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Newbie2

Change in manager's wages

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Contractor has a number of non-competitive (JWOD) service contracts, each with a different agency.  Employees providing direct services are covered by SCA, but on-site managers’ wages are not set by the SCA.  When each contract is entered (and at each follow on year) wages for managers are provided by contractor to CO.  Manager’s wage is different for each contract.  Managers move around, leave, new ones are hired (sometimes for lower wage).  The result is that some managers are being paid more than the wage most recently provided to CO (which I’m sure the government doesn’t mind), but others are now being paid less than what we told the CO was the wage for that position.

Is this a violation of any law/FAR?  Can someone identify specifically the law/FAR it violates?

What if the multi-year contract provides a formula for annual increases (such as most recent Wage Determination for SCA positions plus 2% for everything else), and the manager’s wage was accurate at the time the contract was entered but has changed after the contract was entered?  Does the fact that every year contractor includes in the pricing info given to the CO at the renewal that same wage (that is no longer the wage being paid to the person in that position) create a problem?

Thanks for your help.

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Aren't JWOD prices set by the operation of law or regulation. (Committee for Purchase From People Who Are Blind or Severely Disabled)? If so, I'm not seeing the concern.

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They are formally set by the Committee, but negotiated with the CO.  The process is that the contractor tells the CO and the Committee what the contractor's price is based on its costs, including a breakdown of wages.

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8 hours ago, Newbie2 said:

The process is that the contractor tells the CO and the Committee what the contractor's price is based on its costs, including a breakdown of wages.

Well, from my point of view, the contractor made a good faith estimate of the wages to be paid and the parties agreed on a contract price. Assuming what happens after that was a surprise to the contracting parties, I don't think there should be an issue. Of course, this assumes a firm, fixed-price contract. If the contract is cost-type, then the lower or higher wages get billed as being actual costs.

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