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  • Question

    In a cost type contract and extending under 52.217-8 can vendors bid their current rates as they will be billing the actual costs in the end?


    Answer

    According to the clause at FAR 52.217-8, the current labor rates are kept unless the prevailing wage rates have changed. The clause clearly states, "These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor (my emphasis)." To do otherwise could be administratively burdensome. This clause attempts to minimize the burden on the Government of incorporating new wage rates at this stage of a contract.

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