[Comments on S. 2261]

Pursuant to a congressional request, GAO commented on a bill that would amend the Service Contract Act of 1965 to revise Department of Labor procedures for determining wage rates. GAO noted that the amendment would require contractors and subcontractors to pay their employees working under federal contracts at rates that Labor sets. GAO also noted that the proposed bill would: (1) increase the threshold of contracts covered; (2) cover only those contracts that are principally service contracts; (3) limit the applicability of certain contractor provisions; (4) define specific terms; (5) increase the contracts exempt from the act's wage determination requirements; and (6) alleviate longstanding contract coverage. GAO believes that Congress should pass the bill because it would save the government money without affecting the basic purpose of the act.