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NenaLenz posted a topic in Contract Pricing Including CAS & Allowable CostsAgency forgot to include a wage determination in a concessions contract until several years into contract. Agency finally added the WD at DOL request. DOL seeking back wages from contractor. Contractor intends to seek equitable adjustment from Agency. We cannot find precedent for how an equitable adjustment would work in a concessions contract. Contractor earns a modest management fee as FFP % of sales and remits a similar size fee to Agency. Any ideas? Let me know if you need additional facts. And thanks for any insight you all may have for us!
I am trying to sort out the actual contractual obligations between a federal agency and a contractor under a messy contract. About a decade ago, the parties signed an agreement containing the terms and conditions under which the contractor would provide certain concession services to the agency at locations around the US. The locations to be managed by the contractor were not determined at the time of the contract. Instead, the contract required the contractor to follow certain steps to take over concessions upon request of the agency. The contract leaves key details to be worked out on a location-by-location basis with local staff.The contract itself reads more like a schedule contract, an agreement to agree. Over time, the contractor did begin to manage concessions and worked with the staff at the local building level to get those operations up and running. I don't think the contracting officer was in the loop, beyond getting monthly reports of the concessions under management. Contractor remitted no payment to the contracting officer, all payments went to local facililties. So here are my questions: Are these concessions operations part of the national contract? There are no actual work orders or any contract documents of any sort at the local level. And there is absolutely nothing in the national contract about actual performance obligations tied to specific locations. I believe the parties intended to add the locations to the contract in some manner along the way, but this never actually happened. What is the status of these operations and what needs to be done to bring the situation into compliance with federal contract requirements? Thank you for any insight!