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    This is a service contract with a CBA. Contract performance is now complete and the contract should be placed in close-out status as the follow-on contract has been awarded. A certified letter was sent to the previous contract specialist during a CR period (Oct 28, 2010) requesting a price adjustment. The contractor attached the following (1) cost breakdown spreadsheets, and (2) payroll data for the last 30 days. The amount the contractor is claiming represents the difference between the wage determination and CBA wages and fringe benefits from the original bid to the current prevailing wages and fringe benefits. I'm still at the journyman level and this will be my first price adjustment...is there any other documentation required before I issue a mod for the price increase? And how do I determine if the amount the contractor is requesting is fair and accurate now that months have passed and contract performance is essentially complete...are they still entitled to the price adjustment?


    Answer

    The Department of Labor is the agency with responsibility for compliance with labor laws for service contracts in the federal government. The Federal Acquisition Regulation (FAR) Part 22 provides instruction on the application of the labor laws. 

    The contractor can only request a price adjustment under the appropriate clause that is in your contract.
    FAR 52.222-43 and FAR 52.22-44 cover different contract types and it is highly unlikely that both apply to your contract.  You should refer to the contract and follow the instructions in the applicable clause.

    Regarding the timeliness of the contractor’s request, both clauses require the contractor to notify the contracting officer of any increase claimed under this clause within 30 days after the effective date of the wage change, unless this period is extended by the contracting officer in writing.” The clauses further describe what information the contractor is obligated to provide when requesting an increase.” Both clauses apply to those contracts where a Collective Bargaining Agreement has been incorporated.  Whether or not to allow the increase is a decision of the contracting officer when timely notification from the contractor has not been received.


    The requirement for documentation other than that described in the clause is also a decision of the contracting officer and your local procedures. However, if the contractor is requesting an increase from several months ago, you would need payroll records from that time to verify the employees were actually working for the contractor from the time the increase is being requested, not just the last 30 days.

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