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The Federal Circuit Confirms Proper SCA Price Adjustments

Aug.24.2006

The Federal Circuit, in Lear Siegler Services, Inc. v. Rumsfeld (July 28, 2006, http://www.fedcir.gov/opinions/06-1080.pdf), reverses the ASBCA and confirms that the Service Contract Act Price Adjustments clause, FAR 52.222-43, entitles the contractor to an adjustment for its increased cost of providing health and welfare benefits specified in a collective bargaining agreement, even though the benefits themselves did not change.

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Amy Laderberg O'Sullivan
Partner – Washington, D.C.
Phone: +1 202.624.2563
Email: aosullivan@crowell.com