RFP_Questions_ _Answers 4th post.doc

FENCE RFP FA2517-06-R-8002

Questions & Answers

4th Post Answers to the following question:

1. Question: The latest negotiated CBA rates provided are through FY11 (effective October 1, 2010) and are provided in solicitation attachments 3 through 10 and amendment 2. Should the contractor, for the positions covered by the CBA, use the FY09 rates (effective October 1, 2008) for the base year, use the FY10 rates (effective October 1, 2009) for Option Year 1 and use the FY11 rates (effective October 1, 2010) in pricing all remaining option years?

Reference: Reference: RFP, Section D, 3 Volume III, a. Price Information, 4), Page 81

Answer: Section l-5.D.3.a.4) states: "The Government will incorporate all current and applicable Collective Bargaining Agreements (CBA) and Department of Labor Wage Determinations (WDs) into Section J of the RFP. For positions subject to the CBA and/or Service Contract Act Wage Determinations, the minimum rates must be used. If a position is not covered under a CBA use the applicable area wide wage determination(s) listed in Section J. For those positions covered by CBA, the contractor must meet the minimum requirements of the CBA and should also propose the most appropriate rate(s) for the base year of the contract. For those positions covered by the CBA in which FY10 rates (effective October 2009) are the latest negotiated, use the FY10 rates in pricing all years, and do not escalate proposed out year labor rates. There is no legal authority for a wage increase adjustment for the base year of the awarded contract. Option year rates and associated costs shall not be escalated if not supported by the current CBA. Wage increase adjustments for option years will be made as authorized and in accordance with FAR 52.222-43 Fair Labor Standards Act and Service Contract

Act-Price Adjustment (Multiple Year and Option Contracts) if and when terms of the applicable CBA change. At that time the contractor will be authorized to submit requests for equitable adjustments for option year increases if all applicable FAR clause requirements have been met."

FY 09 CBA/SCA rates should be utilized for the base year and FY10 rates should be utilized for option years.