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Davis Bacon - Modification Wage determination

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Situation: Currently managing an IDIQ contract for Base Operation support. The contract as a separate IDIQ CLIN for Task Order.

The Navy is issuing a Task Order this month with the current DB wage determination but the actual labor will not start until Oct 2014. The award was issued this FY for the ordering of long lead ODC/materials.

- We added a condition in our proposal stating that if DoL modifies the current wage determination we are entitled to an adjustment. The contract type is FFP.

- Navy said that in conversation with DoL, since this is a FFP contract they are not allowed to update the modified wage determination, if one is issued in FY 15.

- Here is where I am struggling:

FAR 22.404-6(c )(3) states is an effective wage modification is received by the CO, after award (that will be the case here), that the CO shall follow 22.404-6(B )(5).

FAR 22.404-6(B )(5) states that if received after award the CO shall modify the contract to incorporate the wage determination retroactive.

However, FAR 22.404-12(B ) if contract with option, the CO the wage determination incorporated into the contract at the exercise of the option - the WD will be effective for the complete period of performance.

Additionally, DoL website state that once awarded the modification can not be incorporate.

One final reference, DoL Memorandum No. 157, clarifies the application of Davis Bacon.

Sorry for the long winded, but is the CO authorized not to change the Task Order even if when the option is exercised and a new wage determination is incorporated (modified).

Thanks for the guidance.

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Please rephrase your question, clearly. Thank you.

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If a modified wage determination is posted in DoL after the exercise of the option year or after the issuance of a Task Order on the basic contract, is the contracting officer required or not required to incorporate via contract mod the latest wage determination.

Trying to keep it simple. Thanks for the advise.

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  • 2 weeks later...

See 404-6 ( a ) ( 3 ) If posted in DOL after award (assuming that DOL did not advise agency before award of the pending change) I think it says no incorporation into contract but you can read it for yourself. I assume that this means it would not be an "effective modification of the wage determination for the primary site of the work".

Are you worried that DOL could subject you to a modified wage decision that the KO would not recognize?

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