You question is, "Who's the winner?" The answer isn't that easy. There are some things to consider. First, how does the offeror know what the wage determination increases will be each year? How was the requirement solicited?
Under FAR Part 15? What method on the best value continuum was used? LPTA? Tradeoff? Assuming it is a negotiated, best value procurement, if the best value method was tradeoff, the contracting officer can open discussions with the offerors, then ask for final proposal revisions and see when the proposals stand after FPRs. In the discussions, the contracting officer could bring up that the solicitation did not require the offeror to estimate the WD increases (if that is the case). If the solicitation states that LPTA is to be used, the contracting officer may have more of a challenge. The offeror must be determined to be technically acceptable. At that point is offered prices may be a detriment to him/her. If there are no discussions, then the prices offered may have to stand as the as the offeror's proposal. Depending on the way the offeror broke out the pricing, the contracting officer may be able use the prices offered for price comparison to determine reasonableness.