FAR 52.222-43 - Fair Labor Standards Act and Service Contract Labor Standards - Price Adjustment (Multiple Year and Option Contracts)
Prescribed in 22.1006(c)(1) | |
Effective Date: | 1 May 2014 |
Clause or Provision: | Clause |
Provision or Clause Number: | 52.222-43 - Fair Labor Standards Act and Service Contract Labor Standards - Price Adjustment (Multiple Year and Option Contracts) |
Principle Type And/Or Purpose of Contract: | |
Required: | |
Applicable: | Time and Materials/Labor Hour; Architect-Engineering; Dismantling, Demolition or Removal of Improvements; Communication Services; Time & Material/Labor Hour; Cost Reimbursement, Service; Fixed Price, Service; Transportation; Simplified Acquisition Procedures (Excludes Micro-Purchase) |
Optional: | Utility Services; Facilities; Indefinite Delivery; Leasing of Motor Vehicles; Fixed Price, Construction; Cost Reimbursement, Construction; Cost Reimbursement, Supply |
Subject: | Employment/Labor/Wages |
ProcurementType: | |
Contract Threshold: | |
Prescription Overview: |
Prescription(c)(1) The contracting officer shall insert the clause at 52.222-43, Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts), or another clause which accomplishes the same purpose, in solicitations and contracts if the contract is expected to be a fixed-price, time-and-materials, or labor-hour service contract containing the clause at 52.222-41, Service Contract Labor Standards, and is a multiple year contract or is a contract with options to renew which exceeds the simplified acquisition threshold. The clause may be used in contracts that do not exceed the simplified acquisition threshold. The clause at 52.222-43, Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts), applies to both contracts subject to area prevailing wage determinations and contracts subject to the incumbent contractor’s collective bargaining agreement in effect during this contract’s preceding contract period (see 22.1002-2 and 22.1002-3). Contracting officers shall ensure that contract prices or contract unit price labor rates are adjusted only to the extent that a contractor’s increases or decreases in applicable wages and fringe benefits are made to comply with the requirements set forth in the clauses at 52.222-43 (subparagraphs (d)(1), (2) and (3)), or 52.222-44 (subparagraphs (b)(1) and (2)). (For example, the prior year wage determination required a minimum wage rate of $4.00 per hour. The contractor actually paid $4.10. The new wage determination increases the minimum rate to $4.50. The contractor increases the rate actually paid to $4.75 per hour. The allowable price adjustment is $.40 per hour.) |
Clause Overview: |
Clause(a) This clause applies to both contracts subject to area prevailing wage determinations and contracts subject to collective bargaining agreements.
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Important Notes/Requirements: | |
Subcontract Threshold: | |
Incorporated by Reference: | Yes |
Uniform Contract Format: | I |
Editor: | Marshall |
Personal notes.