Overview
This section outlines the requirement for incumbent contractors to provide a certified list of service employees and their employment anniversary dates to the Contracting Officer prior to the end of a contract. This information ensures that successor contractors can accurately calculate fringe benefits based on an employee's total length of service.
Key Rules
- Applicability: Applies to contracts performed at Federal facilities where service employees may be hired or retained by a succeeding contractor.
- Submission Deadline: The incumbent prime contractor must furnish the list to the Contracting Officer (CO) no later than 10 days before the contract is completed.
- Scope of List: The list must include all service employees on the prime or subcontractor’s payroll during the final month of the contract.
- Required Data: The list must be certified and include the specific anniversary dates of employment for each employee.
- Distribution: At the start of the new contract, the CO is responsible for providing this list to the successor contractor.
- Purpose: The data is used to determine eligibility for vacation or other fringe benefits mandated by an applicable wage determination that are based on length of service (including time with predecessor contractors).
Practical Implications
- Transition Management: Successor contractors rely on this data to accurately bid and budget for labor costs, as seniority-based benefits (like three weeks of vacation after five years) transfer with the employee regardless of the change in employer.
- Compliance Risk: Incumbent contractors must maintain meticulous payroll and HR records to meet the 10-day certification deadline and avoid potential contract performance disputes during the closeout phase.