Service Contract Modernization Act

This bill establishes an inflation-adjusted threshold for federal service contracts requiring certain labor standards. It sets an initial threshold of $2,500 (adjusted from 1965 levels using the Consumer Price Index), which will increase annually based on the June-to-June Consumer Price Index change. Federal contractors bidding on service contracts exceeding this threshold must comply with the updated labor standards. The change directly affects contractors working on federal service contracts valued above the threshold amount, replacing a fixed dollar figure with an inflation-linked amount.