FAR 52.222-32 Construction Wage Rate Requirements—Price Adjustment (Actual Method). Basic (Aug 2018)

As prescribed in 22.407(g), insert the clause at 52.222-32, Construction Wage Rate Requirements-Price Adjustment (Actual Method), in solicitations and contracts if the contract is expected to be a fixed-price contract subject to the Construction Wage Rate Requirements statute that will contain option provisions by which the contracting officer may extend the term of the contract, and the contracting officer determines the most appropriate method to establish contract price is the method at 22.404-12(c)(4).

Construction Wage Rate Requirements—Price Adjustment (Actual Method) (Aug 2018)

(a) The wage determination issued under the Construction Wage Rate Requirements statute by the Administrator, Wage and Hour Division, U.S. Department of Labor, that is effective for an option to extend the term of the contract, will apply to that option period.

(b)(1) The Contractor states that if the prices in this contract contain an allowance for wage or benefit increases, such allowance will not be included in any request for contract price adjustment submitted under this clause.

    (2) The Contractor shall provide with each request for contract price adjustment under this clause a statement that the prices in the contract do not include any allowance for any increased cost for which adjustment is being requested.

(c) The Contracting Officer will adjust the contract price or contract unit price labor rates to reflect the Contractor’s actual increase or decrease in 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) Incorporation of the Department of Labor’s Construction Wage Rate Requirements wage determination applicable at the exercise of an option to extend the term of the contract; or

    (2) Incorporation of a Construction Wage Rate Requirements wage determination otherwise applied to the contract by operation of law.

(d) Any adjustment will be limited to increases or decreases in wages and fringe benefits as described in paragraph (c) of this clause, and the accompanying increases or decreases in social security and unemployment taxes and workers’ compensation insurance, but will not otherwise include any amount for general and administrative costs, overhead, or profit.

(e) The Contractor shall notify the Contracting Officer of any increase claimed under this clause within 30 days after receiving a revised wage determination unless this notification period is extended in writing by the Contracting Officer. The Contractor shall notify the Contracting Officer promptly of any decrease under this clause, but nothing in this clause precludes the Government from asserting a claim within the period permitted by law. The notice shall contain a statement of the amount claimed and any relevant supporting data, including payroll records that the Contracting Officer may reasonably require. Upon agreement of the parties, the Contracting Officer will modify the contract price or contract unit price in writing. The Contractor shall continue performance pending agreement on or determination of any such adjustment and its effective date.

(f) Contract price adjustment computations shall be computed as follows:

    (1) Computation for contract unit price per single craft hour for schedule of indefinite-quantity work. For each labor classification, the difference between the actual wage and benefit rates (combined) paid and the wage and benefit rates (combined) required by the new wage determination shall be added to the original contract unit price if the difference results in a combined increase. If the difference computed results in a combined decrease, the contract unit price shall be decreased by that amount if the Contractor provides notification as provided in paragraph (e) of this clause.

    (2) Computation for contract unit price containing multiple craft hours for schedule of indefinite-quantity work. For each labor classification, the difference between the actual wage and benefit rates (combined) paid and the wage and benefit rates (combined) required by the new wage determination shall be multiplied by the actual number of hours expended for each craft involved in accomplishing the unit-priced work item. The product of this computation will then be divided by the actual number of units ordered in the preceding contract period. The total of these computations for each craft will be added to the current contract unit price to obtain the new contract unit price. The extended amount for the line item will be obtained by multiplying the new unit price by the estimated quantity. If actual hours are not available from the preceding contract period for computation of the adjustment for a specific contract unit of work, the Contractor, in agreement with the Contracting Officer, shall estimate the total hours per craft per contract unit of work.
 

 

Example: Asphalt Paving—Current Price $3.38 per Square Yard

DBA Craft

New WD

 

Hourly rate paid

 

Diff.

 

Actual Hrs

Actual units (sq. yard)

 

Increase/sq yard

Equip. Opr.

$18.50

$18.00

=

$.50

×

600 hrs./

3,000 sq. yrd.

=

$.10

Truck Driver

$19.00

$18.25

=

$.75

×

525 hrs./

3,000 sq. yrd.

=

$.13

Laborer

$11.50

$11.25

=

$.25

×

750 hrs./

3,000 sq. yrd.

=

$.06

Total increase per square yard =

$.29*

* Note: Adjustment for labor rate increases or decreases may be accompanied by social security and unemployment taxes and workers’ compensation insurance.

Current unit price

Add DBA price adj.

New unit price

=

$3.38

+ .29

$3.67

per square yard

per square yard

     

(End of clause)

NONE

Services ✖ Supplies ✖ C/R ✖ Time and Materials ✖ Construction ✔ Architect-Eng ✖ 

52.215-21 Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data—Modifications.

52.216-16 Incentive Price Revision—Firm Target.

