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Exercising of multiple Options in one Modification

Started by cscm2012 · Aug 20, 2019 · 7 replies

  1. c

    cscm2012

    Aug 20, 2019 · 6y ago

    Original post

    We have a contract that is one (1) Base Month and six (6) one month options.

    After the Base Period and the first two (2) Month Options were exercised the CO issued a modification exercising the remaining four (4) Option Months under this one modification.

    This contract is covered by the Service Contract Act.

    The DOL changed the H&W amount and some of the wages in the middle of the four (4) month options that the CO had already exercised prior to the DOL change.

    Do we still have grounds to increase the wages and H&W based on the applicable WD revisions and request adjustment from the agency?  Or does it make a difference that the CO exercised four (4) months worth of options prior to the DOL change?

    Any information on this subject would be greatly appreciated.

  2. j

    ji20874

    Aug 20, 2019 · 6y ago

    Is the clause at FAR 52.222-43 or -44 in your contract?  Which one?  That clause may answer your question.

  3. c

    cscm2012

    Aug 20, 2019 · 6y ago

    They did not incorporate either of these clauses. The CO told me in an email that he had inadvertently left out the Service Contract Act but he knew we were complying and did not issue a modification.

  4. R

    RightSaidFed

    Aug 20, 2019 · 6y ago

    If both parties are treating the contract as if the Government had correctly incorporated the SCA clauses, you could probably make a strong case for submitting an adjustment.

    Telesec Library Services, ASBCA 42968, 92-1 BCA ¶ 24650 (1991) has upheld the enforcement of SCA clauses under the Christian Doctrine.

  5. M

    Moderator

    Aug 20, 2019 · 6y ago

    I add this article because it might be pertinent.  Pay attention to Costar III, LLC, ASBCA No. 56479, 11-2 BCA 34830 (2011) which is listed under the Tables in the article.  The article is:

    The Christian Doctrine: The Double-Secret Contract Clause.  Seyfarth Shaw LLP.

  6. C

    C Culham

    Aug 20, 2019 · 6y ago

    Do not forget about a close read of FAR subpart 22.10 as it will help understand applicability of changes and when.  Most especially FAR 22.1015 will, I suspect, be much more helpful for possible wage increases and equitable adjustments than simply going on basis of Christian Doctrine.  Remember you to can ask the DOL to request the CO to stand up and fly right.

  7. c

    cscm2012

    Aug 21, 2019 · 6y ago

    Thanks all for your assistance

  8. R

    Retreadfed

    Aug 21, 2019 · 6y ago

    You might also want to look at 29 CFR 4.145(a).  That section appears to be at odds with the price adjustment terms of FAR 52.222-41 and -43.

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