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Even Short Contract Extensions Require Updated Service Contract Act Wages

Nov.03.2004

Even a short (monthly or semi-monthly) extension of a contract subject to the Service Contract Act is considered a "new contract" requiring the government to incorporate new collective bargaining agreement wage and fringe benefit rates, the ASBCA held in Guardian Moving & Storage Co. (Sept. 23, 2004). The same reasoning--and rule--would require the incorporation of the latest available area wage determination where no collective bargaining agreement applied.

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