Timing Is Everything When Considering Service Contract Act Price Adjustments Based on CBAs
July 5, 2016
Although it may seem unusual, when an agency exercises an option on a contract incorporating the Service Contract Act (SCA), the option is considered a successor contract for the purposes of applying the SCA provisions. In other words, the contractor becomes its own successor, which in some cases may entitle it to a contract price adjustment for increased wages and fringe benefits. As the CBCA…