkillSmart is different. SCA wage determinations, health and welfare fringe calculations, and service employee classifications are built into the system from the ground up.

YOUR WORLD

Your Contract Covers 200 Service Employees Across 4 Federal Facilities. DOL Just Issued a New Wage Determination.

You hold a facilities maintenance contract at a federal complex. Your workforce includes custodians, HVAC technicians, groundskeepers, and security guards. Each classification has a different SCA wage rate. Each one has a separate health and welfare fringe requirement. The DOL just issued a revised wage determination for your area, and you need to figure out which employees are affected, what the new rates are, and how that changes your fringe benefit obligations before the next payroll runs.

Now multiply that across the other three federal facilities your company services under separate contracts. Different locations, different wage determinations, different classification mixes. Your payroll team is pulling rates from the SCA directory, cross-referencing the contract’s wage determination number, and manually calculating whether your health and welfare benefit package meets the fringe requirement or if you owe a cash-in-lieu payment.

That is what SkillSmart replaces. The correct SCA wage determination is applied to each contract. Service employee classifications are mapped to the right rates. Health and welfare fringe requirements are calculated automatically. When a wage determination updates, every affected contract and employee is flagged.

YOUR CHALLENGES

SCA Compliance Problems That Davis-Bacon Tools Were Never Built to Solve

Service Classifications Are Not Construction Trades

SCA wage determinations use a completely different classification system than Davis-Bacon. Your workforce includes janitors, security officers, food service workers, IT help desk staff, and HVAC mechanics. Each one maps to a specific SCA directory code with its own wage rate. Tools built for construction trades do not have these classifications, which means your team manually maps employees to rates every pay period.

Health and Welfare Fringe Is Not Optional

Every SCA wage determination includes a health and welfare fringe benefit requirement. You either provide a qualifying benefit package that meets or exceeds the required amount, or you pay the difference as a cash-in-lieu supplement on every paycheck. Calculating which option costs less, tracking benefit plan values against the SCA requirement, and documenting compliance is a manual process that most payroll systems do not support.

DOL Wage and Hour Enforcement Is Increasing

The Department of Labor’s Wage and Hour Division has increased enforcement actions on federal service contracts. Investigations can go back two years. If your records do not show that every service employee was paid the correct SCA rate with the correct fringe benefit for every pay period on every contract, you face back-pay liability, penalties, and potential debarment from federal contracting.

HOW SKILLSMART HELPS

SCA Wage Determinations. Service Employee Classifications. Fringe Tracking. One System.

Service Employee Classifications Mapped to SCA Rates

SkillSmart maintains the full SCA directory of service employee classifications. When you set up a contract, you select the applicable wage determination and map your employees to their SCA classification codes. The system applies the correct rate to each employee on each contract. When a classification rate updates, every affected employee is flagged. No more manual lookups. No more cross-referencing PDFs from the SCA wage determination database.

Health and Welfare Fringe Calculated Automatically

For every SCA contract, SkillSmart tracks the health and welfare fringe benefit requirement from the wage determination. The system compares your actual benefit plan costs per employee against the SCA-required amount. If your plan meets the threshold, you are compliant. If it falls short, SkillSmart calculates the exact cash-in-lieu supplement owed per employee per pay period. No spreadsheet formulas. No guesswork on whether your plan qualifies.

Audit-Ready Records for Every Contract and Pay Period

Every wage rate applied, every fringe calculation, every classification assignment is recorded and timestamped from the first pay period. When a DOL Wage and Hour investigator requests records, you generate the complete package for any contract, any date range, in minutes. Pay records, classification documentation, fringe benefit calculations, and wage determination history, all organized by contract, employee, and pay period.

INSTANT DEMO

See SCA Prevailing Wage Compliance in Action

Click through InSight IQ yourself. No form. No sales call. Watch SCA wage determinations apply to a federal service contract, see health and welfare fringe calculations validated, and check compliance status across service employee classifications.

Take a tour of InSight IQ

✓ SCA Wage Determinations     ✓ Service Employee Classifications     ✓ Health & Welfare Fringe     ✓ Audit Documentation

Prefer a guided walkthrough? Request a live demo with a compliance specialist. Request a live demo →

Trusted by federal service contractors managing SCA compliance across government facilities

50
states with SCA and prevailing wage coverage
99.8%
audit pass rate across contracts
100%
of SCA fringe calculations automated
2-4
weeks to full implementation

What Our Clients Say

DC

“We manage facilities maintenance contracts at 12 federal sites across 3 states. Before SkillSmart, our payroll team spent two days every pay period manually calculating health and welfare fringe supplements and matching employees to SCA classification codes. Now the system maps every employee to the correct rate, calculates the fringe difference automatically, and flags us when a wage determination updates. Our last DOL review covered 18 months of records and closed in two days.”

