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B-192125 1 (1979-05-21)

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              0      THE COMPTROLLER GENERAL
DECISION              . OF  THE   UNITED STATES
                        WASHINGTON, 0. C. 20548

                        UN/6, V


B-192125


DATE: May 21, 1979


MATTER  OF:


Joule Technical Corporation


DIGEST:

1.   Oral protest to agency is permissible if
     stated in fashion that intent to protest is
     clear. Intent to protest not evident by
     statement asserted prior to submission of
     best and final offer that Service Contract
     Act wage determination is incompatible with
     solicitation and will need clarification, and
     protest, after submission of best and final
     offer against wage determination per se is
     untimely.


         2.   Successful offeror is not guilty of wage
              busting (practice of lowering.employee wages
              and fringe benefits by successor contractor
              to become low offeror when incumbent con-
              tractor's employees are retained to perform
              same jobs on successor contracts) if incum-
              bent's retained employees are reclassified
              to lower paying jobs with different duties
              and responsibilities. However, where no
              statute, regulation or statement of policy
              in existence at time solicitation issued
              precludes wage busting, no legal impediment
              exists to prevent lowering of wages for
              incumbent employees even if reduction can
              be categorized as wage busting.

         3.   While offeror is not legally obligated to pay
              wages paid by incumbent, where such offeror's
              proposal expressly states labor rates pro-
              posed are based on current wage rates for
              incumbent personnel, contracting officer
              should take such statement into account in
              consideration of proposed costs.





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