FAR 52.222-43 — Fair Labor Standards Act and Service Contract Labor Standards — Price Adjustment (Multiple Year and Option Contracts)
Provides for price adjustments to Service Contract Act covered contracts when DOL Wage Determinations are updated during option exercises on multi-year contracts.
When This Clause Applies
Required in multi-year and option-exercised SCA-covered service contracts.
What This Means for Contractors
Contractors are entitled to (and must claim) price adjustments equal to the increased wages and fringe benefits resulting from updated Wage Determinations. Failure to claim is permanent loss; the government does not adjust automatically.
Common Pitfalls
- 1Missing the price adjustment claim window after option exercise
- 2Inadequate documentation of pre- and post-WD labor costs
- 3Confusing this with the inflation/economic price adjustment clauses
Related Topics
Related Clauses
Service Contract Labor Standards (Service Contract Act)
Implements the McNamara-O'Hara Service Contract Act — requires contractors performing federal service contracts to pay prevailing wages and fringe benefits per Department of Labor Wage Determinations.
Fair Labor Standards Act and Service Contract Labor Standards — Price Adjustment
Counterpart to 52.222-43 for single-year SCA contracts — provides price adjustments when DOL Wage Determinations are updated during contract performance.
Continue Your Research
NAICS 518210 — Data Processing, Hosting, and Related Services
Find federal contracts under NAICS 518210. Common agencies, set-asides, contract values.
NAICS 541330 — Engineering Services
Find federal contracts under NAICS 541330. Common agencies, set-asides, contract values.
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