Should SCA labor be escalated for option periods? If not, what regulations is prohibiting this? For cost analysis / realism, should the government apply escalation to the SCA labor?
Offerors can and do propose escalation factors for SCA labor rates in the out years (option periods). Any analysis of offeror proposals should take the escalation factors into consideration. If one or more proposals does not include escalation factors, that can be verified during clarifications with the offeror(s) to ensure it wasn't an oversight. After contract award, the revised annual wage determinations with corresponding escalation factors (if any) will be incorporated into any options that are exercised.
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