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Pilon

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  1. This is a FFP contract. The CBA is the WD and fully incorporated in the contract. We are trying to submit a WD price adjustment and looking at actuals from last year; specifically related to OT and Standby pay.
  2. Facts: We have a contract with an incorporated Collective Bargaining Agreement (CBA) with clear language regarding Overtime and Standby hours. CBA requires the contractor to pay CBA employees 1.5 overtime premium. It also requires to pay a minimum standby pay of four hours even if the member only performed one hour of work. Contract type: Issue: We are trying to process a wage adjustment proposal based on actuals (this is the third one submitted - all previous ones accepted) and the new contracting officer does not recognize the CBA language and stated the following: Overtime premiums are not required under the SCA. While all hours worked on the contract by covered workers are subject to an SCA adjustment for changes in minimum wages, including hours worked over 40 per week, such hourly rate adjustment would not include overtime premium such as additional half time for the hours over 40 per week. The straight-time portions of SCA or FLSA wage increases on overtime hours are properly reimbursable under a price adjustment claim. The premium portions of such wages are not reimbursable. Therefore, the overtime premium payments are viewed as within the contractor's control to entirely avoid. Furthermore, FAR policy discourages the use of overtime hours and the payment of such premiums under government contracts in 22.103. Disconnect: Although the CBA is under the rules of the SCA, CBA provides specific languages that we must comply and pay our employees. Help: Looking for language / reference to support our entitlement.
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