Exhibit_A_SCA_Adequacy_Checklist_Amendment_1.pdf

EXHIBIT A

SERVICE CONTRACT ACT – PRICE ADJUSTMENT PROPOSAL

ADEQUACY CHECKLIST`

Purpose: The limited purpose of this checklist is to provide the minimum requirements for an adequately submitted Service Contract Act (SCA) price adjustment proposal under FAR 52.22- 43 or - 44. Accordingly, submitting the required items does not preclude the reviewer from (1) rejecting the proposal in terms of entitlement, (2) and/or requesting additional supporting data,

(3) and/or recommending adjustments to the proposed contract price. An adequate SCA Price Adjustment proposal still must be reviewed to determine the appropriate contract price adjustment to negotiate with the contractor.

Minimum requirements for an adequate SCA price adjustment proposal include:

The SCA price adjustment proposal shall contain a dated statement of the amount claimed and the change in fixed hourly rates (if this is a time-and-materials or labor-hour contract).

The applicable contract and ordering period are identified in the proposal.

Includes an employee seniority list that provides the employee’s name, work location (i.e.

county/city), service start date, and training certification dates for employees that worked in the previous ordering period. This information will be used to verify vacation and training hours subject to price adjustment. Preference is that this information is provided electronically in Microsoft Excel format.

Includes state-issued documentation of the workers compensation rate or documentation from the workers’ compensation insurance provider for the year subject to the SCA Price Adjustment.

Includes payroll records for the employees that performed on the contract in the previous year including (1) their hourly rate paid, (2) actual hours worked on the contract by each employee in each classification, (3) vacation, holiday, sick, bereavement and jury duty paid to each employee in each classification, and (4) additional payments made to each employee such as shift differentials and performance based merit bonuses (this information is needed to verify the hourly rate paid agrees with proposed hourly rate adjustment…i.e. if the employee is being paid $21 an hour and the WD was $20 in the previous year and the new WD is $21.50 then we only recognize $ .50 for the basis of the price adjustment). Preference is that this information is provided electronically in Microsoft Excel format. Note that judgmental or statistical sampling procedures will be used to request additional payroll records for selected employees that performed in the current period to verify wage increases.

Includes a Microsoft Excel file detailing the basis for the price adjustment including the financial formulas that support the basis for the calculations. When multiple Wage Determinations or CBAs apply, the computations must be shown separately for each applicable WD or CBA.

Includes a narrative explanation in Microsoft Word that describes the basis of each element submitted for adjustment, which comprises the overall proposed contract price adjustment. The narrative shall also describe the calculation methodology used to arrive at the

EXHIBIT A

SERVICE CONTRACT ACT – PRICE ADJUSTMENT PROPOSAL

ADEQUACY CHECKLIST`

increased/decreased adjusted price element. When multiple Wage Determinations or CBAs apply, the explanation must be shown separately for each applicable WD or CBA.

Common elements for adjustment may include:

• Wages

• Health and Welfare Benefits

• Vacation

• Holiday

• Sick

• Bereavement

• Jury

• Pension

• Training

• FICA

• Worker’s Comp

• Relief

• Industrial Funding Fee