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B-190588 1 (1978-03-06)

handle is hein.gao/gaobadftm0001 and id is 1 raw text is: 
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                        I THU CrJMPTcOLLUL         RAL
 lECISION      .   ~    . OF  rEm   UNITEL.        rua
                       * WAUMINGTnN. D.C       20B4S



 LE:   8-190568                DATh: March 6, 1978

 MATTEM  OF:
             Suburban Industrial Maintenance Co.
 DIGEST:
 1. Agency  is not required to inc.Lude escalation
     clause in invitation for bid for an annual con-
     tract for janitorial services to provide for
     possible increases in wages which may occur as
     a result of collective iargaining agreement due
     to be negotiated after bid opening, and failure
     to do so is not a violat:'an tof the terms and
     policiet of the Service Contrct Act of 1965,
     as amendud, 41 U.S.C. 351 et seq.

2.  Wage rate determinatioiof  the Secretary of
    Labor establishes the minimum wages prevailing
    in the lcaiity  of contract performance at the
    time of the advertisement, and is not a guarantee
    that the appropriate work force can be employed by
    the bidder at those rates during the performance of
    the contract; it -is the responsibility of the bidder
    to project his costs and to include in his basic con-
    tract price a factor te cover any potential increase
    in wages.

3.  Where IPB contains applicable Service Contract
    Act wage determination and low bidder is obligated
    to accept award and perform contract at its bid
    price, a new collective bargaining agreement nego-
    tiated by incumbent contractor prior to award and
    during pendency rf protest provides no basis to can-
    cel IPB and readvertise recuirement.


    Suburban  Industrial Maintenance Co. (Suburban)
protests the failure of the General Services Admin-
istration to include an escalation clause to cover
increased wages which may be paid under a contract
resulting from invitation for bid (IFB) No. 2Pt0-VN-
19,092 for janitorial services at the U.S. Customs
Hou..e, New York, New York, for the one year period
ending November 30, 1978.









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