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  • Question

    Is the contractor entitled to an equitable adjustment based on the updated wage determination being incorporated into the contract, or should the Government modify the contract to delete the updated D-B wage determination or revert back to the wage determination that was in effect at the time of bid opening?


    Answer

    The following response is based solely on the question and background information provided.  As we do not have all the facts particular to your situation, we highly recommend you consult, as applicable, your contracting officer and/or Legal Office for further guidance.
     
    Per our discussion this morning, we understand the wage determination changed after bidders submitted bids. During the selection process, a new wage determination was issued and you are asking if the government should have had the bidders update bids as a result of the new wage determination.  It would been appropriate to do so, but it did not have a material effect on the outcome of the selection process.  The contractor has a right to an equitable adjustment as this rate does have an effect on the price.  The contractor is required by the Department of Labor to meet the wages in the determination.  Also you ask how the change would happen is that the contractor that won the bid would ask for an equitable adjustment after award or if the government would issue a change based on the new wage determination.  The case is that the wage determination will be in effect upon contract award and thus a government mandated extra expense to the contractor no matter which contractor would have won the contract.  Thus the fairness doctrine would dictate integrating this additional cost into the contract price. 

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