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  • Question

    This question is two fold; 1 - On a basic IDIQ contract, can Offeror's propose composite rates? why or why not 2 - On an individual Task Order, can the Sole Source Offeror propose composite rates? why or why not


    Answer

    If the task order is to be performed in one geographical service area but a composite rate is an average of different service areas, the composite rate should not be used. You could have a composite rate of different skill levels (e.g., foreman, journeyman, apprentice) within the same service area. That would not present a problem for Service Contract Labor Standards purposes. However, using a composite rate of different labor categories across different service areas is a problem and could indicate a violation of Service Contract Labor Standards.

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