DOECPA Posted January 16, 2013 Report Share Posted January 16, 2013 On a competitive FFP LOE Task Order for Services using Omnibus, are any price adjustments required when Options are awarded (because of revised wage determinations) or is escalation already in the fully loaded multi year rates for non-exempt employees? If we tell potential offerors to include escalation for labor and health & welfare will that be adequate so we don't get in trouble later with DOL or the employees. Sort of same question. Say it is not GSA and is FFP LOE Task Order for Services. May we ask offerors to propose escalation on multiple year contracts so that price adjustments are not necessary. We put Wage Determination in solicitation and Offerors are asked to provide pricing for escalation in the out years. If revised Wage Determination is more or less than what contractor proposed they keep or lose the difference and pay employees based on new minimums with no recourse to Government. What is wrong with this scenerio. Thank you Link to comment Share on other sites More sharing options...
Heretalearn Posted January 16, 2013 Report Share Posted January 16, 2013 If your solicitation will contain 52.222-43, you're requiring your offerors to warrant that the prices do not include any allowance for any contingency to cover increased costs for which adjustment is provided under the clause. The clause goes on to provide for adjustment for wage determination/CBA wages and related increases current on the anniversary date of a multiple year contract or the beginning of each renewal option period. Link to comment Share on other sites More sharing options...
Navy_Contracting_4 Posted January 16, 2013 Report Share Posted January 16, 2013 If your solicitation will contain 52.222-43, you're requiring your offerors to warrant that the prices do not include any allowance for any contingency to cover increased costs for which adjustment is provided under the clause. The clause goes on to provide for adjustment for wage determination/CBA wages and related increases current on the anniversary date of a multiple year contract or the beginning of each renewal option period. Is the price adjustment process required by law, or is it something DOECPA could get around with a FAR deviation? Link to comment Share on other sites More sharing options...
Heretalearn Posted January 16, 2013 Report Share Posted January 16, 2013 Ah. The price adjustment process isn't statutory (that I can find). But you knew that, didn't you? I don't know anything about FAR deviations, but I infer from your question that it is something DOECPA could get around with a FAR deviation. Link to comment Share on other sites More sharing options...
DOECPA Posted January 17, 2013 Author Report Share Posted January 17, 2013 I appreciate everyone's responses to this as we are trying to learn how this should be done. I'm a pricer helping to write L and M. Don't know anything about a FAR Deviation. We want offerors to propose fully loaded labor rates and overtime rates for Base Year and Optional Years. We would like to set it up so that the Government doesn't have to entertain price adjustments when we exercise the Option and a new Wage Determination has been issued. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted January 17, 2013 Report Share Posted January 17, 2013 Why are you asking about a FAR deviation? You say you are planning to issue an "order." Okay, then the order must be placed against a contract. Does the contract include the clause at FAR 52.216-19 and the price adjustment clause at FAR 52.222-43? If so, then read the Ordering clause, paragraph (: All delivery orders and task orders are subject to the terms and conditions of this contract. In the event of a conflict between a delivery order or task order and this contract, the contract shall control. Okay, so you plan to issue an order under the contract for a service that is subject to the Service Contract Act (SCA), and the order will have an option to extend. Simply follow the rules in FAR Subpart 22.10 just as you would when awarding any contract subject to the SCA. Pursuant to 52.222-43, the offerors do not include any amount for escalation that is covered by the price adjustment clause. When you exercise the option you attach a new wage determination, if required, and the contractor makes a request for price adjustment in accordance with the price adjustment clause. DO NOT try to invent a new procedure for the order. Forget the truly stupid idea of trying to avoid established price adjustment procedure (for God knows what reason). If I was the person responsible for granting deviations, what reason would you give me for wanting to avoid the standard price adjustment procedure? You don't know how? You're lazy? Link to comment Share on other sites More sharing options...
DOECPA Posted January 17, 2013 Author Report Share Posted January 17, 2013 You's Correct - don't know how? trying to learn something. You're lazy? I wouldn't go as far as that. I read everything I can find, but its hard to understand. Probably stupid but not neccessarily lazy. Vern, We have several FFP (Fully Loaded Rates) LOE Deliver Orders under a Contract. These are for multiple government installations, both CONUS and OCONUS with numerous Non-Exempt Employee Classifications. We are getting ready to compete more Task Orders under the Contract. Most of these workers travel up to 75% of the time from site to site to modify, maintain, or field equipment. We have no exception to doing price adjustments. Just wondering if it is possible to do this a better way. Thank you Link to comment Share on other sites More sharing options...
Retreadfed Posted January 17, 2013 Report Share Posted January 17, 2013 I don't know how your contracts or task orders are structured, but it is worth pointing out that the SCA does not apply to contracts that are not performed in the U.S. Link to comment Share on other sites More sharing options...
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