Definitions

The McNamara-O'Hara Service Contract Act (SCA) covers contracts entered into by federal and District of Columbia agencies where the principal purpose of the contract is to furnish services in the U.S. through the use of "service employees." The definition of "service employee" includes any employee engaged in performing services on a covered contract other than a bona fide executive, administrative, or professional employee who meets the exemption criteria set forth in 29 CFR Part 541.

There are statutory exemption found at 29CFR541

A subcontract is any agreement of arrangement between a contractor and any company (in which the parties do not stand in the relationship of employer and an employee):

1. For the purchase, sale or use of personal property or nonpersonal services which, in whole or in part, is necessary to the performance of any one or more contracts; or
2. Under which any portion of the contractor’s obligation under any one or more contracts is performed, undertaken or assumed.

A Subcontract employee is an employee working for a subcontractor. The subcontractor is an independent contractor responsible for completion of the work described in the subcontract.

A subcontractor is any person holding a subcontract, and, for the purposes of Subpart B of this part, any person who has held a subcontract subject to the order. The term ”first tier subcontractor” refers to a subcontractor holding a subcontract with a prime contractor