Amend 0003 - Revised Section 04 Prices.pdf

04. PRICES

A. Department of Labor (DOL) prevailing or Collective Bargaining Agreement (CBA) Wage Determinations (WD)

1. The minimum wage rates and fringe benefits applicable to the contract are outlined in the Department of Labor (DOL) prevailing and/or Collective Bargaining Agreement (CBA) wage determinations incorporated into the contract.

2. The applicable job classification under a DOL prevailing wage determination is Guard II. In the case of a CBA wage determination, the applicable job classification may be specified under a different title. In either case, the applicable job classification reflects the minimum wage rates and fringe benefits that the Contractor must pay to all employees covered by the Service Contract Labor Standards statute working under the contract.

B. Contingency Pricing

1. Contractors shall not include contingency allowances to cover increased costs for which adjustments are provided under Federal Acquisition Regulation (FAR) Clause 52.222-43 – Fair Labor Standards Act and Service Contract Labor Standards – Price Adjustments (Multiple Year and Option Contracts)(August 2018).

2. For cost/price factors that are subject to variation, but are not subject to adjustment under the provisions above, Contractors may factor in contingency allowances.

Note: Subparagraph 1.1.4 of the SOW states that the Contractor is to provide management and supervision of the Guard II labor force. The Agency considers the Supervisors described in section 1.1.4 to be personnel that perform purely management and/or supervisory job duties and functions not covered by the Service Contract Labor Standards statute. Accordingly, the type of work contemplated to be performed by these Supervisors would not be covered by the Service Contract Labor Standards statute. Therefore, Supervisors are not covered under the Service Contract Labor Standards Statute and increases to Supervisor wages and fringe benefits are not subject to contract price adjustment under FAR 52.222-43. Incorporating supervisory positions into a CBA does not make them covered under the Service Contract Labor Standards statute.

Therefore, the Agency will not provide an adjustment for increases in Supervisor wages and/or fringe benefits, even when such an adjustment is stated in a CBA. Because FAR 52.222-43 does not provide an adjustment for increases in Supervisor wages and/or fringe benefits, offerors are permitted to include escalation in their pricing to account for any anticipated increases in these costs. Offerors are cautioned that if they believe a proposed employee will be performing work such that the employee would be covered by the Service Contract Labor Standards statute, offerors may not include such an employee in their Supervisor count under the management approach section of their technical proposals or Attachment 8, Field Level Supervision Exhibit, of this solicitation. These sections of the solicitation are reserved for identifying Supervisor employees performing management/supervisory work that are not covered by the Service Contract Labor Standards statute. To the extent that an offeror proposes Supervisor employees in response to the management approach section or Attachment 8 of this solicitation and any of those employees perform Service Contract Labor Standards statute type covered work as opposed to the proposed management/supervisory work such that the employee could be considered a Service Contract Labor Standard statute covered employee, the Agency will consider this a breach of contract and no adjustment will be provided for increased costs for such employees under FAR 52.222-43 or any other contract provision or principle.

The applicable job classification under a DOL prevailing wage determination is Guard II.

In the case of a wage determination based on a predecessor CBA, the applicable job classification may be specified under a different title. If a CBA contains multiple rates for the armed PSO/ guard position, the applicable rate shall be the lowest wage and fringe benefit rates (when combined) identified in the CBA for any armed PSO/ guard position (hereafter referred to as “standard Armed PSO rates”). This rate shall be the minimum wage and fringe benefit rates required to be paid to all armed PSO performing under the contract. Under this contract, FPS is purchasing the services of standard Guard II Armed PSO associated with the standard PSO rates (hereafter referred to as “Standard Armed PSO”). FPS is not purchasing the services of any other type of non-supervisory PSO/guard such as Lead PSO, Lieutenant, Sergeant, Captain, or as identified by any other nomenclature (e.g., Armed PSO levels, numbers, etc.) and tied to higher wage and fringe benefit rates (when combined) in the CBA. Use of such positions in performance of this contract is not consistent with the terms and conditions of this contract. Because FPS is not purchasing services for any position, other than the standard armed PSO position, and use of any other non-supervisory PSO position in performance of this contract is inconsistent with the terms and conditions of the contract, the contractor will not be eligible for any price adjustment predicated on the wages and/or fringe benefit rates for these positions increasing. Such positions will not be permitted to fulfill the direct requirements identified by the post exhibit and will not be billable to the Government. Further, the work to be performed at each post involves similar effort, responsibilities, and duties, all falling within the scope of the standard armed PSO position. FPS is not purchasing any services outside the scope of Standard Armed PSO services at any location or post. Therefore, post specific wage and fringe benefit rates identified in a CBA based wage determination represent compensation for a level of service outside the scope of what FPS is purchasing under this contract. Therefore, post specific premiums will not create a right to a price adjustment.

NOTE: Nothing in this section prevents the contractor from paying standard armed PSOs more than the Standard Armed PSO rate. However, because the government is purchasing only Standard Armed PSO services no other rates will be incorporated into the contract as required minimum wages or fringe benefits. Therefore, no other rates will give rise to a price adjustment.

Notwithstanding the foregoing, this contract will be for Standard Armed PSO services at more than one geographic location. The geographic locations coved by this contract are

Geographic Area Applicable Wage Determination Philadelphia Metro CBA-2019-12689

The applicable Standard Armed PSO rates for each geographic area identified in the table above shall be the lowest wage and fringe benefit rates (when combined) identified for the armed PSO position in the corresponding wage determination as identified above.