Making changes to FAR?

[ChrisR]

The company I work for holds contracts with the Forest Service, BLM and state agencies. I'm trying to research FAR because this year our contracting officer is not allowing for an equitable adjustment to our price to compensate our crew leaders and management (FAR 52.222-42).To be fair FAR 52.222-42 is not included in our contract.

--BUT--

The minimum wage for the contract went up over $10.00 an hour. He will only allow us to increase our price by the difference in what we are paying our people now and the new rate (FAR 52.222-43). For entry level folks that's fine, but we have many (and by contract are required to have!) experienced folks that are paid almost that now. The CO, we feel, is creating a wage compression that will potentially result in poor performance in time. Why would anyone be a leader and have more responsibilities for the same wage as a new person walking in the door?

 

Also, we are not allowed to increase our prices by the amount of our General Liability that will be increased due to higher wages because FAR 52.222-43 doesn't specifically mention General Liability. Our General Liability, in part, is based on how much payroll we have. It should be allowed for the part that is associated with payroll.

 

So, during one of my many sessions of trying to find answers, I happened upon your forum and it seems folks there may be able to help my research. I'd like to find out how FAR rules are made, by whom, etc. How often do they change? What is the process of making changes? Is it even possible to get changes made?

 

Any help would be appreciated! 

 

Chris

[ji20874]

Do you have a fixed-price contract?

If YES, you are free to raise the pay of your crew leaders and managers as high as you feel appropriate to deliver the work.  You are also free to purchase as much additional insurance as you feel appropriate.  More power to you!  But you probably are not entitled to a change in contract price except as provided within the contract, such as the adjustment allowed for your employees covered by the Service Contract Act if the clause at FAR 52.222-43 is included in your contract.

[this doesn't answer your question, but I hope it will be helpful]

[Vern Edwards]

18 hours ago, ChrisR said:

I'd like to find out how FAR rules are made, by whom, etc. How often do they change? What is the process of making changes? Is it even possible to get changes made?

FAR rules and changes are written by the Defense Acquisition Regulations Council (DAR Council) and the Civilian Agency Acquisition Council (CAA Council) in response to Congressional legislation, Executive orders, and initiatives of the Office of Federal Procurement Policy (OFPP). Rules and changes are made in the manner prescribed by the Administrative Procedures Act, Title 5 of the United States Code, Chapter 5, which requires publication of a proposed regulation ("proposed rule") and request for public comment, and then by publication of a final regulation ("final rule"). Proposed and final rules are published in the Federal Register. New rules in FAR and changes to existing rules are made several times a year.

See: 

https://www.gao.gov/federal-rulemaking#:~:text=The process for creating federal,and opportunities for public comments.

https://www.archives.gov/federal-register

https://www.govinfo.gov/help/cfr

That's a very brief description of a very complex process, but that's all I have time for. Using the above, do some research.

18 hours ago, ChrisR said:

Is it even possible to get changes made?

In theory, yes. In reality the chances of you getting a change made for the reasons you gave are practically nonexistent.

[ChrisR]

2 hours ago, ji20874 said:

Do you have a fixed-price contract?

If YES, you are free to raise the pay of your crew leaders and managers as high as you feel appropriate to deliver the work.  You are also free to purchase as much additional insurance as you feel appropriate.  More power to you!  But you probably are not entitled to a change in contract price except as provided within the contract, such as the adjustment allowed for your employees covered by the Service Contract Act if the clause at FAR 52.222-43 is included in your contract.

Thank you for your reply.

Yes it is a fixed-price contract. It's an Indefinite Delivery Indefinite Quantity (IDIQ) contract. 

 

 

[ChrisR]

2 hours ago, Vern Edwards said:

That's a very brief description of a very complex process, but that's all I have time for. Using the above, do some research.

Thank you so much!! 

We do belong to an Association that helps on the political side of things. 

I do appreciate your time and the links!

[Mike Twardoski]

It's too late now, but for the next FFP contract, it's a good idea to bake in the risk of wage increases into your proposal.

Do you incorporate Forward Pricing Rate Agreements in your proposals? 

[Don Mansfield]

1 hour ago, Mike Twardoski said:

It's too late now, but for the next FFP contract, it's a good idea to bake in the risk of wage increases into your proposal.

Not when FAR 52.222-43 is in the solicitation. See FAR 52.222-43(b).