Facts: 5 year option contract to provide janitorial services; years one and two wages are under a CBA; CBA expires during performance and contract states that the prevailing wage determination will apply to remaining option years upon expiration of the CBA; CBA wages are higher than incorporated wage determination rates; contractor operated at a loss at the CBA rates; the agency knew the wage rates were lower under the WDR than under the CBA when they executed this FFP contract.
Situation: CO seeks a reduction in the firm fixed price contract price to capture the difference between the CBA rates and the wage determination rates.
Question: Does the expiration of the CBA and reversion to the WDR constitute "a decreased wage determination applied to this contract by operation of law" even though the WDR was incorporated into the contract at the time of execution?
Certainly there is an equitable argument here somewhere???