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Wage Determinations on IDIQ contracts and Task Orders


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Our office is looking for some clarification on how to handle wage determinations on IDIQ contracts. Example: I have a $100,000 IDIQ contract for services with one base year and four option years. According to FAR 22.1007, I'm required to obtain a wage determination for the base contract. Let's say that six months into the contract's POP I issue a task order for $50,000 and that there has since been a new WD issued by the DOL. Since a task order is technically a contract, do I include the new WD with the task order or does the WD issued with the base contract cover all task orders issued during that year? If the answer is the former (new WD), then wouldn't that invalidate the WD on the base contract and basically trigger the requirement to modify the base contract to include the new WD just issued with the task order? If not, then you would have two conflicting WDs for that task order. The same would be the case with new WDs issued with modifications to exercise an option in this scenario.

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Does the task order POP extend beyond the period of the base contract?

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I wasn't able to find an answer through a Google search for a separate service contract task order issued within an ordering period that would extend beyond the period of performance of the current year. Your basic post appeared to involve annual services that are extended via annual options. Did you ask the DOL?

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Clauses are required to be incorporated into the contract. There should be no reason to incorporate at the TO level. As you can see, neither of these prescriptions mention "task order".

FAR 22.1006(a )(1) “The contracting officer shall insert the clause at 52.222-41, Service Contract Act of 1965, in solicitations and contracts…”

FAR 22.1006(b )(1) “The contracting officer shall insert the clause at 52.222-42, Statement of Equivalent Rates for Federal Hires, in solicitations and contracts if…”

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A new wage determination should not be added to a task order.

When a new new wage determination is incorporated into the contract with the new year, it affects all task orders under the contract. So if a task order performance crosses over the threshold between contract years, the contractor can ask for a price adjustment for the work that occurs after the start of the new contract year for the balance of the task order.

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A new wage determination should not be added to a task order.

When a new new wage determination is incorporated into the contract with the new year, it affects all task orders under the contract. So if a task order performance crosses over the threshold between contract years, the contractor can ask for a price adjustment for the work that occurs after the start of the new contract year for the balance of the task order.

Thanks - that definitely makes sense. I guess I'm getting hung up on the wording in FAR 22.1007 (below) and that the definition of a 'contract' in FAR 2.101 includes 'orders'.

22.1007 Requirement to obtain wage determinations.

The contracting officer shall obtain wage determinations for the following service contracts:

(a) Each new solicitation and contract in excess of $2,500.

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jwomack "“Contract” means a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, except as otherwise“Contract” means a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, except as otherwise wise authorized, are in writing. In addition to bilateral instruments, contracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications.wise authorized, are in writing. In addition to bilateral instruments, contracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications...." In this would include a task order. If the IDIQ basic contract is already priced, that is to say it has pre-priced ELINs, then we don't include a new wage determination. If it does not have pre-priced ELINs, then we do include the current wage determination with the RFP and task order.

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elguero, don't forget that regulations implementing the SCA are promulgated by DoL. The FAR essentially adopts DoL regs. Therefore, do not necessarily think that concepts that apply generally to the FAR apply to execution of the SCA. For example, the FAR treats an exercised option as a continuation of an existing contract whereas under the DoL rules an option on a contract covered by the SCA is considered a new contract.

Looking at the DoL regs in 29 CFR part 4, it seems that DoL has not adopted the expansive view of a contract found in FAR 2.101. Looking at those rules as a whole, a new WD would not be required when an order is issued against an IDIQ contract.

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If the IDIQ basic contract is already priced, that is to say it has pre-priced ELINs, then we don't include a new wage determination. If it does not have pre-priced ELINs, then we do include the current wage determination with the RFP and task order.

“Task Order” means an order for services placed against an established contract or with Government sources (FAR 2.101).

Please cite the authority that authorizes you not to include the applicable FAR Part 22 clause(s ) in the established contract.

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We do include the applicable clauses. What I said was if we have pre-priced ELINs (typically a single award IDIQ) then we don't include a new wage determination because the prices are for the option period and the wage determination included at the time the option was exercised covers the option period. If it doesn't have pre-priced ELINs (typically a MACC) then we do include the current wage determination with the RFP becase there is no established pricing for the option period and no need to include a wage determination when the option is exercised because there is no established pricing that may need to be adjusted if wages and H&W were increased.

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  • 1 month later...

Wage Determination in an IDIQ for world wide services:

If I understand correctly, the wage determination would be incorporated into the base and not the task order.

My question deals with an IDIQ that is world wide or can be peformed in multiple states. What is the correct procedure for including the wage determination; being that the exact county of performance will not be known until a task order is issued.

I have included in the base IDIQ 52.222-49, which states below:

52.222-49 Service Contract Act—Place of Performance Unknown.

As prescribed in 22.1006(f), insert the following clause:

Service Contract Act—Place of Performance Unknown (May 1989)

(a) This contract is subject to the Service Contract Act, and the place of performance was unknown when the solicitation was issued. In addition to places or areas identified in wage determinations, if any, attached to the solicitation, wage determinations have also been requested for the following: ________ [insert places or areas]. The Contracting Officer will request wage determinations for additional places or areas of performance if asked to do so in writing by _____________ [insert time and date].

(B) Offerors who intend to perform in a place or area of performance for which a wage determination has not been attached or requested may nevertheless submit bids or proposals. However, a wage determination shall be requested and incorporated in the resultant contract retroactive to the date of contract award, and there shall be no adjustment in the contract price.

///end of clause///

Our agency is currently adding the wage determination to a task order because the base has language to state that the wage rate be paid in the area of actual performance.

Any help would be appreciated.

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@August

Once the task order is issued, they are expected to travel to perform the work. From my understanding, some work is subcontracted out and the firm will hire a sub contractor from the area to complete the requirement.

My organization issues both a SATOC and MATOC and they have work to be performed in various states.

Hopefully, I answered the questioned that you asked.

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If the contractor's staff are going to travel to multiple locations to perform the work, you can request a special nation-wide wage determination from the DOL through the E-98 process.

If the contractor is going to sub it out to local staff, DOL won't create a nation-wide wage determination.

If you don't get a nation-wide wage determination, I think adding the wage determination with each order, is the best you can do.

(Also, SCA does not apply to services performed outside of the States.)

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