Director of Payroll and Compliance

National Facilities Services Contractor

SOLUTIONS FOR SCA CONTRACTORS

Explore the Tools That Keep Your Federal Service Contracts Compliant

Prevailing Wage Compliance

SCA and Davis-Bacon wage determinations managed in one system. Rate updates applied to active contracts automatically when DOL issues revisions.

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Fringe Benefit Tracking

Health and welfare fringe requirements calculated per employee per contract. Cash-in-lieu supplements computed when benefit plans fall below the SCA threshold.

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Certified Payroll Reporting

Pay records and compliance documentation organized by contract, classification, and pay period. Audit-ready packages generated on demand.

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FREQUENTLY ASKED

Service Contract Act (SCA) Compliance FAQs

Answers to the questions federal service contractors, payroll teams, and compliance officers ask most about SCA prevailing wage, health and welfare fringe benefits, and DOL enforcement.

What is Service Contract Act compliance software?

Service Contract Act compliance software is a platform that tracks SCA wage determinations, maps service employee classifications to the correct prevailing wage rates, calculates health and welfare fringe benefit requirements, and maintains audit-ready pay records for federal service contracts. It replaces the manual process of looking up rates in the SCA directory, calculating fringe supplements in spreadsheets, and assembling documentation for DOL reviews. SkillSmart handles all of this in one system.

What is the Service Contract Act and which contracts does it cover?

The McNamara-O’Hara Service Contract Act requires that employees working on federal service contracts over $2,500 be paid the prevailing wage for their service classification in the geographic area where the work is performed. It covers janitorial, security, food service, IT support, facilities maintenance, and hundreds of other service categories. Unlike Davis-Bacon, which applies to construction, the SCA uses its own classification directory and includes a mandatory health and welfare fringe benefit requirement.

How does SkillSmart handle SCA wage determinations?

SkillSmart maintains SCA wage determinations and maps them to your active contracts by location and classification. When you add a contract, you select the applicable wage determination number and assign service employee classifications. The system applies the correct rate to each employee automatically. When DOL revises a wage determination, SkillSmart flags every affected contract and employee so your team can review and adjust before the next payroll.

Does SkillSmart calculate health and welfare fringe benefits for SCA contracts?

Yes. Every SCA wage determination includes a health and welfare fringe benefit requirement. SkillSmart compares your actual benefit plan value per employee against the SCA-required amount. If the plan meets or exceeds the requirement, you are compliant. If it falls short, the system calculates the exact cash-in-lieu supplement owed per employee per pay period. This calculation runs automatically every pay cycle.

What is the difference between SCA and Davis-Bacon compliance?

Davis-Bacon applies to federally-funded construction projects and uses construction trade classifications. The SCA applies to federal service contracts and uses a separate directory of service employee classifications. SCA also includes a mandatory health and welfare fringe benefit requirement that does not exist under Davis-Bacon. The wage determination lookup process is different, the classification system is different, and the fringe rules are different. SkillSmart supports both laws in one system, with separate workflows for each.

What are the penalties for SCA violations on a federal service contract?

SCA violations can result in back-pay liability for the difference between wages paid and the prevailing rate. The DOL Wage and Hour Division can investigate records going back two years. Willful violations can lead to debarment from federal contracting, contract termination, and the withholding of contract payments to cover underpaid wages. Health and welfare fringe shortfalls are treated the same as wage underpayments.

How long does it take to set up SkillSmart for SCA compliance?

Most federal service contractors are fully operational in 2 to 4 weeks. A dedicated compliance specialist configures your active contracts with the correct SCA wage determinations, maps your employee classifications, and sets up health and welfare fringe tracking against your benefit plan data. If you have contracts already in progress, existing pay records can be imported for continuity.

Still have questions?

Talk to a compliance specialist in a 15-minute walkthrough. No form wall, no sales pressure. Just straight answers about SCA compliance for your federal service contracts.

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15 min
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READY TO GET SCA COMPLIANCE RIGHT?

See How SkillSmart Works for Federal Service Contractors

Get a 15-minute walkthrough of InSight IQ. See exactly how SkillSmart tracks SCA wage determinations, service employee classifications, and health and welfare fringe requirements across your federal service contracts.

15-min walkthrough. No commitment. SOC 2 Type II certified.