EP 1180-1-1
1 Aug 01
Classification X (.00 times 1.4%) to provide the SCA enforceable new wage rate
of .14 per hour. The increase of $.14 per hour is an allowable adjustment under the
Clause.
b. Follow-on contracts. If a labor classification was conformed in the previous contract, but does
not appear on the WD initially provided for a new, follow-on contract, the conformed classification
should be added to the solicitation and resulting contract by reference attached to the applicable new
WD. A rate should be established by the CO for this classification by using the indexing method to carry
the rate from the old contract to an indexed relationship with the new WD. A new SF 1444 is not
required.
9-13. Fair Labor Standards Act (FLSA) Adjustments. The policies and procedures described above for
SCA adjustments also apply to revisions of the FLSA minimum wage. No contract adjustment is made
for FLSA minimum wage increases which are signed into law prior to contract award, even though the
effective date of the increase is after award. Given public notice of the change in the FLSA minimum, the
contractor would have anticipated the increase when developing the original bid or proposal and there
should be no adjustment of the contract price.
9-15
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