The U.S. Department of Labor has released its annual memorandum noting a rate increase for Service Contract Act (SCA) Health and Welfare Fringe Benefits. The new rate is $4.02 per hour (up from $3.81 per hour last year) and is required in all government contract bids, or other service contracts awarded on or after July 22, 2014. SCA benefit change notices are not sent directly to contractors or subcontractors, so we wanted to make sure our SCA contractor clients were aware of this rate increase. We recommend that you do not make the change until your Contracting Officer modifies it in your contract; usually at the new option date. If you have questions regarding this fee as it pertains to your contract, call us at 1.800.250.2741 or email us atsolutions@gsanational.com.