Sign In
  • Question

    Is the contractor entitled to an equitable adjustment for an additional 8 hours related to the Juneteenth holiday for employees working 2,080 hours per year?


    Answer

    First, look to the contract. In some contracts the holidays are specified or it may just be generally stated “all federal holidays”. Look to see how and if it is addressed in the contract between your agency and the contractor as that may resolve the issue. Otherwise, it seems the notion of “lost productivity” is an impact upon the agency’s mission, not the contractors. A workable solution might be to move the service deliverable by one day to the right to accommodate the Juneteenth holiday. Whatever your organization decides to do it should be consistent, therefore, consider reaching up to your leadership to have them establish the rule on how to respond to contractors concerning this issue so everyone is responding consistently across the organization.

    The other item to consider is the wage determination that applies to the contract. According to your submission, FAR 52.222-41 and FAR 52.222-43 apply to your contract. FAR 52.222-41(c)(1) requires contractors to provide covered employees with wages and fringe benefits in accordance with the wages and fringe benefits determined by the Secretary of Labor or authorized representative, as specified in any wage determination attached to the contract. FAR 52.222-41(c)(3) addresses the adjustment of compensation. It would appear that the proper approach for the contractor would be to obtain a new wage determination from the Wage and Hour Division.

    FAR 52.222-43(d) provides for an adjustment of the contract price…to reflect to the actual increase or decrease in applicable wages and fringe benefits so long as the increase is made to comply with…(1)The Department of Labor wage determination applicable on the anniversary date of the multiple year contract or at the beginning of the renewal option period; (2) an increased or decreased wage determination otherwise applied to the contract by operation of law; …It would seem then that if the holiday is included in the fringe benefits and there is an updated wage determination that reflects this then there may be an opportunity at that point for the contractor to obtain a price adjustment.

    Finally, if the above is still not of help, contact your components Labor Advisor (they are super helpful). You can locate your organizations Labor Advisore at the Wage Determinations home section at SAM.gov

    Open full Question Details
Chat with DAU Assistant
Bot Image