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GMR

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  1. Hello,

    My acquisition team is having a debate regarding the Service Contract Act (SCA) and Wage Determinations (WD). Reading through the FAR regulations and Federal Codes have made things muddy for me. Most of our contracts are predominantly professional services and do not include specific labor categories the Offerors need to incorporate; however, because it is healthcare related it could have proposed positions similar to nurses and it could have services that are clerical. Note- our place of performance is always unknown. Some believe the SCA applies and that you have to ask the Offerors (pre-award) if they have any direct labor categories for which a WD is necessary and the Offeror then provides the adequate information for the agency to confirm the labor category rate is equal to or higher than the prevailing WD. This would be attached to the contract at award. Others believe that since the SCA applies you need to request each Offeror provide every possible place of performance. For the apparent awardee you then have blanket WDs (all labor categories listed for a specific county, state) for each possible place of performance and attach those are attached to the contract at award.  In addition, they believe blanket WDs are necessary to cover indirect labor categories.

    How do you incorporate WDs when the SCA applies? 

    Is it necessary to have the SCA if the contract is predominantly professional services?  Also is this defined as have a small percentage of WD covered labor categories? 

    Are indirect labor categories covered under the SCA?

    Ex. A

    SCA applies; RFP requests any direct labor categories for which WD applies; Offeror provides a direct labor category of "Secretary" and the applicable information for that employee so the Government can confirm the labor rate is equal to or higher than the WD for that geographical area. This WD is listed in the contract and an electronic version for the WD (Secretary only) is attached to the contract award.

    Ex. B

    SCA applies; RFP requests all possible places of performance of the Offeror were they to be awarded the contract. Offeror provides 5 locations (county, state) of possible places of performance. A WD for each place of performance listing all the WD labor categories is attached to the contract at award.

    If anyone can help I'd appreciate it. 

     

  2. ji20874,

    I see your point. Perhaps it is better, in our circumstance, to use (1) Circumstances justifying limiting the source instead of a logical follow-on for new work. Provided we thoroughly document the justification. These are severable services but our predicament is that we will be re-competing this effort under a newly established Multiple Award IDIQ mid 2019 and do not want to re-compete it for a six month period and then turn around and re-compete it again. It makes more sense to have the current contractor continue the work. Plus they will need to transition twice.  This would cause more administrative costs to the Government. Perhaps it is a mixture of the above and for economy and efficiency (although no new work is being done).

    Thank you for your assistance. It appears I must feed the trolls.

  3. To answer both questions:

    Are you adding the new work by modification to an existing order? 

    No, it will be a continuation of current services, no new work.

    ***********************************************************************

    What is the base period of performance of the order? How many options?

    The current GSA task order has had a 12-month base period and four 12-month option periods (all exercised); plus we exercised the 6 month Option to Extend  Services (52.217-8) - so the task order has been active for an overall period of performance of 5 years and 6 months. This LSJ will be for an additional 6-month period plus an optional 6-month period.  So there is a possibility to extend up to a total of 6 years and 6 months.

     

    I forgot to add, sorry if this is critical, that we also follow the HHSAR - our policy department states that it is "required by HHSAR 317.204" - however, this actually refers you to FAR 17.204(e). It's only the signature level that changes with the HHSAR. Note that this IS NOT an IT contract.

    HHSAR 317.204 Contracts.

    (e)(1) Information technology contracts. Notwithstanding FAR 17.204(e), the 5-year limitations apply also to information technology contracts unless a longer period is authorized by statute.

    (2) Requests to exceed 5-year limitation. A request to exceed the 5-year limitation specified in FAR 17.204(e) must follow guidance in FAR Part 1.7.

    (3) Approval authority. All requests to exceed the 5-year limitations specified in FAR 17.204(e) must be supported with a Determination and Finding and approved by:

    (i) The HCA; and

    (ii) The HHS SPE.

  4. We are doing a Limited Source Justification (LSJ) in accordance with FAR 8.405-6(1)(i.)(C) -  In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.

    Our requirement meets the above; however, our policy department is requiring that we do a Determinations and Findings for going over the 5 year limit - FAR 17.204(e) - Unless otherwise approved in accordance with agency procedures, the total of the basic and option periods shall not exceed 5 years in the case of services, and the total of the basic and option quantities shall not exceed the requirement for 5 years in the case of supplies. These limitations do not apply to information technology contracts. However, statutes applicable to various classes of contracts, for example, the Contract Labor Standards statute (see 22.1002-1), may place additional restrictions on the length of contracts.

    At FAR 17.2014(a) it states, The contract shall specify limits on the purchase of additional supplies or services, or the overall duration of the term of the contract, including any extension.

    The use of the LSJ will definitely take us over the 5 years (we have already used the FAR 217-8 Option to Extend Services clause for a six-month period. We've never had to do one before as I believe the authority to do the LSJ is sufficient for going over five years. Does anyone have experience in the same situation or interpret this differently?

    Also, does anyone have thoughts for also having to do a D&F for going over 5 years using the FAR 217-8 clause if it takes it to 5 years and 6 months?

    Thank you

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