In earlier posts, we discussed that paying employees a prevailing wage in the U.S. has been a policy — in some form — for over 125 years. Local, state, and federal projects all share the same core goal: ensuring workers are paid at least the prevailing wage for their job classification in the community where they work.

While the concept itself is well-established, demonstrating compliance isn’t always simple. Many employers still find it challenging to keep up with reporting requirements, gather accurate data, and respond to investor or agency audits.
At SkillSmart, we believe paying prevailing wages isn’t just a checkbox — it benefits workers, strengthens local economies, and supports businesses. And just as importantly, we believe the process of proving compliance should be straightforward and stress-free.

A closer look at the Service Contract Act (SCA)

One type of contract that requires prevailing wage compliance but often flies under the radar is the McNamara-O’Hara Service Contract Act (SCA).

The SCA requires contractors and subcontractors performing services on prime contracts over $2,500 to pay service employees no less than the wage rates and fringe benefits prevailing in the locality. The U.S. Department of Labor (DOL) issues wage determinations on a contract-by-contract basis, and these are built into each contract.

What services does the SCA cover?

Some common examples include:

• Custodial and janitorial services: Cleaning, waste removal, and maintenance of government facilities.
• Maintenance and repair services: Upkeep of equipment, vehicles, building systems, and electronics.
• Security services: Guard and watch services.
• Food services: Managing cafeterias and meal provision on government property.
• Grounds maintenance: Landscaping, lawn care, and related tasks.
• IT and data processing services: Computer support and information systems.
• Specialized professional services: Drafting, illustrating, graphic arts, stenographic reporting, and even mortuary services.
• General support services at federal facilities: Logistics, operations, maintenance, warehousing, and more.

Keep focus on your mission — not on compliance headaches

We know these organizations play an essential role in serving government agencies and local communities. While paying prevailing wage is critical, it should never distract from the real mission: delivering services safely, effectively, and on time.

That’s why we designed InSight IQ to keep the focus on the work — while simplifying wage compliance and empowering your team with user-friendly technology and responsive support.

How InSight IQ supports SCA compliance

•  User-friendly, configurable platform that adapts to your unique project and workflow needs.
• Track workforce diversity and demographics, in addition to prevailing wage compliance and certified payroll.
• Automated, organization-specific reporting that makes audits and investor reviews a breeze.
• Access for unlimited subcontractors at all tiers — plus unlimited user support.
• Real-time data collection and live dashboards so you can make decisions with confidence.
• Flexible wage rate change scheduling to stay ahead of updates.
• Track and report on both W2 and 1099 workers accurately.
• Generate and e-sign WH-347 forms directly from the system.
• Robust data security — including separate servers and SOC2 compliance — so your data stays safe.

Ready to simplify SCA compliance?

Whether you’re already managing SCA projects or just starting out, we’re here to help. Reach out anytime to learn more or schedule a personalized demo. Our team is ready to support you every step of the way.