The Act, in paragraph (6) of section 7, exempts from its provisions
``any employment contract providing for direct services to a Federal
agency by an individual or individuals.'' This exemption, which applies
only to an ``employment contract'' for ``direct services,'' makes it
clear that the Act's application to Federal contracts for services is
intended to be limited to service contracts entered into with
independent contractors. If a contract to furnish services (to be
performed by a service employee as defined in the Act) provides that
they will be furnished directly to the Federal agency by the individual
under conditions or circumstances which will make him an employee of the
agency in providing the contract service, the exemption applies and the
contract will not be subject to the Act's provisions. The exemption does
not exclude from the Act any contract for services of the kind performed
by service employees which is entered into with an independent
contractor whose individual services will be used in performing the
contract, but as noted earlier in Sec. 4.113, such a contract would be
outside the general coverage of the Act if only the contractor's
individual services would be furnished and no service employee would in
any event be used in its performance.
