1. Short title This Act may be cited as the Service Contract Modernization Act . 2. Socioeconomic labor threshold (a) In general For purposes of this Act, the socioeconomic labor threshold is— (1) for the period beginning on the date of enactment of this Act and ending on October 1 following such date of enactment, the amount determined by the Secretary of Labor under subsection (b)(1); and (2) for each 1-year period beginning on October 1 following such date of enactment, the amount determined by the Secretary of Labor under subsection (b)(2). (b) Inflation adjustments (1) Initial period The amount determined under this paragraph for the period described in subsection (a)(1) shall be $2,500 as— (A) increased by the percentage increase in the Consumer Price Index for All Urban Consumers (all items; United States city average), as published by the Bureau of Labor Statistics, comparing— (i) such Consumer Price Index for October of 1965; and (ii) such Consumer Price Index for the most recent month as of the date of enactment of this Act for which such Consumer Price Index is available; and (B) (if applicable), rounded to the nearest multiple of $100. (2) Subsequent periods (A) In general The amount determined under this paragraph for the applicable period described in subsection (a)(2) shall be the amount in effect on the date of such determination as— (i) increased (if applicable) from such amount by the annual percentage increase, if any, in the Consumer Price Index for All Urban Consumers (all items; United States city average), as published by the Bureau of Labor Statistics, from the preceding year as calculated in accordance with subparagraph (B); and (ii) (if applicable) rounded to the nearest multiple of $100. (B) Consumer Price Index In making the determination under subparagraph (A) and calculating the percentage increase in the Consumer Price Index for All Urban Consumers under subparagraph (A)(i), the Secretary of Labor shall compare the Consumer Price Index for All Urban Consumers (all items