Amendment 004 - Vendor Questions for Solicitation.pdf

AMENDMENT 004: QUESTIONS AND ANSWERS

# Reference RFP Text Question Action/Response

1 Amendment 003 In response to Question No. 16 the government states “The Government expects offerors to escalate the CBA pay rates beyond the end date of the current CBAs. Offerors may escalate rates using any methodology such as using Department of Labor prescribed escalations or using the current escalations specified in each CBA. Offerors shall fully describe and justify their escalation methodology.” This appears to be in conflict with FAR 52.222-43 which states in part:

“The Contractor warrants that the prices in this contract do not include any allowance for any contingency to cover increased costs for which adjustment is provided under this clause.

“The contract price, contract unit price labor rates, or fixed hourly labor rates will be adjusted to reflect the Contractor’s actual increase or decrease in applicable wages and fringe benefits to the extent that the increase is made to comply with or the decrease is voluntarily made by the Contractor as a result of:

(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. For example, the prior year wage determination required a minimum wage rate of $4.00 per hour. The Contractor chose to pay $4.10. The new wage determination increases the minimum rate to $4.50 per hour. Even if the Contractor voluntarily increases the rate to $4.75 per hour, the allowable price adjustment is $.40 per hour;

(2) An increased or decreased wage determination otherwise applied to the contract by operation of law; or

(3) An amendment to the Fair Labor Standards Act of1938 that is enacted after award of this contract, affects the minimum wage, and becomes applicable to this contract under law.”

Since offerors do not have a negotiated CBA that extends for the full period of performance, actual increases cannot be claimed or anticipated. Will the government consider an offerors proposal out of compliance with this response if escalation is not proposed beyond the current CBA period?

***This response supersedes the response to Question #16 from Amendment #0003***

Offerors are not required to escalate labor rates past the current end date of the CBAs.

However, Offerors may escalate rates using any methodology such as using Department of Labor prescribed escalations provided they are not doing so in anticipation of any future increases resulting from future re-negotiations of the CBA. Offerors shall fully describe and justify their escalation methodology.

2 RFP, Section B Section B in RFP has FFP for M&A CLINS 0001AI, but Attachment 2 lists T&M. Will the Government confirm Section B is correct and should be FFP not T&M?

Section B is correct. CLINs 0001AI, 1001AI, 2001AI, 3001AI, and 4001AI are FFP.