The Federal Circuit Confirms Proper SCA Price Adjustments

The Federal Circuit, in Lear Siegler Services, Inc. v. Rumsfeld (July 28, 2006), 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.