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  • Question

    Can vendor be given equitable adjustment based on the Wage Increase dated June 2013?


    Answer

    The clause at FAR 52.217-8, Option to Extend Services, states, "The Government may require continued performance of any services within the limits and at the rates specified in the contract.  These rates may be adjusted only as a result of revisions to the prevailing labor rates provided by the Secretary of Labor."  So if the new wage rates are incorporated into the contract, then the contractor can be adjusted.

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