REA for new Juneteenth Federal Holiday

Did you bring this to the attention of the contracting officer ahead of time?  If not, then why?  You say all contractor employees work on base.  But, it sounds as if they were not working that day, since the base was closed.  This is a time and materials contract, not FFP. If your employees were not working that day toward meeting the contract's specified requirements, then why would you think the taxpayers should pay for them?  It was your decision as a business person to put these individuals on salary.  If the base is closed due to a federal holiday, then you should have had them working elsewhere on other tasks. Just because the Govt funded the product (amount) equivalent to 3760 hours times the fixed labor rate is no guarantee that your employees will be needed to work that many hours.  Are you honestly telling me that billing 16 hours less in a year's time will affect the rates you proposed and the "baked in" profit?  What you have described is a ceiling amount, that's it.  The Govt usually funds the ceiling amount on time and materials and labor hour contracts.  However, the CO can put a stop to the work at any time.  Do you understand the principles of a T&M contract?  If you agreed to pay a contractor on a T&M basis to work on your house to complete a project, would you pay him/her for time they never worked?  Lastly, what does the contract say about federal holidays and base closures?  Aside from the fact that you seem to have no contractual basis for an REA, if you are looking to maintain a good relationship with the CO, I would not submit one.  Read Aesop's Fables, specifically, the story of The Goose with the Golden Eggs.

Guardian said:

Guardian - appreciate the response. The intent was to bring this to the CO now in advance of the 6/20/22 holiday.

We have held this contract for many years and know what the end customer ultimately wants - full time support, 1880 hours per year, every year. As such, we put our employees on salary proposed our fringe rate to include 10 holidays (80 holiday hours). In my mind, the government had changed the playing field by adding a holiday that I didn't account for in my fringe rate and we needed to be reimbursed for it.

However, reading your comment brought to light what should have been obvious from the beginning - regardless of what the end customer wants or how we bid it, the contract is T&M and none of the hours are guaranteed. So I really don't have contractual grounds to go after anything at all.

Small Biz Finance said:

I want to submit an REA on a certain contract due to Juneteenth being added as a federal holiday.

I haven't seen the legislation, but you might not be entitled to an equitable adjustment. Look up "sovereign acts doctrine." https://publiccontractinginstitute.com/the-sovereign-acts-doctrine/

@Small Biz Finance

SCA applicable?  If so holidays are a fringe benefit.   If SCA is applicable  a FAR 52.222 clause might be your answer if such clauses exist in the contract along with a lot of other details like updated wage determination.  I will stop with any further thoughts other than read your contract.

Tacking on to what Carl wrote, if FAR 52.222-43 is in your contract, you might have an opening for a price adjustment, not an REA.

@Retreadfed

Quote

[I]f FAR 52.222-43 is in your contract, you might have an opening for a price adjustment, not an REA.

On what paragraph(s) of the clause might the contractor rely for a price adjustment? I must have missed the word "holiday".

Vern Edwards said:

@Retreadfed

On what paragraph(s) of the clause might the contractor rely for a price adjustment? I must have missed the word "holiday".

See Page 16 - Holiday is a fringe and -43 uses "fringe".  -44 uses "fringe" as well.    https://www.dol.gov/sites/dolgov

/files/WHD/legacy/files/Tab18.pdf

Does an employer have to give employees the day off on holidays?

Vern Edwards said:

Does an employer have to give employees the day off on holidays?

It depends.

Vern Edwards said:

On what paragraph(s) of the clause might the contractor rely for a price adjustment? I must have missed the word "holiday".

In accordance with FAR 52.222-41, contractors are to provide covered employees with the wages and fringe benefits called for by the wage determination applicable to the contract.  52.222-43(c) says in part "The wage determination, issued under the Service Contract Labor Standards statute, ( 41 U.S.C. chapter 67), by the Administrator, Wage and Hour Division, U.S. Department of Labor, current on the anniversary date of a multiple year contract or the beginning of each renewal option period, shall apply to this contract."  In turn, 52.222-41(d) reads " 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. "  Thus, if the contract in question is a multiple-year contract or a contract with options, and the new holiday is included in the fringe benefits in an updated wage determination, the contractor may have the ability to obtain a price adjustment.   Whether such an adjustment is available depends on a lot of unknown facts.

@RetreadfedThanks, Retread.

GSA: JUNETEENTH FEDERAL HOLIDAY / GUIDANCE FOR EMPLOYERS WITH SCA OR DBRA CONTRACTS

https://www.gsanational.com/juneteenth-federal-holiday-guidance-for-employers-with-sca-or-dbra-contracts/

From a law firm: Juneteenth is the 11th Annual Federal Holiday: Things for the Government Contractor to Think About

https://blindauerlaw.com/juneteenth-is-the-11th-annual-federal-holiday-things-for-the-government-contractor-to-think-about/