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    Given the background, would retention bonuses be allowable? Also, am I correct in stating that the current rates would not change on the -8 unless prevailing labor rates are adjusted (CBA, DBA, and/or SCA)?


    FAR 52.217-8 clearly states that only the rates specified in the contract, adjustable only because of revisions to prevailing labor rates provided by the Secretary of Labor, are the rates in force for extensions under authority of this clause.

    This means that only the rates already printed on the contract (if one were to print the contract) are the rates to use during the extension period. The background to this question indicates the rates in question are not already on the contract because the contractor has provided a proposal to increase the rates for the extension period.  An increased rate would be different from the rates already on the contract and would not be allowed under the authority of this clause.

    The purpose of FAR 52.217-8 is two-fold. First, this clause protects and promotes competition by providing incentive to the contractor to agree to realistic rates rather than understate rates to win the contract. This clause also pushes the government to plan for, and seek, appropriate competition by limiting extension period to 6 months total. Second, FAR 52.217-8 helps to build trust in the federal contracting process by supporting transparency.  Transparency is critical to retaining competitors for federal contracts in the market.

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