(a) The Act does not say to whom the services under a covered
contract must be furnished. So far as its language is concerned, it is
enough if the contract is ``entered into'' by and with the Government
and if its principal purpose is ``to furnish services in the United
States through the use of service employees''. It is clear that Congress
intended to cover at least contracts for services of direct benefit to
the Government, its property, or its civilian or military personnel for
whose needs it is necessary or desirable for the Government to make
provision for such services. For example, the legislative history makes
specific reference to such contracts as those for furnishing food
service and laundry and dry cleaning service for personnel at military
installations. Furthermore, there is no limitation in the Act regarding
the beneficiary of the services, nor is there any indication that only
contracts for services of direct benefit to the Government, as
distinguished from the general public, are subject to the Act.
Therefore, where the principal purpose of the Government contract is to
provide services through the use of service employees, the contract is
covered by the Act, regardless of the direct beneficiary of the services
or the source of the funds from which the contractor is paid for the
service, and irrespective of whether the contractor performs the work in
its own establishment, on a Government installation, or elsewhere. The
fact that the contract requires or permits the contractor to provide the
services directly to individual personnel as a concessionaire, rather
than through the contracting agency, does not negate coverage by the
Act.
(b) The Department of Labor, pursuant to section 4(b) of the Act,
exempts from the provisions of the Act certain kinds of concession
contracts providing services to the general public, as provided herein.
Specifically, concession contracts (such as those entered into by the
National Park Service) principally for the furnishing of food, lodging,
automobile fuel, souvenirs, newspaper stands, and recreational equipment
to the general public, as distinguished from the United States
Government or its personnel, are exempt. This exemption is necessary and
proper in the public interest and is in accord with the remedial purpose
of the Act. Where concession contracts, however, include substantial
requirements for services other than those stated, those services are
not exempt. The exemption provided does not affect a concession
contractor's obligation to comply with the labor standards provisions of
any other statutes such as the Contract Work Hours and Safety Standards
Act (40 U.S.C. 327 et seq.), the Davis-Bacon Act (40 U.S.C. 276a et
seq.; see part 5 of this title) and the Fair Labor Standards Act (29
U.S.C. 201 et seq.).
