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Hello,

I recently began working for a new agency that requires an approved J&A for exercising the extension clause. My previous Agency did not require this and when I asked why (for my own personal knowledge base), I was just told it is always required unless the pricing was evaluated at time of award. However, per the clause, the 6 month pricing remains the same unless adjusted for prevailing labor rates. Can anyone point me in the right direction on why a J&A is required....

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Guest Vern Edwards

I don't know why your agency requires a J&A, but the issue of requiring a J&A prior to exercise of that option was first raised in Major Contracting Services, Inc., GAO Dec. B-401472, 2009 CPD ¶ 170. Read that and see if it answers your question. In order to get a copy, Google <B-401472>.

Come back here if you still have questions after reading that decision.

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Thankyou for your response Vern. Question, after reading the GAO Dec, it states that as the extension was not evaluated as part of the initial competition, a "sole source" justification was required. However the clause itself states that rates cannot be adjusted except for prevailing labor rates. So if you evaluated the base year and any subsequent options (meaning the -9 clause) havent you in essence evaluated the -8 rates? I hope that question makes sense.

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Thankyou for your response Vern. Question, after reading the GAO Dec, it states that as the extension was not evaluated as part of the initial competition, a "sole source" justification was required. However the clause itself states that rates cannot be adjusted except for prevailing labor rates. So if you evaluated the base year and any subsequent options (meaning the -9 clause) havent you in essence evaluated the -8 rates? I hope that question makes sense.

According to the GAO, no. We discussed this case when it first came out: http://www.wifcon.com/discussion/index.php?/topic/350-gaos-latest-mcs-decision/

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