52.216-2 Economic Price Adjustment—Standard Supplies.

52.216-3 Economic Price Adjustment—Semistandard Supplies.

52.216-4 Economic Price Adjustment—Labor and Material.

52.216-5 Price Redetermination—Prospective.

52.216-6 Price Redetermination—Retroactive.

52.222-30 Construction Wage Rate Requirements—Price Adjustment (None or Separately Specified Method).

52.222-31 Construction Wage Rate Requirements—Price Adjustment (Percentage Method).

52.222-43 Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts).

52.222-44 Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment.

52.222-55 Minimum Wages Under Executive Order 13658.

52.229-4 Federal, State, and Local Taxes (State and Local Adjustments).

52.229-6 Taxes—Foreign Fixed-Price Contracts.

52.232-31 Invitation to Propose Financing Terms.

52.233-3 Protest after Award.

52.236-2 Differing Site Conditions.

52.242-14 Suspension of Work.

52.242-15 Stop-Work Order.

52.243-1 Changes—Fixed-Price.

52.243-2 Changes—Cost-Reimbursement.

52.243-3 Changes—Time-and-Materials or Labor-Hours.

52.243-4 Changes.

52.243-5 Changes and Changed Conditions.

52.243-7 Notification of Changes.

52.250-5 SAFETY Act—Equitable Adjustment.

252.216-7000 Economic Price Adjustment—Basic Steel, Aluminum, Brass, Bronze, or Copper Mill Products.

252.216-7001 Economic Price Adjustment–Nonstandard Steel Items.

252.216-7003 Economic Price Adjustment—Wage Rates or Material Prices Controlled by a Foreign Government.

252.216-7007 Economic Price Adjustment—Basic Steel, Aluminum, Brass, Bronze, or Copper Mill Products—Representation.

252.216-7008 Economic Price Adjustment—Wage Rates or Material Prices Controlled by a Foreign Government—Representation.

252.217-7003 Changes.

252.217-7027 Contract Definitization.

252.227-7002 Readjustment of Payments.

252.232-7000 Advance Payment Pool.

252.232-7012 Performance-Based Payments–Whole-Contract Basis.

252.236-7003 Payment for Mobilization and Preparatory Work.

252.236-7004 Payment for Mobilization and Demobilization.

252.237-7023 Continuation of Essential Contractor Services .

252.239-7004 Orders for Facilities and Services.

252.241-7000 Superseding Contract.

252.243-7001 Pricing of Contract Modifications.

252.243-7002 Requests for Equitable Adjustment.

252.247-7000 Hardship Conditions.

252.247-7002 Revision of Prices.

252.249-7000 Special Termination Costs.

1852.215-79 Price Adjustment for "Make-or-Buy" Changes.

1852.242-72 Denied Access to NASA Facilities

1852.243-72 Equitable Adjustments.

5252.211-9503 LEVEL OF EFFORT (COST REIMBURSEMENT) (NAVAIR)(DEC 2012)

5252.243-9505 ENGINEERING CHANGES (NAVAIR)

5252.227-9505 TECHNICAL DATA AND COMPUTER SOFTWARE IDENTIFICATION IN ENGINEERING CHANGE PROPOSALS (ECPs) (NAVAIR)

5252.242-9515 RESTRICTION ON THE DIRECT CHARGING OF MATERIAL (VARIATION)

5252.216-9200 Payment of Fixed Fee (Completion Type)

5252.216-9201 Payment of Fixed Fee Based on Staff-hours (Term Type)

5252.216-9205 Fee Determination and Payment (Indefinite Delivery Type Contracts)

5252.217-9201 Contract Maximum Amount

3052.216-70 Evaluation of offers subject to an economic price adjustment clause.

3052.216-71 Determination of award fee.

3052.231-70 Precontract costs.

5152.237-9000 Adjustments to Contractor’s Coefficient for Option Years (Job Order Contracts).

552.215-72 Price Adjustment—Failure to Provide Accurate Information.

552.216-70 Economic Price Adjustment—FSS Multiple Award Schedule Contracts.

552.216-71 Economic Price Adjustment—Special Order Program Contracts.

552.243-71 Equitable Adjustments.

552.246-70 Source Inspection by Quality Approved Manufacturer.

552.246-77 Additional Contract Warranty Provisions for Supplies of a Noncomplex Nature.

652.216-71 Price Adjustment.

652.237-70 Compensatory Time Off.

652.237-72 Observance of Legal Holidays and Administrative Leave.

952.204-76 Conditional payment of fee or profit—safeguarding restricted data and other classified information.

952.208-70 Printing.

952.216-7 Allowable cost and payment.

952.216-15 Predetermined indirect cost rates.

952.223-76 Conditional payment of fee or profit—safeguarding restricted data and other classified information and protection of worker safety and health.

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