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Showing results for tags 'CBA'.
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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???
I've incorporated into contracts revised DOL wage determinations when exercising an option. This has resulted in a slight increase to the hourly labor rates. However, I'm required to exercise an option (option 3) on a contract, but the contractor has provided a revised collective bargaining agreement (CBA) with new rates. Am I allowed (or required) to increase the new option's labor rates as a result of a collective bargaining agreement? To provide some background, there was no CBA when the agency awarded the contract. The contractor presented to the agency its first CBA about 1 1/2 years after the contract had been awarded (midway through option 1 of the contract). A revised CBA was used to revise the labor rates when the agency exercised option 2. I'll be exercising option 3 this month, but I'm not sure about the CBA. Are we required to honor it? FAR 22.1008-2 discusses CBAs in the context of predecessor and successor contractors, but we're not ready to compete the requirement yet. We still have two options left on it. The option price is worth close to $500k, and the CBA revision adds nearly $30k to that price (for the option year). Seems like a lot.
Hi, Wondering how to process a wage escalation REA for a CPIF contract before actual costs have incurred. When issuing the option we incorporated a new CBA WD. We were going to wait to process the REA to adjust Target Cost based on actuals but management wanted us to adjust the cost based on estimated cost. As long as the new CBA rates result in an allowable cost, why would we base an REA on estimated cost vs. actual cost when adjusting the Target Cost?