The clause is explicit on this issue and makes it

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The clause is explicit on this issue and makes it clear that the contractor has an adjustment entitlement for only those additional "actual costs" incurred (or that will be incurred) as a result of compliance with the WD requirement ("made to comply") for the new period of performance (option/extension). Once again a sampling of the contractor’s payroll records, particularly for the final complete pay period in the prior period of performance, would show whether the contractor has requested more than the clause permits. See the example contained in the clause itself at FAR 52.222-43(d)(1) .
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4. Since contracting officers commonly measure the difference between the actual rate paid in the prior period of performance and the new rate required by the WD for the option period, contractors will at times request that amount even though it exceeds the difference between the "old" WD requirement and the "new” WD requirement. The contractor, however, is limited to the difference between the new WD requirement and the old WD requirement. A greater difference demonstrates that the contractor did not comply with the old WD requirement and any non-compliance liability always remains the responsibility of the contractor . For example, assume for a specific job classification the new WD rate was $11 per hour and the old WD rate was $10 per hour. If the contractor's SCA price adjustment proposal was for the difference between the new WD rate, $11 per hour, and a rate actually paid in the prior period of performance of $9.50 per hour; the entitlement is limited to $1 per man-hour plus accompanying costs for payroll tax and worker's compensation insurance. The difference between the contractor's actual rate of $9.50 and the old WD rate of $10 must be covered by the contractor and is not permitted under the clause. Once again, a review of the payroll records at the end of the prior period of performance would reveal this unallowable portion of the contractor’s request. 5. Contractor request for SCA price adjustments for personnel that are "exempt" or "not covered" by the wage determination requirements . Management, administrative, or professional employees are not subject to the wage determination requirements if they meet the terms and conditions for Department of Labor "white collar" exemptions contained in 29 CFR 541 . By definition (FAR 22.1001 ), such employees are not ‘service employees’ and not subject to SCA wage determination requirements. Therefore, even if such personnel are directly performing services under the contract, the contractor is not entitled to an SCA price adjustment for these employees. If the personnel are exempt from WD requirements, there is no supportable rationale for an adjustment to contract price for wage or benefit increases paid by the contractor. Likewise, contractors commonly employ "overhead" or indirect labor employees that are supportive of their contract performance, but that are not directly performing the services required by the contract (statement of work) .
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