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DAS1220

WD's - when are they effective on a contract?

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We have an IDIQ prime contract with DoD that has options every two years in March.  The contract is SCA covered; we received updated wage determinations via a contract modification from the contracting officer in September 2016; however, the WD was effective in April 2016.  My experience has been that the WD is effective when it is incorporated into the contract (in this case September 2016), and that we do not have to go all the way back to April 2016 and retroactively adjust salaries.  Is this a correct understanding? Or do we have to go back to April and adjust all affected salaries even though the updated WD was not incorporated into our contract? Is there any law or FAR clause that someone can point me to that states we have to follow the WD once it is incorporated into the contract?

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DAS1220,

Read the clauses of your contract, specifically FAR 52.22-41 which should state:

Quote

52.222-41( c ) (1) "Each service employee employed in the performance of this contract by the Contractor or any subcontractor shall be paid not less than the minimum monetary wages and shall be furnished fringe benefits in accordance with the wages and fringe benefits determined by the Secretary of Labor, or authorized representative, as specified in any wage determination attached to this contract."

So to answer your question, as long as your payments from April 2016 through September 2016 were IAW the wage determination attached to the contract at the time, no, you do not have to go back to April and adjust all the affected salaries even though the updated WD was not incorporated into your contract.

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