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Found 5 results

  1. I'm looking at a RFP. The Gov't wants to buy labor on an IDIQ basis anywhere in the US. One CLIN equals one labor category. The Gov't is seeking a single hourly rate per CLIN. A few wage determinations have been included in the RFP, but nowhere near all of them for the entire country. To help focus, let's say Manhattan is not covered by any of the wage determinations in the RFP. After award of the IDIQ, how would the SCA rules apply if the Gov't wants to buy labor in Manhattan?
  2. We won a SCA FFP contract for the maintenance of some sensitive equipment where the RFP stated that the hours of operation where going to be from 8:00am to 4:30pm. We have been performing for the past 2 years without issues. As a matter of convenience - at contract start up- we agreed with the COR (I KNOW) to establish two shifts one from 6:00am to 2:00pm and another one from 2:00pm to 10:00pm. Now the customer wants to change the hours of the contract from 10:00pm to 6:00am. We notify the CO that we will comply but that we will request equitable adjustment. The CO came back saying that DOL notify them that since there is no differentials on price in the SCA rates whether the work is performed on day or night we were not entitled to adjustment. Is this correct? I believe that the DOL argument would have be true if the RFP initially stated that the hours of the contract may vary according to customer needs. However since this was not the case I believe that this would be a material change on the contract terms requiring an equitable adjustment. We have already contacted our lawyers how ever I would like to hear different opinions. Thanks
  3. This is my first post, but I've read with interest a number of threads discussing similar issues. I'm excited to hear your feedback on this. I understand that 52.222-43 requires the contractor to warrant that wage escalations in the proposal do not include an allowance for adjustments that would automatically be made under -43 to compensate for revised Wage Determinations. 1. My general question is: under this FAR, when would I be allowed to escalate wages, and when would I be allowed to submit a proposal with flat wages? I'm thinking the answer turns on whether or not the wages proposed are at the minimum allowed under the Wage Determinations. For example, if I submit a proposal where my fully burdened wages are based on minimum wages under WDs, then I could submit flat rates for option years, and rely on the automatic adjustment scheme in -43 to increase wages if/as they rise due to DOL revisions to WDs. If I submit a proposal where filling a position will require a premium over the minimum allowed under DOL WDs, then I would need to escalate wages if I anticipate it becoming more expensive to fill the position each year. If I do not escalate wages in my proposal, and my base year wages are above any new revisions to the WDs, then -43 doesn't provide me with an automatic adjustment each year. Does this conform to your views on the way -43 operates? A few follow-up questions. 2a. If I submit flat wages for the option years, and rely on -43 to compensate for rising labor costs, could an agency have any basis for rejecting my proposal on "realism"? Is it unrealistic to rely on revisions to WDs for price adjustments necessary to fill positions? Maybe I need to note that reliance in the bid to be clear? 2b. If the answer to 2a is "yes", then do you interpret -43 differently? For example, would it be allowable to base my fully burdened rates on the minimum wages allowed under DOL WDs, and still escalate wages, knowing that since I'm already at minimum wages, they would need to be revised each year? Such escalations would seem to include an allowance for the adjustments provided for in -43, but maybe we could warrant that our escalations aren't based on expected changes in the WDs, per se, but instead, we promise the escalations are based on "realism" or some other need to escalate wages, like for general retention purposes, for performance incentives, etc.? It seems to me that even if I have alternative explanations for my wage escalations, if I'm already working from the minimum wages allowed under WDs, my escalations are necessarily including some allowance for revisions to the WDs, and would therefore contravene the purpose of -43, or perhaps violate it altogether. 3. If I am above the minimum WDs amount, and I do not escalate, I imagine there could be a basis for rejecting my proposal based on realism. But if it weren't rejected for realism, would I have an alternative means for adjusting wages annually on renewals? Would equitable or economic price adjustments only be available if specifically allowed in the contract, or in your experience, does this depend on the Contract Officer, to be determined on a case-by-case basis? Thank you in advance for your contributions. I've read a number of different interpretations of -43. Some departments seem to believe this doesn't allow for any wage escalations at all (although it clearly does) and some departments seem to think it's unrealistic to not escalate wages (even though FAR -43 provides an automatic scheme for adjusting wages).
  4. Good afternoon, Mr. Edwards: First, let me thank you in advance, for your assistance. This site is wonderful for getting another perspective on all things Federal Government contracting. Here is my question: Recently, the Department of Labor has been conducting an audit of the Service Contract Act to ensure we have been following appropriate procedures (i.e. paying correct wage and health and welfare). Last week, we received an amendment to modify a Blanket Purchase Agreement (BPA) through an amendment that retroactively incorporates the Wage Determination schedules for 2011 and 2012. What they are attempting to do is force our customer to have us sign the amendment so that we would be responsible for the wage differences and health and welfare from the inception of the contract. I have done a quick calculation and for the number of hours that we have put into the BPA calls, it would add up to a very large number. We would have never priced the contract as we did if this was an SCA contract and we stand to lose a significant amount of dollars if we were to accept this retroactively. Can you please tell me what recourse we may have. Thank you very much!
  5. Good day! My question is about selecting the correct labor law to apply to a subcontractor. If the subcontractor is performing a "service" on a DBA construction site, employs no laborers, mechanics, apprentices, trainees or helpers, is the work subject to the Service Contract Act or Davis Bacon Act? Anxiously awaiting your response!
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