The Act covers service contracts of the Federal agencies described
in Secs. 4.107-4.108. Except as otherwise specifically provided (see
Secs. 4.115 et seq.), all such contracts, the principal purpose of which
is to furnish services in the United States through the use of service
employees, are subject to its terms. This is true of contracts entered
into by such agencies with States or their political subdivisions, as
well as such contracts entered into with private employers. Contracts
between a Federal or District of Columbia agency and another such agency
are not within the purview of the Act; however, ``subcontracts'' awarded
under ``prime contracts'' between the Small Business Administration and
another Federal agency pursuant to various preferential set-aside
programs, such as the 8(a) program, are covered by the Act. It makes no
difference in the coverage of a contract whether the contract services
are procured through negotiation or through advertising for bids. Also,
the mere fact that an agreement is not reduced to writing does not mean
that the contract is not within the coverage of the Act. The amount of
the contract is not determinative of the Act's coverage, although the
requirements are different for contracts in excess of $2,500 and for
contracts of a lesser amount. The Act is applicable to the contract if
the principal purpose of the contract is to furnish services, if such
services are to be furnished in the United States, and if service
employees will be used in providing such services. These elements of
coverage will be discussed separately in the following sections.
