Our service contract clients run janitorial and custodial work, food service, security and guard services, grounds and facilities maintenance, base operations, warehousing, healthcare support, call centers and IT services. They tend to carry larger hourly headcounts across multiple sites and states, and their contracts run for years with an option-year cycle and a recompete at the end. Where construction contractors lean toward retirement, this side of the business is health-benefit driven, because the health and welfare obligation is what the wage determination is written around.
The health and welfare rate is owed on every hour paid, including vacation and holiday hours, and part-time employees have to be annualized so the benefit cost per hour is calculated correctly. Vacation accrual, holiday obligations and Executive Order paid sick leave sit alongside it, and these are the details SCA audits turn on. Revised wage determinations, price adjustments and successorship move the numbers mid-contract, and we adjust the plan and the reporting as they change.
Most service contractors direct the bulk of the health and welfare obligation into medical, dental, vision and life coverage, which is what employees notice and what keeps a trained crew in place through a recompete. Whatever remains after the health package is funded can go into the retirement plan, and paid leave obligations are tracked alongside both.