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114344 1 (1981-02-12)

handle is hein.gao/gaobacutr0001 and id is 1 raw text is: 






               OPENING REMARKS OF CHARLES J. GAREIS
            SENIOR EVALUATOR, HUMAN RESOURCES DIVISION
                  U.S. GENERAL ACCOUNTING OFFICE

                            DURING THE

            PANEL DISCUSSION ON THE   RVICE CONTRACT AC

                              AT THE

             NATIONAL CONTRACT MANAGEMENT ASSOCIATION'S
        MID-WINTER REGIONAL SYMPOSIUM IN MELBOURNE, FLORIDA

                        FEBRUARY 12-13, 1981


     I am pleased to be here today to participate in this panel

discussion of the Service Contract Act.  In particular I would

like to discuss the recently issued General Accounting Office report

entitled, Service Contract Act Should Not Apply to Service Employees

of ADP and High-Technology Companies.

LABOR'S SERVICE CONTRACT ACT DECISION

     On June 5, 1979,1the Department of Labor notified the General

Services Administration (GSA) that the maintenance and repair service

specifications of all contracts for the purchase or rental of supplies

or equipment were subject to the Service Contract Act (SCA), thereby

denying GSA's request that such contracts be temporarily exempted

from SCA and the prevailing wage determinations issued by Labor.

     Soon thereafter, several major automatic data processing

(ADP) manufacturers publicly announced their refusal to bid

on or enter into any Government contract subject to SCA coverage.

Other firms appeared ready to follow suit.  Recognizing the

industry concerns, jcongressional and Federal agency pressures

were brought to bear on Labor to exercise its authority under



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